Yeske Buie in the Media: Annuities and the Advisory World

Yeske Buie in the Mediaon November 15th, 2017No Comments

According to a recent CNBC article, annuities are near the top of the list of financial products that fiduciary advisors hate. The article shares that the reasons for this are plentiful, ranging from cost, to complexity, to their reputation for not acting in a Client’s best interest. Dave spoke with the reporter for this article, Andrew Osterland, to share his thoughts on the declining use of annuities among advisors and his reasons for not recommending annuities for Yeske Buie Clients.

In regards to the declining use of annuities among fiduciary advisors, the article shares, “David Yeske, managing director of registered investment advisory firm Yeske Buie, said that variable annuities have fallen out of favor with the fee-based advisors he regularly surveys for the Financial Planning Association. ‘The use of variable annuities has been declining for years, and that’s probably representative of the fiduciary side of the advisory world,’ said Yeske.”

When it comes to using annuities for Yeske Buie’s Clients, the article quotes Dave saying the following:

For his part, Yeske is not categorically against fixed or immediate annuities that guarantee income streams for investors, but he has never used them for his own clients. He thinks the adverse tax treatment of variable annuities — the gains in all distributions from the contracts are taxed as ordinary income — makes them a bad idea for savers.

“Variable annuities are a perfect machine for converting capital gains to ordinary income,” he said. While the gains within a variable annuity portfolio are tax-deferred, they are ultimately taxed at up to 39.6 percent, versus the 15 percent capital gains tax rate. “It’s hard to find scenarios where the benefits of tax deferral justify getting taxed at the higher rate.”

The full article titled “Despite what you’ve heard, annuities aren’t all bad” can be found here.

CNBC Small Business Survey

Yeske Buie in the Mediaon November 2nd, 2017No Comments

Written By: Lauren Mireles, RP®

According to the third-quarter results of a recent CNBC survey, taxes are currently at the top of the list of critical issues for small businesses. This finding does not come as a surprise, especially considering the current Administration’s proposed tax reform changes. In a recent CNBC article on the topic of tax reform, Dave shared his thoughts with reporter Elaine Pofeldt, offering a perspective from a professional who works with small business owners and as a small business owner himself.

As is shared in the CNBC article, “Trump proposed a variety of tax-reform measures, both for individuals and business. The reforms to individual tax rates would affect small-business owners, who are often taxed on their income at individual tax rates.” Dave confirmed this statement by sharing, “’The vast majority of small-business owners pay taxes through their individual return,’ says Dave Yeske, CFP, managing director of Yeske Buie, who works out of the firm’s San Francisco office.”

The article also makes an argument that when it comes to taxes, “simpler is better.” The study found that, “many in the business community say they welcome the ideas for simplification and tax cuts that have been proposed so far — but the big questions are whether lawmakers can reach a consensus on these reforms. Business owners are also wondering if the tax code is overhauled, when will changes take effect.” Dave supported this point as well stating, “Tax simplification would be a boon to small business owners—and a boon to everyone.”

The full article titled “GOP Tax Bill Slashes Taxes on Main Street: Can It Keep the American Dream Alive?” can be found here.

Media Download

Yeske Buie in the Mediaon October 18th, 2017No Comments

As we’ve shared in this space before, Yeske Buie is a supporter of team attendance at impactful events and conferences because of our belief in the value of learning from other bright minds in the profession and the value of having opportunities to grow our connections with other planners, finance professionals, media, and more. The team’s recent attendance at the Financial Planning Association’s Annual Conference was no exception. While a summary of the team’s key learnings is available here on our website, we’d like to share in this piece a collection of our networking efforts that attracted media attention.

P. Kemp Fain Jr. Award Media

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The above is a tribute video that was shown at the ceremony where Dr. Dave Yeske received the P. Kemp Fain, Jr. Award, the financial planning profession’s highest honor.


Market Perspectives

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CNBC

The Biggest Stock Market Trade of the Year May Be At a Tipping Point

Dave spoke with Jeff Brown, special to CNBC.com on the topic of foreign stocks:

“Dave Yeske, managing director of financial advisory firm Yeske Buie, said he has always been “geographically neutral,” which has resulted in allocations that are roughly half U.S. and half overseas — and roughly 11 percent emerging markets, specifically, right now.”

“Yeske said his firm sticks with its target allocations over time and lets the markets tell it when a market is expensive or cheap through rebalancing. ‘We’re making all of our adjustments at the margin, never making big bets,’ he said.”

” Yeske [said] most U.S. investors should be putting more money into foreign stocks, with an added focus now on value stocks, which have ‘vastly underperformed’ growth stocks.”


Exchange-traded Funds are the Go-To Investment for Advisors

Dave spoke with Andrew Osterland of CNBC on the growing popularity of ETFs:

“‘The proportion of advisors using ETFs more than doubled in the last decade,’ said David Yeske, head of registered investment advisor Yeske Buie and practitioner editor of the FPA’s Journal of Financial Planning. ‘ETFs now represent the biggest investment category for advisors.’ The reasons are simple enough: low costs and broad diversification.”

“Advisors have been slower to make use of passively managed index funds in the bond market than they have in equities, but that is now changing. Many still feel that riskier sectors such as municipal and high-yield bonds still require an active hand, but in the Treasury and investment-grade markets, ETFs are rapidly gaining market share. ‘In a market with lower returns, lower expenses are all the more important,’ said Yeske at Yeske Buie.”


The Financial Planning Profession

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The Journal of Financial Planning

10 Questions: Dave Yeske on Evidence-Based Financial Planning, an Evolving Profession, and the Role of Science

“Not everything we do can be subjected to scientific inquiry, but I believe that anything that can, should be.” – Dr. Dave Yeske

After nearly three decades serving clients and being an influential thought leader whose efforts have served to advance the financial planning profession, Dave Yeske sheds light on who has inspired him in his career, how he’s evolved as a financial planner, if he has any regrets in his career, and more.


Financial Planner Podcast

Live Big with Dr. Dave Yeske

Dave joined Hannah Moore for the recorded podcast series titled “You’re a Financial Planner; Now What?” where he shared insights on:

  • The why and how of staying passionate about financial planning.
  • The importance of finding your tribe.
  • The background of Dave’s research in Evidence-Based Financial Planning.
  • How financial planning does not simply involve the “art and science,” but how it’s the artful application of science in all areas, including the “interior” side of planning.
  • Where Dave sees the financial planning profession growing when we finally have the confidence in what we bring to the table.
  • How the big problems facing our profession can only be solved together.
  • Why “Live Big” is the tagline of Dave’s financial planning firm.

InvestmentNews

The Distinction Between Financial Advisors and Financial Planning

Industry icon Dave Yeske talks about the challenges and opportunities facing the financial advice profession.

“I think we have to have a bright white line between financial planning and financial advice. As my partner Elissa Buie likes to say, ‘Financial planning is magical. Financial advice is nice; financial advice is useful.’ The reality is that there is a lot of financial advice that is masqueraded as financial planning and the public can’t tell the difference and the difference matters. Financial planning is contextual, and it’s comprehensive, and it’s integrated, and it’s strategic. Financial advice is more transnational, ask and answer.”

Dr. Dave Yeske


Investopedia

The Evolution of Financial Planning

Dr. Dave Yeske is Awarded the Profession’s Lifetime Achievement Award

Firm News & Events, Yeske Buie in the Mediaon October 3rd, 20171 Comment

NASHVILLE, TN, October 3, 2017 – The Financial Planning Association (FPA®) awarded the profession’s lifetime achievement award, the P. Kemp Fain Jr. award, to Dr. Dave Yeske, CFP®, Managing Director of Yeske Buie.

“Over my 20 years in our profession, I have been fortunate to come to know so many talented leaders, but few have given back as much and are as knowledgeable as Dave,” said 2017 FPA President Shannon J. Pike, CFP®. Pike continued, “Dave is one of those dynamic voices and leaders who has mastered so many areas of financial planning and is a true historian of our profession. He has never rested on his accomplishments and continues to support the next generation of financial planners through education and mentorship both in and out of FPA. No one is more deserving than Dave for this prestigious honor.”

At the award presentation ceremony in Nashville, TN, Dr. Yeske was lauded for his contributions as a thought leader in the profession and his dedication to teaching and mentoring future generations of planners. Dave has contributed to many of the profession’s major publications, including FPA’s award-winning Journal of Financial Planning, where he currently serves as Practitioner Editor. Dr. Dave frequently shares his thinking on financial planning theory and practice at conferences around the country and around the world.

Dr. Yeske is dedicated to the growth and development of future financial planners. He is a long-time mentor and Dean in FPA’s Residency program and is the director of Golden Gate University’s financial planning program, where he has taught for more than two decades.

P. Kemp Fain, Jr. was a notable pioneer in the development of the financial planning profession. Kemp Fain was the first person to enroll in the nascent CFP education program and among the first class of graduates in 1973. He formed the first chapter of the International Association for Financial Planning (IAFP), served as national president and chair of the Institute of Certified Financial Planners (ICFP), and was twice chair of the CFP Board of Standards, the licensing body for CFP Professionals. Kemp wrote a seminal white paper, “One Profession, One Designation,” which set an initial vision for the financial planning profession. It is in honor of this vision and work that this award is bestowed.

Dr. Yeske holds a doctorate in finance from Golden Gate University, as well as an M.A. in Economics and a B.S. in Applied Economics from the University of San Francisco. He has been practicing financial planning since 1990 and is Managing Director of Yeske Buie, a financial planning firm with offices in Vienna, Virginia and San Francisco, California.

SOURCE: Yeske Buie

A New Financial Planning Framework for the Millennial Generation

Yeske Buie in the Mediaon September 5th, 2017No Comments

VIENNA, Va., September 5, 2017 – This year’s September issue of the award-winning, peer-reviewed Journal of Financial Planning explores opportunities and challenges for the next generation of financial planners and clients. The cover story of the issue titled “Serving Millennial Clients with a 3-Step Model” was written by Russell Kroeger, CFP®, EA, and Yusuf Abugideiri, CFP® and features an exciting new framework to help financial planners engage the millennial generation.

The model is based on grounded concepts, including policy-based financial planning® and the financial planning process, that originate from some of the brightest minds in the profession. These concepts provide a strong foundation on which the authors build an argument for the importance of understanding generational worldviews, addressing the balance between instant and delayed gratification, and collaborating authentically with millennials.

The duo presented their model to a group of financial planning practitioners at the Financial Planning Association’s Far West Roundup conference and they plan to continue to share the framework within the profession in service of the next generation of planners and clients. Yeske Buie, a recognized leader in the financial planning profession, is a proud supporter of the work of these two well-established CFP® professionals; Yusuf Abugideiri is a Senior Financial Planner with eight years of experience at Yeske Buie and Russell Kroeger is a recent graduate of Yeske Buie’s Financial Planning Resident Program and has since founded his own financial planning practice.

The full article is available on the Journal of Financial Planning website.

About Russell Kroeger, CFP®, EA
Russell is the founder of Paradigm Wealth Architects, holds a bachelor’s in finance from Virginia Tech and is pursuing a master’s degree in financial planning and taxation at Golden Gate University. He’s a graduate of Yeske Buie’s financial planning resident program and the FPA Residency Program, and was a 2016 NexGen co-director for FPA of San Francisco. He now serves as director of advocacy for San Francisco as a representative of FPA of California, as well as the NexGen representative for the OneFPA Advisory Group.

About Yusuf Abugideiri, CFP®
Yusuf holds a bachelor’s in finance from Virginia Tech and a master’s degree in economics from George Mason University. He served as the director of public relations of FPA of the National Capital Area. He has also served as co-chair of the Recent Alumni Board of the Pamplin College of Business at Virginia Tech since 2015; he visits campus frequently to speak to current and prospective students. He is a graduate of the FPA Residency Program, and in 2016 was named to InvestmentNews’ 40 Under 40 list and WealthManagement’s list of the top CFP® holders under age 36.

SOURCE – Yeske Buie

The 2017 Trends in Investing Survey

Economy and Investing, Yeske Buie in the Mediaon July 11th, 2017No Comments

Summary By: Lauren Mireles, RP®

The Financial Planning Association® (FPA®) and the Journal of Financial Planning recently released the results of their annual “Trends in Investing Survey”. The survey includes responses from over 300 advisors of various backgrounds and shows advisor data on investments used, diversification, asset allocation, rebalancing and more. One of the most notable data points is the resounding preference of ETFs for the third year in a row.

In his role as Practitioner Editor for the Journal of Financial Planning, Dave assisted in the development and interpretation of the survey. Helping to shed some light on the survey, Dave shared his thoughts with CNBC reporter, Sarah O’Brien.

Regarding the popularity of ETFs for the third consecutive year, Dave shares:

“ETFs have gone from representing a very small part of [advisors’] tool kit to now representing a very significant part,” said certified financial planner David Yeske, managing director of Yeske Buie. “One of the things it suggests is that financial planners are ever more convinced that active management is hard,” said Yeske.

With the next most popular investment vehicle being cash and cash equivalents, Dave says:

As for the increase in cash-type investments, Yeske said it could signal that advisors are taking a more conservative stance on the market. “This makes me think that planners are feeling a sense of caution about the investment world and are building resilience in client portfolios,” said Yeske, who worked on the survey in his role as an editor at the Journal of Financial Planning.

For the first time, the survey explored portfolio diversification. Dave said of the results:

Yeske at Yeske Buie said that, in the short-term, it’s difficult to prevent portfolio volatility through diversification. “No matter how you diversify, everything will move [up or down] together in the short run,” Yeske said. “[…] diversity is more about achieving a certain amount of investment security and safety over the long-term.”

RELATED:

Yeske Buie in the Media: Attracting Talent at Small Advisory Firms

Yeske Buie in the Mediaon June 1st, 2017No Comments

Summary By: Lauren Mireles, RP®

Yeske Buie is dedicated to building a reliable and hardworking team that is capable of providing flawless, comprehensive service to our current Clients and the generations of Clients to come. We are proud of the team we have and we look forward to growing the team with more and more competent, ethical, and dedicated financial planners. However, as Liz Skinner recently shared in an InvestmentNews article, attracting new talent can be a struggle for advisory firms. Skinner’s article includes quotes from Lauren Stansell, CFP®, Financial Planner in our San Francisco office, who shares insights on Yeske Buie’s mentality and approach when it comes to hiring new talent.
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Ten-year-old advisory firm Yeske Buie has integrated a long-term approach for hiring young advisers that’s based on a book on C-suite hiring by Geoff Smart and Randy Street, “Who: The A Method for Hiring” (Ballantine Books, 2008).
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“We have come to realize that recruiting for new talent is just an ongoing process, it’s always happening,” said Lauren Grove, a financial planner at the 14-employee firm.
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Yeske Buie is in regular contact with financial planning programs and is active in both its local and the national Financial Planning Association.
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Yeske Buie also has a formal and rigorous hiring process that includes personality testing and other exercises, such as having candidates take notes at client discovery meetings,
write client emails and perform client meeting follow-ups.
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The firm adheres closely to the process and rejects candidates if the testing suggests they won’t be a good fit. That can be hard when the team especially likes a candidate personally, but retaining the firm’s culture is paramount.
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“Someone can be the most brilliant mind in the room, but if they don’t get along with the team of 14, it’s going to cause a lot of issues,” Ms. Grove said.
The entire InvestmentNews article can be found here: Shrinking Talent Poll Puts Strain on Advisory Firms.

Financial Behavior: Players, Services, Products and Markets

Yeske Buie in the Mediaon May 26th, 2017No Comments

SAN FRANCISCO, Ca., May 25, 2017/PRNewswire/ — Oxford University Press has just published the seventh book in the Financial Markets and Investment Series, Financial Behavior: Players, Services, Products, and Markets. Elissa Buie, CFP® and Dr. Dave Yeske, CFP® of Yeske Buie contributed chapter fifteen of the new text entitled “Psychological Aspects of Financial Planning”. As a whole, the book offers a different way of looking at financial and emotional well-being and processing beliefs, emotions, and behaviors related to money. Yeske and Buie’s chapter, specifically, addresses several dimensions of financial planning including the history and development, strategic components related to Client trust and commitment, knowledge and evidence-based financial planning®, and the behavioral dimension of the profession.

Those in the financial services industry agree that the book is an invaluable resource on the topic of behavioral finance. Gregg S. Fisher, CFA, CFP®, Founder and Head of Quantitative Research and Portfolio Strategy said of the text, “Financial Behavior provides a fine overview of the latest research and thinking from the evolving field of behavioral finance, with great value for audiences ranging from students and academics to investors and financial professionals.” Paul Bennett, PhD, CFP®, author of The Money Navigator: The Essential Guide to Living Your Ideal Financial Life echoed these sentiments stating, “Baker, Filbeck and Ricciardi have provided a de facto must-read for anyone who is interested in better understanding human behavior and its resultant impact on financial planning and investing.”

The book is now available on Amazon.com.

About Elissa Buie, CFP®

Elissa holds an MBA from the University of Maryland and a BS in Commerce from the University of Virginia. She has been practicing financial planning for over three decades and she has been deeply involved in the development of the financial planning profession. Elissa is the CEO of Yeske Buie and a past-chair of the Foundation for Financial Planning. She is also a past-chair of the Financial Planning Association (FPA), a Dean in FPA’s Residency Program, and a Distinguished Adjunct Professor in Golden Gate University’s Ageno School of Business. Elissa has been named as a top advisor by Worth and Washingtonian magazines and Bloomberg Wealth Manager, and was named to InvestmentNews’ Women to Watch list in 2015. In 2013, Elissa was awarded the prestigious P. Kemp Fain, Jr. Award, the Financial Planning profession’s equivalent of a lifetime achievement award. She has been quoted in The Wall Street Journal, Washington Post, and Business Week, has made appearances on The Today Show, NBC News, and CNBC, and has been published in the Journal of Financial Planning.

About Dave Yeske, CFP®

Dave holds a doctorate in finance from Golden Gate University, as well as an M.A. in Economics and a B.S. in Applied Economics from the University of San Francisco. Dave is Managing Director of Yeske Buie, a Dean in the Financial Planning Association’s (FPA) Residency Program, and holds an appointment as Distinguished Adjunct Professor in Golden Gate University’s Ageno School of Business where he is also the director of the University’s financial planning program. He is a past-chair of the Financial Planning Association, and also chaired FPA’s PAC, Research Center Team, and Academic Advisory Council. Dave is the Practitioner Editor of the Journal of Financial Planning and has been published in the Journal multiple times. He has been quoted in The Wall Street Journal, The New York Times, and The San Francisco Chronicle, and he has written feature articles for Research Magazine, San Francisco Magazine, and The Journal of Retirement Planning.

Learn more about Elissa and Dave.

SOURCE – Yeske Buie

Ask the Experts: Budgeting for a Wedding

Yeske Buie in the Media, Yeske Buie Millennialon February 8th, 2017No Comments

A recent article on WalletHub.com featured a list of “2017’s Best Places to Get Married” which highlighted cities with the lowest and highest wedding costs, most and fewest wedding chapels, event planners, bridal shops and more. To supplement the research findings, the article also included an “Ask the Experts” section which asked legal experts, financial experts, and professors in family study programs for their insights on financial considerations for brides and grooms-to-be. Lauren Stansell, Financial Planner in our San Francisco office, provided her thoughts for the article – a very appropriate topic for Lauren to comment on as she’s currently planning her own wedding! – and we’ve shared her answers below.

  • What factors should couples consider when setting a budget for their wedding?
    • There are many factors to consider when planning a budget – it’s easy to think of the big ticket items like the venue, catering and music, but the little items add up, too! So it’s important to really think through all pieces of the budget together as a couple when making your initial plan. There are many sample budgets online that can show you typical spending by category, give ideas on where you can safely cut costs and find budget-friendly options, and provide resources for further research in each category. I found these very helpful in the early stages of budgeting because they provide you with a massive list of things that could come up – and they can also show you some ‘typical’ wedding expenses you may not care to include at all.
  • How should a couple decide where to get married?
    • Deciding where to get married can be influenced by many different factors (including family members and friends), but in the end, couples should decide to get married somewhere that feels special to them. The importance of the day is all about the two people saying ‘I do’. It could be where they live now or used to live, where they met, or somewhere they’ve always wanted to go. The venue fees, of course, need to fit within the budget, and planning a wedding from afar is something that needs to be specially considered as it can add another layer of planning and budgeting.
  • What tips do you have for a couple planning a wedding and hoping to stay on budget?
    • From personal experience, my tips would be:
      • Do your research before committing to anything
      • Look into multiple vendors for each piece you plan and read reviews! Wedding sites like The Knot and WeddingWire have great resources on their websites with lists of vendors in your area complete with reviews from real couples who used the vendor’s services
      • If you plan a budget, stick to it! If you absolutely can’t stick to the budget for one category, see if you can adjust the budget elsewhere to make up for it. It can be very easy to let one thing slide through over budget…and then continue to do so time after time. Before you know it the whole budget is blown. And that only adds stress to planning a very special day. So set a budget and do your very best to stick to it and hold your partner (and anyone else helping to plan your wedding) to it!
      • Have fun! The amount of planning can get stressful, but keep in mind the purpose behind the day and it is all worth it.
  • Weddings can often be an economic boost to local businesses. What measures can local authorities undertake in order to stimulate weddings in their respective communities?
    • I was a bit stumped for ideas on this one so I spoke with my coworker, Lauren Vitt, who recently got married and she had a great idea. Local authorities could stimulate weddings by organizing a way for couples to get discounts on their wedding venue rental if they use more than a certain number of local businesses for their wedding needs (i.e., wedding dress shops, alterations, florists, bakeries, etc.). This would require some definitions as to what businesses are considered ‘local’, but any offer to help couples cut costs is going to be enticing!

Read the full article on WalletHub: 2017’s Best Places to Get Married.

Investment News: Financial advisers reach out to clients as stocks plunge in Brexit wake

Yeske Buie in the Mediaon December 1st, 2016No Comments

Brexit Direction SignLiz Skinner of Investment News talked to Dave in the aftermath of the Brexit vote and he shared Yeske Buie’s measured approach to the event.

“I agree, of course, with staying the course,” one client responded to an email sent early Friday morning by Dave Yeske, managing director of Yeske Buie. “In fact, I would be interested in your take on when it would be appropriate to buy a bit more, and if so, how we do that?”

Mr. Yeske said he responded to the first incoming client email about the Brexit vote at 2:20 a.m. ET, calming someone nervous about the impact on her 401(k) investments. Mr. Yeske sent out a note to all clients a few hours later, suggesting the market reactions over the next week should not be extrapolated far into the future.

“Is it true that this development has negative ramifications? Yes,” the note said. “Will the more apocalyptic predictions now spilling forth come true? Almost assuredly not.”

See also:

Brexiting Brits

The Brexit Bust


“Our deepest fear is not that we are inadequate. Our deepest fear is that we are powerful beyond measure. It is our light, not our darkness that most frightens us. We ask ourselves, Who am I to be brilliant, gorgeous, talented, fabulous? Actually, who are you not to be? Your playing small does not serve the world. There is nothing enlightened about shrinking so that others won't feel insecure around you. We are all meant to shine. And as we let our own light shine, we unconsciously give others permission to do the same. As we are liberated from our own fear, our presence automatically liberates others.” ~Marianne Williamson