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WORDS TO THE WISE: TUNE OUT THE NOISE

For investors, it can be easy to feel overwhelmed by the relentless stream of news about markets. Being bombarded with data and headlines presented as impactful to your financial well-being can evoke strong emotional responses from even the most experienced investors. Headlines from the ”lost decade”1 can help illustrate several periods that may have led market participants to question their approach.

  • May 1999:   Dow Jones Industrial Average Closes Above 11,000 for the First Time
  • March 2000:   Nasdaq Stock Exchange Index Reaches an All‑Time High of 5,048
  • April 2000:   In Less Than a Month, Nearly a Trillion Dollars of Stock Value Evaporates
  • October 2002:   Nasdaq Hits a Bear-Market Low of 1,114
  • September 2005:   Home Prices Post Record Gains
  • September 2008:   Lehman Files for Bankruptcy, Merrill Is Sold
  • February 12, 2020:   The Dow hits all-time high of 29,568
  • February 19, 2020:   The S&P 500 hits all-time high of 3,393

While most of these events are now a decade or more behind us, they can still serve as an important reminder for investors today. For many, feelings of elation or despair can accompany headlines like these. We should remember that markets can be volatile and recognize that, in the moment, doing nothing may feel paralyzing. Throughout these ups and downs, however, if one had hypothetically invested $10,000 in US stocks in May 1999 and stayed invested, that investment would be worth approximately $28,000 by March 2018.2

When faced with short-term noise, it is easy to lose sight of the potential long-term benefits of staying invested. While no one has a crystal ball, adopting a long-term perspective can help change how investors view market volatility and help them look beyond the headlines.

Exhibit 1
Hypothetical Growth of Wealth in the S&P 500 Index 
May 1999–March 2018



The Value of a Trusted Advisor

Part of being able to avoid giving in to emotion during periods of uncertainty is having an appropriate asset allocation that is aligned with an investor’s willingness and ability to bear risk. It also helps to remember that if returns were guaranteed, you would not expect to earn a premium. Creating a portfolio investors are comfortable with, understanding that uncertainty is a part of investing, and sticking to a plan may ultimately lead to a better investment experience.

However, as with many aspects of life, we can all benefit from a bit of help in reaching our goals. The best athletes in the world work closely with a coach to increase their odds of winning, and many successful professionals rely on the assistance of a mentor or career coach to help them manage the obstacles that arise during a career. Why? They understand that the wisdom of an experienced professional, combined with the discipline to forge ahead during challenging times, can keep them on the right track. The right financial advisor can play this vital role for an investor. We provide the expertise, perspective, and encouragement to keep you focused on your destination and in your seat when it matters most. A recent survey conducted by Dimensional Fund Advisors found that, along with progress towards their goals, investors place a high value on the sense of security they receive from their relationship with a financial advisor.

Having a strong relationship with an advisor can help you be better prepared to live your life through the ups and downs of the market. That’s the value of discipline, perspective, and calm. That’s the difference the right financial advisor makes.  That's what we do for you.

Exhibit 2
How Do You Primarily Measure the Value Received from Your Advisor?
Top Four Responses

So, whether you’re looking for personal financial planning or corporate/institutional services, PROFi will be your favorite guide to achieving your financial goals.

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PROFi Clients
Remember that your investment portfolio has your approved blend of stocks and bonds designed to help meet your investment goals. This "portfolio allocation" was carefully designed with consideration for income sources, cash flows and cash reserves, asset diversification, tax minimization, and personal risk tolerance. We carefully illustrate the potential of loss during severe market corrections as well as average market recovery time and historical portfolio performance expectations. We vigilantly monitor your investments to identify when a realignment is necessary to restore your portfolio back to its original allocation. This disciplined process is called "rebalancing" and is the implementation of the old adage, "buy low and sell high." So, while we have received very few concerns or inquiries about current market conditions, we invite you to regularly check this web site for updates and contact us if you have any questions or concerns. Remember, when it's important to you then it's important to us!

Footnotes
1 For the US stock market, this is generally understood as the period inclusive of 1999–2009.
2 As measured by the S&P 500 Index. A hypothetical portfolio of $10,000 invested on April 30, 1999, and tracking the S&P 500 Index, would have grown to $28,408 on March 31, 2018. However, performance of a hypothetical investment does not reflect transaction costs, taxes, or returns that any investor actually attained and may not reflect the true costs, including management fees, of an actual portfolio. Changes in any assumption may have a material impact on the hypothetical returns presented. It is not possible to invest directly in an index.

Disclosures
Dimensional Fund Advisors LP is an investment advisor registered with the Securities and Exchange Commission. Indices are not available for direct investment. Their performance does not reflect the expenses associated with the management of an actual portfolio. There is no guarantee investment strategies will be successful. Investing involves risks including possible loss of principal. Investors should talk to their financial advisor prior to making any investment decision. There is always the risk that an investor may lose money. A long-term investment approach cannot guarantee a profit. All expressions of opinion are subject to change. This article is distributed for educational purposes, and it is not to be construed as an offer, solicitation, recommendation, or endorsement of any particular security, products, or services. Investors should talk to their financial advisor prior to making any investment decision.

SERVICES


This is your story...!

We care for you and your financial well being like we care for our own family.  And, yes, you will have some chores to complete.  From the moment we first meet, you will feel the warmth, respect and authentic attention to you.  We love our clients whether they have thousands or millions because our "minimum" is not about accumulated wealth, but rather about a trusted relationship focused on what's best for you - this is your story not ours - and we tell you the truth even if you don't want to hear it!  Our team of Certified Financial Planners (CFP®) craft comprehensive strategies that deliver long-term results at risk levels built for your peace of mind. We know that personalized plans tailored to your needs help you experience both personal and financial satisfaction.

We help individuals and families consider their heritage, increase their wealth and preserve their legacy to future generations.

Financial planning means much more than investing. Whether you are just starting your journey of building wealth, have already accumulated significant assets, or fall anywhere in between, you can trust that our experience and expertise will serve you well. We understand that building wealth is more than just having an impressive portfolio; it is a means to provide security for you and future generations. As a result, we focus on capital preservation and income to reduce risk and protect your family legacy. 

At PROFi, we have the experience and tools to help you reach your financial goals, whatever they may be. Our comprehensive suite of services includes:

Investment Management
Tax Strategy
Retirement Planning
401K / IRA/ Roth Investing
A prudent investment portfolio considers timeless principles of risk management, time horizon, diversification, rebalancing, costs and tax efficiency. We incorporate these and other evidence-based investment research principles as we implement and monitor quality, risk-appropriate portfolios. We understand the complexity of markets and follow Nobel prize-winning models to build and protect your wealth. And since we offer fee-only advice, you can be sure that our recommendations are always made in your best interest.

Tax liabilities associated with income, estate and gift taxes can drastically impact your wealth. Before any investment decisions are made, we help you consider the tax consequences and optimize for cash. This includes an annual review of your tax return and coordination among your accountant and estate attorney to plan the most efficient tax strategies that address your unique situation. We uncover new ways to minimize your expenses so you hold on to more money and never pay more than you need to.

We are dedicated to preparing tailored, comprehensive retirement plans to help you achieve your retirement objectives, including personal fulfillment and enjoyment, during your retirement years. Our to-and-through retirement planning includes analysis of Social Security optimization, 401k rollover to IRA, and IRA conversion to Roth IRA.

Rolling over an existing 401k or IRA is an easy way to consolidate assets, increase investment options, and maintain tax benefits. We make this process easy and seamless, and will work with you on an investment solution that fits your financial goals. We help you understand when a Roth IRA makes good tax sense.







Accredited Investor Solutions
Estate Planning
Charitable Giving
Foundation / Endowment
There are unique investment opportunities available for clients with high net worth or income, including real estate, private lending, commercial debt and special private opportunities.  We help identify, analyze and recommend these exclusive opportunities to guide prudent investing that meets very specific client goals.
Estate planning is more than a will. We walk you through various considerations you may need to address so that you are confident there is a solid plan in place for your family to continue to build upon your legacy. These considerations include family wealth transition, consideration for trust and will, and step-up in basis.
We are proud to work with clients who are not only successful in what they do, but who also enjoying helping others climb the mountain. Whether making small donations to a local charity or funding large charitable projects, we work with you and your CPA to prudently gift in tax-efficient ways.
Extending your legacy by enabling others is one of the most rewarding and fulfilling efforts in life. We have enjoyed the opportunity to work with generational clients and witness firsthand the growth and impact of family foundations and endowments. We provide the expertise and resources to help these legacies thrive.







Social Security Optimization
Banking and Credit
Asset Protection

Risk management / Insurance
Taking Social Security benefits at the correct time in your life is critical to maximizing your retirement income, as well as avoiding unnecessary taxes. We create an optimal strategy to maximize your Social Security benefits that supports your retirement plans.
An optimal banking solution can save you a lot of time and hassle. We guide a wide range of banking and credit solutions that enable clients to have quick and easy access to assets without disrupting the investment portfolio. In addition, we negotiate optimal interest rates on various products.
You work hard for your family and the comforts you provide them. We analyze all aspects of your financial life to assess whether the proper organizations, documents and insurance are in place to protect your family and your assets. If there are any additional needs, we will advise you about the resources necessary to fill them.
Gain peace of mind with our tailored insurance recommendations that will help you stay within your budget while protecting the things you care about most. As your life changes, we’ll review any policies and offer alternative solutions that suit your needs.


Education Savings
Cash Flow Management




Give your children or grandchildren the gift of education. Beyond just tuition planning, we consider room and board expenses, scholarship options and other facets of university life. We have the experience and expertise to plan for numerous education funding scenarios.
Cash is king and at the heart of your financial plan. At its most basic level, cash flow is resource management or budgeting.  This includes an understanding and discipline of money in, money out, debt levels and savings. We help you create the most efficient way to receive your income, pay for debts and expenses, and save for the future.



Your success is our business. 

There are always ways a business can increase financial success, and some of them may be simpler than you think. We have been the impetus for greater gains across companies large and small, specializing in physician groups, community banks, high-tech and manufacturing companies, and institutions of higher learning. ProFi is experienced in assisting businesses and institutions achieve greater financial outcomes through a variety of services, including:

Investment Management

Retirement Plans

Executive Benefits

Compensation and Benefits
Our tax-efficient, corporate investment portfolios are designed to put corporate savings and excess working capital back to work for you. Every portfolio is uniquely designed for your specific needs. A board-approved investment policy statement formalizes the portfolio and the process, including investment selection, liquidity mandates, reporting criteria and so much more.

We help businesses of all sizes design, implement and manage retirement plans, including 401k, 403b, 457, profit sharing, defined benefit, cash balance, SERP and NQDC. Whether you utilize the plans for additional tax strategies or for hiring and retaining top talent—or a combination of the two—we prepare a custom solution for you and your business.

Corporations and executives face many unique wealth management challenges and opportunities. Whether it is complex compensation packages, concentrated stock positions or “golden handcuffs,” we provide expert guidance and best practices to navigate these unique scenarios.

As a business owner, it is important to understand how money can and should flow from you out of the business. We help business owners efficiently manage tax and cash flow considerations to establish the appropriate methodology for each client.







Tax Reduction

Business Organization

Succession Planning

Business Transitions
Corporate and self-employment income tax liabilities can drastically impact the bottom line. Before any investment decisions are  made, we help you consider the tax consequences and optimize for cash.  We uncover new ways to  minimize your expenses so you hold on to more money and never pay more tax than you need to.

There are many ways to form and operate a business. Our objective is to ensure that each client has a business structure that incorporates their tax, asset protection, compensation and estate planning considerations necessary to guide sensitive business and family decisions.

We take great pleasure in guiding the successful transition of a business to a new chapter in the life of the business. Our experience navigating the transition from all sides includes the critical interpersonal skills to complement the analytical skills.

When it’s time to sell or transfer the business, we can help create a smooth financial transition.




RESOURCES


Knowledge is power.

Understanding your financial situation and available financial tools can give you the power to make your money go to work for you. Follow the above links for some extra credit, but don’t worry—we’ll help you every step of the way.

 

Any publicity is good publicity—for us, anyways.

When you’re committed to providing unparalleled service with exceptional professionalism and proven experience, the positive results tend to get noticed. Read more about PROFi in the news.

Coming soon. 

Learn the lingo.

We know all the acronyms and technical terms can be confusing. We never want you to be in the dark, so let us shed some light.

A

Adjusted Gross Income (AGI)
An interim calculation in the computation of income tax liability. It is computed by subtracting certain allowable adjustments from gross income.

Administrator
A person appointed by the court to settle an estate when there is no will.

After-Tax Return
The return from an investment after the effects of taxes have been taken into account.

Aggressive Growth Fund
A mutual fund whose primary investment objective is substantial capital gains. The return and principal value of mutual funds fluctuate with changes in market conditions. Shares, when sold, may be worth more or less than their original cost. Investments seeking to achieve higher returns also involve a higher degree of risk. Mutual funds are sold by prospectus. Please consider the investment objectives, risks, charges, and expenses carefully before investing. The prospectus, which contains this and other information about the investment company, can be obtained from your financial professional. Be sure to read the prospectus carefully before deciding whether to invest.

Alternative Minimum Tax
A method of calculating income tax that disallows certain deductions, credits, and exclusions. This was intended to ensure that individuals, trusts, and estates that benefit from tax preferences do not escape all federal income tax liability. People must calculate their taxes both ways and pay the greater of the two.

Annuity
An insurance-based contract that provides future payments at regular intervals in exchange for current premiums. Annuity contracts are usually purchased from banks, credit unions, brokerage firms, or insurance companies. Any guarantees are contingent on the claims-paying ability of the issuing company.

Asset
Anything owned that has monetary value.

Asset Allocation
The process of repositioning assets in a portfolio to maximize potential return for a particular level of risk. This process is usually done using the historical performance of the asset classes within sophisticated mathematical models. Asset allocation does not guarantee against loss; it is a method used to help manage investment risk.

Asset Class
A category of investments with similar characteristics.

Audit
The examination of the accounting and financial documents of a firm by an objective professional. The audit is done to determine the records' accuracy, consistency, and conformity to legal and accounting principles.

B

Balanced Mutual Fund
A mutual fund whose objective is a balance of stocks and bonds. Balanced funds tend to be less volatile than stock-only funds. The return and principal value of mutual funds fluctuate with changes in market conditions. Shares, when sold, may be worth more or less than their original cost. Mutual funds are sold by prospectus. Please consider the investment objectives, risks, charges, and expenses carefully before investing. The prospectus, which contains this and other information about the investment company, can be obtained from your financial professional. Be sure to read the prospectus carefully before deciding whether to invest.

Bear Market
When the stock market appears to be declining overall, it is said to be a bear market.

Beneficiary
A person named in a life insurance policy, annuity, will, trust, or other agreement to receive a financial benefit upon the death of the owner. A beneficiary can be an individual, company, organization, and so on.

Blue Chip Stock
The common stock of a company with a long history of profitability and consistent dividend payments.

Bond
A bond is evidence of a debt in which the issuer promises to pay the bondholders a specified amount of interest and to repay the principal at maturity. Bonds are usually issued in multiples of $1,000.

Book Value
The net value of a company's assets, less its liabilities and the liquidation price of its preferred issues. The net asset value divided by the number of shares of common stock outstanding equals the book value per share, which may be higher or lower than the stock's market value.

Bull Market
When the stock market appears to be advancing overall, it is said to be a bull market.

Buy-Sell Agreement
A buy-sell agreement is an arrangement between two or more parties that obligates one party to buy the business and another party to sell the business upon the death, disability, or retirement of one of the owners.

C

Capital Gain or Loss
The difference between the sales price and the purchase price of a capital asset. When that difference is positive, the difference is referred to as a capital gain. When the difference is negative, it is a capital loss.

Cash Alternatives
Short-term investments, such as U.S. Treasury securities, certificates of deposit, and money market fund shares, that can be readily converted into cash.

Cash Surrender Value
The amount that an insurance policyholder is entitled to receive when he or she discontinues coverage. Policyholders are usually able to borrow against the surrender value of a policy from the insurance company. Policy loans that are not repaid will reduce the policy's death benefit and cash value by the amount of any outstanding loan balance plus interest.

CERTIFIED FINANCIAL PLANNER® Practitioner
A credential granted by the Certified Financial Planner Board of Standards, Inc. (Denver, CO) to individuals who complete a comprehensive curriculum in financial planning and ethics. CFP®, CERTIFIED FINANCIAL PLANNER® and federally registered CFP (with flame logo)® are certification marks owned by the Certified Financial Planner Board of Standards. These marks are awarded to individuals who successfully complete the CFP Board's initial and ongoing certification.

Certified Public Accountant (CPA)
A professional license granted by a state board of accountancy to an individual who has passed the Uniform CPA Examination (administered by the American Institute of Certified Public Accountants) and has fulfilled that state's educational and professional experience requirements for certification.

Charitable Lead Trust
A trust established for the benefit of a charitable organization. A grantor who places money, securities, property, and other assets in a charitable remainder trust can designate an income beneficiary, even if it is the grantor herself, to receive payment of a specified amount (at least annually) from the trust. You may also qualify for an income tax deduction on the estimated present value of the remainder interest that will eventually go to charity.

Charitable Remainder Trust
A trust established for the benefit of a charitable organization. A grantor who places money, securities, property, and other assets in a charitable remainder trust can designate an income beneficiary, even if it is the grantor herself, to receive payment of a specified amount (at least annually) from the trust. You may also qualify for an income tax deduction on the estimated present value of the remainder interest that will eventually go to charity.

Chartered Financial Consultant (ChFC)
A professional financial planning designation granted by The American College (Bryn Mawr, PA) to individuals who complete a comprehensive curriculum in financial planning. Prerequisites include passing a series of written examinations, meeting specified experience requirements and maintaining ethical standards. The curriculum encompasses wealth accumulation, risk management, income taxation, planning for retirement needs, investments, estate and succession planning.

Chartered Life Underwriter (CLU)
A professional designation granted by The American College to individuals who complete a comprehensive curriculum focused primarily on risk management. Prerequisites include passing a series of written examinations, meeting specified experience requirements, and maintaining ethical standards. The curriculum encompasses insurance and financial planning, income taxation, individual life insurance, life insurance law, estate and succession planning, and planning for business owners and professionals.

COBRA
The Consolidated Omnibus Budget Reconciliation Act is a federal law requiring employers with more than 20 employees to offer terminated or retired employees the opportunity to continue their health insurance coverage for 18 months at the employee's expense. Coverage may be extended to the employee's dependents for 36 months in the case of divorce or death of the employee.

Coinsurance or Co-Payment
The amount an insured person must pay for a covered medical and/or dental expense if his or her insurance doesn't provide 100 percent coverage.

Commodities
The generic term for goods such as grains, foodstuffs, livestock, oils, and metals which are traded on national exchanges. These exchanges deal in both "spot" trading (for current delivery) and "futures" trading (for delivery in future months).

Common Stock
A unit of ownership in a corporation. Common stockholders participate in the corporation's profits or losses by receiving dividends and by capital gains or losses in the stock's share price.

Community Property
State laws vary, but generally all property acquired during a marriage -- excluding property one spouse receives from a will, inheritance, or gift -- is considered community property, and each partner is entitled to one half. This includes debt accumulated. There are currently nine community property states: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin.

Compound Interest
Interest that is computed on the principal and on the accrued interest. Compound interest may be computed continuously, daily, monthly, quarterly, semiannually, or annually.

Consumer Price Index
The U.S. Department of Labor's main indicator of inflation. The Consumer Price Index is calculated each month from the cost of some 400 retail items in urban areas throughout the United States.

D

Deduction
An amount that can be subtracted from gross income, from a gross estate, or from a gift, thereby lowering the amount on which tax is assessed.

Defined Benefit Plan
A qualified retirement plan under which a retiring employee will receive a guaranteed retirement fund, usually payable in installments. Annual contributions may be made to the plan by the employer at the level needed to fund the benefit. The annual contributions are limited to a specified amount, indexed to inflation.

Defined Contribution Plan
A retirement plan under which the annual contributions made by the employer or employee are generally stated as a fixed percentage of the employee's compensation or company profits. The amount of retirement benefits is not guaranteed; rather, it depends upon the investment performance of the employee's account.

Diversification
Investing in different companies, industries, or asset classes in an attempt to limit overall risk. Of course, diversification does not guarantee against loss; it is a method used to help manage investment risk. Diversification may also mean the participation of a large corporation in a wide range of business activities.

Dividend
A pro rata portion of earnings usually distributed in cash by a corporation to its stockholders. In preferred stock, dividends are usually fixed; with common shares, dividends may vary with the fortunes of the company.

Dollar Cost Averaging
A system of investing in which the investor buys a fixed dollar amount of securities at regular intervals. The investor thus buys more shares when the price is low and fewer shares when the price rises, and the average cost per share is lower than the average price per share. Dollar cost averaging does not ensure a profit or prevent a loss. Such plans involve continuous investments in securities regardless of fluctuating prices. You should consider your financial ability to continue making purchases during periods of low and high price levels. However, this can be an effective way for investors to accumulate shares to help meet long-term goals.

Durable Power of Attorney for Finances (DPOA)
A durable attorney for finances (DPOA) enables you to authorize someone to act on your behalf in financial and legal matters. Your agent could pay everyday expenses, watch over your investments, and file taxes, among other tasks. A DPOA may become effective immediately or when a triggering event occurs, such as a doctor certifying that you are physically or mentally incapacitated.

Durable Power of Attorney for Health Care (HPOA)
A durable power of attorney for health care (HPOA), also known as a health-care proxy, enables you to appoint a representative to make medical decisions for you if you become unable to do so yourself. You can appoint anyone to be your agent as long as the individual is of legal age (usually 18 or older), and you can decide how much power your representative will have. An HPOA should be HIPAA compliant so your representative can access your private medical information.

E

Efficient Frontier
A statistical result from the analysis of the risk and return for a given set of assets that indicates the balance of assets that may, under certain assumptions, achieve the best return for a given level of risk.

Employer-Sponsored Retirement Plan
A tax-favored retirement plan that is sponsored by an employer. Among the more common employer-sponsored retirement plans are 401(k) plans, 403(b) plans, simplified employee pension plans, and profit-sharing plans.

Enrolled Agent (EA)
An enrolled agent is a person who has passed the appropriate examination in order to represent taxpayers before the Internal Revenue Service. Enrolled agents, like attorneys and certified public accountants, are unrestricted as to which taxpayers they can represent, what types of tax matters they can handle, and which IRS offices they can represent clients before.

Equity
The value of a person's ownership in real property or securities; the market value of a property or business, less all claims and liens against it.

ERISA
The Employee Retirement Income Security Act is a federal law covering all aspects of employee retirement plans. If employers provide plans, they must be adequately funded and provide for vesting, survivor's rights, and disclosures.

ESOP (employee stock ownership plan)
A defined contribution retirement plan in which company contributions must be invested primarily in qualifying employer securities.

Estate Conservation
Activities coordinated to provide for the orderly and cost-effective distribution of an individual's assets at the time of his or her death. Estate conservation often includes the use of wills and trusts.

Estate Tax
Upon the death of a decedent, federal and state governments impose taxes on the value of the estate left to others (with limitations).

Executive Bonus Plan
The employer pays for a benefit that is owned by the executive. The bonus could take the form of cash, automobiles, life insurance, or other items of value to the executive.

Executor
A person named by the probate courts or the will to carry out the directions and requests of the decedent.

F

Federal Income Tax Bracket
The range of taxable income that is taxable at a certain rate. The brackets for tax years 2018 and 2019 are 10 percent, 12 percent, 22 percent, 24 percent, 32 percent, 35 percent, and 37 percent.

Fixed Income
Income from investments, such as CDs, Social Security benefits, pension benefits, some annuities, or most bonds, that is the same every month.

401(k) Plan
A defined contribution plan that may be established by a company for retirement. Employees may allocate a portion of their salaries into this plan, and contributions are excluded from their income for tax purposes (with limitations). Contributions and earnings will compound tax deferred. Withdrawals from a 401(k) plan are taxed as ordinary income, and may be subject to an additional 10 percent federal tax penalty if withdrawn prior to age 59½.

403(b) Plan
A defined contribution plan that may be established by a nonprofit organization or school for retirement. Employees may allocate a portion of their salaries into this plan, and contributions are excluded from their income for tax purposes (with limitations). Contributions and earnings will compound tax deferred. Withdrawals from a 403(b) plan are taxed as ordinary income, and may be subject to an additional 10 percent federal tax penalty if withdrawn prior to age 59½.

Fundamental Analysis
An approach to the stock market in which specific factors - such as the price-to-earnings ratio, yield, or return on equity - are used to determine what stock may be favorable for investment.

G

Gift Taxes
A federal tax levied on the transfer of property as a gift. This tax is paid by the donor. For 2018 and 2019, the first $15,000 a year from a donor to each recipient is exempt from tax. Most states also impose a gift tax. The gift tax exemption is indexed for inflation.

H

Holographic Will
A will entirely in the handwriting of the testator. Without witnesses, holographic wills are valid and enforceable only in some states.

I

Individual Retirement Account (IRA)
Contributions to a traditional IRA are deductible from earned income in the calculation of federal and state income taxes if the taxpayer meets certain requirements. The earnings accumulate tax deferred until withdrawn, and then the entire withdrawal is taxed as ordinary income. Individuals not eligible to make deductible contributions may make nondeductible contributions, the earnings on which would be tax deferred.

Inflation
An increase in the price of products and services over time. The government's main measure of inflation is the Consumer Price Index.

Intestate
A person who dies without leaving a valid will. State law then determines who inherits the property or serves as guardian for any minor children.

Investment Category
A broad class of assets with similar characteristics. The five investment categories include cash alternatives, fixed principal, equity, debt, and tangibles.

Irrevocable Trust
A trust that may not be modified or terminated by the trustor after its creation.

J

Joint and Survivor Annuity
Most pension plans must offer this form of pension plan payout that pays over the life of the retiree and his or her spouse after the retiree dies. The retiree and his or her spouse must specifically choose not to accept this payment form.

Joint Tenancy
Co-ownership of property by two or more people in which the survivor(s) automatically assumes ownership of a decedent's interest.

Jointly Held Property
Property owned by two or more persons under joint tenancy, tenancy in common, or, in some states, community property.

L

Liability
Any claim against the assets of a person or corporation: accounts payable, wages, and salaries payable, dividends declared payable, accrued taxes payable, and fixed or long-term obligations such as mortgages, debentures, and bank loans.

Limited Partnership
Limited partnerships pool the money of investors to develop or purchase income-producing properties. When the partnership subsequently receives income from these properties, it passes the income on to its investors as dividend payments. Limited Partnerships are subject to special risks such as illiquidity and those risks inherent in the underlying investments. There are no assurances that the stated investment objectives will be reached. At redemption, the investor may receive back less than the original investment. Individuals must meet specific suitability standards. These standards, along with the risks and other information concerning the partnership, are set forth in the prospectus, which can be obtained from your financial professional. Please consider the investment objectives, risks, charges, and expenses carefully before investing. Be sure to read the prospectus carefully before deciding whether to invest.

Liquidity
How quickly and easily an asset or security can be converted into cash.

Living Trust
A trust created by a person during his or her lifetime.

Living Will
A living will, which is another type of advance medical directive, can be used to outline which medical procedures you want to be used to prolong your life, typically in the event of a terminal illness. It generally does not become effective until you become incapacitated. Even if your state does not authorize a living will, you may still want one as a way to document your wishes.

Lump-Sum Distribution
The disbursement of the entire value of an employer-sponsored retirement plan, pension plan, annuity, or similar account to the account owner or beneficiary. Lump-sum distributions may be rolled over into another tax-deferred account.

M

Marginal Tax Rate
The amount of tax paid on an additional dollar of income. As income rises, so does the tax rate.

Marital Deduction
A provision of the tax codes that allows all assets of a deceased spouse to pass to the surviving spouse free of estate taxes. This provision is also referred to as the "unlimited marital deduction." The marital deduction may not apply in the case of noncitizens.

Market Capitalization
Market Capitalization, or market cap, is the total value of the shares outstanding of a publicly traded company. It is calculated by multiplying a company’s number of shares outstanding by the current market price per share.

Money Market Fund
A mutual fund that specializes in investing in short-term securities and tries to maintain a constant net asset value of $1. Money-market funds are neither insured nor guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any government agency. Although money market funds seek to preserve the value of your investment at $1 per share, it is possible to lose money when investing in a money market fund.

Municipal Bond
A debt security issued by municipalities. The income from municipal bonds is usually exempt from federal income taxes. It may also be exempt from state income taxes in the state in which the municipal bond is issued. Some municipal bond interest could be subject to the federal alternative minimum tax. If you sell a municipal bond at a profit, you could incur capital gains taxes. The principal value of bonds fluctuates with market conditions. Bonds sold prior to maturity may be worth more or less than their original cost.

Municipal Bond Fund
A mutual fund that specializes in investing in municipal bonds. Bond funds are subject to the same inflation, interest-rate, and credit risks associated with their underlying bonds. As interest rates rise, bond prices typically fall, which can adversely affect a bond fund's performance. The principal value of bond funds fluctuates with changes in market conditions. Shares, when sold or redeemed, may be worth more or less than their original cost. Mutual funds are sold by prospectus. Please consider the investment objectives, risks, charges, and expenses carefully before investing. The prospectus, which contains this and other information about the investment company, can be obtained from your financial professional. Be sure to read the prospectus carefully before deciding whether to invest.

Mutual Fund
A collection of stocks, bonds, or other securities purchased and managed by an investment company with funds from a group of investors. The return and principal value of mutual funds fluctuate with changes in market conditions. Shares when sold, or redeemed, may be worth more or less than their original cost. Mutual funds are sold by prospectus. Please consider the investment objectives, risks, charges, and expenses carefully before investing. The prospectus, which contains this and other information about the investment company, can be obtained from your financial professional. Be sure to read the prospectus carefully before deciding whether to invest.

N

Net Asset Value
The per-share value of a mutual fund's current holdings. The net asset value is calculated by dividing the net market value of the fund's assets by the number of outstanding shares.

P

Pooled Income Fund
A trust created by a charitable organization that combines the contributions of several donors and distributes income to those donors based on the earnings of the trust. The trust is managed by the charitable organization, and contributions are partially deductible for income tax purposes.

Portfolio
All the investments held by an individual or a mutual fund.

Preferred Stock
A class of stock with claim to a company's earnings, before payment can be made on the common stock, and that is usually entitled to priority over common stock if the company liquidates. Generally, preferred stocks pay dividends at a fixed rate.

Prenuptial Agreement
A legal agreement arranged before marriage stating who owns property acquired before marriage and during marriage and how property will be divided in the event of divorce. ERISA benefits are not affected by prenuptial agreements.

Price/Earnings Ratio (P/E Ratio)
The market price of a stock divided by the company's annual earnings per share. Because the P/E ratio is a widely regarded yardstick for investors, it often appears with stock price quotations.

Principal
In a security, the principal is the amount of money that is invested, excluding earnings. In a debt instrument such as a bond, it is the face amount.

Probate
The court-supervised process in which a decedent's estate is settled and distributed.

Profit-Sharing Plan
An agreement under which employees share in the profits of their employer. The company makes annual contributions to the employees' accounts. These funds usually accumulate tax deferred until the employee retires or leaves the company.

Prospectus
A document provided by investment companies to prospective investors. The prospectus gives information needed by investors to make informed decisions prior to investing in a specific mutual fund, variable annuity, or variable universal life insurance. The prospectus includes information on the minimum investment amount, the investment company's objectives, past performance, risk level, sales charges, management fees, and any other expense information about the investment company, as well as a description of the services provided to investors in the investment company.

Q

Qualified Domestic Relations Order (QDRO)
At the time of divorce, this order would be issued by a state domestic relations court and would require that an employee's ERISA retirement plan accrued benefits be divided between the employee and the spouse.

Qualified Retirement Plan
A pension, profit-sharing, or qualified savings plan that is established by an employer for the benefit of the employees. These plans must be established in conformity with IRS rules. Contributions accumulate tax deferred until withdrawn and are deductible to the employer as a current business expense.

R

Revocable Trust
A trust in which the creator reserves the right to modify or terminate the trust.

Risk
The chance that an investor will lose all or part of an investment.

Risk-Averse
Refers to the assumption that rational investors will choose the security with the least risk if they can maintain the same return. As the level of risk goes up, so must the expected return on the investment.

Rollover
A method by which an individual can transfer the assets from one retirement program to another without the recognition of income for tax purposes. The requirements for a rollover depend on the type of program from which the distribution is made and the type of program receiving the distribution.

Roth IRA
A nondeductible IRA that allows tax-free withdrawals when certain conditions are met. Income and contribution limits apply.

S

Security
Evidence of an investment, either in direct ownership (as with stocks), creditorship (as with bonds), or indirect ownership (as with options).

Self-Employed Retirement Plans
In the past, the terms “Keogh plan” and “H.R. 10 plan” were used to distinguish a retirement plan established by a self-employed individual from a plan established by a corporation or other entity. However, self-employed retirement plans are now generally referred to by the name of the particular type of plan used, such as SEP IRA, SIMPLE 401(k), or self-employed 401(k). The contribution amount is indexed annually for inflation.

Simplified Employee Pension Plan (SEP)
A type of plan under which the employer contributes to an employee's IRA. Contributions may be made up to a certain limit and are immediately vested.

Single-Life Annuity
An insurance-based contract that provides future payments at regular intervals in exchange for current premiums. Generally used as a supplement to retirement income and pays over the life of one individual, usually the retiree, with no rights of payment to any survivor.

Split-Dollar Plan
An arrangement under which two parties (usually a corporation and employee) share the cost of a life insurance policy and split the proceeds.

Spousal IRA
An IRA designed for a couple when one spouse has no earned income. The maximum combined contribution that can be made each year to an IRA and a spousal IRA is $12,000 or 100 percent of earned income (whichever is less) for the 2019 tax year, up from $11,000 in 2018. The total may be split between the two IRAs as the couple wishes, provided that the contribution to either IRA does not exceed the maximum annual contribution limit ($6,000 for 2019, up from $5,500 in 2018).

T

Tax Credit
Tax credits, the most appealing type of tax deductions, are subtracted directly, dollar for dollar, from your income tax bill.

Tax Deferred
Interest, dividends, or capital gains that grow untaxed in certain accounts or plans until they are withdrawn.

Tax-Exempt Bonds
Under certain conditions, the interest from bonds issued by states, cities, and certain other government agencies is exempt from federal income taxes. In many states, the interest from tax-exempt bonds will also be exempt from state and local income taxes. If you sell a tax-exempt bond at a profit, you could incur capital gains taxes. Some tax-exempt bond interest could be subject to the federal alternative minimum tax. The principal value of bonds fluctuates with market conditions. Bonds sold prior to maturity may be worth more or less than their original cost.

Taxable Income
The amount of income used to compute tax liability. It is determined by subtracting adjustments, itemized deductions or the standard deduction, and personal exemptions from gross income.

Technical Analysis
An approach to investing in stocks in which a stock's past performance is mapped onto charts. These charts are examined to find familiar patterns to use as an indicator of the stock's future performance.

Tenancy in Common
A form of co-ownership. Upon the death of a co-owner, his or her interest passes to the designated beneficiaries and not to the surviving owner or owners.

Term Insurance
Term life insurance provides a death benefit if the insured dies. Term insurance does not accumulate cash value and ends after a certain number of years or at a certain age.

Testamentary Trust
A trust established by a will that takes effect upon death.

Testator
One who has made a will or who dies having left a will.

Total Return
The total of all earnings from a given investment, including dividends, interest, and any capital gain.

Trust
A legal entity created by an individual in which one person or institution holds the right to manage property or assets for the benefit of someone else. Types of trusts include: Testamentary Trust – A trust established by a will that takes effect upon death; Living Trust – A trust created by a person during his or her lifetime; Revocable Trust – A trust in which the creator reserves the right to modify or terminate the trust; Irrevocable Trust – A trust that may not be modified or terminated by the trustor after its creation

Trustee
An individual or institution appointed to administer a trust for its beneficiaries.

Trustee-to-Trustee Transfer
A method of transferring retirement plan assets from one employer's plan to another employer plan or to an IRA. One benefit of this method is that no federal income tax will be withheld by the trustee of the first plan.

U

Universal Life Insurance
A type of life insurance that combines a death benefit with a savings element that accumulates tax deferred at current interest rates, subject to change, but with a guaranteed minimum. Under a universal life insurance policy, the policyholder can increase or decrease his or her coverage, with limitations, without purchasing a new policy.Universal life is also referred to as "flexible premium" life insurance. Access to cash values through borrowing or partial surrenders can reduce the policy's cash value and death benefit, increase the chance that the policy will lapse, and may result in a tax liability if the policy terminates before the death of the insured. Policy loans or withdrawals will reduce the policy's cash value and death benefit. Additional out-of-pocket payments may be needed if actual dividends or investment returns decrease, if you withdraw policy values, if you take out a loan, or if current charges increase. There may be surrender charges at the time of surrender or withdrawal and are taxable if you withdraw more than your basis in the policy. Any guarantees are contingent on the claims-paying ability of the issuing company. The cost and availability of life insurance depend on factors such as age, health, and the type and amount of insurance purchased.

V

Variable Universal Life Insurance
A type of life insurance that combines a death benefit with an investment element that accumulates tax deferred. The account value can be allocated into a variety of investment subaccounts. The investment return and principal value of the variable subaccounts will fluctuate; thus, the policy's account value, and possibly the death benefit, will be determined by the performance of the chosen subaccounts and is not guaranteed. Withdrawals may be subject to surrender charges and are taxable if the account owner withdraws more than his or her basis in the policy. Policy loans or withdrawals will reduce the policy's cash value and death benefit and may require additional premium payments to keep the policy in force. There may also be additional fees and charges associated with a VUL policy. Any guarantees are contingent on the claims-paying ability of the issuing company. Variable universal life is sold by prospectus. Please consider the investment objectives, risks, charges, expenses, and your need for death-benefit coverage carefully before investing. The prospectuses, which contains this and other information about the variable universal life policy and the underlying investment options, can be obtained from your financial professional. Be sure to read the prospectus carefully before deciding whether to invest.

Volatility
The range of price swings of a security or market over time.

W

Welfare Benefit Plan
An employee benefit plan that provides such benefits as medical, sickness, accident, disability, death, or unemployment benefits.

Whole Life Insurance
A type of life insurance that offers a death benefit and also accumulates cash value tax deferred at fixed interest rates. Whole life insurance policies generally have a fixed annual premium that does not rise over the duration of the policy. Whole life insurance is also referred to as "ordinary" or "straight" life insurance. Access to cash values through borrowing or partial surrenders can reduce the policy's cash value and death benefit, increase the chance that the policy will lapse, and may result in a tax liability if the policy terminates before the death of the insured. Policy loans or withdrawals will reduce the policy's cash value and death benefit. Additional out-of-pocket payments may be needed if actual dividends or investment returns decrease, if you withdraw policy values, if you take out a loan, or if current charges increase. There may be surrender charges at the time of surrender or withdrawal and are taxable if you withdraw more than your basis in the policy. Any guarantees are contingent on the claims-paying ability of the issuing company. The cost and availability of life insurance depend on factors such as age, health, and the type and amount of insurance purchased.

Will
A legal document that declares a person's wishes concerning the disposition of property, the guardianship of his or her children, and the administration of the estate after his or her death.

Y

Yield
Generally, the yield is the amount of current income provided by an investment. For stocks, the yield is calculated by dividing the total of the annual dividends by the current price. For bonds, the yield is calculated by dividing the annual interest by the current price. The yield is distinguished from the return, which includes price appreciation or depreciation.

Z

Zero-Coupon Bond
This type of bond makes no periodic interest payments but instead is sold at a steep discount from its face value. Because these bonds do not pay interest until maturity, their prices tend to be more volatile than bonds that pay interest regularly. Interest income is subject to ordinary income tax each year, even though the investor does not receive any income payments. Bonds sold prior to maturity may be worth more or less than their original cost.

ABOUT


Credible designations.... 

Certified Financial PlannerAccredited Investment FiduciaryCEFEX - Centre for Fiduciary Excellence

CERTIFIED FINANCIAL PLANNERTM  Professional, Accredited Investment Fiduciary (AIF®), and CEFEX® Certificant.

The certifications that we hold demonstrate years of training and hard work that distinguish us as qualified professionals. Just as importantly, we have a long track record of satisfied clients who value our wisdom, unbiased advice and personal touch. 

But don’t just take our word for it. Take advantage of our complimentary first consultation and decide for yourself.

Request a Free Consultation

If it's important to you, it's important to us. 

Money is a tool you can use to accomplish your life goals, so it is important to find someone you trust to help you with your goals.

We are experienced certified fiduciary advisors, which means we make our clients’ best interests our primary focus. We understand that financial planning means much more than just investing, and that every client’s goals are unique. We offer a broad range of products and services, and we don’t earn commissions on any of them. We are accountable to you and no one else, so you can be sure your recommended strategy is a best fit for your particular situation—not a best moneymaker for us. 

We are Certified Financial Planner™ Professionals and are proud to hold the Accredited Investment Fiduciary (AIF®) designation. This designation represents a thorough knowledge of and ability to apply fiduciary practices according to evidence-based methodologies and a Code of Ethics like you would write.

Here is our take on the things we value:

Trust: As a fiduciary, we will always put your best interests ahead of our own. This means that whatever we recommend serves to benefit you, and you only.

Integrity: We are not here to take advantage of you, but rather equip you with the tools and knowledge you need to tap into your full financial potential.

Transparency: Because we are fee-only, we do not receive a commission for the products and services we sell, eliminating conflicts of interest for you.

Stewardship: Financial capital requires prudent stewardship to accomplish the larger goal of building human capital. We will care for your money the way we care for ours.

Relationships: Our goal with every new client is to foster a long-lasting partnership that grows and evolves as the years go on. We value human capital more than financial capital, meaning that you and yours are more important than your financial position. We’re driven by your success—not ours.  PROFi believes financial capital is a means to developing human capital and strengthening families. Our culture is our competitive advantage. Our profession is our passion. We genuinely care about every client.  Let us prove it to you. Whether you are just starting out on your financial journey or have already amassed significant wealth, PROFi will ensure you are treated as a valued, unique individual whose needs and goals are always at the forefront of our services.

More than just a symbol.

Part or our visual brand is a tree that symbolizes our human family.  Unseen roots nourish vibrant growth to perpetuate generations of meaningful connections.  Over time, the tree grows stronger, its roots deeper, producing fruit that embodies prosperity through the realization of intrinsic worth, ennobling values, talents, skills, spiritual and intellectual capital, and other intangible assets. Financial capital, then, is not the fruit but only a means to personal fruition.  At our core, we do what we do and we are who we are to protect and preserve family wealth in all forms.  Our culture reflects core principles held in the Certified Financial Planner® Code of Ethics: integrity, objectivity, competence, fairness, confidentiality, professionalism and diligence.


No intimidation here.

Sharing your financial situation and goals with an experienced advisor shouldn’t be daunting, nor should it be a one-time event. At ProFi, our Certified Financial Planners (CFP®) walk you through every step of the process, ensuring your comfort and understanding with every decision. Here’s what to expect of our financial planning process.

Get to Know One Other

From the very beginning, we want to establish a strong sense of trust with you and your family so you feel confident in our approach and expertise.

Discuss Your Finances

Next, we’ll take a look at all relevant financial documents and accounts, as well as review your short- and long-term goals to make sure your needs are fulfilled.

Evaluate Your Options

From there, we’ll provide our recommendations and educate you about the choices we think make the most sense for your unique financial situation.

Put Your Plan in Motion

After we’ve presented our plan and discussed your options, we’ll walk you through, step by step, the things you need to do to implement our strategy.

Monitor, Review and Adjust

Throughout execution, we’ll track your progress, review your objectives and adjust our strategy according to the areas that produce the highest ROI.

Experience a Rewarding Relationship

While these are the fundamental meetings you can expect, we invite our clients to reach out at any time if additional assistance is needed. No matter the concern, there is always someone here to help guide you in the right direction.

William Bruce Miller | Founder and President

W. Bruce Miller has been in the financial services industry for nearly a quarter of a century. In his early career, he worked for companies that include WordPerfect, Novell, and EDS. He has served as a chief executive at Utah’s largest independent bank; president of a financial start-up that experienced a successful acquisition; and president, chief operating officer and senior advisor for other firms.

Bruce founded The Professional Financial Company because he repeatedly saw two troubling things in the financial planning industry: services that catered only to wealthy clients instead of those across all socio-economic backgrounds, and advisors that failed to fulfill their fiduciary duties with utmost integrity. As a Certified Financial Planner™ Professional and Accredited Investment Fiduciary (AIF®), Bruce and his team bring world-class service to all of their customers with a promise to work in the client’s best interests.


Mary G. Miller | Founder and Chief Experience Officer

Mary is a driving force behind client satisfaction and success at ProFi. She guides insightful strategic and tactical decisions with a focus on client outcomes. Mary received a BA in public relations from Brigham Young University and manages a private finance company while co-founding The Professional Financial Company with her husband Bruce.

 

Brennon S. Bowen | Vice President

Brennon has an exceptional breadth and depth of experience with several wealth management firms, including Fidelity Investments, Arista Wealth Management and Andina Family Offices. After double majoring in personal financial planning and accounting, Brennon returned to Utah Valley University where he is a popular adjunct professor. He is passionate about helping clients from all walks of life reach their financial goals and create enduring family legacies. 

Warranties & Disclaimers

There are no warranties implied.

The Professional Financial Company (“PROFI”) is a registered investment adviser located in Pleasant Grove, UT. PROFI may only transact business in those states in which it is registered, or qualifies for an exemption or exclusion from registration requirements. PROFI’s web site is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of PROFI’s web site on the Internet should not be construed by any consumer and/or prospective client as PROFI’s solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet. Any subsequent, direct communication by PROFI with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. For information pertaining to the registration status of PROFI, please contact the state securities regulators for those states in which PROFI maintains a registration filing. A copy of PROFI’s current written disclosure statement discussing PROFI’s business operations, services, and fees is available at the SEC’s investment adviser public information website – www.adviserinfo.sec.gov or from PROFI upon written request. PROFI does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to PROFI’s web site or incorporated herein, and takes no responsibility therefor. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.

This website and information are provided for guidance and information purposes only.  Investments involve risk and unless otherwise stated, are not guaranteed.  Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy.  This website and information are not intended to provide investment, tax, or legal advice.

Disclosures

Form ADV is the uniform form used by investment advisers to register with both the Securities and Exchange Commission (SEC) and state securities authorities. The form consists of two parts. Part 1 requires information about the investment adviser’s business, ownership, clients, employees, business practices, affiliations, and any disciplinary events of the adviser or its employees. Part 1 is organized in a check-the-box, fill-in-the-blank format. The SEC reviews the information from this part of the form to process registrations and manage its regulatory and examination programs. Although designed for a regulatory purpose, investment adviser filings of Part 1 are available to the public on the SEC’s Investment Adviser Public Disclosure (IAPD) website at www.adviserinfo.sec.gov.


Beginning in 2011, Part 2 requires investment advisers to prepare narrative brochures written in plain English that contain information such as the types of advisory services offered, the adviser’s fee schedule, disciplinary information, conflicts of interest, and the educational and business background of management and key advisory personnel of the adviser. The brochure is the primary disclosure document that investment advisers provide to their clients. When filed, the brochures are available to the public on the IAPD website.


Investment advisers are required to deliver annually to clients a summary of material changes to the brochure and either deliver a complete updated brochure or offer to provide the client with the updated brochure. In addition, an investment adviser must deliver to clients a brochure supplement that provides information about the specific employees, acting on behalf of the investment adviser, who actually provide the investment advice to the client. The brochure supplement also includes contact information for the person’s supervisor in case the client has a concern about the person. The brochure supplement must be delivered either before or at the time that the employee begins to provide investment advice to a client. An updated supplement must be delivered to clients when there is new disclosure of a disciplinary event, or a material change to disciplinary information that has already been disclosed.