Wisconsin Office: 738 N. Wilson Avenue, Rice Lake, WI
Office Opening in Summer…
E. Dennis Zahrbock, CFP
picture is our new Rice Lake Office. We know it doesn’t
look too impressive in this rendition but by the time we open
it will be totally restored to it’s original splendor.
Due to the
significant demand for our services in Northwest Wisconsin we
felt it prudent to open a permanent office. We located this
building last summer, put in an offer but upon Title Search
found problems were present. In December we purchased the building
at a Sheriff’s auction on the steps of the Barron County
Courthouse. Interior remodeling is currently underway with exterior
redo, landscaping and parking added as soon as the weather allows.
Our Wisconsin address is 738 N. Wilson Avenue, Rice Lake, Wisconsin
54868. Our P.O. Box is 379 and our phone number is 715- 434-0440.
Change at Business & Estate…
of our readers now know, we’ve changed our Securities
Business relationship. In February we moved our registration
(brokerage licenses) from ValMark Securities to ValMark
Securities. Those of you that have gone through the change know
that it involved a lot of paperwork so I’m sure you’re
wondering why we made the move and what benefits it will provide.
made the move to improve our services to our customer base by
affiliating with an “elite” securities firm. ValMark
has limited its registered associates (brokers) to the top end
of the Insurance/Financial Industry. We are honored to have
been asked to associate with this great firm.
them over at least a dozen others for three reasons: 1) As registered
representatives we are required to “comply” with
SEC and NASD rules. Some of these rules are “black and
white” and some are “interpretive”. All firms
strickly enforce the “black and white” side and
on the other hand “write their own rules” for the
“interpretive side”. The larger the firm the more
restrictive the “interpretive side” becomes as they
must establish rules based on the lowest common demoninator
(the raw recruit). On the other hand a smaller firm like ValMark
pre-selects established professionals and can thus be somewhat
less restrictive on the “interpretive side”. This
allows us to continue to operate on an independent basis and
provide services to our customer base in the way we feel is
best. 2) Since ValMark only selects seasoned professionals (and
I might add some of the best known individuals in the industry)
we gain the opportunity to rub shoulders with these other pros.
We see this as a way to gain new and valuable ideas that we
can then share with our clientele. 3) ValMark clears its stock
trades through RBC Dain Rauscher. Since we headquarter in Minneapolis
and RBC Dain Rauscher headquarters in Minneapolis, we felt this
“midwest access and attitude” would greatly benefit
of you also know we have preferred to use General American Life
as our preferred Life Insurance Carrier for many years. Our
reasoning was we could have a great deal of “clout”
and thus get the job done for our clients. This isn’t
going to change but through ValMark we are provided “instand
clout” to several more major insurers. Minnesota Life,
ManuLife, Mass Mutual, Jefferson Pilot, First Colony to name
a few! This will allow more options when they are best for our
We are excited
about the opportunities ValMark brings to our entire operation
and feel it will propel us into the next level of financial
services. A level that is dreamed about by many but will become
reality for our family of clients.
soon the long awaited money will arrive…
after over three years, the money each General American policyholder
is due is to be paid out. The original buyout (MetLife buying
General American) was for 1.2 billion with potential contingencies!
The 1.2 billion has now grown to about 1.4 billion but contingent
claims are in the .2 to .3 billion range. It now appears that
1 billion will be paid out in the summer of 2003 with the remaining
.1 to .2 billion to be paid at a future date. We are told that
305,000 policyholders will share in the payout. We are further
told that approximately 65% will receive $1,000 or less, 25%
between $1,000 and $5,000, 9.8% receiving between $5,000 and
$100,000 and .2% over $100,000! This money is being paid to
policyholders as the “old” General American was
a policyholder owned company and the owners must be paid! Even
though policyholders will receive this one billion plus in dollars
it does not change the values of their policies. This is a once
in a lifetime benefit and benefits those “that were the
right policy owners at the right time”!
By E. Dennis Zahrbock, CFP
and December brought warm weather and no snow to Minnesota and
Northern Wisconsin. This caused little or no use for the John
Deere snow removal equipment. As most of you know this was a
sad time for E. Dennis…..he felt as though his tractor
was rusting in place!
My sister Mona’s cancer has gotten worse. She’s only
53 years old and now has colon, liver and bone cancer. She’s
doing the best that she can but in her words knows she has the
“death sentence.” She’s an ordained Lutheran
Minister and is very comfortable with her future but those of
us left behind will miss her dearly.
Daughter Rachael is currently in Costa Rica at a 4-month “Spanish
Language” school. Her goal is to become even more fluent
in Spanish. This will greatly assist in her work with the Colorado
Christian School where she is one of two Spanish-speaking social
workers. And, to top it off, she just received word that she is
the recipient of a $10,000 Scholarship toward her Masters degree.
Now let’s hope that the University of Colorado accepts her
into the program.
And good news from daughter Stephanie and son-in-law Greg. We’re
going to be grandparents in June to a second grandson. That makes
the score two and two!
In January we hosted the second annual Jamaica Chili Open out
in front of our Lake Home. We planted over 65 Christmas Trees
and created two nine-hole courses. The day was a financial success,
raising over $5,000 for Mission Jamaica. Our actual Mission Jamaica
Sixth Trip took place in mid-February with contact made with the
Jamaica Life Underwriters. We’re now hoping to get the MDRT
Foundation involved in an International Service project.
Steve has successfully completed 3 classes for his CFP certification.
He has only 2 left to complete before he sits for the final test.
Sarah will complete her last test for her CLU certification in
June! She will have just as many letters as Dennis. Way to go
BULLETIN BOARD OF
E. Dennis spent five days in Las Vegas (first time for EDZ in
the city of lights) attending the annual meeting of the International
Forum. Late January found a quick trip to Tampa for a Committee
meeting of the Global Gift Fund attached to the MDRT Foundation.
Early February found the annual trip to St. Louis for the General
American product line. Dennis also conducted a one day educational
seminar for the field associates of Sons of Norway Fraternal
organization. Mid-February found Dennis and Sue in Jamaica for
Mission Jamaica project six.
March finds Sarah and Dennis doing three all day sessions on
the “Nuts & Bolts of 401(k) Plans.” One each
in St. Cloud, Minneapolis, and Rochester. Lorman Educational
Services sponsor the events and Dennis and Sarah are the guest
lecturers. Steve and Lori will spend some time in Palm Springs
for some R & R. In late March, E. Dennis and Sue will spend
10-days in Palm Springs.
Dennis and five of the six members of his National Study group
will meet in Palm Springs for a day. Sarah and Darvin will head
to Deadwood for some R & R. Jules and Lisa will attend the
School of Excellence for three days in Cleveland with ValMark
Securities. Later in April, Dennis and Sue will fly to Missouri
to spend a weekend with long time friends Ron and Carol Hollis.
Don’t forget to register for Skip-A-Day XIX! Your invitation
is enclosed. Business & Estate will be sponsoring Jules
in her annual Race for the Cure Breast Cancer 6 mile run!
Advisory Board Members
MASER, Partner/Attorney -
Maser & Amundson P.A.
How did you first become acquainted with Business & Estate
Advisers? Through a mutual acquaintance.
During your association, what has Business & Estate Advisers
done for you? Expanded my contacts with competent caring
business professionals, increased my business base and opened
my eyes to new friendships.
What has your service on the Advisory Board meant to you?
Enables me to step outside my role as a business manager and
lawyer and provide input to another business.
What topics would you like to see added to our Agendas?
Business generation in a down market.
What, in your opinion, makes Business & Estate Advisers
different from other financial services firms? The
Robertson of Austin, Texas was awarded $780,000 by a jury
of her peers after breaking her ankle tripping over a toddler
who was running inside a furniture store. The owners of the
store were understandably surprised at the verdict, considering
the misbehaving, little toddler was Ms. Robertson’s
- A Philadelphia
restaurant was ordered to pay Amber Carson of Lancaster, Pennsylvania,
$113,500 after she slipped on a soft drink and broke her coccyx
(tailbone). The beverage was on the floor because Ms. Carson
had thrown it at her boyfriend 30 seconds earlier during an
Carl Truman of Los Angeles won $74,000 and medical expenses
when his neighbor ran over his hand with a Honda Accord. Mr.
Truman apparently didn’t notice there was someone at
the wheel of the car when he was trying to steal his neighbor’s
year’s favorite could easily be Mr. Merv Grazinski of
Oklahoma City, Oklahoma. Mr. Grazinski purchased a brand new
32-foot Winnebago motor home. On his first trip, having driven
onto the freeway, he set the cruise control at 70 mph and
calmly left the drivers seat to go into the back and make
himself a cup of coffee. Not surprisingly, the R.V. left the
freeway, crashed and overturned. Mr. Grazinski sued Winnegabo
for not advising him in the owner’s manual that he couldn’t
actually do this. The jury awarded him $1,750,000 plus a new
motor home. The company actually changed their manual on the
basis of this suit, just in case there were any other complete
morons buying their recreation vehicles.
forget to send in your registration for Skip-A-Day XIX!
Mark your calendars for May 19, 2003!
Revised by Business & Estate Advisers, Inc. as an insert to
& Estate Adviser's
By: Sarah K.
Kaelberer, CFP, ChFC
the last edition, we likened investing to baking a cake. Here
I will take that one step further. I will give you the actual
ingredients used for the various “flavors”.
to get a cake that is better than a Twinkie, you need to have
the right ingredients and you need to let it bake. Investing
is just like this. You need to get the right mix of ingredients
(cash, stocks, bonds, mutual funds, real estate, etc.) and based
on the return (cake) you want and the time (bake time) you have,
you and your advisor can select the appropriate investments
(ingredients). Let’s cover the five general investment
objectives from least risky to most risky.
we embark on this, let’s establish a few general rules.
Why would an investor take more risk? To earn more! What is
needed when more risk is taken to increase the probability that
one will earn more? More time! So, to earn more, one would agree
to take risk. In doing so, an investor must understand that
additional time is required. Risk + Appropriate Time generally
equals Higher Rewards.
in mind that as the various time horizons are detailed below,
this does not suggest that an investor with a certain period
of time invest only in that category. Even those already retired
often have some money they will not need for 10 – 15 years.
So, in most portfolios, there is room and reason for a range
of investments within each category. This will further depend
on how much the client wants to earn and how much risk is acceptable.
further ado, here are the “flavors”…
Fixed Investments will buy long term debt obligations, such
as mortgages and corporate and government bonds. These investments
often commit to a minimum interest rate and may credit at a
current rate that is the same or slightly higher than the minimum
rate. Bake time on these is 0 – 5 years. Now, that does
not mean there is no place for these in a 30-year old’s
portfolio (everyone can use a good foundation), it simply means
if you know you need this money in the next 5 years, this is
the only place you will have comfort knowing it will not be
worth less than what you invested.
Balanced Investments usually buy between ¼ and ½
bonds and ½ to ¾ in stocks. When the stock market
goes up, the bond market goes down. This inverse relationship
means this investment will not take as much risk as one in all
stocks as it is “playing both sides”. In an investment
such as this, historically a time range of 5 – 7 years
gives an investor a pretty good chance (over 90%) that they
could earn more than they would in a fixed investment over that
same time period.
Equity Investments usually buy all stocks, and those of large
companies. A good mix will include both value and growth oriented
stocks or mutual funds. Without any bonds, there is more risk.
Remember, more risk needs more time. Here our bake time increases
to 8 – 10 years. Historically, this time period has shown
that investors in the Equity markets have outperformed those
in many fixed investments.
Aggressive Equity Investments will buy all stocks as well. Only
here the stocks will be of mid- and small-sized companies. Keep
in mind that about 98% of all new companies are out of business
within 2 years. Because these funds focus on the smaller and
newer companies, especially those looking to develop new products
or services, it stands to reason they do indeed take more risk.
Provided you have another few years to bake, the risk could
be worth the return. Here our bake time is increased to 10 –
Investing itself bears risk. Now add currency rate fluctu-ations
and political environments to the already imminent risk of stocks
and bonds, and you have international investments. International
investments will buy stocks and bonds in foreign countries.
Worldwide investments have the right to buy those in the U.S.
in addition to those overseas. These are typically referred
to as Global Investments. In either event, adding more variables
adds more risk. Adding more risk, we need to add more time.
International or Global investing takes an investor with 12
– 15 years.
you need the money is not an important factor in investment
decisions. T F
Investments buy ¼ to ½ in bond investments.
Investments should buy only growth-oriented stocks/funds.
Equity Investments are more risky than Balanced Investments.
Investments are a great way to make a quick buck! T
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