EllenbeckerInvestmentGroup|ellenbecker.com Exceptional Planning. Extraordinary Service.®

In TouchSince 1996 2nd QUARTER 2015

EIGEllenbecker Investment Group

®

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2 We Listen Julie Ellenbecker-Lipsky, CFP,® CDFATM

4 Stand Up & Play Jeff Stroud

4 Dividend Update Mary Brown

5 Practicing for Retirement Diane Byrne, CFP,® AIF®

6 Legacy Planning Ann Hanna

6 Tax Preparation Sandra Geisler, CPA

7 Educating Employees Jean Range, CFP®

8 Succession Planning Nancy L. Wilson

8 Big Question Lynne L. Finch

9 Risk-Adjusted Returns Kristina Schnuckel, CFP,® AIF®

10 CMC Economic Update Barry Mendelson, CIMA

11 Life Chapters Wendy Bitter

more in this issue

N35 W23877 Highfield Court, Suite 200 | Pewaukee, Wisconsin 53072 | (262) 691-3200 705 E. Silver Spring Drive | Whitefish Bay, Wisconsin 53217 | (414) 727-6920

Karen EllenbeckerFounder & Senior Wealth AdvisorEllenbecker Investment Group

Take Time to Pause & ListenI would like to share with you a

story of trust, friendship and what can unfold when you listen with an open heart. In September of 1998, I hosted an intimate group of clients and friends on a trip of a lifetime. We spent two weeks navigating on a small boat through some of the world’s most beautiful countries.

We began our travels visiting many small ports and shoreline villages. When we arrived in Athens, Greece, we stayed in the historical Plaka neighborhood at the Hotel Acropolis.Each day, during our free time, I wandered and explored the old neighborhoods within the city. Daily, I was drawn to a small studio filled with brightly colored apples and other artistic objects, but never ventured inside. The unusual glazes sparkled in the sunshine and I was mesmerized with the pure beauty.On our last day in Athens, I again walked past the gallery. We were leaving the next day for a tour in Turkey and then returning for a final night at the Hotel Acropolis. As I walked past the little gallery, I noticed the artist sitting outside with his two young sons. I smiled and watched his wife whisk the boys away for school. I smiled again and told him his gallery was beautiful and that I had been admiring it all week. He invited me to sit down and thus began the most amazing and inspiring friendship.Yanni easily shared the political turmoil Greece was experiencing, the financial difficulties he faced raising children and launching a boutique business in the midst of constant uncertainty. We both found it easy to share our stories, he was very curious about my life. For the next two hours, we engaged in a mutual conversation

Yanni Souvatzoglou: www.yannisouvatzoglou.gr/gallery

Look for “Elevation”

in our lobby when you

visit us

Advisory services offered though Ellenbecker Investment Group, Inc. (EIG), a Registered Investment Advisor. EIG does not provide tax or legal advice. Please consult your tax or legal advisor regrding

your particular situation. Diversification and asset allocation do not guarantee positive results.

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Julie Ellenbecker-Lipsky, CFP,® CDFATM

President & Wealth AdvisorEllenbecker Investment Group

Listening is the foundation of any good relationship, professional

or personal and most people only listen long enough to form a reply. At Ellenbecker Investment Group we have made it our mission to listen to our clients so we can hear the things that are not even being said.Financial planning is not finances alone. Financial planning is a

comprehensive evaluation of someone’s current and future financial situation, taking into account all aspects of what is critical to creating success. However, there is no defined list of what creates success nor does one shoe fit all. Being a comprehensive financial planner is not an exact science, but rather a mix of art and science.

Without truly understanding the motivations, fears, hopes and dreams of a client’s retirement picture, it is virtually impossible to create a plan to meet those objectives.By asking questions and hearing what is really important to our clients we can be on track for meeting their financial goals.

Is your advisor asking you…• What are your primary goals for

your finances?• How involved do you like to

be in your financial planning decisions?

• How do you want your assets to pass at your death?

• What financial legacy do you want to leave for your children and grandchildren?

• Does your accountant help with tax planning or just tax preparation?

• What charities or special organizations are you passionate about?

• What fears or insecurities do you have around your finances?

• What is the greatest risk to your retirement plan longevity?

• How will your health and health insurance affect your retirement income needs?

• What is the most important thing to consider when making recommendations?

The financial planning industry has shifted from simply selling investments and products to identifying risks and creating solutions to mitigate those risks. It is more important than ever to focus on a goal, create an action plan and continuously monitor and modify the plan as needed. Having a financial planning relationship is a two way street. It takes both the client and the

Before We Plan, Before We Advise, Before We Invest,

We Listenadvisor to be committed to the financial planning process. It requires the advisor to ask difficult and personal questions while listening for things that are not being said. It also takes a willingness and openness on the client’s part.

Listening alone will not get the job done. As the old adage states, “We were born with two ears and one mouth, use them accordingly.” The art of conversation is successful when both parties are completely honest and engaged in the process. An open dialogue will greatly increase the success of your financial plan.

If there are areas of improvement you would like to see in your

planning relationship, do not hesitate to ask. Many people do not know what to expect from a planning relationship and therefore sell themselves short on the experience.

At EIG, we encourage you

to share any family or financial updates with us, no matter how trivial they seem, so we can help you identify what components of your overall plan are affected. You have hired us to be your family’s CEO and the more information we have, the more helpful we can be with accumulating, growing, maintaining and celebrating the wealth you have worked tirelessly to accumulate. JE

“The art of conversation

lies in the listening.”

— MALCOM FORBES

continued from cover

Pause & Listen

April 15 — 5:30-7 pmBible Study EIG Education Center Pewaukee Office

April 28 — 1-3pmIdentity Theft Seminar EIG Education Center Pewaukee Office

April 29 — 5:30-7pm Bible Study EIG Education Center Pewaukee Office

May 2 — 9-11amStand Up and Play Training EIG Education Center Pewaukee Office

May 13 — 5:30-7pmBible Study EIG Education Center Pewaukee Office

May 16 — 9am-12pmCommunity Recycling Day with Foundations Bank Pewaukee Office parking lot

May 27 — 5:30-7pmBible Study EIG Education Center Pewaukee Office

June 3 — 6-9pmWaterfront Wednesdays with Foundations Bank Pewaukee Lake Beachfront

June 10 — 6-9pmWaterfront Wednesdays with Foundations Bank Pewaukee Lake Beachfront

June 13 — 9-11amStand Up and Play Training EIG Education Center Pewaukee Office

June 17 – 6-9pmWaterfront Wednesdays with Foundations Bank Pewaukee Lake Beachfront

June 24 – 6-9pmWaterfront Wednesdays with Foundations Bank Pewaukee Lake Beachfront

Listen to Money Sense Radio on WISN 1130 AM Saturdays at 2pm and Sundays at 12pm CT

EIG®

Calendar of eventsthat was about both sharing and

listening. I shared my challenges of raising three children as a single parent, being a women advisor in a male dominated industry and starting Ellenbecker Investment Group with only a vision of a better way to provide financial services. I was constantly being told that my concept of a fee-only advisory firm focused on providing a high level of service would not be successful. This exchange of friendship and mutual curiosity created a foundation that would launch both of us and change our lives forever. The time we spent together was amazing. We hugged and wished each other well. I never thought for a minute that our paths would ever cross again.After spending the remaining days in Turkey, we arrived back in Athens for the final night of our experience. When I checked back into the Hotel Acropolis, I was surprised to find a note from Yanni asking me to stop by his studio.When I got there his excitement was written all over his face, he presented me with the most beautiful piece of art. He went on to tell me that after our conversation, he woke up in the middle of the night with a clear vision of where I had been, who I was and where I was going. He then spent the next few days creating a statue symbolizing my journey.

“Karen, this rough stone foundation is how you started. All of the difficult things you shared with me, alone with three children, being told time and time again that you would fail. You never lost faith in your dream, stretching and growing while remaining

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true to yourself. The bend in the elbow represents the challenges that you faced on your journey, elevating yourself above it all.” Yanni would not allow me to pay for the statue. He explained I was his inspiration, it was a gift and that when you receive a gift like this it is meant to be given away. I have never forgotten this moment and his lesson, a gift isn’t a gift until it is given away. I left Athens with a memorable experience and a beautiful statue that has kept me focused and committed.

I wish that I could say that we kept in touch but we did not, other than an occasional Christmas card. This past October, I had the opportunity to spend a day in Athens visiting with Yanni, his wife Teresa and their sons. For the first time in sixteen years I went to his Gallery webpage and my breath was taken away… there was my statue! Yanni had become one of the most famous bronze sculpture artists in Greece. His inspiration came from our quiet spontaneous sharing many years ago. Yanni, through that inspiration, has continued to create meaningful statues that touch individuals as all art does in very personal ways.

Each day when I walk into the office my eyes fall on Yanni’s beautiful bronze statue, reminding me of his gift, his vision and my ability to rise above challenges and the magic that can unfold when you are willing to pause and listen. KE

An artist and his inspiration, in his studio in Greece.

Founded by Karen Ellenbecker in early 2014, the Wisconsin

Chapter of Stand Up and Play had an exciting year of learning and

growth. The Stand Up and Play Foundation was formed to provide people with impaired mobility the opportunity to “Stand Up” and to participate in sporting, artistic, social and other daily events. A key enabler of this goal is a device called a “Paramobile.” The Wisconsin Chapter’s goal is to make Paramobiles, and potentially other mobility devices,

available to all organizations, community centers, golf clubs and individuals throughout the area. The Wisconsin Chapter is unique in

that our Paramobiles are available to the general public at no cost to the user (donations gratefully accepted). While the Paramobile was originally designed for disabled golfers, it can also be used in other sports and leisure activities including fishing, archery, or skeet/trap shooting. The all-terrain Paramobile, with its patented stand-up capability, combines practical know-how with innovative ideas for maximum participation and fun. It offers unequalled stability when a golfer is hitting the ball and enables performance that is comparable to those of non-handicapped players.

The Paramobile has been approved for use at all Milwaukee and Waukesha County public golf courses, at the Washington County Golf Course and several privately owned courses in the area.Our goal for 2015 is to increase the use of the Paramobiles. One key to achieving that goal is to have more trained volunteers. We are planning to conduct three training sessions in 2015.

Jeff StroudExecutive Director

Stand Up and Play-Wisconsin Chapterstandupandplay.org

(262) 695-8414

What’s New at Stand Up and Play?

4 The overall trends for dividends and dividend growth continue to

be positive for shareholders. From an income generation standpoint, stock yields remain competitive compared to those of bonds despite the rally in stock prices. At the end of February 2015, the S&P 500® and the 10-Year Treasury bond were both yielding approximately 2.0%, while the 12-Month Treasury note yielded less than 0.2%.Dividend payments to shareholders have increased as corporate profits have grown. In the quarter ended 9/30/14 (most recent available), the companies in the S&P 500 paid dividends totaling over $89 billion, a $3.4 billion (3.9%) increase from the prior quarter and an almost

$10 billion increase (12.3%) from the year-ago quarter. Dividend payout ratios have remained in the 30% to 40% range in recent years, while the longer term average is closer to 50% - implying there is still room for dividend rate hikes greater than earnings growth. The number of companies paying dividends has consistently expanded since 2009. Among the S&P 500’s constituents, this number dropped to 363 then, but rebounded to 423 by the end of 2014.

S&P 500® Index is an unmanaged index of large-cap common stocks. Past performance does not guarantee future results. You cannot directly invest in an index.

Mary Brown, CFAPresident

Campbell Newman Asset Managementcampbellnewman.com

(262) 243-7000

Positive TrendingDividends

highlights

To become a volunteer, contact Jeff at

(262) 695‑8414 or jeffs@standupandplay.org

3 paramobiles

2 trailers to transport them

50 interested volunteers

4 volunteer training sessions

20 volunteers trained and certified on the safe use and operation of paramobiles

30 events at which our paramobiles were used by clients or demonstrated including:

• Area golf courses• Parades• The Milwaukee County Zoo• Adaptive Sports Exposition• 3rd Annual Precor Tailgate

for The Ability Center

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Advisory services offered though Ellenbecker Investment Group, Inc. (EIG), a Registered Investment Advisor. EIG does not provide tax or legal advice. Please consult your tax or legal advisor regrding your particular situation. Diversification and asset allocation do not guarantee positive results.

We have heard it over and over again. It does not matter

how much money you have if you are not healthy enough to enjoy it. Many people put off doing things until they retire assuming they will be healthy at that time. The plans might be for extensive travel, do-it-yourself home improvements, playing more golf or doing activities with grandkids. For me, it is the ability to travel and play golf. When I meet with clients, I encourage them not to wait until retirement to do the things that require good health.

Advisors Diane Byrne and Jean Range at Diane’s first

5k Run/Walk at the TD Ameritrade Institutional Conference

Practicing for RetirementHealth Matters

at “standard” rates versus “best” rates. With life insurance, the rate difference can be even more dramatic. At age 60, someone qualifying for 20-year term life insurance at the “standard” rate classification may pay up to 90% more annual premium than at the “best” rate calculation. And, if you are a smoker, the rates become significantly higher. Also we hear it is never too late to start making improvements, especially related to weight, which can influence many other health-related issues. Last year I started (again) to lose weight. I’ve struggled with weight issues since childhood. I had good success through November and a bit of a relapse since then. (Not sure why I thought the holidays lasted through St. Pat’s!) However, I am back on track and ramping up my activity level as well. Last month I successfully completed my first 5K Run/Walk. I walked the entire way and was the last one to finish but I did it! My goal is to get fit enough to continue to enjoy the things I like to do now and well into retirement. DB

Your health can influence your ability to afford a comfortable retirement as well. According to the latest retiree health care cost estimate from Fidelity Benefits Consulting, a 65-year-old couple retiring this year will need an average of $220,000 (in today’s dollars) to cover medical expenses throughout retirement. What is more, that $220,000 in estimated costs does not include any costs associated with nursing-home care, and applies only to retirees with traditional Medicare insurance coverage.Since there are many financial-related things we cannot control - the markets, inflation, taxes - it makes sense to look at protecting your financial assets from the potential high costs of health care. One planning strategy for this includes the use of insurance. It may be appropriate to own life insurance, with the plan that the proceeds would replace any portfolio assets that would be needed to pay health care expenses. Or, to own long term care insurance to pay for those expenses should the need arise. Premiums for insurance policies vary greatly depending on a person’s health. For example, with long term care insurance, for a married couple at age 60 qualifying for coverage, the annual premium can be up to 17% higher

Diane Byrne, CFP,® AIF®Wealth AdvisorEllenbecker Investment Group

SAVE THE DATE

MAY 16 9am-12pm Pewaukee OfficeWatch your email for details

community recycling day

paper • electronics • eyeglasses hearing aids • cell phones • and more

6 Planning for the future of your business is often ignored and

postponed because it is riddled with difficult and sometimes unpleasant decisions. All too often, business leaders put off creating a plan until there is an illness or death which forces the issue. What happens if you don’t plan? ~ Chaos!As the business owner, you are the best person to oversee the transaction. A sale generally takes 9-12 months and is a taxing process for an owner with tremendous intrinsic knowledge of the business. Imagine the stress involved for your family as they try not only to sell

your business, but also to keep it viable through the process – during a time of grief.Taking action now also gives you the opportunity to choose your buyer. You are able to help smoothly transition the ownership for the benefit of your family, employees and legacy.A sale also will allow you to enjoy the fruits of your labor. It will give you the resources and time to help family and friends along their journey. This often opens a whole new world of philanthropic opportunities.In the event your family chooses to retain the business, it can be very challenging to determine how to treat all beneficiaries fairly. Take the time now to decide how the shares of the business are allocated, rather than leave it up to a court

fight between heirs.Business transition and transferring wealth is much more than a financial transaction. There are significant emotional issues to address, but you remain the sole best candidate to resolve them while still healthy and able.Consider asking your EIG advisor about working with professionals who have experience in helping small business owners transition their business.

Ann HannaManaging Director Schenck M&A Solutions schenckc.com(414) 465-5537

Legacy PlanningIt’s Your Business

Last Minute Tax Strategies

rules on IRA contributions vary, you may be able to deduct the full amount of an IRA contribution if you and your spouse are not covered by retirement plans at work. If you are, your contribution might be limited based on your adjusted gross income.Interested in helping a child or grandchild save for college? New this year, contributions to a 529 plan in Wisconsin can be made until April 15. Up to $3,050 per beneficiary can be saved, providing you a subtraction to income on your Wisconsin tax return.Oops! Did you contribute to an IRA and then found out you were over the income limits? Be sure to withdraw the contribution and any earnings by April 15. If you don’t, the IRS will assess a 6% penalty tax for each year the excess contributions are not withdrawn.

Turning 70 ½ in 2015? Ask your advisor if it will be better to defer your first required distribution until April 1 of 2016. You will be required to take a double distribution in 2016, but it may be to your advantage to defer the income another year.

The so-called ‘extender’ tax bill was signed into law on December 19, 2014 which extends 50+ tax savers that were due to expire in 2013. Do not forget to let your preparer know about any major purchases that may qualify for a sales tax deduction, mortgage insurance premiums paid, charitable donations made directly from your IRA, and supplies purchased by teachers for use in the classroom. The extension is only for one year at this point, so be sure to take advantage of them in 2014.

Spring has sprung and that

means the April 15 tax deadline is approaching quickly! If you have not filed your 2014 return yet, here are a few last minute tax strategies that can still be implemented:If you qualify, you can still contribute to a traditional IRA. While IRS

Sandra Geisler, CPAHale Park Tax & Accounting

haleparkcpa.com(414) 529-3703

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Advisory services offered though Ellenbecker Investment Group, Inc. (EIG), a Registered Investment Advisor. EIG does not provide tax or legal advice. Please consult your tax or legal advisor regrding your particular situation. Diversification and asset allocation do not guarantee positive results.

Retirement Plans are an integral part of a total compensation

package. The financial impact to the employee and employer can be significant. For the employee, the plan provides a venue to save and plan for a comfortable retirement. For the employer, the plan assists in the ability to attract and retain employees. It is important to engage employees within the corporate culture and help ensure they appreciate the value of their benefit package.

Educating Employees aboutRetirement Benefits

Communication:Many corporations are beginning to offer education, comprehensive financial planning, estate planning and 401(k) analysis in their employee benefit package.One key factor in the success of a retirement plan is employee communication. Customized workshops designed to help employees make informed decisions when evaluating investments is one way to help communicate with employees. These workshops can be limited to a discussion around asset allocation using the current choices in an employer provided retirement plan and can be expanded to include many topics. These customized workshops have shown that education and communication facilitate a greater understanding and appreciation of company-provided retirement benefits. Workshops can be full or half day for all employees or smaller groups at a time. Some employers like the “Lunch and Learn” or half day seminar approach because there is more time to discuss the different components of the financial plan (estate planning, tax planning, retirement planning, investment planning, end-of-life planning, insurance planning etc.).

Individualized Financial Planning:Another service business owners offer employees is individualized financial planning for upcoming retirees or individuals that have had a death or health crisis in their immediate family. This is very well received by employees because it clearly demonstrates the commitment the company has to retiring employees as well as those dealing with a personal crisis.Financial Wellness:As more organizations are reaching out to individuals and families to provide an overall wellness program, it is important to include Financial Wellness. There are four key parts to Financial Wellness, all of which tend to be well attended workshops. These can be reconfigured within two parts or four.I would be happy to personally meet to discuss your interest in these programs to determine what program best fits your needs and how I can develop a dynamic and effective program. All programs are purely educational.As I have done with other corporate clients, employee evaluations about the retirement plans are compiled to ensure a high level of service and knowledge is being provided and can be shared with you accordingly. JR

Jean Range, CFP®Wealth AdvisorEllenbecker Investment Group

Session 1 Money:

What you should know.

Session 2 Who gets the china?

Session 3 Financial Curiosity:

It pays to ask.

Session 4 Life Planning

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In recent years, business owners have primarily been focusing

on keeping their operations going and profitable in a challenging economy. Business owners have had to face tough realities and they

have been forced to creatively adapt, including delaying their retirement. Understandably, succession planning has taken a back seat to maintaining the bottom line. However, more and more business owners are now realizing that succession planning is one of the most important risk management tools available to protect

their investment and the future of their business.One of the biggest risks businesses face is an active owner who has no contingency plan in the event of a health crisis, death or other unexpected event. Not only is the business and everyone in it exposed to serious hardship and possible collapse, but the owner has jeopardized his or her own investment that oftentimes took a lifetime to build.

We were at a restaurant with family when my seven-year-

old grandson glanced at his mom. She nodded as if to say “It’s okay, you can ask her.” He looked over at me, “I was wondering about money. You don’t work so where do you get your money from?”His question surprised me but made perfect sense. He knew that parents have jobs but could not figure out how his grandparents got money if they did not have jobs. After I got over my initial surprise I told him that while we worked, we did not spend all our money. We put money in a retirement account to spend later. That made sense to him because he had learned that when he did not spend his allowance one week he had more the following week. So he understood the concept that saving money is making a decision to not spend.

Then I added one more thought for him to consider, “When you start working you make it habit to ‘“not spend’ all your money. If you let that money grow during the years you work, you will also have money to spend when you retire.”Here is where his mom and dad can then take the conversation further

by showing him the power of compound interest and how much his money can grow. When he sees those numbers his eyes will light up. This can be a big lesson for a little boy. For more information about teaching your child to manage money or to get Lynne’s book visit www.thenocashallowance.com

Lynne L. FinchAuthor

thenocashallowance.com(920) 982-1475

A sound succession plan will identify the successors, address skill levels, maintain the best people and provide a transfer mechanism for retirement and emergencies. This planning involves estate and income tax planning, retirement planning, business valuation, ongoing support as well as focusing on a strong business capable of taking care of the owners and employees presently and in the future.There is no one plan that fits every business; instead this is a very personal journey for the owners and managers. For this reason, working with experienced professionals is critical to understanding and evaluating all of the options available and is more cost effective in the long run than implementing a generic plan that in some cases can be disastrous. Owners have spent years building their business and transferring that business should not be done haphazardly because of a crisis or through a generic succession plan. Take the time to do it right and protect your investment while giving the next generation the best chance for success. In addition to being an attorney in the areas of business, tax and estate planning, Attorney Nancy L. Wilson has practical business experience as a former COO and CFO in the distribution, service and manufacturing sectors as well as having owned several businesses. Attorney Wilson can be reached by phone at (262)409-2281 or by email at nwilson@axley.com

The Next Level of Risk Management

Succession Planning

Nancy L. WilsonAttorney

Axley Brynelson, LLPaxley.com

(262) 409-2281

Small Boy Big Question

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Advisory services offered though Ellenbecker Investment Group, Inc. (EIG), a Registered Investment Advisor. EIG does not provide tax or legal advice. Please consult your tax or legal advisor regrding your particular situation. Diversification and asset allocation do not guarantee positive results.

How do you measure the success of your investments? Most

of us look to the stock market for validation, but is the market really able to provide an accurate picture of how your accounts stack up? To be able to answer this question, you first must understand the risk level of your portfolio and how that translates to market return. In other words, you need to understand your risk-adjusted return.The amount that you will participate in market highs, or lows, depends on your level of risk. Higher risk does not always mean a higher return. Our approach to risk management is two-fold.First, we look to the underlying investments to craft a portfolio uniquely suited to meet your needs. The Greek alphabet starts with alpha and beta, so too does our search for the right investments. In the investment world, alpha is synonymous with risk-adjusted return and beta is a measurement of risk. The beta, as measured against a market index, can tell you how much risk the investment has compared to its benchmark. In this calculation, the market is considered to have a beta of 1.0. If an investment has a beta of 0.80, that means it is taking

Understanding YourRisk-Adjusted Return

Kristina Schnuckel, CFP,® AIF®Wealth AdvisorEllenbecker Investment Group

approximately 80% of the risk associated with its benchmark. The beta tells us the level of risk in each investment, while the alpha tells us how well that investment has historically performed at its given level of risk. These are just two of the fundamentals that help us ensure a high quality offering of investments that can capture much of the market highs, but should fair far better during the low points. These quantitative market analytics may sometimes take a back seat to the qualitative discussion, but rest assured they are hard at work behind the scenes. After selecting the investments with the best risk-adjusted potential in their respective classes, we turn our attention to asset allocation. We break down portfolios into 12 diverse asset classes, with three distinct objectives (Income, Income & Growth, Growth). Much like the individual investments within a portfolio, your portfolio overall has a beta, or level of risk, that is determined by the correlation between your asset classes and underlying investments. When looking at your portfolio as a whole, it is important to understand your level of risk and what that means to your return. Because your

investment portfolio is diversified, it is hard to draw parallels to the market on a day to day basis. This is where understanding your risk-adjusted return comes into play. If your portfolio carries only 60% of the risk associated with the broad market (or a beta of 0.60), you should expect that same portfolio to return 60% of the market’s profits. The same principle applies to down markets. This portfolio may drag behind in up markets, but should outperform during down market cycles. Understanding your risk adjusted return can mean the difference between always chasing market returns versus understanding what is really working for you. KS

There is no guarantee that any investment will achieve its investment goals. Investment return and principal value will fluctuate. Investor’s investments, when redeemed or sold, may be worth more or less than their original cost.

Many of you joined us on beautiful Lake Geneva this past August for our 2014 Client Referral Gala…watch for details about our

Gala OCTOBER

2015 CLIENT REFERRAL

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Recap: The U.S. economy returned to a sluggish growth trajectory late last year, though underlying signs of strength suggest growth will pick up in 2015. Gross domestic product, the broadest measure of goods and services produced across the economy, expanded at a 2.2%

annual rate in the fourth quarter. For 2014 as a whole, GDP expanded 2.4%, slightly better than the average 2.2% growth of 2010-13. By comparison, the economy grew an average 3.4% a year during the 1990s.Consumer spending, which accounts for about two-thirds of output in the U.S., matched its fastest pace of growth

since early 2006 during the fourth quarter. Personal consumption expenditures advanced 4.2%. Steady payroll gains and cheaper gasoline buoyed households, boosted spending and helped the expansion. Obviously the

Capital Market Consultants

Economic Update

Barry K. Mendelson, CIMACEO, Senior Investment AnalystCapital Market Consultants, Inc.

cmarkc.com(414) 727-7995

From the March 2015 Economic Commentary and Capital Market UpdateTo read the complete report and the latest economic updates, go to ellenbecker.com.

U.S. consumer has been feeling better - unemployment was at its lowest level in five years, consumer confidence was at new highs, home prices continued to recover, and of course energy costs were cut dramatically. Growth is expected at the start of 2015, though capital expenditure reductions, bad weather in the Northeast and a backlog at West Coast ports, related to earlier work slowdowns, have been wildcards that could be a short-term damper on economic activity.Outlook: Robust growth for America in 2015 is anticipated, led largely by consumer spending. Retail spending has been weak over the past two months, but it’s not time to count the U.S. consumer out just yet. The fourth quarter as a whole was the best for consumer spending since early 2006. The weakness in retail sales was in part a function of lower prices, owing to the stronger dollar and falling energy prices. One could not expect consumers to spend all of the savings from lower oil prices at once. Money saved at the pump today is likely to be spent in the months ahead.While most key economic reports continued to show strength, commodity prices and the financial markets have clearly felt the sting from slow growth overseas. The first part of this year has been characterized by plummeting oil prices, sharply lower long-term

bond yields and the return of volatility in the equity markets. The dollar has also continued to strengthen against most other currencies as investors, businesses, and individuals around the world have recognized the better risk-reward relationship in holding U.S. assets at this tumultuous time.Real GDP is expected to rise at just a 2.0% pace in the first quarter, as oil companies slash their capital spending budgets and slower economic growth around the world constrains U.S. exports. The benefits from lower gasoline prices will eventually show up in the form of stronger consumer spending and improved corporate profits. The slow start to GDP growth may present new challenges to the Fed. Much of what is slowing in the economy is occurring in capital-intensive industries, which means the hit to GDP will be far greater than to employment, which has actually been quite strong in recent months. Headline inflation figures have also fallen faster than expected. The Fed is likely on course to raise interest rates toward the middle of this year, when circumstances will have improved considerably.

Sources: The Conference Board, Department of Commerce, Department of Labor, National Federation of Independent Business, National Association of Realtors

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Advisory services offered though Ellenbecker Investment Group, Inc. (EIG), a Registered Investment Advisor. EIG does not provide tax or legal advice. Please consult your tax or legal advisor regrding your particular situation. Diversification and asset allocation do not guarantee positive results.

This new corner of our newsletter is designed to share a life experience from the EIG team. We all go through chapters in life and EIG is here to help you plan for your unique situation. With spring upon us, we are focusing on buying and selling a home. A new member to our team, Wendy Bitter, Director of Marketing, shares her story.

After starting our family in Pewaukee, my husband

and I wanted to be closer to our extended family and reduce our daily commute to work. We were also interested in a home with a bit more space to accommodate our young family and all the “stuff” that comes with it. As luck would have it, my parents spotted a “For Sale” sign going up in a neighborhood in Brookfield that we liked. We quickly called, toured the home and after working through the details, have been there almost two years.

The special part about the purchase was that our family and the seller were in two distinct chapters of our lives. The seller and her husband built the home in the 1970’s, but she had been living alone for over 10 years. Just before turning 93, she decided it was time to downsize. She was happy to have a new family take on the task of updating the home and we were excited to be in a neighborhood that met our needs.When I think about this particular home seller, I often wonder how long she had been working toward selling her home. How did her family feel about her decision to sell? Not having experience with home buying or selling for over 40 years, did she have trusted professionals to help her? I am guessing she had the right advice about renting versus owning her next home. Perhaps she even had Karen’s famous phrase “You can’t eat your home!” influencing her. Meaning, make your portfolio work

Life ChaptersA Personal Story

for you and provide a consistent monthly income versus putting those assets toward owning a home. Also, the seller was fortunate to have anxious buyers. It is not often that sellers can avoid having strangers go through their home before receiving an offer to purchase. Open houses and estate sales may feel uneasy, but with the right resources and guidance in place the stress of home selling can often be dramatically reduced. Be sure to ask your advisor about planning for your next chapter and the options it entails. We have many referral sources for mortgage brokers, realtors, home staging services and estate sale professionals, to mention a few. WB

Wendy BitterDirector of MarketingEllenbecker Investment Group

Kid’s Corner: Snap, Crackle, PopWhy do Rice Krispies® make noise when

doused with milk? Cereal makers oven-toast the rice, which has been conditioned with water. As the water turns to steam, the rice kernels puff out like popcorn. But unlike the compact, hard walls of an uncooked rice kernel, the walls of puffed rice are stretched thin, making each kernel fragile. The shock of cold milk makes the walls crack like a thin glass crystal. As the milk is (unevenly) absorbed by the puffed rice, the snapping and crackling sounds come from the fracturing of the walls and the escape of air trapped inside the kernels.

Wollard, K., & Solomon, D. (2014). Why do Cheerios clump together in the bowl? In How Come? Every Kid’s Science Questions Explained (p. 100). New York, New York: Workman Publishing Company.

Money Sense Radio Saturdays at 2pm & Sundays at 12pm CT on WISN AM 1130For over two decades, listeners have counted on Karen Ellenbecker for reliable, relevant information designed to help with life’s challenges. Each week, Karen shares her unique financial perspective and interviews local and global economists, lawyers, tax and real estate specialists, authors and other special guests.

Listen online at newstalk1130.com

N35 W23877 Highfield Court, Suite 200Pewaukee, Wisconsin 53072

Ellenbecker Investment GroupEIG

®

Ellenbecker Investment GroupEIG

®

Advisory services offered though Ellenbecker Investment Group, Inc. (EIG), a Registered Investment Advisor. EIG does not provide tax or legal advice. Please consult your tax or legal advisor regrding your particular situation. Diversification and asset allocation do not guarantee positive results.

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