Saint Paul Minneapolis Waseca, Minn. Seneca, Ill. Things to know about Dunncreek Advisors I am a fee-only financial planning and investment management professional with 12 years experience. I function as a Financial Fiduciary working in the client s best interest at all times. I am compensated similar to an attorney or accountant providing professional services. I receive NO compensation from any source other than client fees for services rendered. Unique Capabilities: Investment Second Opinion from fee-for-advice financial fiduciary. Analysis without a sales pitch. Independent assessment of investments choices Detailed report and explanation of investments, costs, risks and benefits Pre-Divorce Advice from fee-for-advice financial fiduciary. Independent assessment of marital assets Independent advice on how to separate assets in the client s best interest Personal Injury Settlement Advice from fee-for-advice financial fiduciary. Independent assessment of settlement investment options Management of settlement funds to maximize the client s best interest Richard F. Dunn Jr., AIF, AAMS Chris Neu chris.neu@dunncreekadvisors.com Advisory services offered through AdvisorNet Wealth Management Inc. an SEC registered investment advisor 701 Fourth Avenue South, Suite 1500, Minneapolis, MN 55415, (612) 347-8600, advisorycompliance@advisornet.com
Saint Paul Minneapolis Waseca, Minn. Seneca, Ill. We serve agricultural producers, those who serve them and those who love them with fiduciary financial planning advice. Things to know about Richard Dunn I am a fee-only financial planning and investment management professional with 12 years experience. I function as a Financial Fiduciary working in the client s best interest at all times. I am compensated similar to an attorney or accountant providing professional services. I receive NO compensation from any source other than client fees for services rendered. I grew up in a farm town, Newark, Illinois, the son of a vocational agriculture teacher and FFA Advisor I was active in 4-H and FFA and attended the University of Illinois majoring in agricultural communications and education. My cousin lives and farms the family homestead that s been in our family since 1877. Unique Capabilities: Investment Second Opinion from fee-for-advice financial fiduciary. Analysis without a sales pitch. Independent assessment of investments choices Detailed report and explanation of investments, costs, risks and benefits Pre-Divorce Advice from fee-for-advice financial fiduciary. Independent assessment of marital assets Independent advice on how to separate assets in the client s best interest Personal Injury Settlement Advice from fee-for-advice financial fiduciary. Independent assessment of settlement investment options Management of settlement funds to maximize the client s best interest Richard F. Dunn Jr., AIF, AAMS Chris Neu chris.neu@dunncreekadvisors.com Advisory services offered through AdvisorNet Wealth Management Inc. an SEC registered investment advisor 701 Fourth Avenue South, Suite 1500, Minneapolis, MN 55415, (612) 347-8600, advisorycompliance@advisornet.com
Saint Paul Minneapolis Waseca, Minn. Seneca, Ill. Richard F. Dunn AIF, AAMS, Principal Direct: 612-436-3770 E-mail: rdunn@dnncreekadvisors.com Webpage: www.dunncreekadvisors.com Blog: http://dunncreekadvisors.wordpress.com LinkedIn Profile: www.linkedin.com/in/richardfdunn Having grown up on a small farm, I am passionate about helping clients involved in farming and agriculture implement financial strategies to manage and preserve the wealth they have worked so hard to build. Rich is a veteran financial planner with more than 11 years experience helping families build wealth and move toward achieving their financial goals. In 2002 he started his financial planning practice in Maplewood, Minnesota, working with a large national brokerage firm. Rich s financial planning experience is informed by a lifetime in the agricultural industry and a 15 year career educating and communicating with food and agriculture businesses, organizations and producers, as well as the service industries that support them. He works to bring the best financial planning strategies to bear on the challenges facing the agricultural community. Rich s practice stresses wealth building and tactical asset management to protect principal and reduce risk. By working with Rich as an independent advisor, clients receive advice free from any conflict of interest. Rich can work with clients on comprehensive financial planning, or asset management. Most clients work with Rich on a combination of both services. Similar to other service providers, fees can be charged by the hour, as a flat rate or as a percentage of assets under care. Rich currently holds the Accredited Investment Fiduciary (AIF ) designation and the Accredited Asset Management Specialist SM or AAMS designation. The Accredited Investment Fiduciary (AIF ) designation means that Rich has a thorough knowledge of and ability to serve as a fiduciary on behalf of his clients. Through various AIF training programs, Rich has learned best practices to serve in the important role of legal and financial fiduciary, by helping clients implement prudent processes and proper policies and procedures. For the AAMS designation Rich has completed a course of study encompassing investments, insurance, tax, retirement, and estate planning issues and passed an end-of-course examination testing his ability to synthesize complex concepts and apply theoretical concepts to real-life situations. Advisory services offered through AdvisorNet Wealth Management Inc. an SEC registered investment advisor 701 Fourth Avenue South, Suite 1500, Minneapolis, MN 55415, (612) 347-8600, advisorycompliance@advisornet.com
Richard F. Dunn January 2014 Page 2 of 2 Biography Education: Bachelor of Science, University of Illinois, Urbana-Champaign, Agriculture Education and Communications Professional Affiliations and Designations: Rich has achieved the following professional designations: Accredited Investment Fiduciary (AIF ) designee Accredited Asset Management Specialist SM designee Member, Financial Planning Association Member, FPA Minnesota Member, Business Network International Highlanders Chapter Alumni, College for Financial Planning Community Activities Rich is an active member of his community and gives his time on a volunteer basis to: Chair, White Bear Avenue Business Association Chair, St. Matthews Catholic School Education Advisory Committee Member, Saint Paul East Parks Lions Club Assistant Scout, Master Boy Scout Troop 248 Twin Cities University of Illinois Alumni Club. Dedicated soccer dad Dedicated girls fast-pitch softball dad Little Known Fact: Rich grew up an avid horseman and actively competed in saddle seat equitation, 10 and under, across Illinois. Family: Rich is the father of three children, Freddy (16), Peggy (13) and Miles (9). He lives with his wife Margaret in West Saint Paul, Minnesota, where he enjoys his kids sporting events, Boy Scout events and spending time with friends. ###
Saint Paul Minneapolis Waseca, Minn. Seneca, Ill. The Value of Behavioral Financial Planning Advice. The chart below illustrates that the average investor -- when left to his/her own devices -- not only underperforms the stock market in general, but underperforms his/her own investments by a significant margin. Source: Quantitative Analysis of Investor Behavior by Dalbar, Inc. (March 2011) and Lipper. Dalbar computed the "average stock fund investor" returns by using industry cash flow reports from the Investment Company Institute. The "average stock fund return" figures represent the average return for all funds listed in Lipper s U.S. Diversified Equity fund classification model. Dalbar also measured the behavior of a "systematic equity" and "asset allocation" investor. The annualized return for these investor types was 3.6% and 2.6% respectively over the time frame measured. All Dalbar returns were computed using the S&P 500Æ Index. Returns assume reinvestment of dividends and capital gain distributions. This is just one reason why we believe that the dominant determinant of long-term, real-life investment outcomes isn t investment performance, it s investor behavior. Helping our clients manage their own emotions and investment behavior is our mission. Richard F. Dunn Jr., AIF, AAMS Advisory services offered through AdvisorNet Wealth Management Inc. an SEC registered investment advisor 701 Fourth Avenue South, Suite 1500, Minneapolis, MN 55415, (612) 347-8600, advisorycompliance@advisornet.com
Annual Returns and Intra-year Declines Equities S&P 500 Intra-year Declines vs. Calendar Year Returns Despite average intra-year drops of 14.4%, annual returns positive in 26 of 34 years 40% 34 30% 26 26 27 26 20% 15 17 15 12 10% 7 4 1 2-10 -7 % 31 27 20 20-2 -10-13 -23 26 9 14 3 4 23 13 13-38 0 30-10% -20% -17-18 -17-7 -13-8 -9-8 -8-3 -6-6 -5-9 -8-11 -12-20 -19-17 -14-8 -7-8 -10-10 -6-16 -19-30% -40% -34-30 -34-28 -50% -49 16-60% '80 '82 '84 '86 '88 '90 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12 Source: Standard & Poor s, FactSet, J.P. Morgan Asset Management. Returns are based on price index only and do not include dividends. Intra-year drops refers to the largest market drops from a peak to a trough during the year. For illustrative purposes only. Returns shown are calendar year returns from 1980 to 2013. Guide to the Markets U.S. Data are as of 12/31/13.
Richard F. Dunn Principal Office: 612-436-3770 Fax: 612-313-7526 SERVICES HOURLY CONSULTING FINANCIAL PLANNING ADVANCED FINANCIAL PLANNING Provide investment recommendations to buy and sell securities, such as stocks, bonds and mutual funds. Provide in-depth and integrated analysis of your financial goals as well as recommendations to help you plan to reach them. Provide in-depth and integrated analysis of your financial goals as well as recommendations to help you plan to reach them. FINANCIAL AREAS ADDRESSED Advice on specific investments you hold with me, based on your time frame and risk tolerance. - A review of the six key areas, including cash flow accumulation goals, insurance, taxes, retirement, and estate planning. - Address some or all of the following: Goals to track over time: Fund education Fund future goals Fund retirement Transition to retirement Retirement income Additional financial planning areas: Investment planning (all assets) Income tax planning Employee benefits planning Estate, legacy or multi-generational planning Small business owner planning Divorce planning Same as to left plus: In-depth small business planning or large estate planning cases. Advanced work with properties, large purchases, taxes and insurance. MEETINGS Generally, one meeting per year. Generally, two- four meetings/checkpoints per year, including an annual planning meeting. As many as needed DELIVERABLE None Written recommendations on specific financial goals including goal tracking and achievement. Written recommendations on specific financial goals including goal tracking and achievement. FEE THE CLIENT PAYS Hourly Consulting $200/hour Flat fee of $500 - $1,500 $1,500 +
The 6 Key Areas of Financial Planning The start of the financial planning process should begin with identifying and prioritizing your objectives. We take a comprehensive approach by looking at both your immediate and long term needs in the context of these six key areas. Examining your present financial situation Protecting what s important Accumulating wealth Managing your taxes Planning for retirement Leaving a legacy > Do you have a clear picture of your goals? > How do you record your income & expenses? Your net worth? > What financial benefits does your employer provide? > What things can you NOT afford to lose? > How will you take care of your dependents? > How have you planned for potential financial risks? - Disability - Illness - Long term care - Death > What are your goals for growth? - Saving for education - Buying a home - Becoming a business owner - Comfortable retirement - Other goals > How are your current investments working for your goals? > How much will you need? When will you need it? > How do you handle your taxes? > How do you plan for timing of income and deductions? > Do you feel comfortable with the current tax laws and how they apply to you? > Are estate taxes a concern for you? > How are you planning to make your retirement dreams a reality? > In what ways are your liabilities impacting your retirement goals? > Are you confident that you ll be able to maintain your standard of living in retirement? > How should your assets be distributed when you re gone? > How will your intentions be carried out? - A will - A trust - Beneficiary designations - Power of attorney - Health care directives > Will your plans allow you to reach all your goals? Consult with your tax advisor or attorney regarding specific tax issues.
Richard F. Dunn Principal Office: 612-436-3788 Fax: 612-313-7555 Client Relationship Model > Meeting overview (we will work together to determine how we connect at each of these touchpoints). Initial Year Ongoing Years Identify/ prioritize objectives Engagement Meeting Gather Information Analyze Information Take Action Propose recommendations > > Data Gathering > Strategy > Plan > Recommendations Meeting Confirmation Presentation Checkpoint Meeting > Checkpoint 6-Month Review (if appropriate) > Year-End Review Meet Regularly Make Adjustments as necessary Track ongoing progress > Annual Planning Meeting > Tracking Checkpoint > 6-Month Review > Year-End Review Consider New Opportunities Identify life and goal changes
Saint Paul Minneapolis Waseca, Minn. Seneca, Ill. FINANCIAL PLANNING PROCESS OUTLINE Our financial planning process will cover five areas of analysis: 1.) Cash Flow and Net Worth Analysis a. Assess current situation b. Project forward through end of retirement c. Assess savings rate needed to meet financial goals. 2.) Risk Analysis a. Long-term disability b. Income replacement 3.) Investment Management Plan a. Identify investment goals, timelines and target return ranges. b. Evaluate existing investment program in the context of entire plan. 4.) Tax Management Analysis a. HR Block Second Look Review of the last year s tax return to confirm no missed deductions. b. Recommend investment strategies to minimize tax exposure consistent with overall goals. 5.) Estate Planning Analysis a. Recommend appropriate estate planning documents. b. Evaluate estate tax liability c. Recommend estate tax management strategies. Richard F. Dunn Jr., AIF, AAMS Chris Neu chris.neu@dunncreekadvisors.com Advisory services offered through AdvisorNet Wealth Management Inc. an SEC registered investment advisor 701 Fourth Avenue South, Suite 1500, Minneapolis, MN 55415, (612) 347-8600, advisorycompliance@advisornet.com
Financial Planning Checklist 2013 Page 2 of 2 What to Bring to Financial Planning Meeting? To help you prepare for our meeting, consider the following questions: What significant career changes do you or Renee expect to make between today and retirement? What significant purchases do you plan to make in the next five years? Are you expecting to help anyone with college education expenses? And what does that look like in percentages or total dollar terms? When do you plan to retire, year and month? You may find it helpful to bring the following references for our conversation: Tax return Pension/401(k) statement from employer All life insurance and disability insurance policies Latest statements for existing investments: o trust companies, o brokers, o mutual fund companies, o annuity contracts, o other direct investments and o banks. Budget of personal and living expenses you have a couple options here: o A chart of income categories and expense categories over the last year with monthly average o Bank statements from last 3-6 months showing total average deposits and total average withdrawals. Latest mortgage and other loan statements Latest will, power of attorney Call with any questions.