DROP seminar
January 24, 2012 Los Angeles Firemen’s Credit Union 815 Colorado Blvd. Los Angeles, CA 90041	January 25, 2012 Residence Inn Santa Clarita 25320 The Old Road Santa Clarita, CA 91381
Both seminars are from 6:30pm – 8:00pm.

Light refreshments will be served.

Seating is limited. RSVP by January 23, 2012 to:
Tino Keshishian
tkeshishian@lafirecu.org
(800) 231-1626 ext. 4913.

*Non-deposit investment products and services are offered through CUSO Financial Services, L.P. (“CFS”), a registered broker-dealer (Member FINRA/SIPC) and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the Credit Union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. Los Angeles Firemen’s Credit Union has contracted with CFS to make non-deposit investment products and services available to Credit Union members.

1) What experience do you have in the financial planning industry?
You should always ask how long they’ve been in the business and in what positions they have worked in. You can always check an advisors background and whether they have any disciplinary actions against them by checking on FINRA’s website at www.finra.org/Investors. We also think that it is important to find someone who has experience working with firefighters and understanding the ins and outs of their pension plans and retirement benefits.

Jason Torrey-Payne has been a Financial Advisor since 1997. He has a degree in Business Economics from the University of California, Santa Barbara. He has worked extensively with firefighters since joining the Credit Union in 2004 and has extensive and deep knowledge of fire department pension and deferred compensation plans throughout California. He dedicates time to ensure he understands the financial implications of a firefighter and keeps abreast of any changes that may occur as it relates to a firefighter’s retirement benefits.

2) What kind of licenses do you currently hold? Are you a Certified Financial Planner®?
It’s very important to ask what licenses your advisor holds. It could determine whether your advisor is offering you the right solution for your needs or just the only option they can sell. Some of the representatives that visit fire stations are only licensed in one particular area, and can sell only specific products such as annuities or insurance. Insurance representatives can only offer insurance products. The reason this could be a problem is because they may only be offering you what they are licensed to sell instead of assessing all options and selecting the best fit for your goals and risk tolerance. Preferably, you would like to find someone who has both securities and insurance licenses. You should also look to see if the individual has any other professional designations, such as the CFP®. The CFP designation requires a prerequisite of holding a bachelors degree, a minimum of three years as an investment advisor, taking additional classes and continuing education and passing a comprehensive test. As a certified CFP, that individual has a strict planning process to follow and is held to the highest ethical standards. Most of all, please make sure that the person you choose to manage your retirement assets is someone you can trust and has the necessary qualifications and works for a high integrity and ethical company.

Jason Torrey-Payne is a fully registered investment advisor and holds both securities and insurance licenses. This means he has access to the full spectrum of investment and insurance products and can also assist you with Long Term Care insurance. He also holds his Certified Financial Planner (CFP) designation. Additionally, Jason is a member of the “Fire Family” and is employed by Los Angeles Firemen’s Credit Union, a 75 year old financial institution exclusively serving California’s professional firefighters and their families.

3) What are your fees?
Before you hire any financial professional to manage your assets, you should always find out and make sure you understand how that person is compensated. There are many different ways that advisors can charge for their services so it’s important to understand and determine which is the best for you. Some financial advisors charge a percentage of the value of assets they manage. This typically is in the range of 1-2% annually. Some assess an hourly fee for the time they spend. Other advisors charge a flat fee based on your net worth that is not tied to your accounts or assets at all. Finally, many planners are compensated by the commissions on the investments they sell. In some cases, one option may be better than the other for you, it just depends on your needs. It’s just important for you to ask the question, so that you can get a better understanding on how your advisor is compensated. You should expect and demand a direct and honest answer to this question.

At FIREHOUSE Financial, we review with you the best plan of action when it comes to the fees that you pay. For some people, a fee-based arrangement is more appropriate. In a situation where an individual wants to just buy and hold a few stocks, a one-time commission is probably cheaper and more appropriate for those goals. Jason will explain the differences before you transact any business. We also offer a “no cost” consultation and a professionally prepared financial plan. This is an excellent tool which most planners in the industry use to give you a detailed map of where you stand regarding your financial goals. Most planners in the industry charge a $1,500-$3,000 fee for this report; but at FIREHOUSE Financial it’s FREE.

4) What products/investments do you offer?
For an advisor who is securities and insurance licensed, this will be an extensive list. This is another way to confirm that your advisor has lots of options to choose from. Most advisors should be able to access Mutual Funds, Exchange Traded Funds (ETFs), Stocks, Bonds, Options, Annuities, Life Insurance, Long Term Care Insurance, Fee-Based Accounts and Managed Money accounts. They should also be able to open a variety of accounts; such as Traditional & ROTH IRAs, Coverdell, 529 Education accounts, and Business Retirement accounts.

At FIREHOUSE Financial, we offer all of the above. In addition, Jason will look at investment options outside of the standard brokerage services. For example, he will look at traditional financial institution savings products and certificates. It’s about offering the best products that fit the member’s needs and goals.

5) What is your approach to investing?
This question can be answered in many ways so it’s important that you find an advisor that is aligned with your needs. This may mean asking about their approach to asset allocation or their investment philosophy in general. This also normally includes the level of communication you expect from your advisor. Will they contact you annually, quarterly, etc?

At FIREHOUSE Financial, we utilize a team approach to help assist you with your financial goals. You have access to financial advisors in helping you develop the right plan of action for your unique situation. We take the time to understand your needs and map out a detailed plan for us to follow together. This is something that is different for each individual and we tailor the plan to your unique needs. We have members who we talk to on a quarterly schedule and others that just check in with us annually to review their Deferred Compensation plans. It’s important that you seek out an advisor that understands your needs and delivers the service and expertise that you deserve.

We hope that this information helps you in making a more informative decision when choosing a financial advisor. Please remember that your financial goals should not be taken lightly and if you choose to have someone help you, they should always be a professional holding the appropriate licenses. If you have any questions or would like to schedule your free, no obligation financial needs analysis report, please contact FIREHOUSE Financial to schedule an appointment at 800-231-1626 ext 4913.

The more business we do together as a Fire Family, the greater the financial reward will be for all members!

Have a safe month!

Mike Mastro

Non-deposit investment products and services are offered through CUSO Financial Services, L.P. (“CFS”), a registered broker-dealer (Member FINRA/SIPC) and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the Credit Union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. Los Angeles Firemen’s Credit Union has contracted with CFS to make non-deposit investment products and services available to Credit Union members.

Do not try to time the market
One thing that we’ve learned about real estate, stocks and other investments is that it’s difficult to predict the direction or even harder to predict how strong an investment will move in that direction they will head. Studies have shown that most investors have a much greater overall rate of return on their investments if they hold their investments for longer periods of time, rather than shifting investments around on a short-term basis. Investors’ stock investment returns over the last 10 years show a drastic difference when they missed the best 10 or 20 days. This information speaks strongly about staying the course during good times and bad.

Dollar-Cost Averaging
Dollar-cost averaging helps take out some of the emotion of investing. Dollar-cost averaging is a technique of consistently investing a fixed amount of money on a periodic basis. This allows you to buy more shares of an investment when the market is down and fewer shares when the market is high. This often helps improve your overall rate of return on your investments by lowering your average cost. Most people probably already do this with a 401k or Deferred Compensation plan, but this can also be used with other investments.

Asset Allocation
Asset allocation is another important factor to consider when investing. Do you have too much in real estate, not enough international investments, or do you own too much of one individual stock? You have probably seen recently that over the last few years some international stocks have outperformed domestics with the growth in China and the dollar dropping in value. Some investors still have no exposure to international markets and others may now have too much in international because of the growth seen in these areas. It is important to continuously review your asset allocation mix. What we can learn from past trends is that different asset classes (large stocks, small stocks, real estate and international) tend to move in cycles, sometimes they are the best performers and sometimes they are the worst performers. It is important that you have exposure to multiple areas, in an effort to improve your overall return, and also diversify your risk.

Investment products and services offered through CUSO Financial Services, L.P. (CFS), an independent broker/dealer, are not NCUA/NCUSIF insured nor insured by American Share Insurance (ASI) and are not Credit Union guaranteed and may lose value. Representatives are employed by Los Angeles Firemen’s Credit Union and registered through CFS (Member FINRA/SIPC) and SEC Registered Investment Advisor.

A systematic investment plan does not assure a profit and does not protect against loss in declining markets. Such a plan involves continuous investment, so investor should consider financial ability to continue purchases through periods of low price levels.