Financial Architects - August 2020

Financial Architects - August 2020

AUGUST 2020

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WHEN DRUMMING MEETS ADVISING

Some people try to keep their work and their personal lives separate. They never talk about their hobbies in the office, and when they head out at the end of the day, they don’t

music without drumming on something. Luckily, I have a few outlets for this pent- up rhythm. I’ve been in a band on and off since high school, and I play at my church in Troy on Sundays. They have a really professional team, and playing with them reignited my passion at a time when my high school band, The Redliners, went on hiatus because we were spread all across the country. Now, all of my Redliners

I still play recreationally when I can, and I end up meeting a lot of people through my league. Sometimes it amazes me how much my drumming, baseball, and professional circles overlap. In my time at Financial Architects, I have worked with a few guys I used to play ball with in college. And even when I don’t already know a client through one of my interests, we can always find common ground and something

think about their clients until morning. Personally, I’ve never understood that approach. If you sit down with me, whether in my office or at a baseball game, you’re going to get the same guy: Dan Zech — avid drummer, sports fanatic, dog dad, happy husband, and dedicated financial advisor all rolled into one. Drumming in particular is a huge part of my life. I don’t think I could separate it from who I am 9–5 if I tried — it’s that deep in my DNA. I’ve been playing the drums since I was 12 years old, when I was finally able to talk my middle school band teacher into letting me leave the trumpet behind for the snare. It was love at first tap, and unfortunately for my parents (and now my wife, Jenna), the drums and I have been together ever since. I keep my set in the basement of our ranch house and try to limit my playing to when Jenna is out so I’m only disturbing our two dogs, Stella and Eddie. Luckily, they tolerate my banging! For me, practicing the drums has never been a chore. It just feels right. Even when I’m not in the basement, you can find me tapping all the time — I can’t listen to

fun to talk about. I could truly talk to my clients all day. I’m a really curious person, and I want to know more about everything, so it’s easy to suck me in to conversations about anything from martial arts to learning French. It might sound a bit cheesy, but these conversations with clients are my favorite part of my job. I got involved in financial advising because I wanted to help people, and I’ve found that I can only

buddies have moved back to town and we’ve reconvened the group (although we’re working on a different name). We haven’t scheduled any gigs yet, though, so you’re safe from shameless plugs! Apart from drumming, my other obsession is sports. I played baseball through college, and I’m a huge fan across the board. I can talk basketball, hockey, football, or soccer, though baseball is definitely my go-to.

do that well if I can see their full financial picture. In order to get that view, I need to truly get to know my client, and I’ve always considered that a two-way street. I get to know you, and you get to know me — drums, baseball, and all! I truly love what I get to do every day at Financial Architects, and I can’t separate my work from my hobbies — for me, they’re really one and the same.

888-466-5453 – Dan Zech

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INSIDE FINANCIAL ARCHITECTS

A major change has taken effect in the state of Michigan when it comes to the medical portion of your auto insurance. Here is what has changed: • Personal injury protection (PIP) options — With the new law, drivers will no longer be required to purchase unlimited no-fault PIP and can instead choose their coverage level. Qualifying drivers may also choose to opt out of PIP coverage. • Bodily injury (BI) minimum limits — BI minimum limits will increase from $20,000 per person/$40,000 per accident to $50,000/$100,000, with a default minimum of $250,000 per person/$500,000 per accident. • Driver savings — Drivers can save anywhere from 10%–100% on their PIP coverage, depending on their election and their health care coverage. • Rating prohibitions — Insurance carriers may no longer factor in gender, marital status, home ownership, education, occupation, credit score, and postal zone to premium rates. If you are not sure if your auto insurance has these proper provisions, please call our own Jake Heikkinen at 517-548-7059. Jake is an experienced professional who can help answer your questions. He also joined FAI's Matt Dery on the "Inside Financial Architects" podcast that can be found here: EmpoweringFuturesPodcastNetwork. libsyn.com/inside-financial-architects-episode-6.

THE CARES ACT, RMDS, AND WHAT YOU NEED TO KNOW

By Chavez Vincent

The Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act, is a law intended to address the economic fallout of the COVID-19 pandemic in the United States. The CARES Act provides fast and direct economic assistance for American workers, families, and small businesses and preserves jobs for American industries. The CARES Act enabled any taxpayer with a required minimum distribution (RMD) due in 2020 from a defined-contribution retirement plan, including a 401(k), 403(b) plan, or an IRA, to skip those RMDs this year. This includes anyone who turned age 70 1/2 in 2019 and would have had to take the first RMD by April 1, 2020. Most recently, the Internal Revenue Service announced that anyone who already took an RMD in 2020 from certain retirement accounts now has the opportunity to roll those funds back into a retirement account following the CARES Act RMD waiver for 2020. For many Americans, forgoing their RMD is not a choice. However, there are those who might ask themselves, "Should I take my RMD or keep the funds in my IRA account?" Although RMDs are not mandatory in 2020, that does not direct our income planning with clients. Every household has a unique need, and other macro factors should be considered. Our planning process considers Roth conversion opportunities, market volatility, and lifestyle needs, to name a few. Our income plans are built on the premise that there will be events that are out of our control, and those events sometimes create opportunities we should be ready for. This year will be ingrained in the history books forever, and we are honored to walk this path with our clients.

WELCOME CHRIS! Financial Architects welcomed a couple new advisors to the team recently, including Chris Ball. The veteran financial planner comes to us from Michigan Financial, where he worked with clients on retirement planning and building a strategy for the future. Chris discovered FAI through our Leap Conference last fall and really was impressed with the team and the approach of the firm. Ball adds, "I am so honored to be a part of the team here. As a career changer, it was

very important for me to find the right fit and the right culture. FAI provides that and more." Outside of work, Chris enjoys classic Seinfeld episodes and watching his favorite soccer team, FC Bayern Munich. He is an avid golfer and enjoys classic movies, listing "The Godfather" as his all-time favorite.

The information contained in this newsletter is derived from sources believed to be accurate. You should discuss any legal, tax, or financial matters with the appropriate professional. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Registered Representatives offer Securities through The O.N. Equity Sales Company, Member FINRA/SIPC (www.FINRA.org/ and www.SIPC.org). Investment Advisory Services offered through O.N. Investment Management Company and FAI Advisors, Inc., Financial Architects, Inc., FAI Advisors, Inc., and The LifeMethod are not subsidiaries or affiliates of The O.N. Equity Sales Company or O.N. Investment Management Company. We have representatives currently registered in the following states: AL, AZ, CA, CO, DC, FL, GA, IL, IN, MA, MD, ME, MI, MN, MO, NC, NH, NV, NY, OH, OR, PA, SC, TX, VA, WA, and WI.

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Take a Break

A Chat With a Client Q&A With Jeff Schmitz

Solution on Page 4

Q. HOW DID YOU MAKE THE CONNECTION WITH US HERE AT FINANCIAL ARCHITECTS? A. I got connected with Financial Architects through Matt Dery, who is a close friend of mine and is now the marketing and business development director at Financial Architects. I met Matt in 2016 when we were both hired to teach at University of Detroit Jesuit High School and Academy. We were in the same "pledge class" as we called it. He and I hit it off over our love of sports and questioning every move the Detroit Lions franchise makes. I am very fortunate to have a friend like Matt in my life, looking out for the best interests of me and my family. Q. YOU ARE A TEACHER AT U OF D JESUIT HIGH SCHOOL AND ACADEMY. WHAT WAS THIS PAST SEMESTER LIKE HAVING TO EDUCATE VIRTUALLY? A. The abrupt closing of schools and movement to online learning in mid- March was an incredibly unique experience for everyone. It came with its challenges for both students and teachers, but I believe it allowed all of us to grow in ways that we may not have otherwise. My students were faced with all kinds of adversity, such as having to learn and understand remotely, figuring out how to use new technologies, and having to manage their time with all kinds of distractions at home, but they never blinked. They showed up every day supporting one another and showing persistence in the face of all the adversity. I'm extremely proud of how they finished the school year and can't wait to hopefully have students back on campus this fall.

The events of the last several weeks have caused us all to pause and consider the way we treat one another in this country. At Financial Architects, we deplore the acts that have taken the lives of fellow Americans and the systemic issues that allowed this to occur. The issues we face as a country are complicated and require conversations that might make us uncomfortable, but we must not shy away. Stark images are opening new dialogues, which can be the impetus for change. We must be willing to seek first to understand one another while we engage in thoughtful and respectful dialogue. At Financial Architects, we take on the financial challenges of our clients every day, coming from different perspectives, and we work to find solutions in the spirit of collaboration. As our country grapples with the issues these recent events have brought to light, our firm will not shy away from the conversation. We will continue to collaborate, to celebrate our differences, and to continue to be an environment of respect and inclusion for our colleagues, friends, and clients.

Q. TELL US ABOUT YOU, YOUR FAMILY, AND YOUR BACKGROUND IN SPORTS.

A. My wife, Roxy, and I are newlyweds, married in October of 2019. Roxy currently works in sales at Electro-Matic Ventures, and I am a teacher at U of D Jesuit High School and Academy. Roxy and I met at Madonna University where we were both fortunate enough to compete in the sports that we loved. Roxy was a member of the volleyball program from 2011 to 2015, and during the same time, I was a member of the men's basketball program. Our love for sports has not faded in the slightest, as we are both now active coaches. Roxy has been a volleyball coach at Mercy High School since 2018 and also coaches for the club Team Detroit in the spring and summer. I currently coach basketball at U of D Jesuit and have been there since 2016.

God, please bless America!

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Inside This Issue 1 | Where Drumming Meets Accounting 2 | The CARES Act, RMDs, and What You Need to Know 2 | Inside Financial Architects 3 | A Chat With a Client 4 | Why We Still Need Travel Agencies

Get the Most Out of Your Trip

THEY CAN LOWER COSTS.

Once upon a time, you couldn’t plan a vacation without using a travel agent. They would book your flights and hotels, provide information about local activities, and point you to the best sites to see. But with the advent of the internet, it seemed travel agencies would become obsolete. However, these services are actually far from disappearing: Nearly 20% of travelers still use an agency. Because the COVID-19 pandemic changed the way people travel for the foreseeable future, travel advisors, as they’re now called, are more valuable than ever.

Enlisting the help of a travel agency isn’t as expensive as the average customer might think. Travel advisors receive a small commission from airlines and hotels when they book your trip, which allows them to keep your travel costs down. Every agency charges different fees based on the package you purchase, but on average, you can expect to pay around $75 per traveling person for an agent to book your trip. With all the added experiences and deals they can find, this cost easily pays for itself and then some.

THEY GIVE EXPERT ADVICE.

THEY SIMPLIFY THE COMPLICATED PROCESS.

If you want to get the most out of your trip, then you should talk to someone who knows exactly how to give you that. Travel advisors undergo training and gain experience with different policies, customs, and travel regulations to get you where you want to go. They will be your go-to experts for what you should do when you get to your destination, especially if you’re traveling to a foreign country or overseas.

The No. 1 reason people use a travel agency is because planning a trip can be overwhelming. You have to research the location, book flights, plan ground transportation, secure lodging, discover activities, and find restaurants. If you don’t travel often or are going to a destination you're unfamiliar with, then tackling everything yourself leaves room for mistakes, stress, and disappointment. A travel advisor makes the entire process as simple as possible so you can enjoy your vacation to the fullest.

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