Update on TD Ameritrade – Charles Schwab Merger

Update on TD Ameritrade – Charles Schwab Merger

Pivot Point Wealth

by | Dec 6, 2019 | Pivot Point Wealth

If you follow financial media at all, it is likely that you have seen news about Schwab buying TD Ameritrade in a $26 billion all-stock deal.

Because I custody assets for many of my clients at TD Ameritrade (see postscript for a brief explanation of what a custodian does), some have asked what this deal will mean for them. I am writing this brief post to help address that question. If this subject is of interest to you, please note the following points.

  1. The deal is not final. Although Charles Schwab announced plans to buy TD Ameritrade, the deal has yet to be approved by antitrust regulators. This means it is too early to speculate about what the terms will specifically mean.
  2. It will take time. Pending regulatory approval, the integration of the two firms is expected to take 18 to 36 months* after the deal is closed. This means it will likely be a significant amount of time before any clients will be affected by this merger.
  3. There may be advantages. Some analysts believe the combined firm may be able to cut costs, stream new revenue opportunities and improve the platform. Only time will tell.
  4. Let’s stay focused on what we can control. When it comes to serving the financial needs of clients, it’s important to stay focused on what can be controlled. We cannot control the markets, the economy, or this merger. We can control the goals we set, the plans we make, and the perspectives we maintain. To that end, please be assured that I will keep looking out for your best interests and will inform you the moment I perceive something that may directly affect you, or if any adjustments need to be made.

Thank you for the confidence you have placed in me. I consider it an honor and a privilege to serve you!

P.S. A custodian is a financial institution that holds securities for safekeeping in order to minimize risks associated with theft or loss.

Kentucky Teachers’ Proposed Pension Benefit Calculator (disabled, as of 3/24/2020)

Kentucky Teachers’ Proposed Pension Benefit Calculator (disabled, as of 3/24/2020)

Pivot Point Wealth

by | Oct 31, 2017 | Pivot Point Wealth, Teachers

UPDATE (3/24/2020): The calculator has been disabled. It has recently come to my attention that the above-mentioned calculator has not been functioning properly and the software has not been providing estimates as intended. The calculator was initially built to illustrate the impact of proposed changes to the teachers’ pension back in 2017 & 2018. It was not intended to be an ongoing replacement for estimates of the current benefit. To prevent any future confusion with the aforementioned calculator and its estimates, I have made the decision that it has outlived its purpose and therefore should be disabled. For the most accurate figures of the current teachers’ pension benefits, call or visit the KTRS website directly. Thank you for your patience and apologies for any inconvenience this may have caused.

UPDATE (3/29/18): Full details of the changes are not yet known, but the calculator has been updated to reflect the known pension changes in the SB151 bill passed on 3/29/18.

The Proposed Pension Calculator was created in an attempt to help you and other Certified Employees take the proposed changes to the teachers’ pension from a conceptual list of bullet points to a real and actionable number. I’m not in a position to guess or predict whether the plan will be upheld, but I do think it’s important to proactively plan for the possibility that it will become reality.

Here’s what you can expect from the Kentucky Teachers’ Proposed Pension Calculator:

What it WILL do:

  • Allow you to run a ‘What If’ scenario (i.e. what if I retire on…)
  • Estimate the monthly benefit amount under the new plan
  • Estimate the monthly benefit amount under the current plan
  • Project the effects of cost-of-living-adjustments on the monthly pension benefit amounts at five years and ten years into retirement

What it WILL NOT do:

  • Tell you whether or not to retire
  • Project your optimal retirement date in order to maximize your monthly benefit amount

Click here to view a sample estimate from the calculator.

The proposed changes will have varying degrees of impact on each and every current and former teacher in the state. To get the most out of the calculator, I would highly encourage you to review the details of the pension proposal before projecting your retirement date, or (Warning: Shameless Plug!) talk to a financial planner who will help you consider all of your options and make the optimal retirement decision for yourself both personally and financially.

I hope you find the calculator’s estimate to be helpful and useful in interpreting how the changes will truly impact your decision-making. As always, don’t hesitate to reach out if you have questions!

IMPORTANT: This calculator was created by Pivot Point Wealth. Pivot Point Wealth is a separate entity from and is not affiliated with the Teacher’s Retirement System of Kentucky in any way. This calculator is only intended to provide an estimate of a person’s pension benefit based on known facts of the current KTRS pension plan and publicly-released details of Kentucky pension reform. The details of the proposal are not final and, as such, may change in the future. The calculator will not project or predict any monthly benefit amounts associated with the proposed hybrid cash balance plan for new teachers and any contributions directed toward to it. The pension benefit estimate is not an assurance of any benefit that a person will eventually receive. You should contact your retirement system benefits office for an official projection of your pension income and all other income options. This intended for illustrative purposes only. Retirement decisions should not be based in whole or in part upon the information obtained from using this Proposed Pension Calculator. It is recommended that KTRS members consult with a Kentucky Teachers’ Retirement System counselor to obtain detailed calculations for their unique situation.

Why Naming a Business is like Naming a Baby

Why Naming a Business is like Naming a Baby

General

by | Jun 26, 2017 | General, Pivot Point Wealth

There are moments or decisions in life that seem to carry more weight or permanence than others, as if they could determine the direction of your future. Decisions that deserve more thought and focus. Naming a company is one of these.

To be honest, it’s a lot like naming a baby. If you’re a parent, you know how terrifying…err, frustrating…I mean…exciting naming a baby can be. This baby’s future…no…destiny is in your hands. The name they will answer to for the rest of their lives. The name you will read in the headlines, “(Fill in the Blank) Saves World From Imminent Disaster & Awarded the Nobel Peace Prize”. The name that will become synonymous with greatness. Don’t lie to yourself. You know you play some version of the headline game too. What’s that? Oh…it’s just me, you say. Well…let’s move along then.

The process starts innocent enough. With conversations like, “I’ve always liked…” or “What do you think about…”. Asking yourself these questions until you have a list of 20+ potential names. Not a bad start, but now, it’s time to whittling it down. “I’m not sure about (blank). I knew a kid in high school…” or “Isn’t that the name of that celebrity that did that thing?” And just like that the list is cut in half. Now on to Round Two of cuts. This one’s my favorite. Time for rhyme-time, or, as I call it, the Name Game cuts. “Ryan…Ryan…bo brian…fe fi fo frian…Ryan”. Ouch, say goodbye to a couple more on the list (I’m looking at you Huck). Round Three: let’s put them to the initials test. You know…to avoid any inadvertent acronym slip-ups. Welp…another one bites the dust, adios Pearl Olivia Stith.

By now, you get the point. What starts out as a fun and exciting adventure, slowly begins to resemble a real-life version of the Hunger Games. May the odds be ever in your favor!

Naming a business isn’t much different. Equally exciting and frustrating. Except now, you have the added pressure of delivering a name that can also define the essence of what the business is…like naming my child “Loves Pool, Eats Weight in Yogurt, Hates Naps” Stith (note: we shortened her name, of course). Oh yeah, it also needs to easily roll off the tongue and carry the weight of its significance and uniqueness when it does. And, oh, by the way, the name has to be unique…no, not in some “I’m a hipster and no one else is doing it”-kind of way…no, it must be legally and materially different from other businesses. So, that name that you’ve fallen in love with over the last couple of months as you make cut after cut and revision after revision, gets the axe on the final stage. Panic mode sets in and you’re forced to hit the drawing board again and pull names out of the trash (literally…I pulled names…out of…the trash) who may not have made the early cuts for one reason or another. And you start reasoning with yourself to justify your new choices, like “nobody’s going to play the Name Game with Huck anyway, right?” Then, rinse and repeat the whole process until you find yourself headed in a direction that you like. Although your path to your final destination doesn’t look exactly like what you had initially mapped out, you found yourself there by following a plan and process that corrected course every time that you came to, what I like to call, an “Oh, $**t” moment, or, in a more PC manner, a Pivot Point (*see what I did there*).

And that, folks, is how Pivot Point found its name. Life rarely turns out like we planned. Sometimes we reach a Pivot Point where we have to take a detour and change course. Sometimes the destination itself changes. Either way, each time we pivot, we make decisions that determine what direction we’re headed and how quickly we will get there. Sometimes it’s nice to have a plan and GPS to guide us along our path in life…and in money.