December 2011 – There is still time to save on taxes.

Click here to read a recent article by Russ Wiles at The Arizona Republic featuring John Chichester Jr.

June 2011 – Generation Low Risk?

With age comes wisdom, right? I certainly hope so, as I navigate another decade of my life and guide countless clients like you through the passing years. Whether you think of yourself as being the “old” of a younger generation or the “young” of an older generation, you have the ability to learn from the experiences each year brings. We know that the markets in which we invest our portfolios are cyclical and that we must take on a fair amount of risk to achieve our long term goals. But, what about our kids? Do they really realize this? What have they experienced? What have they learned?

I recently read that 59% of 18 to 34-year-old investors defined themselves as conservative. Interesting, when compared to the 51% of investors aged 65+ who say they are conservative.* It is scary, but it makes sense. The past decade has been a series of extreme ups and downs, and that is all these 18 to 34-year-olds know as adults! Of course, their reaction is to be conservative!

But, this is where we need to step in. Unless your children are already independently wealthy, there is a good chance they will need to take on some risk to achieve their financial goals.

Who would have thought that we might need to talk to our kids about being more aggressive and how to weather the “ups and downs”? If you have kids in their teens, 20s, or 30s, take the time to find out their views on investing. Share your wealth of knowledge about setting goals and assessing the amount of risk they may need to take to achieve them, and, when the time is right, we will be there with professional guidance and expertise to help put a plan into action.

Until next time,

John J. Chichester, Jr.

*Survey by “Bank of America’s Merrill Lynch Affluent Insights Quarterly.” January 2011

April 2011 – Overcoming Adversity

Have you ever faced adversity? Had a set-back? Ran face first into a proverbial wall (or, heaven forbid, an actual wall)? Of course you have! Find me someone who hasn’t! What did you do with this obstacle? Quit? Contemplate your course, only to decide it was too hard? Give it the old college try? Or, did you rise to the challenge and dig deep? I believe how you handle adversity in your life defines who you are. It separates those that simply wish for something and those that actually do something to achieve what they want. You have to be humble and tenacious all at the same time to work around set-backs. Over the course of my life, I have experienced this may times, but one, in particular, stands out for me….

In college, I was a competitive long distance runner, honored to have been invited to an Elite Training Camp at the Olympic Training Center when I was 19 years old. I was on top of the world, until numerous injuries took me off that track and, as the years passed, my time for running was sporadic at best. But then, after a 13 year break, I got the bug to run again and signed up for a half marathon. Call it folly or call it ego, but I set my goal at 1 hour and 32 minutes to run the 13.1 miles. At roughly 7 minutes per mile, the pace is one minute slower per mile than what I ran when I was 19 years old, but still a very respectable time for a 37 year old.

My best laid plans were tripped up when life got in the way of my goals and I fell ill three weeks leading up to the race. Nevertheless, I laced up my shoes and took on the race with a friend who had similar goals. I sailed through the first nine miles, keeping pace with my goal and then I hit that dreaded wall. It felt like a literal wall, as my body was begging me to stop after each step. Time slowed and I became discouraged as I was getting passed by other runners. I had a choice to make—I could stop and walk or I could tough it out and continue to run through the pain. My choice was to dig deep and adopt the mantra “just don’t stop.” With four miles to go, I fought with everything I had, despite the overwhelming urge to quit. Not caring about the time now, I just wanted to finish. Only I could force myself across that finish line and I felt no greater satisfaction than when I did. Surprisingly, my final time was 1:35:02, only three minutes slower than my goal! I was shocked as those last four miles felt like an eternity!

Just because things are tough or difficult does not mean that all is lost. So much of our fears and difficulties are created in our own minds. Our imaginations can often make things appear and feel worse than they actually are. Therefore, the next time that you are having difficulties in your life, remember that it is probably not nearly as bad as your mind is telling you, and you are way more capable than you think! If you dig deep and say to yourself “just don’t stop,” you will have the strength to finish your “race.”

Until next time,

John Chichester

February 2011 – Honesty Today, Hope for Tomorrow

Occasionally, I come across an article that is so poignant it moves me to share it; this is one of those times. A recent blog post by John Fox, The Golden Rule Guy (http://foxmancommunications.blogspot.com/), examines a glimpse into the history of our great nation and the time between declaring our independence from England (1776) and officially becoming The United States of America (1783). What can we learn from this rarely discussed seven-year period in history? Read on: The example below is just as relevant in our lives today as it was then.

On November 16, 1776, an American ship sailed into St. Eustatius, a tiny island owned by the Dutch in the West Indies. The people on this ship were there to establish commerce. That, in itself, is not memorable.

What happened next, though, is:

“White puffs of gun smoke over a turquoise sea followed by the boom of cannon rose from an unassuming fort. The guns of that fort — Fort Orange — were returning the ritual salute on entering a foreign port of an American vessel. That vessel, the Andrew Doria, came up the roadstead, flying at her mast the red-and-white striped flag of the Continental Congress. In its responding salute, the small voice of St. Eustatius was the first to officially greet the largest event of the century: The entry into the society of nations a new state destined to change the direction of history.”

“The salute, ordered on his own initiative by the Governor of St. Eustatius, Johannes de Graaf, was the first recognition following the rebel colonies’ Declaration of Independence of the American flag and American nationhood by an official of a foreign state . . . Here, the Sovereignty of the United States was first formally acknowledged . . . De Graaff found a place, though it may be the least known of any, in the permanent annals of the United States.” (The First Salute (1988) by Barbara W. Tuchman, Ballantine Books, pages 5-6)

Although a precious few of us will have this large of an impact on the history of our nations, will you have an impact in your sphere of influence? Fox goes on to explore the most thought provoking point: Are your words and actions worthy of being saluted? What will we each be known for? Will we be like Johannes de Graaf, an honorable soul, bravely saluting others in their commerce?

“Salute” is defined as a gesture or other action used to display respect and honor. It evolved from the practice of men raising their hats as a gesture of respect. What does it look like in our everyday lives? A handshake? Opening a door? Giving up your seat to the elderly? A hand over the heart or a hand to the brow when the American flag appears? Or, could it be even more: A smile for those that aren’t smiling, being a shoulder to lean on, or offering hope to those that have little?

You may be thinking that this letter has more questions than answers, and for that you would be correct. Letting the brain ponder how you can salute those around you by being honorable and respectful is a worthy venture, but even more so is the pursuit of making it a part of your everyday life. Perhaps, if we are lucky, those around us will reciprocate, and we might see a return to honor in our lives and commerce with each other. Granted, this will not be an easy task and will require us to pick each other up when we are tired, cranky, or under stress.

Fox said it best: “To us all—may we each find the moral strength and courage to do what is right, to be honorable during the storm, and, one day soon, may the winds of commerce once again blow from on high to help us sail our ship of dreams to safe harbors.”

I make a commitment to you that you will always be treated with the utmost respect and honor as one of our clients or strategic partners. Our team is always at the ready to open a door and offer a friendly handshake. Thank you for bringing honor to our firm.

Respectfully,

John J. Chichester, Jr. CFP®, CPA, PFS