Column

Investing is inherently complicated enough without the “alphabet soup” it is served with. The reality for most investors is that the myriad acronyms, idioms and initialisms related to investments and investment professionals makes the endeavor even more confusing.  Here’s an example of a statement full of that alphabet pasta:  “As a CFP^®, CPM or AIF, an IAR of an RIA should remain compliant with SEC rules when recommending IPO’s or ETF’s to investors, and be familiar with a company’s EBITDA, P/E, CAGR and ADY when selecting LCG equities.”  That’s clear, right?  For most, probably not.  My hope in this month’s Investor’s Edge column is to provide some clarity.  As a CFP^® professional, I think it is timely to explain what the CFP^® certification is and what a Certified Financial Planner does.  As more people call themselves “financial planners,” finding the right professional to address your financial planning needs isn’t always easy. Become familiar with the planner’s business style and understand the level of services he or she provides.  As noted below, only a professional advisor who has satisfied all the CFP^® certification requirements is a Certified Financial Planner.

For the decades I have served clients as their investment advisor, I’ve always said, “I seek to understand before I am understood.”  The inference of that statement is my intention to convey to a client the importance I place on learning all I can about them in order to recommend a suitable investment plan before emphasizing what I do and how I do it.  When offering insight to what I am and do as an investment advisor, I strive to help clients understand my expertise as a Certified Financial Planner (CFP^®) and Certified Portfolio Manager (CPM).  They are significantly different.  Here’s more on what is a CFP^®.

The Four E’s of a CPF^®:  Education. Experience. Examination. Ethics.

Education:

The educational curriculum includes 72 Principal Knowledge Topics under the categories below, as well as a comprehensive financial planning capstone course. These financial planning topics are:

• Investment planning

• Tax planning

• Retirement planning

• Estate planning

• Insurance planning

• Financial management

• Education planning

In addition to completing a comprehensive financial planning curriculum approved by CFP Board, those seeking CFP^® certification must have a bachelor’s degree (or higher) in any discipline to become certified. Once certified, CFP^® professionals are required to complete continuing education coursework, including a CFP Board approved ethics course, to further their competence in financial planning and remain current.

Experience:

CFP^® professionals must complete thousands of hours of professional experience related to the financial planning process prior to earning the right to use the CFP^® certification marks. As a result, CFP^® practitioners possess practical experience, in addition to financial planning knowledge.

Examination:

This is the hard part. To become certified, one must pass a comprehensive 6-hour CFP^® Certification Examination that tests their ability to apply financial planning knowledge in an integrated format. The CFP® exam measures the candidate’s critical thinking and problem-solving ability. The exam does not test textbook theories; rather, it assesses the candidate’s ability to apply financial planning knowledge in an integrated approach to real-life financial planning situations. To develop exams that reflect the current practice of financial planning, the CFP Board conducts regular “Job Task Analysis” studies to identify the important tasks performed by planners and assess the knowledge and skills needed to perform these tasks.

Ethics:

The final step to certification requires candidates to meet the CFP Board’s Fitness Standards and commit to abide by the Board’s professional standards, known as CFP Board’s Code of Ethics and Standards of Conduct, that sets forth their duties to the public, clients, and employers.  The CFP Board routinely performs background checks of candidates for CFP^® certification and CFP^® professionals, and requires candidates and professionals to disclose various matters, including, among other things, criminal history, bankruptcies and liens, and regulatory or civil proceedings. 

CFP’s generally help clients create a financial plan to manage investments, retirement, insurance, and taxes. And, as I mentioned above, these professionals are held up to a high ethical standard. They always have a fiduciary obligation to make decisions that protect the financial interests of their clients.  As for me, I try to help investors de-mystify the financial planning process and clear away the cloud of alphabet soup.

Wine is crafted all around the world, from the classic Old World wine producing countries like France, Italy, and Spain, to the innovative New World wine producers, like the United States, Australia, and New Zealand, and beyond. Lesser-known regions often take people by surprise. It’s not often you find a wine produced in, say, Morocco. But often such little-known regions produce wines worthy of a second glance, and definitely, a second glass! Morocco is one of those countries. 

But how could Morocco be a wine producing country? The very idea of winemaking in Morocco almost defies logic. Morocco is a Muslim kingdom, meaning that 98% of the population is forbidden by law to drink alcohol. That alone is reason to assume wine production might be extremely limited if in existence at all, isn’t it? Not necessarily.

In fact, Morocco has a history of winemaking going back centuries. A former French colony, Morocco was the destination of choice for many top French winemakers when the insect, phylloxera, infected the vineyards of Europe in the late 1800s, leaving devastation and despair in its wake. Intrepid French wine producers left their native countries and brought their vines and their expertise to the northern tip of Africa. The development of fine wines and a small, but impressive, wine industry didn’t take long to follow.

While Morocco plays host to the mighty Sahara Desert to the south, the country’s terrain also includes stunning snowcapped mountains that tower over verdant, rolling hills, and are kissed by the salt of the sea. Not far from the famous city, Casablanca, terroir is made up of schist and shale with gravel and chalky limestone. The vineyards of this region are protected by the vast Atlas Mountain range, which separates the desert from the sea. This is, indeed, wine country.

Both red and white grapes are grown in Morocco, including well-known varieties such as Cabernet Sauvignon, Merlot, Syrah, Chardonnay, and Sauvignon Blanc. In addition, many vineyards produce an ancient, local variety called ‘Faranah’. The fruit basks in the abundant North African sun and reaps the benefits of the cool breezes and fog swept in off the Atlantic Ocean. The grapes are produced as single varietal wines or blended into specialty cuvees.

The best Moroccan winemakers seek to express the unique qualities of their exotic land, while making the wines in a traditional French style. Many producers in the region are committed to natural winemaking. The grapes are grown without pesticide or fungicide and are harvested by hand. In natural winemaking, only the native, wild yeasts are used during fermentation and in general, the wines are left unfiltered, with no extra sulphites or preservatives added at bottling. The result is pure, clean, balanced, and delicious. In the Kingdom of Morocco, ambitious new wines are literally being created from Old World roots.

Moroccan wines are notably good and getting easier to find. Seek out these intriguing, well-priced wines from this exceptional corner of the globe. Look for Thalvin Wines, one of Morocco’s most esteemed producers.  Ask for Moroccan wines at your favorite Valley wine shops such as Vendome, The Flask, and Woodland Hills Wines. You won’t be disappointed.

Cheers!

I’m a believer…but I’m not God.  I say that because I have an overall Big Picture view of how things work, but this movie totally made me think.  I think there are many ways to approach the overall subject of destiny but this one truly made me wonder.  So, I’ll start this review by saying The Adjustment Bureau is a “Thinking man’s” movie. 

David Norris is a rough, tough New Yorker.  He’s smart, savvy and raised in the “hood”.  The local favorite Bad Boy so to speak. He’s a Senator, come up through the ranks of the people.  David truly marches to his own drummer and that’s exactly why he is so loved, or hated by his constituents.  One day after a particularly bad political experience he’s in the men’s bathroom licking his wounds and encounters a beautiful Elise Sellas, played by Emily Blunt, who is pretty much doing the same, hiding out.  It is love at first sight for the Senator and the alluringly beautiful dancer but she runs off after begrudgingly giving him her phone number.  Through a twist of fate, he gets mugged, robbed of his wallet with the phone number and that should have been the end of the story. It wasn’t.  The story was just beginning. 

Do you believe in fate?  Should we believe in fate?  The big question should be, who determines fate?  About now, I could throw in a bunch of Bible verses or just about any other religious writing and they would all have something to say about their particular version of fate but this movie isn’t, mostly, about religion.  It’s about life choices. 

Like I said in the beginning, a thinking man’s movie.

David goes back to being an attorney while he and his loyal followers plan for his next election but he can’t forget about his encounter with, his xxxx.  So, for the next three years he rides the same city bus to work scouring the streets where she might be.  One day, there she is, walking down the street. 

Their life trajectory will change forever because The Adjustment Bureau was supposed to stop their ever seeing each other again.  The Plan behind the curtain they weren’t even supposed to know about.

The Adjustment Bureau.  A mysterious group of men who wear hats, walk through doors without opening them and help God keep everyone on their pre-determined path through life.  I’m not sure there is an Adjustment Bureau whose sole purpose is to keep us on that straight and narrow path but if there were and your heart was telling you something totally different, would you have the courage, the passion to take that detour?  And if you did, what would your “fate”, if there is such a thing, be?

Matt Damon as David is totally believable.  Emily Blunt is grace personified.  If you’re anything like me, you’ll be pondering this film for a while.

If I go any further into the plot, I would certainly ruin the movie for you.  As I mentioned initially, this is a thinking man’s movie.  Find it, watch it! I would love to hear what you THINK.