The document discusses strategies for advisors to work with business owners. It recommends that advisors target companies with 25-400 employees and reach out through cold calls, referrals, and existing clients. The goal is to build relationships that can lead to handling the company's 401(k) needs. Once the 401(k) needs are met, the advisor tries to expand the relationship by handling the business owner's personal wealth management needs. This establishes a holistic financial plan. The document emphasizes building trust with business owners by delivering value-added service for their 401(k) plans. It also recommends developing strong relationships with third-party administrators to receive referrals.

1. Bright spots on
housing front • pg. 7
Opening the
401(k) door • pg. 3
Multi-dimensional
investing• pg. 4
July 3, 2014 | Volume 3 | Issue 1 First magazine focused on active investment management
pg. 8
K I M B L E
JOHNSON
RETIREMENT
There is no dress rehearsal

3. wealth management needs, which
can be closely intertwined with their
business. This establishes a holistic
financial plan from insurance needs,
to tax reduction strategies, to estate
planning to asset management.
You need to do what you say you will
do with respect to servicing the quali-
fied plan for the company. You will be
directly in front of the decision-maker
in these companies as you acquire
and service the plan, which provides
a wonderful opportunity to build a
trusting relationship. Once they have
seen how you can help them in their
business and personal planning, don’t
hesitate to ask for referrals.”
n more than twenty years of
experience in the advisory
business, working with owners of
closely held corporations has proven
to be a great way to grow my business.
I have found over time that there can
be multiple benefits of working with
business owners.
We target companies in a broad
range of 25-400 employees. We reach
out to target companies in a number
of ways: cold-calling, referrals from
centers of influence, and current client
referrals.One of our largest clients came
in through an old-fashioned cold call.
After the initial contact, we see if we
can build a relationship that can lead to
handling their company’s 401(k) needs.
We have strong relationships with
third-party administrators, insurance
companies, and asset managers. That
important relationship with a TPA
needs to be a two-way street. If you
expect them to work with you and refer
business to you,you need to do the same.
They want to work with advisors who
specialize in qualified plans and will
deliver a value-added service, making
the client’s life and their job easier.
Once a company’s 401(k) needs
are being met, we try to expand
that relationship with the business
principal by handling their personal
Opening the 401(k) door
Daniel Namey
Jacksonville, FL
H. Beck, Inc.
President, Namey Financial Group, Inc.
I“
Securities and investment advisory services offered through H. Beck, Inc., member FINRA/SIPC and an SEC-registered invest-
ment advisor. H. Beck, Inc. and Namey Financial Group, Inc. are not affiliated. Investments will fluctuate and when redeemed
may be worth more or less than when originally invested.
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VOTE
20%
40%
60%
80%
Last week’s results
VIEWER RESPONSE
Which client information is
most helpful in determining
risk tolerance?
-Results in next issue
This week’s poll
How many advisors are
actively seeking younger
clients to replace older
clients or those in
“decumulation” phase?
Answer: Investment experience
A client’s previous investment
experience is integral to determining a
client’s risk tolerance, as are liquidity
requirements, investment time frame,
current investments, and expected
return on investment.
67%
0%33%
Spending habits
Investment experience
Tax situation
July 3, 2014 | proactiveadvisormagazine.com 3
POLLS TIPS & TOOLS

4. The question comes up frequently: “What is active
management?”
Many confuse the phrase with the simple act of running
a mutual fund populated with stock picks within the strict
guidelines of a prospectus, as opposed to running an index
fund, where the manager simply buys and holds the shares
making up a particular stock or bond index. While there may
be other definitions that have equal merit, I would look at the
question in a different way, with active management being
a means to adding multi-dimensionality to one’s investing to
better reach one’s goals.
We are often told to “be a ‘buy-and-hold’ investor.” Yet,
while the phrase “buy-and-hold” is two words linked together
by a connector, that single conjunction “and” does not give the
phrase dimensionality.
Buy and hold, in its purest form, has zero dimensionality—
you buy. “Holding” is not a word of action. Following this ap-
proach is passive investing in its purest form.
Does your investing suffer from
a lack of dimensionality?
By Jerry Wagner
proactiveadvisormagazine.com | July 3, 20144
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5. Graphically, zero dimensionality is a dot. It has no length,
width, or height—it’s only a dot, just like the period at the end
of this sentence. Like the period, it can appear at any place
on a page—high or low. Like the return from a buy-and-hold
Most investors are one-dimensional investors. They buy and
… they sell. Both verbs denote activity—buying and selling.
That makes most investors active investors.
While passive investors often focus only on the state of the
investment itself without dimension (i.e. the factors about the
investment that caused them to buy in the first place), active
investors view investing in at least a one-dimensional state.
in making his or her buy and sell decisions. The market envi-
ronment can actually alter the length of time that one holds the
investment, whether you buy or sell at all, or even whether you
reverse the process and sell short to benefit from a current or
impending downturn.
Dynamic, risk-managed investing is many steps beyond the
simple act of buying and selling. A lot more is going on.
Basic, or one-dimensional active managers have factors that
influence when to buy—just like the buy-and-hold investor—but
continue on pg. 11
investment, it just is. It’s the return of the underlying index
and that’s all there is. When the S&P is up, like it was in 2013,
for example, the dot is higher. When it’s down 55%, like it was
in 2007-2008, that’s all she wrote—you get what you see.
No longer just a “dot,” a one-dimensional line consists of at
least two dots. They focus on both buy and sell factors.
Still, they differ further. Some buy and then sell after a long
time, while others buy and then, within a fairly short time, they
sell. One-dimensional investing, then, is like a line. And that
line can be long or short.
Zero Dimensions
One Dimension
Two Dimensions
Three Dimensions
To graduate to two-dimensional investing, as one would
in drawing, where length and height are combined to form a
square, one must add another component and look at direction.
A two-dimensional investor, then, considers market direction,
or the prevailing direction of prices of the individual securities,
Dynamic, risk-managed investing adds a whole new di-
mension: risk management. Dynamic, risk-managed invest-
ing is like a cube. It’s three-dimensional. It has width, length,
and height.
July 3, 2014 | proactiveadvisormagazine.com 5

6. An investor should consider the investment objectives, risks, charges, and expenses of The Gold Bullion Strategy Fund before investing. This and other information
can be found in the Fund’s prospectus, which can be obtained by calling 1-855-650-7453. The prospectus should be read carefully prior to investing.
There is no guarantee that The Gold Bullion Strategy Fund will achieve its investment objectives.
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Ceros Financial Services, Inc. and Flexible Plan Investments, Ltd. are not affiliated entities.
Advisors Preferred, LLC is the Fund’s investment adviser. Advisors Preferred, LLC is a wholly-owned subsidiary of Ceros Financial Services, Inc.
The principal risks of investing in The Gold Bullion Strategy Fund are Risk of the Sub-advisor’s Investment Strategy. Risks of Aggressive Investment Techniques,
High Portfolio Turnover, Risk of Investing in Derivatives, Risks of Investing in ETFs, Risks of Investing in Other Investment Companies, Leverage Risk, Concentration
Risk Gold Risk, Wholly-owned Corporation Risk, Risk of Non-Diversification and Interest Rate Risk. “Gold Risk” includes volatility, price fluctuations over short periods,
risks associated with global monetary,economic,social and political conditions and developments,currency devaluation and revaluation and restrictions,and trading and
transactional restrictions.
For more information on the risks of The Gold Bullion Strategy Fund, including a description of each risk, please refer to the prospectus.
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A fresh take on an
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Fund gross estimated annual operating expenses = 1.55%

7. 504
0
200
400
600
800
1000
1200
1400
1600
‘90 ‘92 ‘94 ‘96 ‘98 ‘00 ‘02 ‘04 ‘06 ‘08 ‘10 ‘12 ‘14
Highest reading since April 2008
Units(InThousands)
Bright spots on the housing front
ast week’s 1st Qtr. GDP
revision to a fairly shocking
-2.9% was the lowest non-
recession reading since
1947. While markets briefly waffled
in the face of this news, by and large
it was taken in stride as a backward-
looking measure.
In similar fashion, Case-Shiller
figures showing an April slowing of
the rate of home price increases was
similarly discounted last week as
being effectively two-month-old data.
The more timely May readings of
existing and new home sales both ex-
ceeded market expectations, the latter
by a wide margin.
Existing home sales for May came
in at 4.9 million units, beating
consensus by 3%.
According to Bespoke Investment
Group, new home sales in May “not
only beat estimates, they shot the
lights out.” The 504K units of new
home sales exceeded the consensus
forecast by nearly 15%. Bespoke
notes that, “The month/month in-
crease of 18.6% for May was the larg-
est monthly increase since January
1992 and the 10th largest increase in
the last 50-plus years.” The median
sales price for homes sold during the
L
Source: Bespoke Investment Group
month was $282,000. The average
price was $319,200.
Further good news on the housing
front came in on Monday (June 30),
with the release of pending home sales
data. The pending home sales index
rose sharply in May (+6.1%), with
lower mortgage rates and increased
inventory accelerating the market,
according to the National Association
of Realtors. All four regions of the
country saw increases in pending
sales, with the Northeast and West
experiencing the largest gains.
Many analysts are cautiously opti-
mistic that this better-than-expected
data signifies that housing’s early
2014 sluggishness was indeed largely
attributable to the poor weather across
much of the nation. However, the still
lackluster indicators of new mortgage
application activity (and approv-
als)—especially for middle income
buyers—remains a concern.
NEW HOME SALES: 1990–2014
July 3, 2014 | proactiveadvisormagazine.com 7
TOPPING THE CHARTS
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8. K I M BL E J O H NS ON
RETIREMENT
There is no dress rehearsal
Rebuilding and protecting retirement assets
takes center stage with Kimble Johnson.
New strategies and investment vehicles are
a must—and third-party active managers
are the experts he calls.
D D
8 proactiveadvisormagazine.com | July 3, 2014
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9. My overriding concern is that my clients
have their retirement expenses covered by
“guaranteed” income sources, such as from
Social Security, pensions and/or annuities. I
will usually recommend that the remainder of
my clients’ assets be deployed for growth to
offset inflation as much as possible.
What are the issues you see with retire-
ment planning for your clients?
The retiree of today is handed a great deal
of retirement risk as well as the prospect of
navigating a “Brave New World” of investing
post 2008. The changeover in our lifetime
from defined benefit to defined contribution
retirement plans is a prime contributor. The old
assumptions and the old tools will no longer
work, and I personally think anyone trying to
go it alone is facing a tough road.
The rebuilding and protection of retirement
assets is the most critical task. It requires new
strategies and investment vehicles that can
transfer or reduce some of the risks.
What are those risks?
There are really three that I speak about with
clients and prospects all of the time.
First, there is longevity risk. This is not
exactly rocket science or unknown to people,
but the implications are seldom well-planned
for. Through medical advances and healthier
lifestyles, life expectancies keep increasing.
Great news for people in general, not so great if
not factored into their financial plans.
Second, there is market risk. I talk about
this in a couple different ways: the so-called
“sequence-of-returns risk”: the unlucky event
of suffering poor market returns early in retire-
ment; and “portfolio risk”: taking on too much
risk and sacrificing safety for higher potential
income, or alternatively, taking on too little risk
and sacrificing potential portfolio growth.
Third, and closely related to the first two,
is inflation risk. This again is a concept most
people understand on a surface level: the poten-
tial of inflation to erode their purchasing power.
What they generally do not understand is that
every retirement portfolio should account for
this with a growth component to their planning.
What is the solution to these risks?
I tell clients that in retirement there are no
dress rehearsals. All of these risks have to be
considered and planned for.
However, over the course of my career
I have been involved with just about every
aspect of the investment and financial planning
business. I have come to believe that traditional
buy-and-hold approaches to asset allocation
and investment management are flawed. They
are the antithesis to active investment manage-
ment, where the monitoring of current market
conditions is strongly factored into strategies.
I am a believer in identifying and managing
for risk. That is what active management is all
about, so it fits nicely with my world view, as
well as my investment philosophy.
How do you employ active management
on behalf of clients?
First of all, there is not just a one-size-fits-all
solution. And there might be as many unique
slants to active management as there are active
managers. Going back to my medical analogy, I
feel that I need to have access to all of the finan-
cial solutions out there, just as a doctor needs
to have access to the latest medical theories and
technologies. And like a doctor might call on
specialists, I can use active managers who are
experts at what they do: monitoring markets,
strategies and performance every day.
I am also a strong advocate of variable an-
nuities and have found opportunities to utilize
active management within annuities. These
can be fairly complicated products to the lay
person, but I take great pains to explain them as
simply as possible.
By utilizing active management within an
annuity, I believe I can deliver several different
benefits to clients in one product: some guar-
antees on income floors, the opportunity for
asset growth, and perhaps most importantly,
continue on pg. 10
D
Proactive Advisor Magazine: Kimble, can
you tell me a bit about your background?
Kimble Johnson: I have been a financial
advisor now for just over thirty years.
I am the son of a doctor, who was the son
of a doctor, who was also the son of a doctor.
Early on I became much more interested in
finance than medicine, and all of my work ex-
periences have involved financial planning and
investments. I have styled my practice as, and
consider myself to be, a “financial physician”
and a surgeon, when necessary.
9July 3, 2014 | proactiveadvisormagazine.com

10. M U LT I - M A R K E T
+
MULTI-STRATEGY
+
MULTI-MANAGER
One p rtfolio
D Y N A M I C A L LY R I S K - M A N A G E D
L E A R N M O R E
Past performance does not guarantee future results.
The opportunity for profits
carries with it the possibility of losses.
800-347-3539 | flexibleplan.com
A complete list of all of our recommendations over the last 12 months and Brochure Form ADV Part 2A are available upon request.
up there in years and has multiple objectives:
maintaining a decent current income, estate
planning for his family, and would like to see
his assets grow for contributions to charities
after he is gone. A pretty complex situation but
I have been able to meet all of those objectives
with these type of annuity programs.
Thank you for the great insights Kimble.
Anything you would like to add?
Going back to my main theme of risk man-
agement, one principle I emphasize with clients
is understanding the difference between their
risk tolerance and their risk capacity. People
may feel comfortable with the results of a typi-
cal risk questionnaire that shows them to have
a certain appetite for risk. That might be called
their “risk tolerance” in an academic sense.
But I really like to drill down and work
through the numbers with them. When the
rubber hits the road, could they really stand,
economically, to lose a large percentage of their
investment portfolio? The answer usually is no,
which is why I like the double-edged sword
of risk mitigation through both annuities and
active investment management within that.
strong risk management. I tell clients to think
about their financial assets the way they do their
home. You’ve insured your $400,000 home,
why wouldn’t you use some insurance, so to
speak, on your $400,000 investment portfolio?
I have had more than one client tell me “it
sounds too good to be true.” And I tell them,
“It’s not too good to be true, but it is too good
to be free.” Yes, there are management fees asso-
ciated with this type of approach, but in general
I think they are very reasonable and the benefits
far outweigh the costs over the long run.
You have spoken a lot about risk.
Can these actively managed annuity
approaches accommodate clients with
various risk profiles?
Oh, yes, absolutely. While there are some
restrictions placed by insurance companies as to
percentages of allocation and number of trades
and other things, within that there is quite a
bit of flexibility. They can be appropriate for
conservative clients and for those interested in a
more aggressive growth stance.
I have one relatively affluent client with sev-
eral million dollars in annuities. He is getting
continued from pg. 9
Securities and Advisory services offered through LPL
Financial, a registered investment advisor. Member
FINRA & SIPC. The opinions voiced in this material are for
general information only and are not intended to provide
specific advice or recommendations for any individual. All
performance referenced is historical and is no guarantee of
future results. There is no guarantee that a diversified portfolio
will enhance overall returns or outperform a non-diversified
portfolio. Diversification does not protect against market risk.
Investing involves risk, including loss of principal.
10 proactiveadvisormagazine.com | July 3, 2014

11. There can be no assurance that any investment product will achieve its investment objective(s). There are risks associated with investing, including the entire loss of principal invested. Investing involves market
risk. The investment return and principal value of any investment product will fluctuate with changes in market conditions. Guggenheim Investments represents the investment management businesses of Gug-
genheim Partners, LLC. Securities offered through Guggenheim Funds Distributors, LLC. Guggenheim Funds Distributors, LLC is affiliated with Guggenheim Partners, LLC. x0515 #12526
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continued from pg. 5
add in a process for determining when to sell. Both the buy and
the sell factors are quantitative (or solely numbers based)—no
emotion, no subjectivity, just disciplined, mathematical investing.
Intermediate-level, or two-dimensional active managers add
in the directional dimension—price momentum, the potential
downside, the price movement of one investment as it relates to
another—all coming together to determine the position to take
in an investment. Strategies can be employed that are based
on following the trend, doing the opposite (mean reversion) or
simply following price patterns that have historical persistency
in terms of follow through.
Dynamic, risk-managed investors add in yet another dimen-
sion—the risk management dimension. Its three-dimensional
practitioners incorporate advanced investment ingredients: the
active reallocation of the position size in any investments to as
small as zero, hedging, the use or avoidance of leverage, shifts
to cash and bonds determined by volatility, tactical timing mea-
sures, and stop loss signals.
These add a whole new element of dimensionality. The result
is a complete investment strategy, a strategy based on dynamic,
risk-managed investing that considers not just getting invested,
or just buying and selling, or even determining whether the
market is moving up or down. Instead, it considers all of these el-
ements plus the tools to actively preserve the investment in case
bad luck or a bad strategy results in unintended losses.
Finally, think of each of those dynamic, risk-managed invest-
ing three-dimensional cubes, these separate dynamic, risk-man-
aged strategies, as bricks. Combine them and you have the
safety of a home. Bringing together actively managed strategies
in a single portfolio is designed to deliver a strategically diver-
sified, dynamic, risk-managed portfolio, which, like your home,
is intended to weather the fourth dimension—time.
Investors need the solid combination of all of the bricks to
form a home, to weather the storms that roar through the finan-
cial environment over a full financial cycle—the times when the
markets are up and the times when they are down.
Only active management, not passive holding of invest-
ments, is multi-dimensional. And today, active management is
available through a growing number of money managers and
the advisory firms who employ their services.
So whether an investor’s portfolio resembles a studio apart-
ment, a modest three-bedroom home or a far more spacious
property, technological innovations can now provide the same
active management advantages previously available only to
high-net-worth clients and institutional investors.
An investor has to ask oneself, “Would I rather stand on a dot
on the sidewalk out in front of my future home, or move into the
multi-dimensional space inside?” The choice is up to you.
Only active management, not
passive holding of investments,
is multi-dimensional.
11July 3, 2014 | proactiveadvisormagazine.com

12. The opinions and forecasts expressed herein are those of the author and may not actually come to pass. Any opinions and viewpoints regarding the future of the markets should not be
construed as recommendations of any specific security nor specific investment advice. The analysis and information in this edition and on our website is for informational purposes only.
No part of the material presented in this edition or on our websites is intended as an investment recommendation or investment advice. Neither the information nor any opinion expressed
nor any portfolio constitutes a solicitation to purchase or sell securities or any investment program.
July 03, 2014
Volume 3 | Issue 1
Proactive Advisor Magazine is
dedicated to promoting and educating
on active investment management.
Distribution reaches a wide audience
of financial professionals who advise
clients on investments and portfolio
management. Each issue features
an experienced investment advisor
who offers insights on active money
management, client service, and
investment approaches. Additionally,
Proactive Advisor Magazine offers
an up-close look at a topic with
current relevance to the field of
active management.
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Reproduction of printed form, whole or in
part, without permission is prohibited.
How to profit in the second half
Commentary: While sentiment remains decidedly mixed, be wary of
predictions from the same experts who got the first half of 2014 wrong.
Why older clients get too conservative—
and why they should not
Explaining a big flaw in traditional glide path investing.
Succeeding as an introverted advisor
amidst the “extrovert ideal”
Arguably the introvert’s preference for seeking out one-to-one relationships
may actually make them good advisors, with the ability to connect and
bond with their clients.
Taking on a younger client with
low assets can be a good idea
Even if potential clients have relatively low assets now, it might be a bad
idea to turn them away. Earnings potential, savings, debt habits, and
career path may be positive factors to consider.
Finding the next generation of financial advisors
The average age for financial advisors in the United States is older
than 50, as relatively few young people are entering the business.
Where will the next generation come from?
Build a pH-balanced portfolio
Blending 12 asset classes might lead to a better balanced portfolio
with a favorable risk/return profile.
Stay connected
Retirement income strategies: How to improve
on the 4% rule
The “traditional” 4% rule has come under fire for being both
too conservative and too aggressive. Are there better alternatives?
Editor
David Wismer
Marketing Coordinator
Elizabeth Whitley
Contributing Writers
Jerry Wagner
David Wismer
Graphic Designer
Roger Ackerman
Contributing Photographer
Chris Cone ©
12
L NKS WEEK
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