Nancy Hairsine • Foresters Equity Services, Inc. - How do you anticipate the unexpected? by Jerry Wagner - Record-setting Fed funds rate policy continues - Building 360-degree relationships with clients and prospects (James Hamer, Global View Capital Management)

1. Fed funds rate
policy unchanged
• pg. 7
360º client
relationships • pg. 3
Anticipating the
unexpected• pg. 4
September 25, 2014 | Volume 4 | Issue 1
First magazine focused on active investment management
Nancy Hairsine
pg. 8
MANAGING THE
OF MARKET

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3. I have invited clients in for special
sessions to help me evaluate my market-
ing materials and my communications
efforts. That not only provides valuable
feedback, but also helps to deepen rela-
tionships by making those clients part
of the process.
I believe in the philosophy that the
resources for growth and achievement
can largely be found in one’s personal
communities. This means involvement,
commitment, and giving back. I do
volunteer work and am a serious cyclist.
Working in both of these communities
has its own meaningful rewards, but
they also serve to broaden my personal
circle. It is a great benefit to doing the
things I love to do.”
place a high degree of impor-
tance on really knowing my
clients and meeting their needs. This is
the best prospecting and referral tool I
will ever have.
There are several ways I go about
building and enhancing relationships.
Before a client even walks through
the door for a first meeting, I like to
have had four to six ‘touches’ with that
individual. I want to know everything I
reasonably can about their career, their
business, their family, their background
and their affiliations. This takes some
research on my part, but it also means
trying to make our introductory phone
conversations as thorough as possible.
Client reviews are important on
many levels. There is the meat of the
meeting, which is the factual review.
But I also use it as a forum to really
probe into the satisfaction level of our
services. This might lead to further
education on our strategies or the
way we work, and can usually allevi-
ate small issues before they grow into
larger ones. They are also an excellent
opportunity for updating personal
information and identifying potential
sources for referrals.
Building 360-degree relationships
with clients and prospects
James Hamer
Waukesha, WI
Global View Capital Management
I“
Read text only
Advisory Services offered through Global View Capital Management, LTD, an SEC-registered investment advisory firm.
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Proactive Advisor Magazine
Copyright 2014 © Dynamic Performance Publishing,
Inc. All rights reserved. Reproduction of printed form,
whole or in part, without permission is prohibited.
Editor
David Wismer
Associate Editor
Elizabeth Whitley
Contributing Writers
Jerry Wagner
David Wismer
Graphic Designer
Travis Bramble
Contributing Photographers
Saul Bromberger and Sandra Hoover
September 25, 2014
Volume 4 | Issue 01
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.
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.
September 25, 2014 | proactiveadvisormagazine.com 3
TIPS & TOOLS

4. Read text only
By Jerry Wagner
HOW
DO YOU
ANTICIPATE
THE UNEXPECTED?
proactiveadvisormagazine.com | September 25, 20144

5. It always seems to begin the same. A “news
flash” scrolls across the lower portion of our TV
screens. Or the music on the radio trumpets a
change is coming.
On August 24th of this year, early birds
watching or listening to the TV saw just such
alerts, while others heard about it shortly after
they awoke. A 6.0 earthquake rocked Napa
Valley, disturbing the peace and quiet, the
serenity that marks one of America’s most beau-
tiful regions. Windows on Napa’s Main Street
exploded into a shower of glass, rubble fell from
the fronts of buildings, and mobile homes burst
into flames. Hundreds of people were injured,
many very seriously, and there was at least one
fatality directly related to the quake.
It was a scene unique to the Napa area that
weekend, yet familiar to us all. Every commu-
nity has had its disasters. While they are all of
varying proportions, they share some of the
same characteristics. First and foremost, our
hearts, America’s communal sense of empathy,
always go out to every community experiencing
the loss that these disasters bring.
ashore, yet we know that at least one will wreak
havoc somewhere along our shoreline each year.
Of course, this is no different than what we
have to deal with in the stock market (or with
most financial asset classes, for that matter).
Check out the three graphs of past stock market
values. At the point where each red vertical line
intersects the graph, each price line was hitting
new all-time highs. But could you tell at that
point that the bottom was about to drop out
of stocks?
For more than a century, stocks have
undergone these precipitous declines every
five to seven years, on average. We know with
a certainty that they will keep occurring,
although no one knows precisely when.
It is encouraging, however, that active
money management has been able to provide
some shelter during the periods noted above.
Active managers have the ability to move in
and out of markets or asset classes and have
demonstrated the ability to adapt to changing
market conditions—unlike passive buy-and-
hold approaches to investing.
Each of these market declines was very
different from the other. In the 1987 example,
stocks fell because of tightening operations of
the Federal Reserve that were not widely rec-
ognized in advance—though some key market
timing indicators gave advance warning. In the
second crash, the decline occurred in waves,
and hit different sectors at different times—
allowing active strategies to rotate from the
hardest-hit sectors to stronger ones.
Finally, the last financial crisis was not
widely anticipated, and most assets fell together
when stocks collapsed. Protection was only
achieved by having actively managed strategies
with a defensive plan that automatically went
into effect as prices fell, plus being widely diver-
sified not only on an asset class basis, but also
on a strategy basis.
In 2014, the financial markets have hit
many new all-time highs with shallow correc-
tions along the way. Yet you might ask, “What
are we doing in anticipation of the next bear
market?”
Some say the bear is right around the
corner—if only because this bull market is
growing old. If you count the March 2009
low as the bottom for stocks that preceded the
current rally, the bull market has lasted more
continue on pg. 11
0
50
100
150
200
250
300
350
400
1/22/1986
1/22/1987
S&P
0
1000
2000
3000
4000
5000
6000
10/8/199810/8/1999
OTC
10/8/200010/8/200110/8/2002
0
500
1000
1500
2000
2500
3000
4/20/20054/20/20064/20/20074/20/2008
S&P
PAST MARKET DECLINES
Specific market events are usually unexpected at the time they occur—yet the possibility
of their occurrence is almost always known in advance.
Second, it is always the case that the specific
disasters were unexpected at the time they
occurred. Yet, almost paradoxically, the possi-
bility of their occurrence was also almost always
known with a certainty in advance.
While the Napa earthquake could not have
been predicted with current technology, we
know with a certainty that sooner or later the
“big one” will hit the West Coast (that’s 7.5 to
9 on the Richter scale versus 6.0 for this one).
Although we cannot predict precisely when or
where tornadoes will touch down, we know
with a certainty that hundreds will occur across
the South and Midwest each year. And, while
models keep getting better and better, we can’t
tell precisely where hurricanes are going to go
“What are we doing in
anticipation of the next
bear market?”
September 25, 2014 | proactiveadvisormagazine.com 5

7. FederalFundsSmoothed
August 2007
July 2000
Loosening Cycles by Start Year
22
20
18
16
14
12
10
8
6
4
2
0
Number of Days Since Start of the Loosening Cycle
200 400 600 800 1000 1200 1400 1600 1800 2000 2200 2400 2600
April 1989
July 1995
August 1984
August 1981
Record-setting Fed funds rate policy continues
nterest rates were again left unchanged
in last week’s Federal Open Market
Committee (FOMC) statement, surprising
no one. The “taper” of bond purchases
also remained on schedule to end with
the October FOMC meeting. Forward
guidance by the committee, chaired by
Janet Yellen, retained the language of
maintaining the current federal funds rate
for a “considerable time” before interest
rate increases, which was the subject of
some speculation going into the September
meeting.
The overall statement appeared to be
slightly more dovish than expected, as the
FOMC also released principles for a return
to normalized monetary policy. Further key
language, consistent with July’s statement,
continued to reinforce that even as interest
I
Source: ValueWalk.com
rates move higher, it will be done in gradual
fashion:
“The Committee currently anticipates that,
even after employment and inflation are near
mandate-consistent levels, economic conditions
may, for some time, warrant keeping the target
federal funds rate below levels the Committee
views as normal in the longer run.”
Fourteen committee participants see the
first rate hike as appropriate in 2015 and
the average forecast for the Fed funds rate
at the end of 2015 is now 1.4%. According
to ValueWalk.com, the current Fed interest
rate “loosening cycle” is the longest in the
past 60 years, approximately 2600 days.
(Note: A loosening cycle is when the
Federal Reserve consistently lowers short-
term interest rates through the use of its
Federal funds target rate.)
Read text only
Managed accounts emerging
on the 401(k) scene for plan
sponsors
The popularity of managed accounts—which enable
plan sponsors to use portfolio customization in an
effort to improve employees’ retirement savings—is
on the rise.
“Are you well-diversified?”—
what does that really mean?
The 2008 financial crisis pointed out the fallacies
of traditional means of diversification thinking,
as “cross-asset-class contagion” disproved much of
the theory. Is there a better way?
5 signs in the Fed statement
of a sooner-than-expected
Fed rate hike
More important than whether the Fed’s recent
policy statement was “dovish” or “hawkish,” the
statement provided five signs that a Fed rate hike
is likely to come earlier than many expect.
L NKS WEEK
7September 25, 2014 | proactiveadvisormagazine.com
TOPPING THE CHARTS

8. Read text only
By David Wismer
Photography by
Saul Bromberger and Sandra Hoover
Nancy Hairsine
MANAGING THE
OF MARKET
8 proactiveadvisormagazine.com | September 25, 2014
Nancy Hairsine, CFP®
RFC®
Founder, Lifetime Planning
Former President and Chairperson, East Bay
Chapter of the Financial Planning Association
Formerly served on Board of Directors,
National Association of Financial Advisors
Raised in Minnesota on a small farm

9. Proactive Advisor Magazine: Nancy,
how did you enter the advisory business?
Nancy Hairsine: I am a farm girl, growing up
on a small farm in Minnesota where my father
raised a variety of livestock and crops. We all
knew what it meant to work hard—preserving
what we had and making sure we had enough
to live on from year to year. We were always
taught to plan for the unexpected, because in
farming you always had to manage the risks.
I started in the financial services industry
after getting married and moving to California,
where I worked for a real estate firm that was
well-diversified with many different types of real
estate investments. I eventually went to work
for a financial advisor and received my CFP®
designation through a program run jointly by
USC and the College of Financial Planning. The
rest is history, as I eventually started my own
firm and have grown that practice ever since.
What have you learned through
that journey?
I am passionate about working with
clients from all walks of life, especially
Middle Americans. I think they—more
than anyone—have been underserved by the
industry and perhaps need strong financial
education and guidance. But, many times
they do not think they really qualify to work
with a financial advisor or are misinformed
about how much it might cost. They have
worked hard all of their lives, which I can
relate to, and need to preserve, protect, and
grow their assets.
From my upbringing on a farm, I often use
analogies in talking to clients.
Interesting. Can you share some of those?
I think it starts with managing risk. Farmers
are exposed to all kinds of conditions outside
of their control, most importantly the weather.
But, there are lots of very sophisticated tools
they can use today to manage risk, including
financial instruments such as futures hedges
and vast improvements in farming technology.
This, to my mind, is directly analogous
to managing within today’s financial envi-
ronment. You cannot control what is going
to happen in the economy or within specific
markets, but you need to use the most ad-
vanced and modern tools to manage risk.
How does that translate into your
planning process with clients?
I have a specific discovery process for clients
that I have refined over the years. Within this,
a step I call the “R Factor” is one of the most
important and it helps identify risks and oppor-
tunities for an individual or couple as I review
their total financial picture and long-term plan-
ning. This includes developing a comprehensive
and realistic risk profile.
While managing risk comes into play in every
areaofafinancialplan,itisespeciallypronounced
on the investment side. My goal is to focus on the
investment strategy that has the highest proba-
bility of achieving the desired results while un-
derstanding and mitigating the associated risks.
How do you do that?
It really goes back to my farming analogy,
and the use of the most modern techniques.
The advancements in portfolio management
through third-party active managers has been
remarkable. They use technology to identify
the most appropriate strategy combinations
for a wide variety of risk profiles. They also
use models and algorithms to guide decision
making on when to be in or out of the markets,
when to use leverage, and when to emphasize
or de-emphasize certain asset classes or sectors.
All of this helps my clients to achieve the goals
we have set up for the long term, and provides a
great deal of peace of mind—they do not have
to worry about every little wiggle in the markets.
How important is the client’s understand-
ing of active management?
It is very important. Not in the sense that
they have to understand every nuance of a
strategy or what is behind the technology,
but in a broad sense of what it is expected to
do. First, it provides a solution to worst-case
scenarios like we saw in 2008. That is really
critical to being comfortable with exposure to
equities, as a good portion of my client base is
in or near retirement.
Second, for my average client with a con-
servative risk profile, they understand that we
are looking to put together a well-diversified
approach with lower volatility. This may not
mean they are getting the returns their neigh-
bor is bragging about in a roaring bull market,
but it does mean they can sleep at night. And
that is what our planning process is all about—
identifying the needs and goals of clients and
putting together risk-managed strategies that
are well matched to their specific objectives.
continue on pg. 10
Anticipating conditions that could threaten livestock and crops, farmers
must plan for the worst and protect for the future. Nancy Hairsine’s
father was a farmer, and like him, she uses a variety of financial tools in
her efforts to mitigate market risk and preserve capital.{
September 25, 2014 | proactiveadvisormagazine.com 9

10. Show your clients a
friendlier
bear market
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Past performance does not guarantee future results.
The opportunity for profits
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Where does education play a role
for clients?
It comes throughout the planning process,
but is probably most important in developing
risk profiles. What people may believe on the
surface as to their comfort level with portfolio
drawdowns can be very different than the actu-
ality if markets were to go down fast and hard.
So there are really two parts to the equation: a)
helping clients to identify a risk assessment they
can comfortably live with and b) using active
management to stay as true as possible to that
profile in terms of risk within a portfolio.
Overall, this approach has worked well for
my practice. I seldom receive any sort of pan-
icky phone call questioning what the markets
are doing and the short-term impact that may
have. In our quarterly review sessions we do
get very granular on performance and, if the
education was conducted and absorbed prop-
erly, these tend to be very satisfactory meetings.
Some clients will still try, on occasion, to
compare performance to the S&P 500, but I
always point out that they then also would have
to accept the 30-50% drawdowns of the past
two market crashes. That usually provides the
proper perspective.
It is really all about long-term positive
growth of assets, managing risk along the way.
A lot of my clients have more or less grown up
with me and they depend on me to stay abreast
of the latest tools and strategies. The evolution
of actively managed strategies and data-driven
decision making really helps meet that objective
for my practice and my clients.
continued from pg. 9
Nancy Hairsine is an Investment Advisor Representative offering securities and advisory services through Foresters Equity Services, Inc.,
a Registered Investment Advisor and Member FINRA/SIPC. Lifetime Planning and Foresters Equity Services are separate, unaffiliated entities.
10 proactiveadvisormagazine.com | September 25, 2014

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than five and a half years. This is longer than
the average bull market.
Although this argument has been circulat-
ing Wall Street for some time, there is a differ-
ent view possible. A bear market is traditionally
defined as a decline of 20% or more in the
major indexes. And it is true that the S&P 500
has not fallen 20% since March of 2009, but in
2011 the index did fall 19.38% from market
close to market close, and on an intraday high
to intraday low basis the decline was 21.58%.
If we count the end of that decline as the
completion of a bear market, we now have a
starting point of October 4, 2011 as the begin-
ning of the current rally, and the current rally
is then of shorter-than-average duration. This
suggests that that the stock market rally may go
on much longer than many anticipate. In ad-
dition, the primary bullish trend line has held
on each downturn, suggesting that the primary
trend remains upward pointing toward “higher
ground.”
However, what if this market situation
changes dramatically?
And what if this is neither a 1987-type
decline (forecastable by some indicator) nor a
2000-2002 meltdown (tipped off by cascading
momentum moves in different asset classes)?
If it is, instead, a repeat of 2007-2008 or is
something totally unexpected, what do we fall
back on then?
That’s when we have to depend on the de-
fensive plans of actively managed strategies and
on a strategic diversification line of defense.
Many strategies are based on the concept of tar-
geting a level of risk and restraining portfolios
to the resultant targeted maximum loss levels,
continued from pg. 5
by diversifying among less-correlated asset
classes and strategies.
Everyone seems to nod their heads when
I say that you need to have different types of
assets and strategies in your portfolio to protect
yourself from the unexpected. Yet, few seem to
realize that to do that you have to own some
assets or strategies in your portfolio that are not
going up when everything else is.
No diversifying strategy or strategy incorpo-
rating alternatives goes up all the time—a diffi-
cult concept for many to understand or accept,
but one that is fundamental to our approach.
The next significant market downturn may
be impossible to predict as to cause, severity,
and timing, but it is a fair assumption—as
with those natural disasters—that there will be
another one. True diversification and actively
managed strategies to handle risk are excellent
ways to protect portfolios from the “expected”
arrival of the “totally unexpected.”
We have to depend
on the defensive plans
of actively managed
strategies.
11September 25, 2014 | proactiveadvisormagazine.com