This magazine article discusses various topics covered in the June 19, 2014 issue: 1) It discusses how different active investment strategies can be tailored to match different client personalities and risk tolerances. 2) It profiles investment advisor Carla Zevnik-Seufzer who emphasizes understanding each client's values and risk profile to develop customized plans using various active management approaches. 3) The article also briefly summarizes other pieces in the issue on rising oil prices and their potential economic impact, and how relying on outdated asset allocation models may not adequately address today's investment environment.

1. MAKING THE
MATCH
Oil surge
impact • pg. 7
Serving special
needs• pg. 3
The problem with
pie charts • pg. 4
June 19, 2014 | Volume 2 | Issue 11 First magazine focused on active investment management
CARLA ZEVNIK-SEUFZER IS
PG. 8

2. 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.
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Flexible Plan Investments, Ltd., serves as investment sub-advisor to The Gold Bullion Strategy Fund, distributed by Ceros Financial Services Inc. (member FINRA).
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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Fund gross estimated annual operating expenses = 1.55%

3. Committing time and pro-
fessional resources to the special
needs community is a passion
of mine and allows me to give
something back—to pay things
forward. I can combine my pro-
fessional expertise with a real
service in helping people who
face tremendous challenges.”
n my advisory practice,
I work with individuals
from all sorts of backgrounds,
income levels, and varying de-
grees of financial sophistication.
No matter who I am working
with, developing a bond of trust
is very important.
My wife and I are parents of
two special needs children. I
have become very involved in
the special needs community and
in counseling parents, and often
their children.
I have done a lot of speaking to
special needs groups, addressing
their specific financial planning
needs. I broadly talk about the
three major components they need
to be considering: the emotional
challenges, the financial pressures,
and the importance of sound legal
advice for a variety of issues, such
as custody and estate planning.
Different insurance needs also are
important for these families.
Serving special needs
Russell Luce
Oak Lawn, IL
Foresters Equity Services, Inc.
President, Planning Legacies Financial Group
I“
Russell Luce is an investment advisor representative of and offers securities and advisory services through Foresters Equity
Services, Inc., a registered investment advisor, member FINRA, SIPC. Planning Legacies Financial Group is located at 9233
Sproat Avenue, Oak Lawn, IL, 60453.
Last week’s results
Have bond prices
surprised you this year?
VOTE
-Answer in next issue
This week’s poll
Which variable helps
determine the cost basis
of an investment?
Stock splits
Commissions paid
Dividends paid in the past
None of the above
According to Morningstar, it was
a shock to most strategists when
10-year Treasury yields fell from
3.04% at year-end 2013 to 2.53%
recently, with most of the decline
happening in January. Coming
into 2014, interest rates were
expected to rise slowly but steadily.
Many had the same reasons:
accelerating global economic
growth, a strengthening U.S. job
market, and continued Federal
Reserve tapering. Accordingly, most
investors positioned themselves
for the damage that rising interest
rates would inflict upon their bond
portfolios. Read more >
June 19, 2014 | proactiveadvisormagazine.com 3
POLLS
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TIPS & TOOLS

4. with
pie charts
Text only
Relying on thirty-year-old asset allocation models
makes little sense in today’s investment environment.
By Greg Gann
The
proactiveadvisormagazine.com | June 19, 20144

5. actical,” “strategic,” “active,” “passive”: these are all somewhat
nebulous terms that financial advisors use expecting the gen-
eral investing population to appreciate their significance. How
can an investor possibly ascertain which approach is best when
there is so much long-standing debate among investment professionals?
Like any good debate, this topic can be influenced by personal,
deep-rooted biases. If one believes that rules-based and/or mathemati-
cal formulas will not outperform the market, and if one has developed
and marketed a business plan in accordance with this belief, then those
biases will frame his or her arguments.
But there is another side to the story.
“Lies, damned lies, and statistics” is an adage popularized by Mark
Twain. The gist is that all of us can creatively set parameters for a
statistical analysis to support a position. This creative licensure is ever
prevalent in the world of investing. By way of example, passive inves-
tors who seek to replicate an index can boast that their returns in the
last five years have outpaced the performance of many active managers.
However, if the period were modified to include 2008 performance
results, different conclusions could be reached.
The framework for this discussion is whether allocating “strategi-
cally” to a classic “pie chart” model—which is by definition some-
what “passive”—is better than investing through a more “tactical” and
“active” methodology.
AN AGING ASSET ALLOCATION MODEL
The approach that has dominated the investment world for at least
a generation is a diversified pie chart asset allocation model. Based on
the answers to basic risk tolerance questions, investable dollars are allo-
cated in defined percentages typically into only two general asset class-
es—stocks and bonds—and then further segregated into subcategories
of these two asset classes. For equities, this usually means classifying
the stock universe along broad parameters such as large and small caps,
U.S. and foreign, growth and value, etc.
When these models were originally introduced, the world looked
and acted very differently than today. For one thing, the world
pre-Internet was much less connected. Moreover, emerging markets
were far more distinct from the developed world. There was much
less cross-border trade between continents, and this resulted in greater
negative correlation between markets and pieces of the “pie” on the
asset allocation model.
A passive asset allocation model can work quite well in a bull
market. Investor ignorance can be blissful. However, when markets
recede or mean revert, especially in an Internet-linked world, asset
classes that were negatively correlated can become positively cor-
related, and the diversification of the pie chart allocator actually
becomes “diworsification.”
MULTIPLE ISSUES WITH PASSIVE ALLOCATION
While “life” is a noun, “live” is a verb. Life is active and it evolves.
Technological advancements evidence this evolution. Yet, today’s pie
chart allocator doesn’t look much different than the model used prior to
the Internet’s mass adaptation and the leaps in computing technologies.
For investors with a time horizon of de-
cades before liquidity is needed, the pie chart
approach might work just fine. However, this
is an unlikely scenario. The current econom-
ic and geo-political environments need to be
taken into consideration when determining
when and how to invest. By definition, a
static pie chart ignores current conditions.
It may be considered “strategic,” but it
is fairly passive. Even if an investor’s time
horizon is lengthy before needing liquidity,
most investors significantly underperform
benchmarks because the pain from loss is
too powerful of an emotion to rationally
contain. The power of negative compound-
ing is greater than the magic of positive
compounding, making it unrealistic that
most investors will remain committed to
the percentages in the pie chart, even if the
need to do so is intellectually understood.
Economics is part science and part psy-
chology. It is impacted by human behavior
and sentiment. Positive market momentum
can raise the values of both good and bad
stocks. And, negative momentum can lead to
overreactions, fear, and panic which distort
markets. If markets were always efficient and
rational, they would not experience booms
and busts. Determining market percentages
and rebalancing back to those pre-defined
percentages regardless of market behavior
seems counter-productive and irrational.
Another issue with static models is that
they ignore the continuum of market cycles.
During economic contractions, it makes
sense to tactically allocate to more defensive
sectors, to cash, or even to an inverse posi-
tion on the markets.
As the economy demonstrates signs of
early-stage and then late-stage recovery, cer-
tain sectors should be favored and rotated.
continue on pg. 11
"
“When these
models were
originally introduced,
the world looked and
acted very differently
than today. “
June 19, 2014 | proactiveadvisormagazine.com 5

7. $60
$70
$80
$90
$100
$110
$120
Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14
Oil price surge troubling, but still within ranges
he increase in oil prices last
week, and the resultant surge in
domestic gasoline prices at the pump,
may hit U.S. consumers hard over the
course of the summer driving season.
A 2014 price increase of over 10%,
with an approximate 4% rise last week
alone in global crude prices, is significant.
Some analysts are calling for as much as
a $30 spike in West Texas Intermediate
and Brent crude if the overall Mideast
situation heats up to extreme levels.
According to USA Today, the
International Energy Agency (IEA) has
forecast that Iraq, which has the world’s
fifth-largest proven oil reserves, might
account for 60% of production growth
from the Organization of Petroleum
Exporting Countries (OPEC) for the rest
of this decade. Iraq is now producing
about 3.3 million barrels a day and has
become OPEC’s second-largest producer,
after Saudi Arabia.
T
Source: Bespoke Investment Group
Others disagree with the severity of
the real, not sentiment-driven, impact
a disruption in Iraqi oil production
and shipments may have on the world’s
oil prices. Bespoke Investment Group
argues that while Iraq may represent
close to 4% of global oil-producing
capacity, the likelihood is that increased
production from other OPEC nations
and elsewhere would reduce the “net
loss” to a decrease of about -1.6%.
When global oil prices are looked
at from a longer-term perspective,
says Bespoke, price levels have been
fairly range-bound since 2010,
with resistance and support in the
tightening wedge pattern seen in the
accompanying chart.
OIL PRICES: 2010 TO PRESENT
7June 19, 2014 | proactiveadvisormagazine.com
TOPPING THE CHARTS
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8. Just as every client has a distinctive personality,
so do investment strategies, says Carla Zevnik-Seufzer, founding member
of ClearPath Financial Partners in Greenfield, Wisconsin. Finding the
right “personality” fit is critical to client satisfaction and retention.
Text only
MAKINGTHE
MATCH
CARLA
ZEVNIK-SEUFZER
Bringing client personality and
investment strategy together
8

9. Proactive Advisor Magazine: What is your
overall client philosophy, Carla?
Carla Zevnik-Seufzer: Maybe it stems from
my early background as a teacher, but I find that
one of the most important factors in developing
a sound financial and investment plan is taking
the time to truly get to know each and every
client. What are their values? What is their fi-
nancial literacy? What is important to them in
a broad sense? What are the family dynamics,
religious faith, dreams for the future?
How does this help you put together a plan?
It plays out in many ways, perhaps most im-
portantly in ascertaining risk profiles for clients.
Numbers are valuable, but each individual is
not just a number. Has someone made a major
financial mistake in the past? Are they afraid of
another Black Swan market event?
I tell clients that it is never too late to get on
a sound financial path. We all have stumbling
blocks in our lives and we can learn from them,
overcome obstacles, and make our lives and our
finances stronger and more effective.
How does your investment approach
play into this?
Active management can be made up of
many different strategies and combinations of
strategies that are designed to work over a full
market cycle. Active strategies, in the right allo-
cations, can work well in any investment envi-
ronment, but they can react differently in roar-
ing bull markets, down markets and sideways
markets. It is important for clients to know they
are working with a firm that can refer them to
third-party money managers that specialize in
active management and know how to properly
set expectations.
Can you give a few examples of how you
match client “personalities” with the right
active management approach?
Let’s take Client #1. She is extremely con-
servative. She is in her 50s, has significant liquid
assets, but is afraid of the stock market. She is
not really financially savvy about the markets,
but she is well aware of the two major crashes
over the last fifteen years, as she lost money in
each of those. When she came to us, she had all
of her money in CDs.
Over time, we were able to convince her to
look at a very conservative, actively managed
combination of bond strategies. Really just a
step above CDs in terms of risk, but miles ahead
in terms of expected returns. She is thrilled to be
seeing some progress with her account growth.
Client #2 is a little older, also has significant
assets, and is male. He is much more attuned to
the stock market. He understands the need to
see portfolio growth that will outpace inflation
and provide income down the road in retire-
ment. He reads all of the headlines about the
bull market in stocks but has not participated
the way he feels he should have.
So, he falls about in the middle of the risk
spectrum. We have been able to construct an
actively managed, well-diversified multi-strate-
gy portfolio that emphasizes risk management
while trying to achieve competitive market re-
turns. He is pleased to be “in the market” in a
controlled sense, and not worrying 24/7 about
the risk he is exposed to.
Client #3 is at the far end of an aggres-
sive risk profile. He fancies himself a bit of a
market expert and has just enough knowledge
to be dangerous. Within our array of active
strategies we can build out a more aggressive
portfolio, even including some leveraged,
trend-following elements.
We have had extensive conversations
around market cycles, volatility and potential
drawdowns in unfavorable market conditions.
He is comfortable with that and so are we.
So, bottom line, very different personalities
matched up with different strategies, all under
an active management umbrella.
continue on pg. 10
9June 19, 2014 | proactiveadvisormagazine.com

10. When we tell this story visually, it sends a
powerful message about market cycles and how
to manage a portfolio through them. As I said,
this can work for more conservative and more
aggressive clients through the use of proper
active strategy allocations. That can be through
a single manager or multiple managers.
The art—where we add value—is matching
up clients with the right active management
approach, consistent with their goals, which
can lead to shared expectations we all are happy
with and some very solid relationships.
Great examples. In a broad sense, how do
you describe active management to clients?
Since our focus is on growing our firm
around active management, we do have a
“storyline” we share with clients and advisors
we are bringing into the practice.
I like to go through a little history of the
market, using simple charts. These show side-
ways, bull, and bear markets.
From the early 2000s through today, if you
look at the S&P 500, most people are just gain-
ing back what they lost in one or both of the
most recent bear markets. If they stuck with it,
they are possibly a little bit ahead now.
The point is, we don’t know what the major
trend of the market is going forward, but we do
know how hard and how long it takes to recover
from losses in a portfolio.
Buy-and-hold simply does not work. The
average annual rate of return has slipped over
the years. But, what is worse is the unpredict-
ability and severity of the two most recent
market crashes.
So when I show what I call the “mountain
chart,” with the peaks and valleys of the S&P,
I ask clients, “Wouldn’t it be smarter to try and
avoid those deep valleys? Perhaps even profiting
during a bear market using inverse strategies?
And to be more exposed to equities when
market indicators are heading back up again?”
With active management, the timing will
never claim to be perfect, but it has demonstrat-
ed that it can smooth out returns and volatility.
Third-party active managers are dedicated to
monitoring portfolios on a daily basis, so we,
as a team, can rely on their models and not on
personal emotions or predictions.
continued from pg. 9
Carla Zevnik-Seufzer is a registered representative and investment advisor of The Strategic Financial Alliance. Securities and advisory
services offered through SFA, member FINRA/SIPC, which is unaffiliated with ClearPath Financial Partners.
There is no guarantee that active management will outperform a buy-and-hold approach to investing. Investing involves risk and potential.
No investment strategy can guarantee a profit or protect against loss in periods of declining values. Past performance is no guarantee of
future results. Please note that individual situations can vary. Therefore, the information presented here should only be considered opinion.
10 proactiveadvisormagazine.com | June 19, 2014

11. Read a fund’s prospectus and summary prospectus (if available) carefully before investing. It contains the fund’s investment objectives,
risks,charges,expensesandotherinformation,whichshouldbeconsideredcarefullybeforeinvesting.Obtainaprospectusandsummary
prospectus(ifavailable)atguggenheiminvestments.com.
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 amount of any investment product will fluctuate with changes in market conditions. Shares of the funds are not deposits of, or guaranteed or endorsed by, any financial
institution; are not insured by the Federal Deposit Insurance Corporation (FDIC), the federal reserve board, or any other agency.
The referenced funds are distributed by Guggenheim Funds Distributors, LLC. Guggenheim Investments represents the investment management businesses of Guggenheim Partners, LLC (“Guggenheim”), which
include Security Investors, LLC, (“SI”), the Investment advisor to the referenced funds. Guggenheim Funds Distributors, LLC is affiliated with Guggenheim and SI. x0515 #12524
Discover Investing Flexibility with Guggenheim’s
Rydex Funds
+ 55 Rydex funds that offer exposure to today’s most popular benchmarks
+ Unlimited exchange privileges among equivalent share classes of the
Rydex funds. Certain share classes may impose sales charges on new
purchases or for early redemptions.
Learn more. Call 630.505.3749 or visit guggenheiminvestments.com/Rydex
Gregory Gann is a Registered Representative with, and securi-
ties are offered through, LPL Financial. Member FINRA/SIPC.
The opinions voiced in this material are for general information
only and are not intended to provide specific advice or rec-
ommendations for any individual. All performance referenced
is historical and is no guarantee of future results. All indices
are unmanaged and may not be invested into directly.
Asset allocation does not ensure a profit or protect against
a loss. There is no guarantee that a diversified portfolio will en-
hance overall returns or outperform a non-diversified portfolio.
Diversification does not protect against market risk.
The tactical use of leveraged strategies might be appropriate during
strong bull market trends.
Furthermore, the market has allowed the bond component of the
pie chart models to remain relatively static over the last 30 years because
interest rates have consistently declined from the high rates prevalent
in the early 1980s. Now that the market is operating in an environ-
ment of historically low interest rates, irrespective of whether they are
real or contrived, it is inevitable that the trend will reverse. A rising
interest rate environment after such extended low levels may wreak
havoc to models that have rarely confronted such a phenomenon.
ACTIVE MANAGEMENT OFFERS AN EVOLUTIONARY
STRATEGIC APPROACH
Duplicating benchmarks is fine in strong markets, but simple math
dictates that minimizing losses during steep corrections is far more im-
portant. Compounding can work its magic best when it does not have
to overcome periods of severe portfolio drawdown, which inevitably
occur over market cycles.
Allocating with an eye to current market conditions requires one
to invest tactically, on an active basis, utilizing multiple asset classes.
The harnessing and sophisticated use of computing power is now at
the fingertips of active managers—for creation of models, for strategy
backtesting and for algorithm-based indicators and tactical trading sys-
tems. Active management helps eliminate the bias of emotion-based
investing decisions, encouraging investors to
stay the course when appropriate and move
out of harm’s way when needed. Active
management plays offense and defense.
While taking responsibility for actually
navigating markets might be intimidating,
it is hard to argue with the logic of active
management. Which makes more sense:
loading a client into a pre-fabricated, static
investment model or utilizing the most so-
phisticated active strategies attuned to the
current market environment? The choice
seems simple to me.
continued from pg. 5
11June 19, 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.
Editor
David Wismer
Marketing Coordinator
Elizabeth Whitley
Contributing Writers
Greg Gann
David Wismer
Graphic Designer
Roger Ackerman
Contributing Designer
Travis Bramble
Contributing Photographer
Sara Stathas
June 19, 2014
Volume 2 | Issue 11
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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Copyright 2014 © Dynamic Performance
Publishing, Inc. All rights reserved.
Reproduction of printed form, whole or in
part, without permission is prohibited.
Rethinking traditional risk questionnaires
Subtle changes in how questions are framed and focusing more heavily on
cash flow needs may yield more appropriate risk profiles for clients.
Is the economy really picking up?
Signals mixed, at best.
Commentary: This doesn’t feel like a real recovery.
Black Swans love a low VIX
As the VIX tumbles to lows not seen since before 2008, what are the
implications of an almost complete disappearance of volatility?
Introducing a new way to talk about
working in retirement
One of the greatest challenges for today’s modern retiree: Trying to
strike the perfect balance between vacation and vocation, as the percent-
age of “retirees” who go back into the workplace remains high.
Formula for market extremes
John Hussman says market extremes generally share a common formula:
One part reality is blended with one part misguided perception.
When CPAs and wealth managers
come together
While the advisor and accountant might seem like an odd couple,
there are synergies to be had.
Stay connected
12
L NKS WEEK
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