Shaping the Future of Financial Planning: Inside Bluestem’s 2-Year Residency Program

At Bluestem, we’re not just passionate about providing top-tier financial advice — we’re also dedicated to shaping the future of financial planning. Our Financial Planning Residency program, launched in 2021, is a testament to this commitment. Designed as a two-year immersive experience, this residency is not only a unique training ground for aspiring financial planners, but also a strategic initiative to meet the evolving needs of our clients. 

Why We Created the Financial Planning Residency 

The financial planning profession is dynamic and growing, but the pool of skilled, fee-only financial planners is limited. We saw an opportunity to address this gap while supporting our firm’s growth by creating a program that cultivates the next generation of financial planners. By offering structured, hands-on training, we aim to enhance the quality of advice we provide to clients while helping launch the careers of promising professionals. 

This program serves as both a recruitment tool for emerging talent and a way to ensure our clients receive personalized, expert guidance as they navigate their financial journeys. 

What the Residency Offers 

The Financial Planning Residency is designed to develop a well-rounded, capable financial planner through a phased approach. Over two years, residents gain foundational technical skills and client-facing experience, ensuring they’re prepared to serve clients effectively and confidently. 

Year One: Foundational Experience 

In the first year, residents focus on learning the inner workings of financial planning. From supporting the creation of financial plans to mastering essential tools and processes, residents build the technical and operational skills needed to succeed. This phase is primarily back-office focused but lays the groundwork for a deeper understanding of client needs. 

Year Two: Client-Facing Development 

The second year transitions residents into more client-facing roles. They begin to lead client meetings, present financial strategies, and build relationships. This year is all about honing communication and leadership skills, preparing residents to not only offer advice but to guide clients with confidence. 

Graduation: What Comes Next? 

Upon completing the two-year residency, our residents have multiple paths forward. Some may choose to stay with Bluestem as full-time financial planners, contributing to our mission of delivering client-first advice. Others may use the experience, skills, and connections they have built during their residency to launch into the next phase of their careers, with Bluestem’s full support and network at their disposal. Whether they stay or move on, our goal is to help each resident succeed and thrive in the financial planning profession. 

Meet the Residents 

We are proud to highlight our current and past residents, each bringing a unique background and perspective to Bluestem Financial Advisors: 

• Sam Wesley – In the first year of his residency following a robust undergraduate education at the University of Illinois, Sam is already contributing positively to engagements with our clients. He is busy mastering the technical side of financial planning while starting to work on the intricacies of leading a client relationship. Read more about Sam on our website here. 

• Tim Lee – Currently in his second year, Tim has been a tremendous asset to the team and is focused on continuing to solidify his technical financial planning skills while focusing more on developing strong client relationships and leading financial planning sessions. Read more about Tim on our website here. 

• Sue Plisch – As many of you may remember, Sue started as an intern with our firm in 2020, helped develop and launch our Residency Program, and graduated from the program to start her own firm in 2023. She has always shown the ability to connect deeply with clients, bringing advanced relational skills to every interaction. Sue’s success story is a testament to the impact of the program and Bluestem’s commitment to fostering future leaders in financial planning. You can learn more about Sue and her new firm by checking out her firm’s website here.  

At Bluestem, we believe that nurturing the next generation of planners is crucial for the long-term success of both our clients and the profession. Our Financial Planning Residency is just one of the ways we are investing in that future, offering our clients the best of today’s expertise and tomorrow’s potential. 

If you or someone you know might be interested in our open position for June 2025, please check out our job posting!  

Tax Cuts and Jobs Act of 2017

As you may have seen, the House and Senate have reconciled a final version of the Tax Cuts and Jobs Act of 2017 which President Trump signed into law this morning. While the bill has been signed it is important to note that additional time will be needed for full interpretation and adjustments as corrections and revisions are expected.

While a significant portion of tax changes relates to business organizations, many changes will affect individual taxpayers, as well. With such a major restructuring, it will likely take months for all of the changes to be ironed out. 

Tax Brackets: The revised tax plan retains a 7 bracket tax system as proposed by the Senate. Most of the brackets enjoy a decreased rate, although the ranges of taxable income that define each bracket have been significantly adjusted. Below are the new tax rates compared to 2017. The table can be used to estimate how your tax rate may change in 2018.

Outcomes: It is nearly impossible to generalize who will see increases or decreases by this change alone.  High-income couples will see some relief from the so called “marriage penalty”, up to $600,000 of taxable income.  Otherwise, you will need to reference the following changes to fully gauge impact on your taxable income (impacting how these rate changes affect you).  Many people will see lower overall rates, but loss of deductions may increase others overall tax liability. 

Standard Deduction and Personal Exemptions: The standard deduction for all taxpayers has nearly doubled from $6,350 to $12,000 for individuals and from $12,700 to $24,000 for married couples. However, simultaneously is an elimination of personal exemptions of $4,050 per family member.

Outcome: An increased standard deduction will limit the benefit for many taxpayers to itemize deductions. Individuals and married couples with no kids and minimal itemized deductions may see a slight decrease in tax, while larger families may see higher tax due to the loss of personal exemptions.  Keep in mind, changes to the Alternative Minimum Tax (AMT) may impact these changes for your situation.

Child Tax Credit: The Child Tax Credit is being expanded with an increase from $1,000 to $2,000 per qualifying child under 17. Also, the income phaseout levels are increased from $75,000 to $200,000 for individuals and $110,000 to $400,000 for married filing jointly. Additionally, a new credit of $500 has been added for qualified dependents that are not qualifying children (children 17 and older or non-child dependents such as parent).

Outcome: Intended to make up for the lost benefit of personal exemptions, individual results may vary based on family size, age of dependents, etc.  Higher income taxpayers may benefit the most as they may have previously seen no benefit from personal exemptions due to AMT while now being eligible for the expanded Child Tax Credit.

Itemized Deductions

Mortgage Interest Deduction: For new mortgage contracts following December 15, 2017, the deductibility of interest on a primary residence will be limited to the first $750,000 of debt principal, as opposed to the current limit of $1,000,000. Interest deductibility on Home Equity Lines of Credit (HELOC) will be eliminated for existing and new loans when funds are not used to buy, build, or significantly improve the primary residence.

Outcome:  Mortgage and HELOC interest remains a useful tax strategy for many taxpayers that will still be itemizing. We will simply need to be extra diligent about keeping record of how HELOC funds are used.

Charitable Contributions: While relatively unchanged, the limit for deducting cash donations to charities is being increased from 50% to 60% of Adjusted Gross Income. 

Outcome: With the increased standard deduction, more individuals may see a benefit in “bunching” their charitable gifts on an every-other-year strategy. 

State and Local Tax Deduction: Originally, both the Senate and the House looked to either eliminate or severely reduce these deductions. The final version of the bill allows both deductions but at a combined cap of $10,000. The cap is the same for both individual and married filing jointly returns. Furthermore, any pre-paid 2018 State income tax will not be allowed on 2017 tax returns.

Outcome: The cap on these deductions may limit the benefitting of itemizing deductions for some taxpayers, especially in the greater context of all the changes going into effect. Some people may benefit from pre-paying certain taxes before 12/31/2017.  If you make estimated tax payments, you might benefit from pre-paying your 4th Quarter State estimated tax payment before the end of 2017.  For those of you who live in a county that accepts prepayments for real estate taxes, you may also benefit from pre-paying your real estate taxes.  Please note, many high-income taxpayers subject to AMT may not benefit the prepaying strategies.  However, those same taxpayers will not also see a tax increase due to changes as their deductibility was already limited.

Medical Expense Deduction: Surprisingly, the medical expenses deduction will be temporarily expanded. For tax year 2018 and retroactively for 2017, the AGI threshold for this deduction will be reduced from 10% to 7.5%. An additional adjustment allows taxpayers affected by AMT to still enjoy the 7.5% threshold so that they can receive the benefit of this deduction, as well.

Outcome: Some taxpayers who previously thought their medical expenses were too low in 2017 for deducting might find they are in fact eligible.  If you anticipate major expenses in 2017 or 2018, timing any other discretionary (deductible) medical spending into the same year may be beneficial.

Miscellaneous Itemized Deductions: All miscellaneous itemized deductions that were otherwise subject to the 2%-of-AGI floor have been eliminated. Some of the most common deductions that will be lost are as follows:

• Unreimbursed Employee Expenses, including Office in the Home (not for self-employed)
• Tax Preparation Fees & Investment Fees (including Bluestem fees)
• Safe-Deposit Box Fees

Outcome: In some cases, you may benefit from accelerating these deductions normally paid in 2018 by pre-paying by December 31st of this year. Note, this strategy may not apply to those subject to AMT in 2017.

TIAA Changes More Than Just Its Name

Written by Karen Folk, CFP®, Ph.D., Founder & Advisor Emeritus of Bluestem Financial Advisors

Overview

Both my husband and I have been loyal clients of TIAA (formerly TIAA-CREF) for over thirty years.  Throughout our academic careers, we chose TIAA over several possible providers.  We were attracted to their low cost mutual funds and long nonprofit heritage of service to teachers.  Founded in 1918 as the Teachers Insurance & Annuity Company to help teachers retire comfortably, they have become a leading retirement plan provider for academic, research, medical, cultural and government employees. 

Recently, as an account holder, I have grown concerned by TIAA’s behavior towards us as consumers.  We have noticed increasing encouragement by TIAA representatives to consolidate and rollover other retirement assets to their platform.  We were notified in 2015 that TIAA had appointed a full-time representative locally.  We were subsequently contacted on multiple occasions asking us to meet with this representative.  After researching this individual on LinkedIn, I noted his past experience included sales roles with other large brokerage firms, but listed no Financial Planning credentials beyond the minimum required licenses.

A recent New York Times article “The Finger-Pointing at the Finance Firm TIAA” (October 21, 2017, Gretchen Morgenson), revealed some rather dramatic changes in TIAA that have led to whistleblower complaints to regulatory agencies as well as a lawsuit.  The whistle-blower complaint filed with the Securities and Exchange Commission, obtained by The Times, “was filed by former TIAA employees who contend they were pressured to sell products that generated more revenue for the firm but were more costly to clients while adding little value”.  This was followed by the NY Times article “TIAA Receives New York Subpoena on Sales Practices” (Nov 9, 2017).  The NY state attorney general has subpoenaed records from TIAA to investigate possible regulatory infractions. 

Both articles increased my concerns about whether the changes I noticed at TIAA are contrary to their long tradition of unbiased advice at low cost.  As we investigated further, my husband was surprised to learn that parts of TIAA stopped being a nonprofit in 1997 – he, and I am sure many other TIAA clients, was not aware that much of TIAA is now a for-profit enterprise. 

The NY Times October 21st article explains that, in 2005, TIAA established the Wealth Management Group.  This group offers investment management services for a fee, a fee which is in addition to the underlying administrative and investment fees charged by TIAA funds.  The lawsuit and whistleblower complaints claim that TIAA’s Wealth Management Group, now called “Individual Advisory Services”, is pushing customers into higher-cost products that generate higher fees.  Given that TIAA continues to highlight its nonprofit heritage and its salaried employees, my concern is that TIAA clients are not aware of this conflict of interest. 

Based on my own experience, experiences reported to us by clients, and the NY Times articles, we did some additional research we thought worth sharing.

Our ADV Takeaways

We started by reading TIAA’s Form ADV, Part 2A, of the TIAA Advice & Planning Services’ (“APS”) Portfolio Advisor Wrap Fee Disclosure Brochure.  The ADV is a public disclosure document required by the Securities and Exchange Commission (SEC) of all professional investment advisors.  The Form ADV discusses investment strategy, fee arrangements and service offerings.  In my opinion, the relevant items are:

Compensation arrangements.  In the “Advisor Compensation” portion of the ADV, TIAA states several times that “The compensation does not differ based on the underlying investments chosen within the solution, nor does the Advisor receive any client commissions or product fees.” While true, these “salaried” advisors do in fact earn “credits” towards their annual variable bonuses based on a number of factors.  The ADV states clearly, “the annual variable bonus gives Advisors a financial incentive to enroll and retain client assets in the program” (i.e. a managed fee account, more complex solutions, or other TIAA products such as life insurance).   The ADV states again that “Advisors have an incentive to and are compensated for enrolling and retaining client assets in TIAA accounts, products and services, but do not receive any client commissions or product fees.”  Advisors are also compensated for “gathering, retaining, and consolidating” any new TIAA client accounts that they persuade clients to transfer to TIAA from other brokers (e.g. Morgan Stanley, Fidelity, Merrill Lynch, etc.).

My Concerns about TIAA Financial Advisor Compensation

In addition to the base salary received by all advisors, TIAA provides additional compensation in the form of variable annual bonuses to individual advisors. These bonuses are determined not only as a percentage of the amount of assets under management advisors accumulate, but also by the amount of wealth advisors are able to transfer from existing funds into their TIAA managed brokerage accounts. This means, that, while advisors receive a base salary (“no client commissions or product fees”), the bonus structure heavily influences advisors to move client assets to new managed accounts with added management fees, and to sell complex solutions (i.e., TIAA annuities or TIAA insurance) to their clients. In my opinion, this adds a conflict of interest similar to that of conventional brokers who receive higher commissions for selling certain products or certain funds.  Yet, TIAA continues to emphasize its “no client commissions or product fees” mantra.

My additional concern about TIAA is that their recent more aggressive sales tactics seek to funnel existing TIAA clients nearing retirement into much higher cost TIAA Advice & Planning Services Advisor managed accounts.  Enrolling in these accounts could result in retirees unknowingly paying additional fees to the advisor on top of the mutual fund fees they now pay in their current TIAA accounts.  Accepting a TIAA Advisor’s Advice & Planning Services proposal contract includes substantial additional fees which may not be apparent to a customer who does not mine the depths of the lengthy ADV, Part 2 disclosure document.

How much would an unsuspecting TIAA client who converted to a TIAA Advisor wrap fee account pay annually?  The TIAA fee schedule for Advisor & Planning services accounts is an asset-based program fee.  (reproduced below from the Form ADV):

If a TIAA client with $500,000 in assets chose to work with a TIAA Advice & Planning Services advisor in a program account, their annual fees (in addition to annual mutual fund fees) would be $4,925; for a client with $1,000,000 in investments accounts, their annual fees would be $8,925.  My concern is that TIAA clients contacted by or directed to a local TIAA advisor may not understand or realize the higher fees that come with that advisor’s proposals.  

A final concern deals with TIAA directing existing clients to their local representative for a “review”, as we personally experienced.  That “review” comes with a hidden incentive for the local representative to propose an advisor managed account.   In addition to our being contacted by phone several times, the TIAA website has been redesigned to feature a prominent “My Advisor” icon on every page in the upper right.  Existing clients who login to view their accounts and use that icon are directed to call their local TIAA representative.  Why is the local representative “My Advisor” rather than TIAA representatives reachable by phone whom we have dealt with in the past? 

Conclusion

TIAA has an exemplary not-for-profit heritage of serving education professionals with low cost, well-rated funds.  While the TIAA Board of Overseers continues their service to nonprofit employers, the new TIAA Advice & Planning services business structure follows a more common brokerage firm model.  Specifically, the way their advisors are compensated appears to incentivize TIAA salaried employees to steer clients to higher cost managed accounts and other insurance products and to gather additional assets held outside TIAA.  I believe that this managed account model introduces a conflict of interest for advisors to serve the best interests of TIAA clients.   Per the TIAA whistleblower’s complaint, this bonus compensation structure pushes advisors to move clients into products “more costly to clients while adding little value”.   While a TIAA advisor’s proposed investment portfolio may appear more diversified due to including a larger number of TIAA funds, the client’s original choices of fewer funds without the managed account fee may serve that client’s interests just as well at a much lower cost. 

In addition, a TIAA advisor managed account provides solely investment advice.  While tailored to your “goals”, I believe investment decisions should be made in the context of a comprehensive financial plan, not as an isolated component.  Without incorporating tax planning, management of other risks and a detailed cashflow analysis, tailoring an investment portfolio to “your goals” can lead to unintended consequences, especially when making decisions about retirement income from a portfolio.  As for financial planning advice, I recommend consulting a trained Certified Financial Planner™ professional who, as a fiduciary, is bound to act in your best interests.  Why pay TIAA to manage your accounts when, for a similar fee, a fee-only planner can provide a financial plan that includes portfolio management in the context of a comprehensive plan?

While Bluestem Financial Advisors continues to enjoy a strong working relationship with TIAA through the SURS state retirement program, transparency is of the utmost importance to us, and we hope it is for you as well.  Buyer beware: a proposed portfolio promoted to you by your local TIAA advisor may come with much higher ongoing expenses than just continuing to self-manage your original lower-cost TIAA mutual fund choices.  

Protect Your Identity Following the Equifax Security Breach

Data security has been a hot issue for some time, however, the latest security breach at Equifax has left nearly half of all Americans exposed. In the wake of this troubling incident, many of us are left with questions pondering the safety of our personal information, and even our identity.

How could this security breach have happened?

Unfortunately, the best information we have received from Equifax is that the breach was due to a “website vulnerability”. What exactly this means is anyone’s guess. The important issue now is for all of us to protect ourselves in the safest manner possible.

What can someone do with my personal information?

To name a few of the numerous and frightening possibilities, an identity thief can open a line of credit, take out a prescription, and obtain a driver’s license. The results of the above theft include a ruined credit score, altered medical history, and costly tickets that could lead to a warrant for your arrest. This may sound very doom and gloom, but it’s a good reminder to stay alert and vigilant on all fronts.  

What are the odds my identity would be stolen?

The likelihood of becoming a victim of identity theft may not appear to be very high. However, according to a recent USA Today article, 2016 saw a record rate of identity theft - about 1 in every 16 U.S. adults were victims¹. With the sheer volume of data stolen in the recent breach, one can only expect this number to rise in the coming years. Unfortunately, it has increasingly become a question of not if, but when one may be affected by identity theft. Nevertheless, there are several actions available to keep your identity as safe as possible.

To begin, Equifax has offered one year of free credit monitoring service to all individuals, the details of which you can review here. There has been concern raised regarding your ability to pursue legal action against Equifax if you accept this service. In a 9/11/17 update from Equifax, they state that enrolling does not waive any rights to take legal action, and that language on the contrary has been removed from their Terms of Use. However, if you are uncomfortable enrolling with in Equifax’s credit monitoring, see our three trusted steps below. Then continue reading for our general security tips. For maximum protection and security, complete all steps as often as recommended.

First: Routinely check your credit reports and account activity

• Free copies of your credit report are available once a year from each of the three main credit reporting agencies – Equifax, Experian, and TransUnion. They can be requested online here. Review these reports at intervals throughout the year. If any unusual activity is found, contact the credit agency immediately. As a service to our clients, Bluestem requests these free reports on a rotating schedule each year.
• Take some time to review bank and credit card statements once a month. Contact the financial institution if you do not recognize any transactions, no matter how small.

Second: Place a Fraud Alert on your credit reports

• Contact any one of the three credit agencies to inform them you are concerned about becoming a victim of identity theft and ask for a fraud alert. That agency must forward the alert to the other two agencies.
• The alert will require any third party to take measures to confirm your identity before opening any new accounts in your name. This should include contacting you.
• The alert will last for 90 days and can be renewed as many times as you would like. It is a free service.
• If you have already been a victim of identity theft, you can request an extended fraud alert that lasts for 7 years. Alternatively, if you are in active duty with the military, you can request a fraud alert for 1 year to protect you while deployed.

Third: Place a Credit Freeze on your credit reports

• While once thought of as an extreme measure to protect your identity, a credit freeze may be the best way to protect against identity theft given the likelihood your personal information was stolen in the recent breach.
• When placing a credit freeze, you must complete with all three credit agencies separately. When needing to apply for a legitimate credit account, you will have to unfreeze your credit report with all three agencies.
• There is typically a fee for both freezing and unfreezing your credit report, ranging from $3 to $10. The fee differs by credit agency, as well as by state. It is free for victims of identity theft and for individuals 65 years of age or older.
• The three credit agencies also have credit report products that are intended to help you control your credit. Be wary, however, as these products typically cost a monthly subscription fee which can become quite expensive.

Contact information for the Credit Reporting Agencies

TransUnion
1-800-680-7289

Experian
1-888-397-3742

Equifax
1-888-766-0008

General Safety Tips

• Fraudulent tax return filings have been on the rise. A good way to prevent this is to file your return early. The best protection is to obtain an IRS Identity Protection (IP) PIN number. Unfortunately, not everyone is eligible for an IP PIN; you must have either been a victim of identity theft or received a CP01A notice from the IRS. If you do apply for an IP PIN, remember that it will be required to file your tax return each year.
• Update passwords regularly, make them complex, and avoid using the same password for multiple logins. Consider using a password manager such as LastPass to help with password management.
• When available, use dual factor or multi factor authentication to the greatest degree possible. This ensures that even if your password is hacked you will have an additional layer of security.
• Do not send sensitive information such as account numbers or social security numbers via email.
• Be cautious of links included in emails. Do not click on links in emails or enter your credentials in pages linked from an unknown sender. Instead, go directly to the website and manually type the address or search on the site. 
• Do not use security questions that have easily searchable or generic answers.
• Do not use public Wi-Fi if at all possible. Hackers can use software that captures every character you type. It is best practice to never access secure websites or email on a public Wi-Fi network.
• If you store any sensitive information such as social security numbers, credit card numbers, account numbers, etc., in external storage devices, ensure that the data is encrypted and in securely password-protected documents.

If you have been the victim of identity theft visit the Federal Trade Commission’s ID Theft website for thorough tips on how to respond.

___________________________________________________________

1 USA Today article by author Bob Sullivan and published on February 6, 2017. (https://www.usatoday.com/story/money/personalfinance/2017/02/06/identity-theft-hit-all-time-high-2016/97398548/).

Paying too much in taxes? Find a tax-focused financial planner

The following post is shared content from the Alliance of Comprehensive Planners. 

Tax-focused financial planning is not just for the one percent. On the contrary taxes are the hub of the financial wheel with consequences to virtually all financial decisions. Under-planning and overpaying simply delays financial independence. So, why don’t more Americans engage in tax-focused financial planning?

The disconnect between financial planning and tax planning is costing American taxpayers dearly. Aside from the many who intentionally allow higher withholding throughout the year just to claim a sizeable refund in April, are those who overlook the tax implications of their retirement distributions, investment allocations, estate planning decisions or education savings. All have tax liabilities attached, either in the short or long term.

Accountants and tax preparers might identify those consequences in hindsight, when it’s too late to avoid tax penalties. And, financial advisors,who often simply state, “consult your tax advisor” are just washing their hands of the tax consequences of their advice, leaving it up their client to connect the dots. Indeed, it is this short-sighted, often rear view, of taxes as a once-a-year task, rather than a pervasive feature of financial life, that makes the tax-focused financial planner uniquely positioned to advise clients in all aspects of their financial lives.

“All aspects” is a hefty claim. Yet, tax-focused financial planners are informed not only by their clients’ financial profile, but also by the real context and implications of their advice. Cash flow and financial behaviors, the expectations for children and demands of aging parents, job security and income growth are as important as retirement planning, investment strategy and the tax consequences for the all-of-it. It’s holistic. It’s fiduciary based. And, it’s decidedly uncommon.

Focusing on history, is as bad as ignoring it, and tax preparation is often just that: passive and backward-looking. Tax planning is anticipatory, active and looks forward, sometimes even beyond the current year to future years.

Those knee-deep in regret over the tax return they’re filing in April, might reconsider their approach for 2017. With a tax-focused financial planner, planning for their 2017 tax return would already be underway.

To read more on the subject of tax-focused financial planning check out the Tax Alpha White Paper written by fellow ACP Advisors Jonathan Heller and Robert Walsh (edited by Bluestem’s very own Karen Folk and Jake Kuebler). For more information on the Alliance of Comprehensive Planners visit their website at www.acplanners.org.

In Case of Emergency

Guest Blogger: This post was written by Eric Schaefer, a senior studying Financial Planning at the University of Illinois.  Eric is working towards becoming a Certified Financial Planner. He serves as President of U of I’s Financial Planning Club and is currently an intern at Bluestem Financial Advisors, LLC.

One of the cornerstones of a financial plan is protecting against the unexpected. We often address this through purchasing adequate life insurance coverage, maintaining proper emergency reserves (“ready cash”) and developing a thoroughly diversified investment portfolio. However, many overlook planning for unexpected financial events, especially those that may be particularly unpleasing.  One such topic is, have you and your family thought about what you would do in the event of an unexpected medical emergency?

Following up on the HIPPA authorization article featured in our Fall Newsletter (Click Here to Subscribe), we would like to elaborate a bit further on the importance of having a medical emergency plan by highlighting a few key actions items to consider:

1.) To ensure family can get updates on you during a medical emergency, make sure that your HIPPA privacy forms are filled out completely and with the necessary signatures. Parents, if you have an adult child or student away at school, make sure they complete and sign the HIPPA form as well.  You may also want to complete clinic specific authorization forms at their campus medical facilities. This will ensure that no matter where they receive emergency treatment you will have the appropriate access to their records and care providers. 

2.) Upon admittance to the hospital, if the patient is unconscious the staff will first look for an EMERGENCY CONTACT card in a purse or wallet and/or check for an “in case of emergency” (ICE) contact in their phone. Modern cell phones often allow ICE contacts that can be accessed while our phone is locked.  Some add on applications can also digitally display a Medical ID card from the lock screen. 

If you aren’t the best with technology that’s OK! This would be a great opportunity for your children to show you by setting up their own digital ID on their phone. It’s also not a bad way to kill two birds with one stone. Additional information on how to set up and where to find these applications is listed below.

In the event that you either do not have a smart phone or would prefer to use a more traditional method for confirming your identification, there are many websites with Medical ID card templates that you can print out. Those with chronic conditions, allergies, or who are fashion oriented may consider Medical Emergency ID jewelry. What better gift to get your significant other, son or daughter than a necklace with their blood type and YOUR name and phone number on it?

3.) The alternative to carrying Medical ID cards or filling out numerous forms at different healthcare facilities would be to have a medical power of attorney, also referred to as an advanced healthcare directive. This is the most effective of all the options mentioned and an essential item in your estate plan. These medical power of attorney documents are state specific, so you will want to be sure to fill out the appropriate version for where your child plans to spend the majority of their time. Not only will this compliment a comprehensive medical emergency plan, but it will also afford your children the opportunity to begin thinking about and discussing with you the importance of life planning and determining what is truly important to them.

Here at Bluestem we would like to encourage all of you to address your physical well-being with the same careful and considerate preparation as you do with your financial well-being. Hopefully you nor your family members will ever be in a situation where you must utilize any of the items mentioned above, but in the event that you are, we hope that this post will have helped you make the necessary arrangements.

Additional Resources:

ACP Fall 2016 Newsletter

iPhone Medical ID & ICE Setup

ICE Setup for Any Smartphone Platform

Student Loan Forgiveness for University Employees

Guest Blogger: This post was written by Mary Carroll, a senior studying Financial Planning at the University of Illinois.  Mary is working towards becoming a Certified Financial Planner. She serves as President of U of I’s Financial Planning Club and is currently an intern at Bluestem Financial Advisors, LLC. One of the biggest fears students have is getting a zero on an assignment. There are times however when the goal of the assignment IS to get a zero. That’s right, you may be able to zero out your student loan debt in five steps. This assignment may not be an “Easy A”– but it could save you thousands on your student loan repayment.

Before we jump into the five steps, a quick history lesson: In 2007, President Obama signed into law the Public Service Loan Forgiveness (PSLF) program to ease the overwhelming student loan burden for many entering full-time public service jobs, often at lower pay than in private sector jobs. PSLF is designed to forgive the remaining balance (and accumulated interest) on federal student loans for certain borrowers after they have made 120 qualifying payments while employed full time by certain public service employers.

There are five “Rights” to Student Loan Forgiveness to ensure you don’t get it “Wrong”:

1) The Right Loan: applies to Federal Direct Loans ONLY. Direct Loans include subsidized and unsubsidized Stafford loans, PLUS loans, and Direct Consolidation Loans. This program does not apply to any private student loans.

2) The Right Repayment Plan: You must be using one of three repayment plans that base payments on income: • Pay-As-You-Earn (PAYE) or Revised Pay-As-You-Earn (REPAYE) • Income-Based Repayment (IBR) • Income-Contingent Repayment (ICR)

3) The Right Kind of Employment: Full-time employees at Universities (that are not-for-profit) and tax-exempt organizations under section 401(c)(3), such as the University of Illinois, qualify you! “What qualifies as full-time employment?” Is a common question. The answer is an average of 30 hours per week for the year. As a teacher (or other employee) under contract for at least 8 months for the year, you meet the “full-time standard” if you work an average of at least 30 hours per week during your contractual period. Additionally, the PSLF program applies to other jobs besides University Employees. Qualifying public service employment in the government, a 501(c)(3) nonprofit organization, full-time AmeriCorps position, the Peace Corps, or a private “public service organization” qualify you as well.

4) The Right Number of Payments: Rinse, lather, and repeat 120 times (once a month for ten years). The only payments that count are payments that you have made while doing Steps 1-3 any time after October 1, 2007. This means that payments made before electing an income-based payment plan and prior to beginning public service work, won’t count toward the 120 number you need. Payments must also be made on-time (meaning no later than 15 days after their due date).

5) The Right Documentation: Show your work!! How many times do you have to tell your students that one? Show your work and turn in an employment certification form periodically to the Department of Education. They will let you know if you are on the right track to receive loan forgiveness. You don’t want to get to the end of your 120 payments only to learn you messed something up!

An added bonus point to the assignment: Typically, when a debt is forgiven the IRS includes the amount forgiven as taxable income in the tax year the loan is forgiven. However, any amount forgiven at the end of the 10 years due to the PSLF program is forgiven tax-free. This means you avoid paying federal income tax on the amount forgiven, which is an additional savings! Thank you, teacher!!

Don’t be tardy – start on these 5 steps today!

For more information check out the resources provided below.

Unsure of what type of loan you have? Visit: https://studentaid.ed.gov/sa/?login=true Income Drive Repayment Plans: https://studentaid.ed.gov/sa/repay-loans/understand/plans/income-driven Employment Certification Form: https://studentaid.ed.gov/sa/sites/default/files/public-service-employment-certification-form.pdf https://studentaid.ed.gov/sa/sites/default/files/public-service-loan-forgiveness.pdf https://studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation/public-service#qualifying-payment

Bluestem Featured in Wall Street Journal

Bluestem was recently featured in the Wall Street Journal.  The article focuses on on the challenges of  passing ownership to the next generation in succession planning.  Specifically, it tells the story of the founding of Bluestem and the partnership between our Advisors, Karen Folk and Jake Kuebler. You can learn more about Bluestem's history on our website on the Our Team Page.

You can read the full article on the Wall Street Journal's Website through this link.  Alternatively, you can follow this link for a PDF Copy: WSJ Article; Young Practice Owners Earn Trust Over Time

Kuebler Appears on NewsChannel 15

This past week, NPR's Planet Money released an online tool comparing median income of various cities in relation to how far that income would go.  Based on surveys by the Bureau of Economic Analysis, this tool draws on Regional Price Parity; measuring the variation in cost a basket of consumer goods would have in different locations. Especially of interest, the tool indicated residents of nearby Danville, IL see the biggest jump in "perceived" income due to the low cost of living in that area.  ABC NewsChannel 15's Kim Shine sat down with our own Jacob Kuebler to discuss.  You can see the full news story below.

You may also wish to see the full NPR story by following this link or the original NewsChannel 15 Story by following this link.

Jake Guest Stars on National Radio Show

This past week, Bluestem's own Jacob Kuebler guest starred on Your Money.  Nationally broadcast on SiriusXM's Business Radio Channel, this weekly show discusses topics of interest and answers caller's questions regarding their personal finances.  The show is hosted by Professor Kent Smetters of the Wharton Business School at the University of Pennsylvania.   On the show, Jake got the opportunity to introduce Bluestem to the listening audience and assist callers in answering their questions related to an underwater rental property, prioritizing debt payoff versus savings, and more.

You can listen to the show On Demand by following this link.  Show date 5/6/2014.  You must either subscribe to SiriusXM or sign up for a trial.  Program will be available online until June 9th, 2014.