S I M P L I C I T Y
Integrating Your Values, Vision & Wealth
www.omegawealthmanagement.com | 703.387.0919
Simplicity…we all need more of it in our lives
This quarter, we at Omega are
devoting our newsletter to the theme
of “simplicity”. It seems fair to say that
for most of us, life continues to become
more complicated. Nonstop emails,
increasing demands at work, compli-
cated family relationships and needs
all add to the complexity. And yet, we
can make another choice.
We can take
the time to slow down, get some clarity and intention-
ally focus our efforts on what is truly most import-
ant to us. This time of year we are asking all of our
clients what their personal & financial goals are for
the year. Do you have any or are you just being pulled
along by the demands of life? If so, that often can lead
to a year that pulls you many directions and ends up leav-
ing you feeling like you didn’t make any true “progress”.
Leading an intentional and focused life clears space.
Leading an intentional and focused life lends itself
to greater and deeper satisfaction. Relationships that
matter are tended to. Health & well-being are support-
ed. An organized home leads to “space of mind” which
then frees you for what really inspires your attention.
And a deep sense of peace sets in. Thinks it’s impossible?
We at Omega believe it’s available to everyone who
is willing to make a commitment to slow down and
intentionally set goals and stay focused on them. You
don’t need to go it alone- we can be, and are, “thinking
partners” and “accountability partners” to our
clients. We have the tools, process and skills to help you
get where you want to go on many levels. Please read on
to hear from the rest of the Omega team on how to bring
simplicity into your life- no matter what is going on around
Have a good Spring!
Lisa A. K. Kirchenbauer, CFP
Setting Goals - Why It’s
See Page 5
Financial planning can seem very complex because of all the
laws and regulations around taxes, insurance, retirement plans
and investments. Even so, there are
some steps you can take to
simplify your financial life.
(1) Streamline your accounts:
If you have checking and savings accounts at multiple institu-
consider consolidating them into one checking and
one savings account at one bank. Be sure to keep in mind
FDIC’s deposit insurance limits. Remember that you can have
more than $250,000 in one bank and still be fully insured
provided that the money is in different ownership categories
– single accounts, joint accounts, retirement accounts and so
on. Consolidating accounts
may allow you to reduce paper-
work and the emails you receive, avoid certain fees, and
may even get you better interest rates.
You may also want to consolidate debts. This will create as few
payments as possible for each month. If you use a Home Equity
Line of Credit, you may be able to get a tax deduction for the
interest you pay.
With the constant offers of bonus miles, zero interest rate
promotions, and other rewards,
you might have multiple
credit cards. It could be wise to only use only one or two.
You will want to keep the others open because of the way credit
scores are calculated. Some people have one credit card that
they use only for online purchases and one that they use for
Select the two that offer the benefits you
use the most and lock the others away or even shred them!
(2) Automate recurring bills:
Consider setting up automatic bill pay with your bank. Most
checking accounts allow you to set up payments to vendors
(e.g., your mortgage company). You set the date you want the
payment to arrive at the vendor each month and the amount
you want to send. The bank automatically sends it for you!
sure to record these transactions each month to avoid
overdrawing your account.
For those who aren’t as comfortable using online banking,
set up a reminder on your calendar to pay your bills. You can
set a recurring alert to send you a message each month a
week before each bill’s due date.
by Kathy Frakes
(3) Review your subscription services:
Do you read all the magazines or newspapers to which you
subscribe? If not, consider cancelling.
What about gym or country club memberships? Again, if you
don’t use them, either start using them or cancel.
Check your credit card statement for any “automatic”
subscriptions. One of my older relatives was paying $49.95/
month for a service she never used.
Thankfully the rules have
changed so that credit card companies can’t automatically
sign you up unless you opt out—now you have to opt in if
you want a service. However there may be a legacy
subscription you never noticed before.
(4) Buy a shredder and get rid of old paperwork:
You don’t need to keep statements, confirmations and tax re-
turns forever! Once a transaction appears on your monthly
statement, shred the confirmation. If you get a comprehensive
quarterly or annual statement you can shred the monthly ones.
For most people who don’t depreciate property, you only
need to keep your tax returns for three (3) years. Check out
this link for the IRS guidelines with regard to how long they
say to keep certain records: https://www.irs.gov/business
Consider signing up for online statements and notifica-
tions. Written copies of some documents are legally required
to be sent to you but most paperwork can be eliminated.
See the Operations Corner for another way to reduce
(5) Keep important documents safe but accessible:
As a military family who moved around a fair amount, we found
it very useful to have a fire safe for the original copies of our
important documents. Now that we are more geographically
stable, we find a safe deposit box to be useful.
at Morningstar recommends a three-tier filing system: “…a
safe deposit box at the bank, a home safe or fireproof box,
and a file cabinet or electronic file cabinet on your com-
puter.” She points out the disadvantages of a safe deposit box
as being the cost and the issue of accessibility but it can be
useful for “very valuable, hard-to-replace items” you don’t need
to access regularly. We want to remind you that
as an Omega
client, you have access to your e-Money vault as an
electronic file cabinet. Let us know if you need help access-
ing it or uploading your documents.
(6) Hire a professional!
It’s our job to keep up with the complex issues of financial
planning and help inform and guide you through them. Most of
you receiving this newsletter have already done that by
partnering with Omega.
We are grateful for the opportunity
to be in service to you!
Q1 Market Commentary
Following our “simplicity” theme for this quarter, here are the
simple headlines from last quarter & looking ahead, as well as
some investment strategy thoughts from Omega & SEI…
• Regardless of political affiliation, there’s no way to address
the current state of the economy and market without
acknowledging the Trump administration and its impact.
• The optimism and enthusiasm of a pro-business environ-
ment that have led the market on an extraordinary rally
since November’s election have turned to slight skepticism
as the country and markets await tax reform and deregula-
tion promised in the campaign.
• The U.S. has fairly lagged the rest of the world, but the returns
have still been impressive year to date.
The broader U.S. market
has advanced 6% since the beginning of the year and 10%
since November 10th.
• The S&P 500 has already reached or exceeded end of year 2017
expectations of many on Wall Street.
The popular opinion is to downplay the potential for further
• Some analysts have adjusted estimates for the S&P 500 Index to
reach the 10% range in 2017 and 12% in 2018.
There’s not much sign of significant growth, but there is
certainly no sign of the economy declining.
• Take a look at the rise in business and consumer confidence.
While consumer confidence has tended to be high right before
the onset of a downturn, CEOs have done a better job at anticipat-
ing economic contraction. The sort of caution CEOs exhibit before
a recession is not evident at this time.
2017 1st Quarter performance by Index:
S&P 500 TR USD
U.S. Large Cap Stocks
Russell 2000 TR USD
U.S. Small Cap Stocks
MSCI EAFE NR USD
Barclay’s US Agg Bond TR USD
Intermediate Term Bonds
by Jared Jones
• Keeping on pace with expectations, we saw the Fed raise interest
rates in March.
In SEI’s opinion, interest rates are still low enough to allow
the positive impact of economic growth and corporate profit
ability to lead to higher stock prices. However, there will be
cause for concern if we see the Fed begin to pick up the tightening
pace or if the federal funds rate passes the inflation rate. Projec-
tions over the next three years suggest that won’t happen anytime
We are now witnessing the strongest synchronized move
higher across developed and emerging markets since 2009-
2010. Many feared Trump would spell sluggish returns for
Investors seem to be taking a more relaxed
stance, assuming the Trump administration’s bark is worse
than its bite.
U.S. large-cap stocks put together another great quarter
while small-cap stocks advanced considerably less.
• We also saw growth stocks lead value stocks across the board.
SEI’s emerging market equities fund had a particularly strong
quarter due in part to their underweighting position to Asia.
• Fixed-income strategies also performed well this quarter on the
strength of non-government exposure.
High-yield and emerging markets saw the highest returns
within the fixed-income portfolio this quarter.
SEI believes U.S. stock valuations are becoming stretched by
optimism for the Trump administration’s pro-growth policies.
Due to this belief, large-cap and small-cap positioning was defensive,
with an emphasis on stability and sustainable-growth strategies at
the expense of value and momentum.
On the fixed-income side,
SEI reduced exposure to bonds that exceeded valuation targets
and believes a heavy new-bond-issuance calendar will provide
opportunities to add risk at more favorable levels.
• In SEI’s opinion, the valuation of U.S. equities is a moderate
concern at this point.
Nonetheless, until interest rates start
to rise at a faster than anticipated pace, or the U.S. economy
starts to show early signs of entering a recession, SEI will
continue to view price corrections as buying opportunities.
• With the current synchronized global expansion,
equity portfolios may begin to outperform the S&P 500
index, as they have struggled to do so in the past.
SEI believes the normalization of interest rates to higher
levels will happen slowly. The Fed is likely to tread carefully
until inflation becomes a problem. This should limit the danger of
a debacle in the bond market and provide for an equity market
that continues to defy naysayers.
by Andrew Mehari
Opting Out of Physical Mail Prospectuses
Are periodic investment prospectuses clogging up your mailbox? There is a way to opt out of physical delivery of these mailings
from SEI, and opt in for electronic mail delivery. However, the method isn’t as simple as converting to SEI’s e-statement delivery
process (a separate mailing service from general investment prospectuses). In order to enroll in electronic mail delivery for these
types of mailings, you will have to do the following:
Make sure you have a copy of a recent prospectus letter (sample letter pictured below) on hand, and note the code
within the box to the right of the arrow in the bottom right area of the letter:
Continued on page 5.
Go to www.investordelivery.com and enter the code from YOUR letter in the 1st step box (
DO NOT enter the code
shown in the letter above – it is a sample code and will not work). Make sure you enter in your code with no spaces:
3. Click on
SUBMIT in the 2nd step box titled “Enrollment or Reactivation”. A pin will be provided and you will be
enrolled in e-delivery for all future prospectus mailings after providing your e-mail address:
Remember, you will have to keep a copy of prospectus mail somewhere on file to enroll in this method
since you will need the code.
Don’t recycle all of your prospectus mail until you sign up for e-delivery!
Digit is a brand new micro-savings account designed to help you save small bits of money over
time. Once linked to your checking account, Digit tracks how much and when you spend your money,
and creates a savings strategy in the background. The app will periodically save amounts from your
checking account and pull them into a separate Digit “savings” account where the money is “kept
away” from your checking account. This out-of-sight, out-of-mind approach to saving helps the user
refrain from spending
“extra” money they should really be saving by keeping it in the separate account.
You can withdraw your Digit funds at any
time, which will deposit directly to your linked checking account.
FinTech You Should Check Out
There are some great finance-related apps and resources to utilize that are beneficial to consumers looking to simplify their
financial lives. Included below are a few that you might find useful:
Mint has been the gold standard for budgeting apps for some time, and the company takes the top
spot for a few reasons:
The app automatically updates and categorizes transactions, creating a
picture of spending in real time. Users can add their own categories, split ATM transactions into
the purchases made with cash, and set budgets that issue alerts when they start to top out. The
service also comes with a
free credit score and the ability to link the various bills you pay on one platform. You can also
create savings and cashflow goals and track them in relation to your spending activity.
Nerdwallet is a great website that not only has additional resources regarding these apps and
others, but is used to help make readers’ financial lives less complicated. Should you buy your Internet
modem or lease it? What credit card is best for people who love cash back earnings? How long will it
take me to pay off my car loan? Nerdwallet answers those questions and more with their
various articles, financial calculators,
readily available financial content.
Setting Goals - Why It’s Important
Each year about this time, we ask our clients about the personal and financial
goals for the year. Some of our clients seem surprised, and some don’t seem to have
any goals they would like to achieve for the year. Maybe it’s because we utilize the
Entrepreneurial Operating System (EOS) or because each quarter I go to Strategic
Coach and set new goals,
I am a big believer in the power of setting & communi-
cating goals. Having INTENTION around where you go is much more fulfilling
than being dragged around by current circumstances or worse, other people’s
goals. So what’s stopping you?
Maybe you’re worried you won’t achieve them
(I’m just too busy or I can’t make that happen)? Well,
then start small and build
up your goal setting & achieving muscle. Maybe you don’t know the “how” to get
there. Call us! Or find a partner who is better at the how.
No matter how young
or old you are or whether you are rich or poor, goals help give us focus and
purpose. Goals help us grow and move forward. Goals can even help make the
“unattainable” possible over time. We look forward to hearing what you have
in mind for 2017…and how we can help you get there!
“Ready for Anything”
by David Allen. I am bringing this back because this is a great book on being more focused and
“The One Thing: The Simple Truth Behind Extraordinary Results”
by Gary Keller. A “Wall Street Journal” best seller that
says “You want less, and you want more…now you can have both-less and more.”
“The Life-Changing Magic of Tidying Up”
by Marie Kondo. So, this book isn’t for everyone but if you make the commit-
ment to follow the process and are willing to talk to your stuff, this could be a real freedom opener!
And if you REALLY want to get organized but need some professional help:
Holly Tunstall at Cannon Clutter Control has been a great resource to some Omega clients.
Many of you may remember Debra Hanley, a long-time Omega team member.
She and her husband, John, have been travelling the US in their mobile home
for a couple of years while they waited for their new retirement home in Rhode
Island to be built. Well, it looks like they are finally moving in soon! We just
thought you would like to know where she is…
Simplification in a business setting often seems impossible for most business owners. Keeping with our
theme for this quarter, I offer these resources & tips (some as a reminder) to help make it easier to run
and move your business forward.
Business Owners’ Corner
“Multiplication by Subtraction”
by Shannon Waller
because sometimes, in order to
grow you need to make a team
“Get a Grip” (companion
book to “Traction”)
by Gino Wickman
Mariame Pierce is a junior studying Financial Planning at Virginia Tech. She is looking forward
to interning with Omega Wealth Management this summer and applying what she has learned
in school to her internship position. Her decision to enter the Financial Planning profession was
solidified by her internship experience last summer, and since then she has been excited to enter
the workforce and start practicing Financial Planning. In her free time, she enjoys reading, playing
with her four cats, and exercising daily.
My name is
Trevor Luong and I am currently a junior attending Virginia Tech as a finance major
(CFP track). I was previously at Virginia Commonwealth University in Richmond for 2 years but
I decided to transfer because I’ve always wanted to go to Tech! I am originally from Herndon, VA.
I decided to choose the CFP track because I enjoy interacting with people and helping others reach
Fun Fact: I am half Vietnamese and half Korean
Important Dates and Reminders
2016 Federal Tax Returns Due
Memorial Day - OWM and Markets Closed
Annual OWM Client Picnic at Lisa’s house
Well this update will sound familiar. The Omega Team has settled into our usual beginning of the year rhythm. As you
have probably noticed, we have split our client support between Kathy and Jared. They help me prepare for the meetings
with you, they do research behind the scenes and generally help us stay on top of our work for you. CAN’T FIGURE OUT
WHO TO CALL/EMAIL? Just check out the last page of the newsletter for contact information and a basic sense of who to
contact for what. Not sure whether you are working with Jared or Kathy? Take a guess or send an email to Andrew and
he’ll sort it out. When I am out on vacation or on client meeting travel, feel free to reach out to Jared or Kathy to see if
they can assist you.
Spring also brings our new crop of summer associates. Once again, we have drawn two great candidates from the VA
Tech financial planning program. Mariame Pierce and Trevor Luong are sharp, passionate financial planning students
who are eager to get a real sense of what a career in our profession will look like. We hope to bring them into some
meetings but mostly have them help us SIMPLIFY things at Omega this summer. Below is a little more information on
them and if you attend the Omega picnic, you’ll have a chance to meet them firsthand.
Welcome Mariame and Trevor!!
Lisa A. K. Kirchenbauer,
Certified Financial Transitionist
President and Founder
703-387-0919, ext. 500
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• Business owner coaching and consulting
• Prospective new client inquiries
Financial Planning Associate
703-387-0919, ext. 508
• Support Client Service & meeting
• Coordinate investment research &
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• Client Service Issues: cash needs,
transfers, new accounts
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• Pay Simple fee payment support
Associate Financial Advisor
703-387-0919, ext. 502
• Support Client Service & meeting
• Coordinator for financial planning
• Prospective new client inquiries