Summer - Form Wealth

SUMMER 2015
The Power of Why? BY LUKE KUCHENBERG, CFP
®
“Why?” It is a little word - only three letters, but it can
convey so much. If you spend any time with a young
child, you will quickly learn that this little word is one of
their favorites. However, somewhere along the way we
seem to lose that awareness or the thirst to know and
feel the “Why?” Too often the “what” and the “how” are
explained to us, but it is my assertion that while the what
and how are important, they aren’t nearly as exciting.
What you do and how you do it are easier to explain. But
why you do what you do… that is different. It seems like
an easy enough question, but most have a hard time
answering it. Could you?
Let me take you back several years because I, too, was in that
group. Of course I certainly knew what I did for a living
and how to do it, but I really never put a lot of thought into
why I did it. Why did I get into financial planning? What
drives me to keep learning and shaping this craft? While
reflecting on this topic and trying to be more mindful of
it, I happened to come upon a TED Talk (www.ted.com –
great by the way - please check it out) that addressed this
very topic of inspiration. After viewing it, I gained some
clarity and understood that I knew the why all along, I just
wasn’t being conscious of it. I won’t keep you in suspense, I
can sum my why up in one word… You.
Over the years, many of you have probably heard me
say that, while I love the planning and the never-ending
opportunities and challenges the work presents, it is the
relationship with clients on which I truly thrive. To that
point, it is not only getting to know you, your family, goals,
concerns, your pursuits, and so forth, it is much more
than that. You see, it is my belief that the true value of this
profession, this craft we practice, is in becoming not only
your trusted advisor and planner, but it is just as important
to be your advocate for a life well lived. We aspire to walk
alongside of you and help you navigate the critical financial
events of your life, so we can help you enjoy that journey
at every step possible. And, when that journey has a bump
in the road or an unexpected turn, we expect to be there to
make the adjustments and build peace of mind around how
it will all work out.
What we do and how we do it…. it will always be important.
It is building your financial plan, your investment strategy,
the way we monitor it and give it life. But just as important
is for us to understand what drives you to fulfill your own
Why? As I’ve already said, the what and the how are easy;
it’s the why that drives us. Working with you to live out
the one life you have in the best way possible… that is our
why. In the end, we want to help you change your life and
impact the lives of your family and others. It is a job we love
and we look forward to continually doing to help you.
So, in conclusion, I have only one question for you…
Do you know your Why? 
Tyson Jon Ray, CFP®
Founding Partner
Luke Kuchenberg, CFP®
Founding Partner
431 Geneva National Ave. South, Lake Geneva, WI 53147
(262) 686-3005 / (844) 600-3008
www.formwealth.com
“The reason people find it so hard to be happy is that they always see the past better than it was,
the present worse than it is, and the future less resolved than it will be.”
— MARCEL PAGNOL, novelist, playwright & filmmaker
Any opinions are those of Tyson Ray and/or Luke Kuchenberg and not necessarily those of Raymond James. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. You should discuss any tax or legal matters
with the appropriate professional. There is no guarantee these trends will continue. Past performance may not be indicative of future results.
NEW BEGINNINGS by Michael Hoffman
This is the time of year we think about the start of a
new school year. It’s the time of year we hear moans
from many children and cheers of delight from most
parents. As a public school teacher ready to embark on
my 27th year of teaching, this time of year is always one
of new beginnings for me-new faces, new curriculum,
and new challenges. For a group of youngsters from
the Upper West Region of Ghana, Africa, this will also
be a time of new beginnings, as the preschool financed
by Children’s World Impact (CWI) will welcome its very
first group of students in September of 2015.
The preschool/daycare facility is the culmination of a
multifaceted plan that began back in the spring of 2011.
Recognizing the high population of widows in this
region, many who are young and raising children, CWI
committed to a project that would provide these women
opportunities to financially support themselves and their
dependent children. With the digging of a well and the
construction of a production facility, widows and other
women in the area are able to engage in activities that
meet their needs and tap into their skill sets.
Motorized grinding, roasting, and mixing machinery,
purchased by CWI, allows many women the opportunity
to efficiently and effectively produce the staple product
of shea butter, which can be sold in local markets. Other
women are engaged in baking bread with help from
the industrial sized mixer, kneader, and oven financed
by CWI. Not only can they sell bread locally, but they
are providing bread for over 1800 students in local
schools. Many women are selling clean drinking water
in traditional bags, thanks to the high tech water bagging
machine that CWI bought. Still others are raising and
irrigating crops during the dry season in individual plots
that are located behind the building.
More information at:
cwi.org
Main production building
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Freshly painted main classroom building
The school is the final tie-in that will further enhance this
project. It includes a main building with two very large
classrooms, a walled-in kitchen building with a yard for
outdoor cooking, a bathroom area with running water, a
small office building, and a large play area. This facility
will serve a duo purpose for the community. Not only will
children be able to attend preschool here and get a head
start to their education, but widows who have very young
children can have these youngsters cared for while they are
working at their various endeavors. With approval from
the government, a feeding program will be established that
will provide a hot meal daily to every child who attends.
The benefits to the youth of this community will be
tremendous. The impact will be felt for years to come.
So, as you encourage your children and grandchildren
to have a good school year, to listen to their teachers
and study hard, and to do their homework, may you
also think of the children in Ghana, Africa who will
be stepping into a brand new beginning, thanks to the
generous donors of Children’s World Impact. 
Children’s World Impact is independent of Raymond James.
The Ordinariness Of Equity Market Corrections by Nick Murray
The Ordinariness Of Equity Market Corrections
We have been reminded of late that
sudden sharp pullbacks in equity
prices have not gone away. Indeed,
they have always been with us­—just
not lately.
At this writing over the weekend after the
S&P 500 fell precipitously—at 1,970 it is
about 7.5% off its all-time high, set earlier
this year—we have so far experienced
a phenomenon which, since 1928, has
occurred somewhere between once a quarter
and once a year. (See the accompanying
chart, for which I am indebted to J. P.
Morgan Asset Management.)
At least historically, this has to date been
a perfectly ordinary decline. Purists do
not yet even call it a correction, a term
which most investment professionals
reserve to declines of 10% and more (up
to 20%, which is commonly accepted as
the threshold of a so-called bear market).
This is certainly not a prediction that
the current decline will not deepen into
a correction, or even a bear market. It
is in fact not a prediction of anything
whatsoever—market prognostication
in the short to intermediate term being
quite far beyond my competence. (I
experience no shame in this admission,
since in my nearly half a century as an
investment professional it has seemed to
me to be beyond everyone’s competence.)
Rather, my entire goal in this little essay
is to document the frequency of declines,
and the depths to which stock prices have
historically ebbed. In the next breath I
wish to demonstrate how fleeting these
pullbacks have historically been, in
terms of the average time between their
low points and full recovery.
The urgency of your performing this
exercise with your financial advisor at
the earliest practical moment lies, for
me, in the fact of how exceptionally long
we have gone—not to mention how far
the equity market has advanced—since
Raymond James is not affiliated with and does not endorse the opinions or services of Nick Murray.
FREQUENCY BY SIZE OF DRAWDOWN, 1928-2014
Threshold analyzed independently*
Drawdown
Threshold
Historical Frequency
Typical #
Per Year
Typical Recovery Time
20%
Once per market cycle
0
20 month
10%
Once per year
1
8 months
5%
Once per quarter
4
2 to 3 months
3%
Once per month
11
2 to 6 weeks
2%
Often
18
1 to 4 weeks
Source: Standard & Poor’s, FactSet, J.P. Morgan Asset Management. Returns are based on price index only and do not include dividends. For illustrative purposes only.
*Analysis based on each type (size) of drawdown being independent. For example, the market does not typically see four 5% drawdowns and one 10% drawndown in the
same year, but rather those 5% drawdowns may compound into a single 10% drawdown for the year. Data are as of 1/31/15.
the last correction worthy of the term
(again, defined as at least a 10% decline
in the S&P 500-Stock Index on a closing
basis, giving no effect to dividends).
The plain fact is that as I write on
August 22, we have gone 1,419 calendar
days without even a 10% correction.
This is the third longest such run in
the past half century. As the chart
shows, declines of 10% or more have
historically occurred on an average of
once a year. Indeed (although the chart
doesn’t show this) the average intra-year
decline in the Index since 1980 has,
according to S&P, been 14.2%.
The danger is that after nearly four years
without even a threshold correction,
too many investors may be inclined to
overreact, should we now turn out to
be in the process of experiencing one.
This concern is of potentially critical
importance.
Surprise, in my experience, is the mother
of panic, And as the chart suggests, an
emotional “sell” decision has historically
been the wrong response on the part of a
long-term, goal-focused investor, because
of the relatively brief average period of
time to recovery. If you are working, saving
and investing over years and decades
toward the great goals of life—children’s
education, a retirement characterized by
dignity and independence, meaningful
legacies—it has always been a great
mistake to react to market volatility.
Thus, what really matters is not whether
or not we are about to have a full-fledged
correction, but how you react—or, with
the guidance of an experienced advisor
who may have seen many corrections
come and go, how you do not react.
It must be repeated that there is nothing
predictive in what you have just read.
This essay is an anecdotal review of
events in the equity market from 1928
through this past Friday. It makes no
forward-looking statement whatsoever.
Thus it is always possible for an investor
to fear—in what the late John Templeton
called “among the four most dangerous
words in investing”—that this time is
different.
My most heartfelt advice is that if
you are feeling even a twinge of that
sentiment, take it directly to your
advisor. And do not be the least bit
surprised if he or she responds by
giving expression to four other, quite
different words, which are based firmly
on the totality of historical experience:
“This too shall pass.” 
© August 2015 Nick Murray. All rights reserved.
Reprinted by permission.
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The Future Has Already Been Born BY TYSON RAY, CFP
The US middle class is shrinking. We as a country have
major social issues and yet the future of stock ownership
has never looked better in my opinion. Keep in mind, I
did not like the market decline from 2008 and 2009, yet
because we did not sell, it did not matter. I do not like the
returns we got from 2014 but we did not sell and it does
not matter. I am not happy with the market correction
that is happening, but we are not going to sell and it
does not matter. What matters is the future has already
been born. Ownership of our stock portfolio over the
next 15 years, I believe is the only way to protect your
purchasing power - that is what matters.
Why? Because the most amazing current event in the
history of the world is happening every day - the vast
advancement of the middle class around the world. In my
opinion, the primary driver of the future of the equities
market around the world will be the increasing middle
class around the world.
Growth of the Middle Class
Percent of total population
90
80
70
60
50
40
30
20
10
0
79
72
61
47
28
18
1
7
INDIA
(Source: JP Morgan)
0
CHINA
BRAZIL
 1994  2013  2030
There were fewer than 300 million middle class people in
the world in 1980; today there are two billion, and in a
dozen more years there may be as many as 3.6 billion.
I believe the long term trends in the growth of the middle
class will be the greatest driver of the equities markets around
the world. Notice in the chart that from 2013 to 2030, the
estimated increase in new middle class consumers will be
1,600,000,000 from just China, India and Brazil.
4 | inFORMational
®
Why am I optimistic on the future of owning stocks for the
long-term? It is because there will be an 80% increase in the
people on the planet able to consume, purchase and/or use
the products sold by the companies around the world, who
have one objective - to make a profit for their shareholders.
Thus those who own a diversified portfolio of the greatest
companies on the planet will likely benefit from this.
Said another way, the globe is incubating billions of new
consumers (and investors). 80% of Americans own a car;
20% of Brazilians do. Nearly 90% of Americans own a
cell phone; perhaps 30% of Indians do. The second billion
smartphone users will change the world.
This is the future for investors. From a hopeless addict of
imported oil, this country suddenly finds itself sitting on
a hundred years’ worth of cheap, clean natural gas—more
than enough to make us energy independent, and more than
enough to make us huge net energy exporters—thereby
slashing, if not eliminating, our balance of payments deficit.
Technology marches on and costs less. Moore’s Law dictates
that the cost of computing will fall 97% in the next ten years.
Robotics costs are already falling at a 30% compound rate while
Chinese labor costs are inflating at 20%. Between technological
advances and cheap natural gas, don’t be surprised if the
dominant manufacturing country in the world in 2020 is us.
I believe that long-term optimism is the only long-term
realism—never more so than at the present moment with
the advancement of technology and the development of
the growing middle class around the world. We at FORM
believe the only correct investment strategy to fund a 30 year
retirement is to invest, or said another way - to own part
of the companies around the world that will seek to benefit
from future growth of the middle class. The sole goal for
all retired clients is to create cash reserve accounts for your
spending needs over any 12 to 24 month period so that you
never have to sell in a down market. I believe the markets ride
to 2030 will be full of bumps and surprises, and I believe the
market will do what it has done in the past, which is reward
those who don’t react to their short term emotions. 
Four + One = Fun… BY LUKE KUCHENBERG, CFP
®
It was time. I knew it would come eventually. After two and
a half years without a trusted four-legged companion,
it was indeed time to add to the family. My son Jackson
had started to ask for a puppy about a year ago. So, as we
entered into 2015, we held a family discussion around
the breakfast table one Sunday morning and decided we
would start the search for a new dog. After all, Charles
M. Schulz, the cartoonist from Peanuts, may have said
it best, “Happiness is a warm puppy.” Well, who could
disagree with that?
After some back and forth, we all came to the conclusion
that another yellow lab fit our family and lifestyle best. But
we would make one small change - this time we would go
with a little female. Those two decisions came fairly easily.
However it soon became obvious that picking the name was
going to be a bigger deal. We went around and around for
weeks - everyone had an opinion. In the end, we settled in
on what we thought was the ultimate compromise. Becki
and I loved the name Stella. Jackson wanted to name her
Scout or Harper, and little Lauren was adamant that we
name her something fun… after all, shouldn’t all pets be
named for things you love? Lauren’s choice was Lollipop.
With that, it was done. Her name would be Stella Scout
Lollipop - we were all winners!
much as we picked her. It was love at first lick and a new
Kuchenberg was adopted into the family.
Those of you with puppies (or who had a puppy once upon
a time) will know that the puppy stage is not easy and it
lasts a long time. I am convinced that is why God made
them so cute and innocent looking. How can you get mad
at that face? It has been about 7 weeks now and Stella is
doing wonderfully! She is already potty-trained, sleeping
through the night, and she has found her favorite place
to lay in the living room as we wind down every evening.
What was once lost is now found - Stella has filled the hole
that was left after our last pup of 14 years passed in 2013,
and for that we all feel blessed.
While I don’t know the future adventures we have in store,
I do know a few things. First, speaking from my own
life experience, Jackson and Lauren will remember their
escapades with her forever. Second, Stella will provide a
lot of laughs, help with some tears, and give us all she has
every day. And finally, we will grow together as a family,
one day at a time, one memory at a time. 
After what felt like forever, the time came to go get our
new puppy. She was born on May 13th, so we were set
for a pick up date of July 2nd. In the days leading up
to the big day, the kids kept a countdown at the house:
“Only one week left, Dad!” and “Only two days to go
until Stella gets here!” When the day came, absolute
pandemonium was in the air. We had an hour-long drive
to get her and we were all pretty giddy. After all, we had
been waiting on this day for weeks and now it was finally
here. When we arrived at the breeders home, we found
everything in tip top shape and very orderly. Both Stella’s
mom and dad were on the property, so it was nice to
see them and how they interacted with the kids. Then,
we got to meet Stella and her siblings. She was part of a
litter of 9, but we knew right away which one was her.
You know, I really think she picked us that day just as
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|5
Go Go - Slow Go - No Go
The moment you retire and your monthly paycheck stops
automatically depositing into your bank account, a new
stress enters your life. The stress comes from the idea of
living off the assets you have spent your life saving. The
stress comes from the idea of turning the valve or flipping
the switch that sends money from savings accounts to
spending accounts. The stress comes from the fear of
running out of money by spending too much. At the same
time, this fear is in direct conflict with the desire to enjoy
retirement and spend money on the dreams you worked
toward all your life. Clients have shared this stress and
we, in turn, have been working with our clients to address
this stress for the past 18 years.
Like everything we do to serve you, we start with helping
plan your life and then manage your wealth around that
plan. For retirement, our goal is help you reach your
‘Retirement Utopia.’
BY TYSON RAY, CFP®
running out of funds by the end. Because we have already
discussed and planned for this phase, the fear is mitigated.
With the right planning, you really should spend more in
the first 10 years.
The “Slow Go” 10 Years of Utopia
You generally slide into the “Slow Go” years and it is not
necessarily because you are physically slowing down. A
life well-lived often slows down because you run out of
things you want to do. Beyond age 75 for most people,
the desire to travel slows down because it is just more
physically challenging. And we know from psychology that
a need once met no longer satisfies. For example, if you
want to take a vacation to Europe, the first visit is amazing;
the second trip is good; and the third trip lets you know a
fourth is unnecessary. Additionally for those of you who
have grandchildren, as they get older, you may desire to
be around them more and be present in the lives of your
First let me remind you what we mean by the word Utopia.
Utopia is defined as an imagined place or state in which
everything is perfect. Luke and I have found that if we do
our job well and if our clients listen to themselves and to
our counsel, Utopia is a very real possibility.
When you transition into retirement, it is important
to realize your transformation generally has three very
distinct phases. For this article let’s presume you retire at
age 65 and each phase of retirement will last 10 years - a
very believable scenario.
The “Go Go” 10 Years of Utopia
You have worked hard your whole life and you now want to
have some fun. You may even be thinking, “Let’s have some
fun while I still can.” Yet the desire to go play is in direct
conflict with the desire to not run out of money. Luke and I
fully realize you might spend more on travel in the first few
years of retirement than in the rest of your retirement years
combined. You want to see places, visit the grandchildren,
or you may want to purchase the dream boat, motorcycle
or automobile. You want to go and enjoy the freedom of
retirement. We want to help you do so without the fear of
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» Go Go - Slow Go - No Go ...CONTINUED
family and friends. There is something about being home
that becomes more comforting. Often so does the desire to
help your family, friends or charity, more so than spending
on yourself. You may also experience more heath issues from
time to time which just physically seem to slow you down.
The “No Go” 10 Years of Utopia
My wife said, “Watcha doin’ today?” I said, “Nothing!” She
said, “You did that yesterday!” I said, “I wasn’t finished!” To
those in the “Go Go” Years, and to a lesser extent those the
“Slow Go” Years, there is a fear about hitting the “No Go”
Years. Yet in my experience with clients, these last 10 years
can be some of the best years of your life. Why? Because
for clients who have lived well, these years become the time
where you fondly remember your life and you share with
friends, family and others the lessons from your past. These
are the years where you truly shift from things you want
for yourself to giving resources and doing things for others.
These are the years when you are most charitably inclined
and you may start to see the form your legacy is taking.
You are slow to anger and often speak profound wisdom to
those willing to ask. You don’t have to take my word for it,
look what Jimmy Carter just did at age 90.
with joy on the memories that they have experienced in their
life. They often talk about family and friends that come to
see them and about the experiences they have shared with
others. They tend to be very generous, frequently thinking
of giving to family and friends as well as charities. They’re a
joy to be around as they just desire to share the wisdom they
have learned in their years, and hope to instill that wisdom
in anyone that would be willing to listen.
The other paradigm I have found is one of frustration and
regret, lamenting the things they wish they had done. The
money they insisted on saving their whole life for future
needs has kept them from being able to enjoy those things
and now, in the end, they’re just left with a bunch of money.
As one client put it early in my career, “Tyson, that’s just
black ink on white paper to me now. I can’t do anything
with it other than give it away.”
Jimmy Carter, the 39th president of the United States and
winner of the Nobel Peace Prize, recently published a book
titled: “A Full Life: Reflections at Ninety.” In this new
memoir, he reflects on his life and the personal moments
that changed him. He details the racism he witnessed
growing up in Archery, Georgia. He describes how he
tried to be more of an equal partner to his wife of 69 years,
Rosalynn. But he also talks frankly about politics and the
strengths and weaknesses of various U.S. presidents — and
laments that positive relationships with some world leaders
have deteriorated in recent years. Whether you voted for
Jimmy in 1976 or not, he has tremendous perspective from
the vantage point of his life experience.
Our goal is to help our clients balance spending in the
active “Go Go” years with the lessening needs of the “Slow
Go” years, to end up in the “No Go” years without regrets.
We want to have an ongoing conversation about your
hopes and dreams, along with planning for the financing
of those hopes and dreams. We will work with you, with
the resources you have, and put a plan in place to fund
In my 18 years in this profession, I find the “No Go” years those goals and help you accomplish as many as possible.
are where people end up in one of two pretty distinct Then when we find you transitioning into your “No Go”
paradigms. The first paradigm is that of contentment and years, we will find you happy, content, and enjoying a life
gratitude for a life well lived. These folks are able to reflect well lived. 
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|7
FORM of Help
If you have someone you care about who might benefit from our services, we invite you to let us know. We
are here to help you and often that can come in the FORM of helping those you care about. We invite them
to experience the skill and dedication of a team built on integrity, client service and a spectrum of services
for individuals, families and institutions.
• Investment Management & Monitoring*
• Life Insurance & Long Term Care
• Retirement Income Planning
• Debt Management & Lending**
• Estate Strategies
• Business Succession Planning
To learn more, contact FORM Wealth today at 262-686-3005 or visit us at formwealth.com.
* Professional money management is not suitable for all investors. ** Offered through Raymond James Bank.
Mission Statement
FORM Wealth seeks to be a family’s sole financial advisor. Working with only
a select number of clients, we consult by knowing your Family, Occupation,
Recreation, and Mission. Then, we focus on risk management.
Austin Ray - 10
Jackson Kuchenberg - 6
FORM Family
Carson Ray - 7
Nelson Ray - 11
Lauren Kuchenberg - 4