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5 POINT Financial

The new standard in personalized wealth managementWe strive to advocate, empower, and bring financial peace of mind to our clients by connecting financial goals with personal values.We approach clients holistically, in balance with their mind, spirit, and values.

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Scott Livingston, CFP®, Managing Principal and President, specializes in retirement lifestyle planning and wealth management.
Asset managementFinancial Advice and PlanningReal-time Wealth Management
Are you ready to speak with your financial advocate?Call today for a cup of coffee and a second opinion - 425.402.8700

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Securities and Advisory services offered through KMS Financial Services, Inc., Member FINRA / SIPC

This site is for informational purposes only and is not an offer to sell or a solicitation of an offer to buy any securities or investment advisory services which may be referenced herein. This website is strictly intended for individuals residing in the states of WA, OR, CA, CT, PA, GA, DC, and FL. No offers may be made or accepted from any resident outside these states due to various state requirements and registration requirements regarding investment products and services.

About

WINNER!

Wealth

Manager

of the Year

Our Standard of Care

About Scott Livingston, CFP®

Our mission is to provide retirement planning and wealth management that empowers our clients, matching their weath and resources to their life's goals and personal values. We advocate in their best interests and keep them fully informed, serving as their trusted advisor with the resources, tools and talent to help them find happiness and enjoy more from life.Integrity. We've established a safe and confidential environment in which you can talk about your needs and your goals. KMS Financial Services, Inc., the Financial Planning Association and professional certification hold us accountable to the highest ethical requirements. Expertise. With your future in mind, 5 POINT remains well informed of recent laws and regulations, market news, ideas and trends. In submission to professional certification requirements, we're enriched by on-going education and demanding examination. Objectivity. 5 POINT is the first customer to the market, not you. We are not tied to one specific financial product line. Before we recommend any financial strategy or products to you, they must first pass the scrutiny and due diligence of our professionals. Tailored Solutions. We specialize in listening. In order to connect your financial goals with personal values, we implement a unique planning process that brings your life into focus. As your life changes, so does your financial plan. Stewardship. When you join the 5 POINT family, we pro-actively advocate for your best interests. We value the responsibility to serve you and we work to defend what's important to you.
Livingston, President of 5 POINT Financial Group, has provided fee-based financial planning and wealth management services since 1992. He's passionate about helping families make smart money choices and live a happy, high quality of life. A native of the Pacific Northwest, Scott has diverse life experiences and extensive education in financial planning. BackgroundYou could say this business is in Scott's blood. His father, a CPA, bought him his first stock when he was 13. Scott credits his father with being a great mentor and role model. At the begining of his carrer, his father reminded him the "people don't care how much you know, until they know how much you care". Scott cares about his clients and has the knowlege to know what to do. He is there for them. Scott enjoys participating in community associations, hiking, wine making, sailing, snow skiing and and competitive water skiing. He has a son Adam, who has been working for 5 POINT in person and remotely since July 2011 and is a senior at Washington State University majoring in communications. Credentials and Associations: CFP®, CERTIFIED FINANCIAL PLANNER™ professional CDFA™ Certified Divorce Financial Analyst FINRA Series 6 registration (Investment Company/Variable Contract Products) FINRA Series 7 registration (General Securities Representative) FINRA Series 65 registration (Uniform Investment Advisors Law Examination) FINRA Series 24 registration (General Securities Principal) Life & Health Insurance underwriter Member of the FINANCIAL PLANNING ASSOCIATIONMember of the East King County Estate Planning Association Public Awards:Named as one of "America's Top Financial Planners" for 2006, 2007, 2008, 2009 and 2010 by the Consumers' Research Council of America.(*) Awarded Seattle Magazine's "5 STAR WEALTH MANAGER, Best in Client Satisfaction" for 2007, 2008, 2009 and 2010 (**). (*) The criteria used through independent evaluation include education, specialty training and continuing education, number of years practicing in the financial profession, financial certifications and affiliations with professional associations and organizations.(**) Seattle Magazine's award is determined by independent survey through Crescendo Business Services, an independent research firm in partnership with SEATTLE Magazine. Crescendo surveyed 41,000 high-net-worth residents in the Seattle area and subscribers of Seattle magazine. An additional 6,250 surveys were sent to leaders of financial service industry companies. On the surveys, recipients were asked were asked to evaluate only wealth mangers whom they knew through personal experience, and to evaluate them based on 9 criteria: customer service, integrity, knowledge/expertise, communication, value for fee charged, meeting of financial objectives, post-sale service, quality of recommendations and overall satisfaction

Securities and Advisory Services Offered Through KMS Financial Services, Inc., Member FINRA / SIPC

Services

Services

PROUDLY SERVING CLIENTS SINCE 1992
We're not your ordinary financial planning firm.We work with you to ensure you stay on track to meet your financial goals.We provide you with premier service from anywhere and at any time.We teach you to make smart choices with your money.We always act in your best interests above our own.

If you're looking for your financial advocate,

you've come to the right place.

5 POINT Program:

Financial Planning

Our objective at 5 POINT is to help you create a personalized retirement plan through the 5 principles of financial planning:Discover your goals and prioritiesAssess your needs and wants and what can be done to achieve themEvaluate all of your options that can help you achieve your most significant objectivesImplement the elements of your program that are consistent with your life's goalsManage Change by continuing to refine your plan as your life changes

Wealth Management System

We provide you with a Private Client Website, accessible 24/7 and updated daily.All your accounts/financial data aggregated into your secure siteView your performance reports and financial planPlayZone: experiment with "what if" questions and see your probability of success: "What if I retired at 62, instead of 67?"

5 Star Service for

Financial Peace of Mind

We provide tailored solutions to your wealth, career and life management needs, so you can enjoy more from life.Investment ManagementRetirement Income & Distribution Planning Tax Reduction PlanningRisk Management ServicesFamily Legacy & Estate Planning

WOW! We're pleased to announce that Scott has been named a Five Star Wealth Mangager in Seattle Magazine for the fifth year in a row!

Awards are great but happy clients are even better. We treat our clients as family and we're not happy unless the 5 POINT family is happy. Thanks for the great reviews!

Securities and Advisory Services Offered Through KMS Financial Services, Inc., Member FINRA/ SIPC

Video Library

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TO SEE HOW WE CAN HELP YOU MANAGE WEALTH

Video Library

Looking for more information on our Wealth Management System or just curious about the services we provide? Watch a couple of the videos below then get in touch with us to schedule your complentary consulataion. We're confident you'll love working with us.

Financial Planning Clients

We reduce the complexities of managing wealth with a single-point access solution.

Click to watch video.

Independent Women

Life asks you to multi-task. See the ways we can offer you more control over your money.

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Business Owners

In your day, every minute counts. We can give you a snapshot of your wealth in seconds.

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Securities and Advisory services offered through KMS Financial Services, Inc., Member FINRA / SIPC

News

2011 3rd Quarterly Newsletter

Stock markets had a turbulent quarter caused primarily by investor anxietyEurope is in a debt crisis, the U.S. is flirting with a double-dip recession, and fast-growing economies around the world, such as China, are slowing down. The Dow Jones Industrial Average ended the quarter down 12%, its worst percentage decline since the first quarter of 2009. The Standard and Poors 500 Index suffered a 14% decline. The damage was much worse in Europethe French and German stock indexes both lost more than 25% of their value. Asian stocks also suffered losses into the double digits. Hong Kongs index, for example, lost about 21%. (Source: WSJ, October 3, 2011)Many investments had the worst quarter since the collapse of Lehman Brothers. Like 2008, many investors are worried about the health of banks (this time primarily in Europe) and have lost confidence in the system. Many bank stocks fell 25% or more. Many Wall Street strategists have reduced their forecast for growth and company earnings for the rest of the year. (Source: WSJ, October 1, 2011)Unfortunately, leading indicators for the world economysuch as Chinas stock market, copper prices and crude oilhave tumbled. Here at home, economic data in July showed the U.S. recovery was slowing considerably, and policymakers in Washington took the country to the brink of default in early August due to the debt ceiling problem. Standard and Poors downgraded the U.S. credit rating, sparking a rush out of U.S. stocks. Many investors felt that the fate of the markets was in the hands of the politicians, which made risk management very difficult. Many economists believe we are stuck in neutral: job growth is anemic at best, the housing market remains stuck, and the stock market still needs to recover. However, consumer spending continued at the same pace, and corporations continued their record profits (although they remain afraid to spend all their cash).Stampede into BondsU.S. Treasury debt had its best quarter since the first quarter of 2008. Treasuries maturing in 10 years or more returned 23% during the quarter, according to Barclays Capital index data. However, according to the Fed economists, expectations for interest rates, growth and inflation indicates 10-year notes are the most overvalued on record. (Source: WSJ, October 1, 2011)Yields on the U.S. Treasury 10-year note fell to 1.71%, the lowest yield since the 1940s. With overall inflation running around 3.6%, that indicates that many investors were effectively accepting a loss. Investors at times throughout the quarter bought securities that offered no yield at all, essentially parking money with the U.S. Treasury, expecting to get back the same amount in 3 months. (Source: WSJ, October 3, 2011)The Federal Reserve has promised to keep short-term rates low for another 2 years and it keeps the rate on 10-year bonds down by printing money and using that to buy the bonds. Artificially low interest rates may stimulate people to buy homes and use their credit cards, but they have the opposite effect on people with money in the bank, who can no longer live off the interest on their deposits. Bullish OpinionNow for a bit of good newscorporate earnings are close to all-time highs and we are hoping for more of the same. More important, stocks overall are trading at the lowest prices since prior to the great Bull market in August 1982. Many American companies have some of the largest cash positions in their history. The Federal Reserve said that there was $2.05 trillion in cash and other liquid assets as of the end of June, the most since 1963, primarily due to better earnings and record profits in some recent quarters. The cash should act as a shock absorber, says John Lonski, chief economist at Moodys Investors Service. With more cash, companies would be less inclined to cutcapital expenditures and staff. (Source: WSJ, October 5, 2011)The U.S. economy is extremely difficult if not impossible to predict accurately, despite the fact that many economists make predictions with great confidence. Third quarter earnings could potentially boost share prices, but timing such a rally, if it does happen, is difficult indeed. Before the economy can recover, confidence must be restored.The National DeficitAmerican national debt held steady in the $2-3 trillion range for 3 decades until the early 1980s. It began to rise rapidly at that point, reached the $7 trillion mark in the late 1990s, and then took off again after 2000. In recent years, public debt growth has accelerated further, climbing up to $14.3 trillion by the spring of 2011. We are now dealing with the third-biggest deficit in U.S. history, after the deficits in 2009 and 2010. This staggering amount represents about 25% of all goods and services produced annually by the entire world and is projected to equal 71.2% of the size of our economy in 2012. (Source: BTN, October 3, 2011)During the last quarter one of the major debates was about raising our debt ceiling. Many Americans were strongly opposed to the idea and didnt want to pass the debt burden down to their children. According to the Congressional Budget Office, 2011 will see almost $900 billion more spending than in 2007. Total federal outlays will have increased by roughly one-third in only 4 years. This hasnt happened since World War II. The government is trying to spend their way out of a recession, but where is the promised economic growth? (Source: WSJ, August 25, 2011). The 2011 deficit did not come from extraordinary spending to fight the recession; these expenses are due to increases in business-as-usual spending, mostly on Medicare, Medicaid and defense, as well as a variety of entitlements. (Source: Barrons, October 3, 2011 The Books Are Closed)The main problem is that consumers arent spending, and consumer spending makes up about 70% of GDP in the U.S. Why arent they spending? Theyre unemployed, or at least worried about possible unemployment; theyve lost access to their home equity ATM (household equity is down about $8 trillion since 2006), and they feel less wealthy, less secure, due to the poor performance of the stock market over the past decade. Recovery from these economic conditions is estimated to take a very long time. (Source: WSJ, July 21, 2011)GoldGold, often a favorite in times of turmoil, suffered a loss of 12% in one week in September, which was its worst week since 1983. It appears that the primary destination for nervous investors was cash and government bonds, despite yields below the rate of inflation. The worrying part about golds plunge in September was that it occurred as stocks and other assets were also falling. Some skeptics are now questioning its credentials as one of the few shelters from financial storms. Gold is still up 14% for the year. Will gold regain its demand for a less risky investment and resume its climb or has its significant run come to an end? Please remember that gold is considered an extremely risky investment, so you shouldnt put a significant percentage of your total assets in this volatile investment. EuropeEuropean investors endured a rollercoaster of volatility in the third quarter; stocks soared, and then sank due to almost every pronouncement from a Central banker, finance minister or rating firm. But, unfortunately, the markets broader direction was downward, as Europes debt problems flowed into the core countries of Germany and France. Those two markets, which had managed to defy debt concerns for much of the year, joined the sell-off as fresh growth worries and fears of contagion from these problems persuaded many investors to dump even the less risky, most liquid stocks. Frances CAC-40 and Germanys DAX Index each dropped by 25% for their worst quarter since 2002. Greece was sitting at the center of this storm and led the plunge, with its index stumbling 38% as investors braced for a possible default. The speed and ferocity of this crisis took many investors by surprise.The crisis shook almost all of Europe, and many investors worried about a Greek default rippling across the balance sheets of European lenders. Economic indicators recently have offered fresh signs that Europes risk of sliding into another recession has been dampened. Thats no guarantee, but at least it is a start.Income Tax IncreasesA very real risk is the tax hike Obama proposes in 2013, which could result in subpar economic growth for many years to come. Even worse, it could cause the economy to enter into a double-dip recession at a time that we need desperately to rev up growth to put 20 million unemployed Americans back to work. If the rest of the world is cutting tax rates to attract capital and jobs while the U.S. is raising them, it is hard to see how that story has a happy ending for many American workers. The major impact of the rate hikes is expected to reduce the return on investment in the U.S. relative to other places such asChina, India, etc. (Source: American Spectator June 2011)UnemploymentU.S. businesses hired more workers in September than August, according to a recent report, but the growth remains far too slow to bring down the high unemployment rate of 9.1%. Unfortunately, this report showed that layoffs surged in September and service businesses were not hiring more workers despite this sectors relatively strong growth. There are many reasons U.S. companies give for not rehiring employees, from weak consumer spending to uncertainty about the direction of government policies on debt and spending. But a closer look at hiring provides a different picture. Some industries have significantly boosted employment over the past year while others continue to shed workers. Many companies have improved their technology, and many of these companies only need one machine doing the work of 3 employees. (Source: WSJ, July 12, 2011) Real EstateMany economists, builders and mortgage analysts are predicting the weakened U.S. economy will depress housing prices for a number of years, restraining consumer spending, pushing more homeowners into foreclosure and clouding prospects for a sustained recovery. If the economists forecast is accurate, this will leave millions of homeowners with little, if any, equity in their homes. In fact, 1 in 5 Americans with a mortgage owes more than their house is worth and $7 trillion of homeowners equity has been lost during this bust. (Source: September 21, 2011 Home Forecast) Eroding home equity contributes to the so-called reverse wealth effect that prompts people to spend cautiously because they feel poorer.While home prices arent falling at anywhere near the pace of 2008, one of the major worries is that even modest declines become self-reinforcing, pushing more homeowners underwater and exaggerating the downward attitude caused by more foreclosures. That, in turn, could prompt more credit tightening by lenders, further shrinking the pool of homebuyers when more are needed to purchase bank-owned foreclosures.VolatilityOn Tuesday, October 4th, the S&P 500 Index lost as much as 2.2% before a rally in the last hour sent the index up 4.5% and ended up 2.3% for the session. In the 46 trading days since the beginning of August, the S&P 500 has seen 29 swings of 1% or more. Many investors feel that the market is manic and there is no consistency. Volatility is usually associated with market losses, and the current period is no exception. Since April 29th the Standard and Poors 500 Index has fallen by 17.6%. In fact, many investors are selling all of their stocks because they cant stomach the ups and downs. (Source: WSJ, October 5, 2011) However, the frequency of big swings doesnt match 2008 or 2009.Unfortunately, investors who sell now could be left stranded on the sidelines when the market begins to rise. Bull markets are often sparked by a single rally so powerful and so fast that individual investors fail to react in time. This is what happened for many of them when the market rebounded in 2009 after plummeting the year before. Volatility is part of investing. Declines are bound to happen: it is how one deals with this uncertainty that separates those who thrive from those who languish. Unfortunately, it is difficult for some investors right now to think positively about the long term. Remember that most people adapt, most businesses evolve, and the U.S. economy is difficult to hold down for long. For example, Microsoft, Apple and Hewlett Packard were all launched in lousy economies. Remember that people often perform best with their backs to the wall. (Source: Financial Advisor Magazine, October 2011 Page 18) Here are a few rules of thumb to take into consideration: •Dont panic or let your emotions drive your investment decisions. If you are taking a long-term approach, confirm your previously set goals and assess your risk tolerance in view of the market.•Raise some cash if it will make you comfortable. You need to consider whether you have the liquid assets to weather another decline in the market. •Consider how you will react if the market takes a big dive. In other words, create a backup plan when you are rational and not under pressure, then refer to that plan if the market should take a big drop.•Keep an open mind and be skeptical when an analyst (or anyone else) attributes a big market move to a specific news development. •Dont fixate on your purchase price if the market drops. Once you make a purchase, focus on whether the stock still represents one of your best ideas, not on whether it is up or down from your purchase price.•If your portfolio allocations are off due to market volatility, rebalance by buying stocks while prices are low and taking profits when prices are high.•Anticipate your breaking point. If another 10% - 20% drop is going to put you over the edge and force you to sell, you should probably not be in stocks. Set your stock market exposure at a level that allows you to ride through ups and downs without panicking. Your investments should not keep you up at night.Investors who remain committed to their long-term investment plans, even when its tempting to head to the sidelines, many times end up better positioned to realize their short and long-term goals. Again, emotional decisions tend to be impulsive and irrational decisions that compromise the realization of your stated goals. Before you act impulsively, make a list of your concerns, revisit your goals and review your strategy. If your goals and/or priorities have changed, or if you believe your strategy is no longer appropriate given the economic environment, then contact us to review your particular situation. ConclusionThe stock market is driven significantly by fear and greed. Continued high unemployment is one of the biggest factors in holding back stock market confidence. In fact, Jeffrey D. Saut, managing director of research at Raymond James and Associates, Inc. and firms chief investment strategist, is also a cautiously optimistic bull. He feels that we are just a little bit of confidence away from things turning around. Now is a great time to be buying U.S. stocks. It remains to be seen whether investors can gain that confidence during the next 3 months, which are likely to be filled with plenty of drama surrounding the Euro Zone and how to fix our financesespecially with the debate on income tax increases and balancing our budget. (Source: Morningstar Advisor, October 4, 2011)All investors have a unique situation regarding their finances. The solutions to your financial concerns will vary dramatically depending on your particular set of circumstances. We highly recommend meeting with us to confirm your specific strategies and hopefully reduce your concerns and worries. Note: The views stated in this letter are not necessarily the opinion of KMS Financial Services, Inc, and should not be construed, directly or indirectly, as an offer to buy or sell any securities mentioned herein. Investors should be aware that there are risks inherent in all investments, such as fluctuations in investment principal. With any investment vehicle, past performance is not a guarantee of future results. Due to volatility within the markets mentioned, opinions are subject to change without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guranteed. Sources: Wall Street Journal (7/12, 8/5, 8/12, 9/17, 9/19, 10/1, 10/3, 10/4, 10/5, 10/12/11), Barrons (10/3/11), Time Magazine (6/6/11, 9/26/11), Bob LeClairs Newsletter (8/13/11), Forbes (8/22/11, 9/12/11, 9/26/11), Investment News (10/3/11), The Week (7/29/11, 9/23/11), Kiplingers (September 2011), Money Adviser (October 2011), Investment Advisor (June 2011, September 2011, October 2011), Fortune (9/26/11), Research Magazine (September 2011), Morningstar Advisor (9/27/11, 9/30/11), By The Numbers (9/12/11, 9/26/11, 10/3/11), Nick Murray (August 2011), Bottom Line (9/15/11), American Spectator (6/2011, 9/ 2011). Contents Provided by MDP, Inc. Copyright 2011 MDP Inc.

Securities and Advisory Services offered through KMS Financial Services, Inc., Member FINRA / SIPC

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WINNER!

Wealth

Manager

of the Year

Securities and Advisory Services offered through KMS Financial Services, Inc., Member FINRA / SIPC

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Wealth Management SystemView account balances from all of your accounts anywhere and at any time. Albridge Performance Reporting WorkstationView performance data for assets managed by Scott Livingston since 2009

Securities and Advisory services offered through KMS Financial Services, Inc., Member FINRA / SIPC

This site is for informational purposes only and is not an offer to sell or a solicitation of an offer to buy any securities or investment advisory services which may be referenced herein. This website is strictly intended for individuals residing in the states of WA, OR, CA, CT, PA, GA, and FL. No offers may be made or accepted from any resident outside these states due to various state requirements and registration requirements regarding investment products and services.