Daniel Namey • H. Beck, Inc. - The (not so) indomitable investor: 9 reasons most investors lack the discipline to succeed by David Wismer - Can gold maintain momentum? - Setting client expectations around active management (Carla Zevnik-Seufzer, The Strategic Financial Alliance)

1. Gold’s momentum?
pg. 7
Setting client
expectations • pg. 3
9 reasons investors
lack discipline • pg. 4
June 26, 2014 | Volume 2 | Issue 12 First magazine focused on active investment management
Closing sales with company principals
Daniel Namey
AIMING HIGH
pg. 8

2. An investor should consider the investment objectives, risks, charges, and expenses of The Gold Bullion Strategy Fund before investing. This and other information
can be found in the Fund’s prospectus, which can be obtained by calling 1-855-650-7453. The prospectus should be read carefully prior to investing.
There is no guarantee that The Gold Bullion Strategy Fund will achieve its investment objectives.
Flexible Plan Investments, Ltd., serves as investment sub-advisor to The Gold Bullion Strategy Fund, distributed by Ceros Financial Services Inc. (member FINRA).
Ceros Financial Services, Inc. and Flexible Plan Investments, Ltd. are not affiliated entities.
Advisors Preferred, LLC is the Fund’s investment adviser. Advisors Preferred, LLC is a wholly-owned subsidiary of Ceros Financial Services, Inc.
The principal risks of investing in The Gold Bullion Strategy Fund are Risk of the Sub-advisor’s Investment Strategy. Risks of Aggressive Investment Techniques,
High Portfolio Turnover, Risk of Investing in Derivatives, Risks of Investing in ETFs, Risks of Investing in Other Investment Companies, Leverage Risk, Concentration
Risk Gold Risk, Wholly-owned Corporation Risk, Risk of Non-Diversification and Interest Rate Risk. “Gold Risk” includes volatility, price fluctuations over short periods,
risks associated with global monetary,economic,social and political conditions and developments,currency devaluation and revaluation and restrictions,and trading and
transactional restrictions.
For more information on the risks of The Gold Bullion Strategy Fund, including a description of each risk, please refer to the prospectus.
The Gold Bullion Strategy Fund (QGLDX) offers your
investors access to gold bullion in a mutual fund format.
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3. POLLS TIPS & TOOLS
performance and the maximum
drawdown that similar portfolios
have historically experienced. The
key is emphasizing performance
over time and against their own
expected benchmarks, not the
market’s one-year returns.”
he concept of active in-
vestment management
can be a new one for most clients.
I start with a brief history of the
stock market, explaining the cycli-
cal nature of markets and the fre-
quency with which bull, bear, and
sideways markets tend to occur.
In this context, one of the most
important points to explain about
active management is that it should
be judged over a full market cycle.
This might mean a time period of
5-7 years, and would preferably in-
clude both a bull and bear market.
Why is that? Active manage-
ment is designed to manage risk
and volatility. As such, it may
underperform during strong bull
markets, but it may minimize
losses during down markets. I
show clients a series of exhibits,
including the expected range of
Setting client
expectations around
active management
Carla Zevnik-Seufzer
Greenfield, WI
President, ClearPath Financial Partners
T“
Carla Zevnik-Seufzer is a registered representative and investment advisor of The Strategic Financial Alliance. Securities and advisory
services offered through SFA, member FINRA/SIPC, which is unaffiliated with ClearPath Financial Partners.
There is no guarantee that active management will outperform a buy-and-hold approach to investing. Investing involves risk and potential.
No investment strategy can guarantee a profit or protect against loss in periods of declining values. Past performance is no guarantee of
future results. Please note that individual situations can vary. Therefore, the information presented here should only be considered opinion.
VOTE
Spending habits
Investment experience
Tax situation
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Last week’s results
VIEWER RESPONSE
Which variable helps
determine the cost basis of
an investment?
-Results in next issue
This week’s poll
Which client
information is most
helpful in determining
risk tolerance?
Stock splits. Stock splits will usually
have the greatest direct impact on
the per share cost basis. However,
the cost basis of an investment must
also be adjusted to account for any
stock dividends as well as the com-
missions paid on the purchases. The
cost basis determines the amount of
capital gain or capital loss when the
security is sold. A lower cost basis
would result in a higher capital gain.
14%
28%
44%
14%
Stock splits
Commissions paid
Dividends paid in the past
None of the above
June 26, 2014 | proactiveadvisormagazine.com 3

4. Read text only
indomitable
9 reasons most investors lack
the discipline to succeed
Steven M. Sears, Senior Editor with Barron’s, takes a hard look at
investor behavior—both typical shortcomings and the unique qualities
leading to positive results—in his 2012 book, “The Indomitable Investor:
Why a Few Succeed in the Stock Market When Everyone Else Fails.”
investor
(not so)the
By David Wismer
proactiveadvisormagazine.com | June 26, 20144

5. So, what are the specific traits, behav-
iors, or attitudes that help Sears define
the challenges facing most investors?
Not understanding risk
Sears quotes Arthur Levitt, former
chairman of the SEC: “Too many people
don’t know how to determine saving and
investment objectives or their tolerance
for risk … they don’t know how to choose
an investment, or an investment profes-
sional, or where to turn for help.”
Greed
“The great crowd that comes to Wall
Street to make money mostly ‘greeds in
and panics out’ … Rising stock prices are
seductive and it is easy to believe they will
continue to rise.”
Fear
“Fear causes rational people to ignore
the financial facts that shape the prices of
stocks … people sell based on emotional
reaction to the news, exacerbated by the
crowd’s behavior … What is the person-
ality of the most successful investors, ac-
cording to neurologist and money manag-
er William Bernstein? They aren’t affected
by other people’s feelings.”
Misuse of information
& news
“You must learn to use the news and
not let the news use you.” Sears describes
a modern-day information hierarchy as it
pertains to the investment world. He says,
“The challenge for investors is focusing
on known unknowns and preparing for
unknown unknowns (Black Swans) …
People think they are making smart ratio-
nal decisions in response to information,
rarely realizing they are chasers of smoke.”
Not preparing for
market chaos
“Volatility is globalization’s side effect
… to avoid getting crushed you must make
friends with volatility … ‘blackswanning’
investment portfolios has become a cot-
tage industry on Wall Street, adopted by
the upper echelon of the financial market
… Modern Portfolio Theory (buy-and-
hold diversification) is no longer adequate
all by itself.”
continue on pg. 11
Lack of due diligence
“The discipline of questioning how
your money is managed applies to all areas
of your financial life … a healthy skepti-
cism will serve you well.” Sears covers a
wide variety of issues under this umbrella,
sparing few sides of the financial services
industry from scrutiny. He does not make
sweeping judgments, however, essentially
concluding that the prime consideration
of any transaction or relationship with the
industry ought to be, “Does it consistently
add value?”
“We must think how we
approach investing—
and even acknowledge
we never understood
it in the first place—
before it is too late.”
Sears brings a rich background of
achievement to his task, as both a reporter
and executive with two major exchanges.
Sears has reported for Dow Jones and
The Wall Street Journal, covering most
major modern financial events, including
the Asian Contagion, the bursting of the
Internet Bubble, the Credit Crisis, and
Europe’s sovereign debt crisis. He also
was part of exchange executive teams that
modernized the U.S. options market and
introduced electronic trading.
Sears’ overall message carries great
import for advisors, asset managers, and
the wealth management and financial
services industry as a whole. The book’s
introduction sums up:
“The financial crisis of 2007 was a seri-
ous wake up call. Most people realize they
may never lead lives of financial ease, but
now many live in fear of never even retir-
ing. We must think how we approach in-
vesting—and even acknowledge we never
understood it in the first place—before it
is too late.”
Independent research has shown that
now in the middle of 2014, an unusual
phenomenon has occurred within a broad
swatch of the retail investing public.
There is currently a barbell distribution
between those investors suffering from
a euphoric “short-term market memory
loss” and those who remain paralyzed
with “loss aversion.” Neither state of mind
will be conducive to prospering over the
long haul in the equity markets—under-
scoring the importance of Sears’ thesis.
While not necessarily known as a pro-
ponent of active investment management,
Sears highlights many concepts central to
the core principles of that discipline. His
first chapter, for example, states:
“Bad investors think of ways to make
money. Good investors think of ways to
not lose money. Those 17 words are the
most important words any investor can
know. Learn the meaning of those words,
and you have a chance of real success in
the stock market.”
1
2
3
4
6
5
June 26, 2014 | proactiveadvisormagazine.com 5

7. $1,150
$1,200
$1,250
$1,300
$1,350
$1,400
12/19 1/21 2/19 3/19 4/16 5/15 6/13
50-DMA
Can gold maintain momentum?
old futures surged over 3% last
week (through Friday, 6/20) and are
on track for a gain of nearly 6% in
the month of June if current prices hold.
According to CNNMoney, investors fled
the gold market last year as they chased
better returns in riskier assets. Gold prices
fell nearly 30% in 2013 for the biggest
decline since 1981 and the first year-over-
year drop since 2000.
Several factors are being cited for the
recent uptick in gold prices:
• Geopolitical risk emanating from the
situations in Iraq and Ukraine. “Gold
and other so-called ‘hard’ assets often find
favor in times of political and economic
uncertainty,” writes CNNMoney.
• FOMC Chair Janet Yellen’s statements
last week indicating that low interest
rates may be sustained longer than
previously anticipated.
• The European Central Bank’s recent
commitment to further accommodative
monetary policy.
• Consumer Price Index readings this
month that were above expectations.
G
Source: Bespoke Investment Group
• Several technical factors that may have
led to last week’s reversal of some short
positions, including gold’s break above its
50-day moving average.
• Indications that some major funds have
increased bullish positions on gold.
The jury is mixed on whether gold can
maintain its recent momentum, with
naysayers citing an eventual pullback in
global tensions, the inevitability of higher
U.S. interest rates over time, and slowing
physical demand for gold in China.
“Gold may just continue to grind
here,” says Rob Kurzatkowski, senior
commodities analyst at optionsXpress.
“There are too many factors underpinning
the market for gold to collapse, but there’s
not enough to spark the metal higher
either—especially with continued equity
market strength.”
GOLD FRONT-MONTH FUTURE: LAST 6 MONTHS
7June 26, 2014 | proactiveadvisormagazine.com
TOPPING THE CHARTS
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8. Daniel Namey
Life Underwriter Training Council Fellow (LUTCF)
Member of Leadership Circle for United Way of
Northeast Florida
Served on Board of Directors for the YMCA
Enjoys hunting, fishing, running, and surfing
Supports his wife Kim in her training for Ironmans
and marathons
Closing sales with
company principals
Daniel Namey
AIMING
HIGH
Read text only
8

9. Proactive Advisor Magazine: Daniel,
what types of clients are you trying to
cultivate? Do you have a specific target?
Daniel Namey: Here, in north Florida,
we get a lot of clients who are retirees, or are
near retirement, referred to us—people who
need help with distribution plans, growth, and
protection of their accumulated assets. They are
entering a new phase of life and have a lot of
important questions about retirement—will
their assets last? Should they be engaged in
equity markets? Can they grow assets without
having to worry about the next market crash?
We have also always had a strong focus
on small business owners of companies with
anywhere from 25-400 employees—for their
company 401(k) needs as well as for wealth
management for owners and key executives.
Tell me about that sales process.
After the initial contact with a business
owner, we work on developing a relationship
that can lead to handling their company’s
401(k) needs. Our strong relationships with
third-party administrators, insurance compa-
nies, and asset managers are a key part of build-
ing the trust needed to earn the business.
Follow-through is a must. You need to do
what you say you will do with respect to ser-
vicing the company’s qualified plan. Then you
are on solid ground to ask for the business of
personal wealth management for the owner and
executives. A holistic financial plan—insurance
needs, tax reduction strategies, estate planning,
asset management—with a single point-of-
contact is efficient and effective for the business
owner and for my practice.
Is the process similar for other clients?
Yes. First thing is to establish who we are
and start building trust with the client. We look
at the client’s entire financial history, including
life insurance, long-term care, retirement plan-
ning, 401(k)s, and legacy planning. We really
drill down on putting together a complete plan,
including asset management.
How do you view the asset
management piece?
Essentially we divide it into buckets—short-
term, medium-term and longer-term money,
each with its own specific goals. We generally
will break it into different areas and outsource
investment management according to the needs
and what is appropriate.
Talk about the role of active management.
We transitioned to a greater use of active
management back in 2009. We were in front
of our clients a lot during the financial crisis—
dealing with a variety of stressful situations.
continue on pg. 10
Daniel Namey, President at Namey Financial
Group, Inc., has over twenty years of experience
advising clients on wealth planning and retire-
ment issues, with a particular expertise working
with owners of closely held corporations.
I made the decision to transition to outside
money managers who have strong track records
and the ability to stay on top of their strategies
at all times.
The bottom line is we have access to many
different money managers. We evaluate the best
match for our clients to help fit their goals and
objectives. And they, then, actively manage the
account based on their quantitative systems.
They have the flexibility to move money
to better performing sectors, go to cash, or
allocate more to alternative investments—all
depending on the strategies we select for the
client’s portfolio. But the key factor is that they
are implementing their strategies at a high level
and with a very disciplined process. I only uti-
lize carefully selected money managers for my
clients. Those managers employ exhaustive due
diligence to select investment strategies.
How do you explain this active
management approach to clients?
Our philosophy is risk management, and we
look to mitigate portfolio drawdowns like those
seen in the last two market crashes. As part of
this we will explain that there is a good chance
our strategies may not produce gains as high
as buy-and-hold in a very bullish market. But
hopefully, at the end of the day, these active di-
versified strategies will produce more favorable
average returns over a full market cycle.
June 26, 2014 | proactiveadvisormagazine.com 9

10. M U LT I - M A R K E T
+
MULTI-STRATEGY
+
MULTI-MANAGER
One p rtfolio
D Y N A M I C A L LY R I S K - M A N A G E D
L E A R N M O R E
Past performance does not guarantee future results.
The opportunity for profits
carries with it the possibility of losses.
800-347-3539 | flexibleplan.com
A complete list of all of our recommendations over the last 12 months and Brochure Form ADV Part 2A are available upon request.
proprietary or otherwise, that are oriented to
make changes based on market conditions. It
is non-emotional and disciplined. That is how I
want my personal money managed.
I like to graphically demonstrate to clients
that if they have a loss of 50% in their portfolio,
it takes far more than a 50% increase to get back
to even—it takes about 100%. The idea is to
keep projected returns in a much tighter range
of performance, with less volatility, than just by
following the markets. This is where active man-
agement comes into play and this is the message
I am giving to clients. This does make sense,
especially for those with a lot of concerns about
retirement and the safety of their principal.
What examples can you share of what
has happened to a prospective client
that did not use active management?
There are several, but in one particular case
this gentleman had run his own business for
many years, fairly successfully. He had money
tied up in his business as well as typical portfo-
lio asset allocations.
When 2008 hit, he had a double whammy
of weaker business results and a portfolio almost
cut in half. At the time, he had kids in college
as well as other cash flow needs. He had to put
off selling his business and retiring, and instead
took out loans on his business and his building.
Would active management of his portfolio
have been the answer to all of his problems?
No, but it certainly could have helped put
him in a better position to deal with a difficult
financial situation.
Instead of having to liquidate investments at
fire-sale prices, active management is designed
to manage the risk which could have mitigated
his portfolio losses. While drawing upon assets
before retirement is never a great solution, in this
case it was necessary. With the right financial
planning upfront, we hope that for most clients
it never reaches that type of situation.
Building on that story, what would
your message be to a new client
about active management?
I typically ask a prospective client,
“Wouldn’t you rather have your portfolio man-
aged actively, with someone actually at the con-
trols watching the markets each and every day?”
Active managers have systems in place,
continued from pg. 9
Securities and investment advisory services offered through H.
Beck, Inc., member FINRA/SIPC and an SEC-registered invest-
ment advisor. H. Beck, Inc. and Namey Financial Group, Inc. are
not affiliated. Investments will fluctuate and when redeemed may
be worth more or less than when originally invested.
10 proactiveadvisormagazine.com | June 26, 2014

11. Read a fund’s prospectus and summary prospectus (if available) carefully before investing. It contains the fund’s investment objectives,
risks,charges,expensesandotherinformation,whichshouldbeconsideredcarefullybeforeinvesting.Obtainaprospectusandsummary
prospectus(ifavailable)atguggenheiminvestments.com.
There can be no assurance that any investment product will achieve its investment objective(s). There are risks associated with investing, including the entire loss of principal invested. Investing involves market
risk. The investment return and principal amount of any investment product will fluctuate with changes in market conditions. Shares of the funds are not deposits of, or guaranteed or endorsed by, any financial
institution; are not insured by the Federal Deposit Insurance Corporation (FDIC), the federal reserve board, or any other agency.
The referenced funds are distributed by Guggenheim Funds Distributors, LLC. Guggenheim Investments represents the investment management businesses of Guggenheim Partners, LLC (“Guggenheim”), which
include Security Investors, LLC, (“SI”), the Investment advisor to the referenced funds. Guggenheim Funds Distributors, LLC is affiliated with Guggenheim and SI. x0515 #12524
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+ 55 Rydex funds that offer exposure to today’s most popular benchmarks
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Learn more. Call 630.505.3749 or visit guggenheiminvestments.com/Rydex
Misunderstanding
market cycles & patterns
Sears reviews how seasonal, secular,
and economic patterns can influence the
stock market but also be grossly misused.
“Patterns influence stock trading like mag-
nets attract slivers of metal—except when
they don’t … they can be a prism to better
focus the market but not a foolproof trad-
ing system … the least knowledgeable
people feel the most empowered by the
(pattern) information and act because
things are supposed to happen.”
Irrational behavior
Sears reviews the growing impor-
tance of behavioral finance theory, from
“anchoring” to the effects of the “casino
culture.” His bottom line? “Biases tend to
emerge when making complex decisions
with uncertain outcomes, like investing
… major psychological pitfalls hurt most
investors most of the time.”
Financial literacy,
or lack thereof
Sears says that despite massive techno-
logical and financial innovations, certain
things will likely never change:
• boom-and-bust cycle of the markets
• regulatory, government, and finan-
cial institutions that are either ill-
equipped or unwilling to protect
individual investors
• Wall Street environment that is com-
plicated, hard for most to understand,
and merciless in separating investors
from their money
His proposed solutions are extensive
changes and initiatives to address inves-
tors’ financial literacy, to safeguard their
interests, and “close the chasm” between
Main Street and Wall Street.
But acknowledging that this may
never happen in full, Sears encourages
investors to adopt the tools of the most
sophisticated market participants, either
through their own efforts or through
trusted advisors. People who win the
most, says Sears, are the most disci-
plined and fully understand that “suc-
cessful investing is always a matter of
controlling risk.”
continued from pg. 5
7
9
8
“Bad investors think of
ways to make money.
Good investors think of
ways to not lose money.”
11June 26, 2014 | proactiveadvisormagazine.com

12. The opinions and forecasts expressed herein are those of the author and may not actually come to pass. Any opinions and viewpoints regarding the future of the markets should not be
construed as recommendations of any specific security nor specific investment advice. The analysis and information in this edition and on our website is for informational purposes only.
No part of the material presented in this edition or on our websites is intended as an investment recommendation or investment advice. Neither the information nor any opinion expressed
nor any portfolio constitutes a solicitation to purchase or sell securities or any investment program.
Editor
David Wismer
Marketing Coordinator
Elizabeth Whitley
Contributing Writer
David Wismer
Graphic Designer
Roger Ackerman
Contributing Photographer
Ryan Ketterman
June 26, 2014
Volume 2 | Issue 12
Proactive Advisor Magazine is
dedicated to promoting and educating
on active investment management.
Distribution reaches a wide audience
of financial professionals who advise
clients on investments and portfolio
management. Each issue features
an experienced investment advisor
who offers insights on active money
management, client service, and
investment approaches. Additionally,
Proactive Advisor Magazine offers
an up-close look at a topic with
current relevance to the field of
active management.
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Reproduction of printed form, whole or in
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Financial Football: An economic guide
to Brazil’s World Cup
A slightly tongue-in-cheek guide comparing the football prospects of
top World Cup teams to their nation’s economies.
Top 5 practice management
mistakes advisors make
From structuring your practice to client service “must-haves,”
here are five critical mistakes that should be avoided.
Do large swings in equity values
change risk tolerance?
Data from January 2007 to May 2012 was examined to test whether
fluctuations in equity returns influence average risk tolerance scores over time.
Trust in wealth management
industry spiked in 2014
The trust of high-net-worth individuals (HNWI) in wealth managers
climbed 13.5 percentage points to 74.7% in Q1 2014, according to a
report from Capgemini and RBC Wealth Management.
Fighting the bond bears
Not everyone is swayed by the bond bears who say interest rates
can only go in one direction—up.
The virtuous cycle of impact investing
no longer requires sacrifice
Many investors want the option of putting their money to work
to change the world as well as generate competitive returns.
12
L NKS WEEK
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