dsmWealth October 15, 2020

Larry Zimpleman was always good with math. Good enough that it got him into Drake University, studying actuarial science. Good enough that it landed him a job interning at Principal Financial Group while still a student, and then full time when he graduated. Good enough that he used those collective college and math skills to work his way to the executive floor at Principal – the only company he ever worked for as an adult – before retiring from there as CEO and chairman in 2015 and 2016.

So Zimpleman, the son of a letter carrier in Williamsburg, Iowa, and the first person in his family to graduate from college, has long believed in the power of education. Now he and his wife, fellow Drake grad Kathleen, let education be the focus of their philanthropic efforts as they spend their retirement years living in rural Des Moines. A leading cause has been, not surprisingly, alma mater Drake, which the Zimplemans not only have supported financially (a $1 million gift prior to 2012) but where Larry serves as a trustee. That included a stint as chairman of the board of trustees starting in 2012.

They also have funded scholarships, and a subset, both for study here in the U.S. and abroad, that are meant to create smarter students as well as more worldly ones.

“The first [goal] is to help create more globally aware citizenry,” Larry Zimpleman said. “It’s always harder to be angry or upset with someone you’ve met.”

So the Zimplemans set up scholarships at both Drake and Iowa Sister States to “allow young people to have global experiences that are life-changing for them,” he said.

Those scholarships are named in honor of their son, Jeff, an intrepid world traveler who by age 36 had visited 30 countries. A favored spot was Germany, where Jeff died in 2014 of a cerebral hemorrhage.

Drake and Iowa Sister States serve as middlemen, as it were, for scholarship dollars granted by the Zimplemans. Their other philanthropic causes use a different middleman, United Way.

Larry Zimpleman said United Way does a good job of vetting organizations. “They don’t just give money to nonprofits,” he said. “They have to go through quite an exercise to qualify.” By his way of thinking, United Way applies metrics to nonprofits that make them be more efficient and stay true to their stated mission.

Lunch Dates Turn Into Giving Opportunities

BY STEVE DINNEN

Sometimes lunch is just lunch. And sometimes its menu includes an opportunity to do some good.

Des Moines philanthropist Sue Kenny was dining with a friend some years ago when the conversation turned to Anawim, a local charity that promotes homeownership for people with challenges to finding safe, secure housing. The friend was already tied in with Anawim and sang its praises loud enough (hmm, could this be a recruitment pitch?) that Kenny then found herself totally committed to its mission, and served on its board.

Many lunches later, Kenny was dining with a relative who mentioned that where she lived in Michigan there was a group called 100+ Women Who Care. Its members meet quarterly to hear proposals from organizations that seek funding for various projects. If they like what they hear, they pitch in their personal checks. So Kenny launched a club in Des Moines, which by now has sent hundreds of thousands of dollars to Amanda the Panda, Youth Emergency Shelter and Services, Girl Scouts, Iowa Legal Aid and other local nonprofit groups.

Sometime, hopefully as soon as restaurants are back to full capacity, your phone will ring, or an email will show up, inviting you to lunch. Say yes – you might have something good to contribute.

Mortgage Rates Fall, But Home Prices Soar Out of Reach

BY ALY J. YALE FOR MONEY.COM

Kyle and Sara Sutton have been “looking aggressively” for a three- or four-bedroom, two-bath home in Grand Rapids, Mich., since April. Though they’ve made offers on five houses so far — even one without those much-coveted two bathrooms — they’ve lost out on all of them.

That’s despite increasing their budget by $50,000 (up to $300,000) and offering up to $30,000 above asking price.

“It feels like there’s no way we can compete in this market,” Kyle says. “As terrible as it would be for so many people across the country, we’re hoping for a massive drop in the housing market soon — or for us to win the lotto, which seems just as likely as winning a bid on a house right now.”

The Suttons’ story is a common one these days. With record-low mortgage rates, buyers are flocking to the market, hoping for serious savings or more house for their money. The only problem? Home prices are skyrocketing. >> READ MORE

Why Markets Could Rally Right Before the Election

BY SIMON MOORE FOR FORBES.COM

It is understandable that the 2020 U.S. election is being viewed as a period of elevated uncertainty by the financial markets. Indeed, 2020 has seen heightened economic uncertainty, regardless of political events. However, perhaps surprisingly, researchers have historically found positive trends in the markets in the few days right before election day.

Researchers at Quantpedia have found evidence of pre-election drift in the markets. This means that the market tends to trade up in the five days immediately prior to the election. The analysis is based on 35 U.S. elections from 1950 up to 2018, so it includes both presidential elections and midterm elections. During this period, the market, in this case the S&P 500, has historically delivered an average return of approximately 2.5%. That may seem small, but if it holds, it is a relatively attractive return over five trading days. Interestingly, the run-up seems to happen prior to the election. Immediately after the election, the markets tend to lack direction, historically speaking.

As with all quantitative research such as this, there are always open questions. Will this time be different? >>READ MORE

Paul R. La Monica with CNN Business advises not to buy the stock market hype around a coronavirus vaccine and treatment companies.

Ravi Kumar with MarketWatch provides tips on creating better financial habits, no matter what's going on in the world.
The New York Times explains how dividend funds can add income, and risk, to your portfolio.

dsmWealth is published on the first and third Thursday of each month and updated on dsmMagazine.com.

What would you like to see here? Contact us at dsmwealtheditor@bpcdm.com.

You can sign up here to get dsmWealth delivered to your inbox.