Michael W. K. Yee, Financial Advisor and Certified Financial Planner

  • Distribution Rules for Inherited IRAs

    An inherited individual retirement account (IRA) is a potential financial windfall that may create new opportunities for achieving your financial goals. If you are a beneficiary or expect to be one in the future, know that recent legal changes regarding inherited IRAs can result in costly implications if not followed properly. The Internal Revenue Service (IRS) has clarified rules included in the 2019 SECURE Act that are important for IRA beneficiaries to understand. Determine if these new rules are applicable to your situation:

    Different beneficiaries have different rules. Spouse beneficiaries will ultimately have much more flexibility with how they utilize an inherited IRA. Spouses can spread withdrawals from the account over their lifetime or roll the funds into their own IRA. For most other beneficiaries, such as children or grandchildren, the rules are more rigid. Non-spouse beneficiaries inheriting an IRA between 2020 and 2024 were required to withdraw all assets from the account within 10 years of the original account owner’s death.

    New, more stringent rules in 2025. Those who inherited an IRA beginning in 2025 face more restrictions. In most cases, non-spouse beneficiaries must take annual IRA distributions from the inherited account. The annual distribution requirement applies if the account was inherited from an IRA owner who already reached the required minimum distribution (RMD) age before death, which, under current law, is age 73.

    Annual distributions are determined using the IRS life expectancy calculation tables. The distribution must, at a minimum, equal this calculated distribution amount. The beneficiary can take larger distributions, but annual minimum withdrawal requirements must be met for the first nine years. In year 10, the balance of the IRA must be distributed. Failure to withdraw at least the minimum amount can result in a penalty equal to 25% of the under-distributed amount. For example, if you are required to withdraw $20,000 from the inherited IRA, but only took $10,000, you could be subject to a $2,500 penalty.

    If the account was inherited from an owner who did not yet reach RMD age, the beneficiary still has 10 years to withdraw all the money. The beneficiary will also have the choice to determine how much and how often. The new, more stringent rules don’t apply to beneficiaries who are minor children, have a disability/chronic illness or for IRAs held in certain trusts. If these exceptions are met, beneficiaries can “stretch” inherited IRA withdrawals over their lifetime. To determine if your inherited IRA is subject to new distribution rules, contact a financial advisor and tax professional.

    Planning is even more critical. Withdrawals from an inherited traditional IRA result in more taxable income. Consider the financial and tax implications of your withdrawal strategy, including whether the distributions will change your tax bracket. Distributions could mean your income reaches thresholds that result in increased taxes, higher premiums for marketplace health insurance coverage under the Affordable Care Act, or a higher tier for Medicare Part B and D premiums.

    Contact your financial advisor to discuss the impact of an inherited IRA.

    MICHAEL W. K. YEE, CFP,® CFS,® CLTC, CRPC®
    1585 Kapiolani Blvd., Ste. 1100, Honolulu, HI 96814
    808-952-1240 | michael.w.yee@ampf.com
    ameripriseadvisors.com/michael.w.yee
    Michael W. K. Yee, CFP®, CFS®, CLTC®, CRPCTM, is a Private Wealth Advisor/Financial Advisor with Ameriprise Financial Services, LLC in Honolulu, Hawai‘i. He specializes in fee-based financial planning and asset management strategies and has been in practice for 42 years.

    Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP® certification mark, the CERTIFIED FINANCIAL PLANNER™ certification mark, and the CFP® certification mark (with plaque design) logo in the United States, which it authorizes use of by individuals who successfully complete CFP Board’s initial and ongoing certification requirements.

    Investment products are not insured by the FDIC, NCUA or any federal agency, are not deposits or obligations of, or guaranteed by any financial institution, and involve investment risks including possible loss of principal and fluctuation in value. Ameriprise Financial, Inc. and its affiliates do not offer tax or legal advice. Consumers should consult with their tax advisor or attorney regarding their specific situation. Ameriprise Financial cannot guarantee future financial results. Securities offered by Ameriprise Financial Services, LLC. Member FINRA and SIPC. ©2026 Ameriprise Financial, Inc. All rights reserved.

    An inherited individual retirement account (IRA) is a potential financial windfall that may create new opportunities for achieving your financial goals. If you are a beneficiary or expect to be one in the future, know that recent legal changes regarding inherited IRAs can result in costly implications if not followed properly. The Internal Revenue Service…

  • Is Travel on Your Retirement Agenda?

    One of the great benefits of retirement is having the freedom to pursue new interests and hobbies at your leisure. For many, travel is at the top of their retirement bucket list. The key question is how to make sure your retirement savings can keep up with your travel ambitions. The following considerations can help you determine your answer:

    Make travel a part of your retirement budget. Without the funds to pursue travel, you likely won’t get too far. As you plan for your living expenses, include travel as a line item in your retirement budget. Identify a portion of your monthly income to cover travel expenses before you hit the road.

    Consider travel timing. Most retirees plan their biggest travel excursions in the early years of retirement, when health challenges may be fewer and stamina is greater. Therefore, your travel budget may represent a larger portion of your overall expenses in the first years of retirement. If this aligns with your travel vision, factor it into your retirement budgeting strategy.

    Determine your travel style. To come up with a reasonable cost estimate, identify the types of traveling you would like to do. Are you more interested in short trips to nearby locations, mostly traveling by car? Do you plan to explore the country in an RV? Are you looking to visit foreign destinations on a regular basis? Your travel goals will tell you a lot about how much you are likely to spend, which should be reflected in your retirement plan.

    Find ways to cut costs. It’s easy to face “sticker shock” when you travel. Expenses like food (usually eating out), lodging and transportation can add up quickly. If you plan to stay in one place for an extended period, look into renting a home or apartment rather than “hotel-ing” it. Try to eat like the locals by buying food at grocery stores and markets. Take the time to look for flight deals or make your automobile travel routes as efficient as possible. One of the perks of being retired is that you may have more flexibility than working people to lock in deals by traveling off-season or at other unpopular times.

    Don’t overlook insurance needs. Travel insurance may be appropriate if you get sick or lose luggage on a trip. Medicare is not accepted outside the US, and even within the US, you want to be sure your health insurance has you covered in the states you’re visiting.

    Look for discounts and rewards. Costs for some activities are reduced for seniors. Although discounts may be modest, every dollar counts. Check to see what discounted options are available through AAA, AARP or others. Pursue smart credit card strategies that help you earn rewards: free travel or cash back on purchases. If travel is in your plans when you leave the workforce, it’s key to go beyond dreaming and do some significant preparation. Use the time you have now to set specific goals and build savings that will help make your dreams a reality

    MICHAEL W. K. YEE, CFP,® CFS,® CLTC, CRPC®
    1585 Kapiolani Blvd., Ste. 1100, Honolulu, HI 96814
    808-952-1240 | michael.w.yee@ampf.com
    ameripriseadvisors.com/michael.w.yee

    Michael W. K. Yee, CFP®, CFS®, CLTC®, CRPCTM, is a Private Wealth Advisor/Financial Advisor with Ameriprise Financial Services, LLC in Honolulu, Hawaii. He specializes in fee-based financial planning and asset management strategies and has been in practice for 41 years. Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™ and CFP certification mark (with plaque design) in the U.S. Investment products are not insured by the FDIC, NCUA or any federal agency, are not deposits or obligations of, or guaranteed by any financial institution, and involve investment risks including possible loss of principal and fluctuation in value.

    Ameriprise Financial Services, LLC. Member FINRA and SIPC.

    ©2026 Ameriprise Financial, Inc. All rights reserved.

    One of the great benefits of retirement is having the freedom to pursue new interests and hobbies at your leisure. For many, travel is at the top of their retirement bucket list. The key question is how to make sure your retirement savings can keep up with your travel ambitions. The following considerations can help…

  • Managing Aging Parents’ Finances

    Making financial decisions takes time, attention and energy at any age. In the case of elderly adults, it may become increasingly difficult to manage finances, particularly if their health is declining or they’re experiencing a cognitive issue. If you’re providing support to aging parents—or plan to in the future—here are some tips on how to handle the situation and prepare for what’s to come.

    Don’t wait to start talking about money.

    It may be uncomfortable to ask your parents to discuss their finances with you, but it’s essential that you are familiar with their intentions for future care and the plans they have in place. When you broach the subject, emphasize that you are looking for only a high-level overview so that you can have more peace of mind about your parents being well cared for. This initial conversation can help set the groundwork for future discussions.

    Create a contact list.

    If your parents experience a sudden change in health that affects their ability to manage their affairs, it’s important to have a game plan. If you anticipate paying bills, making insurance claims and handling other financial tasks, ask your parents for a contact list for the professionals they work with and where their accounts are held. You may need to be an authorized user or power of attorney to be allowed access to certain accounts. Consult a lawyer to talk through what permissions may be necessary for you to step in if the need arises.

    Build a support network.

    Talk with siblings or other trusted family members about what your parent’s possible care plan could look like. While this conversation can be tough to initiate, it’s often easier to bring everyone together while your parents are still in good mental and physical health. Discuss who can realistically provide support: in what way and at what cost. Proactively deciding who can drive your parents to appointments, manage financial affairs, care for their home and handle other tasks can help avoid a strain down the road.

    Anticipate future lifestyle changes and challenges.

    Even if they aren’t yet needed, explore options and costs at various assisted living and memory care services. Check your parents’ insurance policies to see if and how services might be covered. You may want to explore whether their home or yours could be modified to provide additional space or comforts, such as wheelchair access. Knowing what choices exist and how your parents feel about each one can help you make future decisions with more confidence.

    Know your rights at work.

    The Federal Family and Medical Leave Act of 1993 (FMLA) allows covered employees up to 12 weeks of unpaid leave to provide care for a family member with a serious health condition. Consult your employer’s human resources department to learn about their policies for employees who are caring for a parent and how to initiate a claim. Many employers have access to resources and support groups to help you manage home and at work duties.

    Maintain momentum on your own financial goals.

    It’s prudent to look at your finances to see how much support you could provide your parents, if needed, without jeopardizing your retirement and future health care needs. Your financial advisor and lawyer can help you take the steps necessary to feel more confident.

    MICHAEL W. K. YEE, CFP,® CFS,® CLTC, CRPC®
    1585 Kapiolani Blvd., Ste. 1100, Honolulu, HI 96814
    808-952-1240 | michael.w.yee@ampf.com
    ameripriseadvisors.com/michael.w.yee
    Michael W. K. Yee, CFP®, CFS®, CLTC®, CRPCTM, is a Private Wealth Advisor/
    Financial Advisor with Ameriprise Financial Services, LLC in Honolulu, Hawaii.
    He specializes in fee-based financial planning and asset management strategies
    and has been in practice for 41 years.
    1U.S. Department of Labor: The Family and Medical Leave Act of 1993
    (https://www.dol.gov/agencies/whd/laws-and-regulations/laws/fmla)
    Investment products are not insured by the FDIC, NCUA or any federal agency, are
    not deposits or obligations of, or guaranteed by any financial institution, and in-
    volve investment risks including possible loss of principal and fluctuation in value.
    Ameriprise Financial, Inc. and its affiliates do not offer tax or legal advice. Consum-
    ers should consult with their tax advisor or attorney regarding their specific situation.
    Ameriprise Financial cannot guarantee future financial results.
    Securities offered by Ameriprise Financial Services, LLC. Member FINRA and SIPC.
    ©2025 Ameriprise Financial, Inc. All rights reserved.

    Making financial decisions takes time, attention and energy at any age. In the case of elderly adults, it may become increasingly difficult to manage finances, particularly if their health is declining or they’re experiencing a cognitive issue. If you’re providing support to aging parents—or plan to in the future—here are some tips on how to…

  • Downsizing Your Home in Retirement

    If you are approaching retirement or are already there, you may be considering downsizing your home. It’s a big decision, with ramifications for both your finances and lifestyle. As you think about downsizing, here are some things to keep in mind:

    Decide if a move makes sense. You can expect your needs and priorities to shift in retirement. Perhaps you won’t require as much square footage as you did when raising children, or you may find it challenging to keep up with home maintenance like you used to. It may be financially prudent and personally necessary to get out from under the costs and responsibilities of maintaining a larger property. Your location preference may shift, too. It is common for retirees to desire living closer to family members or in warmer climates.

    Create a timeline for your move. Discuss the pros and cons of selling your family home now or in the future. External market factors can affect your next step. Timing the sale of your home and the purchase of a new one can be tricky. Be prepared in the event your home doesn’t sell quickly.

    Consult a real estate professional. A real estate professional can help you determine what needs to be done before putting your house up for sale. Your home may need repairs to meet code or maximize its list price. Get an appraisal of current market value and decide what you’ll be comfortable spending on a new, smaller home.

    Review your housing options. Once you decide to downsize, start looking for a new place that meets your needs and budget. If you’re considering a condo or townhome (two popular options) make sure to factor in fees or assessments that are charged to residents when calculating the overall cost. If you’re in need of assisted living services, you’ll want to assess those costs—and whether they can be offset by long-term care insurance. In terms of location, you may want to think about the proximity of amenities and services including grocery stores, transportation and your doctor’s office.

    Be prepared for a multi-gen conversation. A change as impactful as selling your home may prompt conversations with family members about your estate. Downsizing usually requires whittling down the personal possessions. If you’re moving to a residence with managed maintenance, you won’t need the lawn mower or other tools in your garage. That extra set of dishes might be more useful to someone else. If you’re thinking of giving items to family members, be prepared for different generations having different interests and attachments to your home and belongings. Establish how you want to explain your lifestyle goals for retirement so family members can support you through the process.

    Review your finances carefully. Thoroughly review the financial implications of your specific situation. Downsizing does not necessarily mean you will suddenly have a cash windfall or establish enormous savings. Remember that HOA expenses, lifestyle changes and upgrades in construction quality can add to costs. Moving to a retirement area that has more built-in services can increase your cost of living, as well. Taking the time to explore the intricacies of your situation can prepare you for the next steps. And remember, you don’t have to do it alone. A qualified financial advisor can help you navigate this complex process with confidence.

    MICHAEL W. K. YEE, CFP,® CFS,® CLTC, CRPC®
    1585 Kapiolani Blvd., Ste. 1100, Honolulu, HI 96814
    808-952-1240 | michael.w.yee@ampf.com
    ameripriseadvisors.com/michael.w.yee

    Michael W. K. Yee, CFP®, CFS®, CLTC, CRPC®, is a Private Wealth Advisor with Ameriprise Financial Services, LLC. in Honolulu, Hawai‘i. He specializes in fee-based financial planning and asset management strategies and has been in practice for 41 years.

    Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP® certification mark, the CERTIFIED FINANCIAL PLANNER™ certification mark, and the CFP® certification mark (with plaque design) logo in the United States, which it authorizes use of by individuals who successfully complete CFP Board’s initial and ongoing certification requirements.

    Investment products are not insured by the FDIC, NCUA or any federal agency, are not deposits or obligations of, or guaranteed by any financial institution, and involve investment risks including possible loss of principal and fluctuation in value.

    Securities offered by Ameriprise Financial Services, LLC. Member FINRA and SIPC.
    ©2025 Ameriprise Financial, Inc. All rights reserved.

    If you are approaching retirement or are already there, you may be considering downsizing your home. It’s a big decision, with ramifications for both your finances and lifestyle. As you think about downsizing, here are some things to keep in mind: Decide if a move makes sense. You can expect your needs and priorities to…

  • Test Drive Your Retirement Plan

    Two emotions are common for those who are nearing retirement — excitement and fear. Leaving the working world behind can feel empowering; however, apprehension about entering a new life stage may also creep in. If you’re nearing retirement, you’ve likely taken steps to prepare financially for the future. But there’s one important thing you might not have considered adding to your pre-retirement checklist — a practice run. Test driving aspects of your plan before you’re actually in retirement can help provide a sense of security.

    What does your ideal retirement look like? Deciding how to spend your time (and your money) in retirement is not always an easy. As we age, our interests, hobbies and relationships change. What you may consider your “ideal” retirement when you’re 55 may not be the same as when you’re 65, which can make it hard to plan accurately for retirement. Consider sitting down with your spouse or family members to explore how aging and future milestones may alter your retirement. Your financial advisor can help you make a plan that aligns your ideal retirement with your financial situation.

    Test drive your retirement lifestyle. Many people pledge a significant amount of savings towards a particular lifestyle in retirement — a home in another part of the country or an annual trip abroad. Problems can arise if you have made a financial commitment to a certain lifestyle but change your mind later. It’s better to understand the potential implications of altering your plan before you actually retire. For example, if your retirement plan includes a big move to a new location, you may benefit from a practice run before making the relocation permanent. Be prudent and build some flexibility into your plan to avoid unintended consequences.

    Simulate your retirement expenses. The idea that your cash flow no longer comes from a reliable paycheck can come as a shock — even to those who are well prepared for this change.

    One idea to accomplish a sense of financial security is to run two accounts for a certain period of time. Through one account, manage all of your household and lifestyle expenses that you expect during retirement — food, clothing, shelter, utilities, taxes and insurance — as well as “nice-to-have” items like dining out and traveling, etc. You may have to estimate or inflate your lifestyle expenses for retirement as they could rise when you have more free time.

    Through the second account, manage all of your expenses that are expected to end in retirement — principal and interest on a mortgage payment (if your home will be paid off), car payments, college costs for your kids and contributions to retirement plans.

    The best way to get a handle on these expenses is to experience them while you’re still working. Take that trip to Europe before retirement. If the cost is different than expected, make adjustments to your financial projections to reflect reality.

    Perfecting life in retirement. A little practice can help ease emotional and financial concerns when making the jump into retirement. Consider working with a financial advisor who can help you determine a budget and a retirement income plan that fits your needs and desires.

    MICHAEL W. K. YEE, CFP,® CFS,® CLTC, CRPC®
    1585 Kapiolani Blvd., Ste. 1100, Honolulu, HI 96814
    808-952-1240 | michael.w.yee@ampf.com
    ameripriseadvisors.com/michael.w.yee

    Michael W. K. Yee, CFP®, CFS®, CLTC, CRPC®, is a Private Wealth Advisor with Ameriprise Financial Services, LLC. in Honolulu, Hawai‘i. He specializes in fee-based financial planning and asset management strategies and has been in practice for 41 years. Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP® certification mark, the CERTIFIED FINANCIAL PLANNER™ certification mark, and the CFP® certification mark (with plaque design) logo in the United States, which it authorizes use of by individuals who successfully complete CFP Board’s initial and ongoing certification requirements. Investment products are not insured by the FDIC, NCUA or any federal agency, are not deposits or obligations of, or guaranteed by any financial institution, and involve investment risks including possible loss of principal and fluctuation in value. Securities offered by Ameriprise Financial Services, LLC. Member FINRA and SIPC. ©2025 Ameriprise Financial, Inc. All rights reserved.

    Two emotions are common for those who are nearing retirement — excitement and fear. Leaving the working world behind can feel empowering; however, apprehension about entering a new life stage may also creep in. If you’re nearing retirement, you’ve likely taken steps to prepare financially for the future. But there’s one important thing you might…

  • Build Financial Literacy in Your Children

    Children often learn their first lessons about money from the adults they’re closest to. Whether it’s listening to parents discuss a purchase or watching them pay bills online, kids are observant and their relationship with money is often shaped by what surrounds them. If you are a parent looking to instill financial wisdom in your children, here are some ways to get started.

    ◆ Set a good example. Kids often model what they see. Be intentional about the example you’re setting. Proactively discuss money with your children. Talk about what’s important to you moneywise and use everyday moments to bring it to life, such as bringing them along when you speak to a financial advisor or consider an expenditure.

    ◆ Share knowledge. You can give your kids important life skills by building their foundation of financial knowledge. Shape good habits with simple lessons about how to track spending or saving up for something special. Why wait until they’re on their own to talk about the value of good credit or to explain how compound interest can make savings grow? Talk about the rewards (and challenges) of delayed gratification and the perils of debt. As they get older, emphasize the importance of financial security and the value of professional guidance.

    ◆ Encourage goal setting. Instill the habit of goal setting early. Discuss your own goals — such as paying for a family vacation or saving for a new car — and how you follow through on them. Encourage your children to set a goal or two of their own.

    ◆ Reinforce the value of work. Children learn the value of a dollar sooner when they are exposed to the effort that goes into earning each one. Consider whether you want to provide an allowance or pay them for helping with chores. When they start a part-time job, talk through the various ways they can allocate the money earned. It’s human nature to be more careful when spending your own versus someone else’s money.

    ◆ Introduce the concept of budgeting. A spending plan can be empowering because you know exactly what money is going to meet each need and goal. Start explaining this concept early. Kids should understand that you impose limits on your own spending and why it’s important to live within your means. A trip to the grocery store can be an opportunity to share why you make the choices you do.

    ◆ Model philanthropy. If you donate to causes important to you, it can be impactful to show your children the power of giving. You might suggest they apply a save-spend-share philosophy toward their own money. The idea is to set aside a portion of their allowance or earnings for future wants or needs, spend another portion on today’s wants or needs and give a portion to causes they care about. Whether it’s enacting a spending philosophy or having a conversation with your child about how you use your money to give back, passing down your philanthropic values can be a rewarding experience for both parties.

    ◆ Be a resource. Most kids make a few financial mistakes as they mature into adulthood. So let them know they can turn to you for guidance. Encourage them to continue to build smart money habits and remind them they don’t have to navigate their financial journey alone.

    MICHAEL W. K. YEE, CFP,® CFS,® CLTC, CRPC®
    1585 Kapiolani Blvd., Ste. 1100, Honolulu, HI 96814
    808-952-1240 | michael.w.yee@ampf.com
    ameripriseadvisors.com/michael.w.yee
    Michael W. K. Yee, CFP®, CFS®, CLTC, CRPC®, is a Private Wealth Advisor with Ameriprise Financial Services, LLC. in Honolulu, Hawai‘i. He specializes in fee-based financial planning and asset management strategies and has been in practice for 41 years. Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP® certification mark, the CERTIFIED FINANCIAL PLANNER™ certification mark, and the CFP® certification mark (with plaque design) logo in the United States, which it authorizes use of by individuals who successfully complete CFP Board’s initial and ongoing certification requirements.
    Investment products are not insured by the FDIC, NCUA or any federal agency, are not deposits or obligations of, or guaranteed by any financial institution, and involve investment risks including possible loss of principal and fluctuation in value. Securities offered by Ameriprise Financial Services, LLC. Member FINRA and SIPC. ©2025 Ameriprise Financial, Inc. All rights reserved.

    Children often learn their first lessons about money from the adults they’re closest to. Whether it’s listening to parents discuss a purchase or watching them pay bills online, kids are observant and their relationship with money is often shaped by what surrounds them. If you are a parent looking to instill financial wisdom in your…

  • Maximize Your Charitable Giving

    Many investors give back to their communities through traditional monetary gifts. But other gifting strategies may help maximize the value of your generosity and provide tax advantages. Four strategies that may be worth exploring:

    1. Gift highly appreciated stocks or other assets

      If you hold stocks or other investments for more than one year that have gained value, you may consider liquidating the asset to make a charitable donation with the proceeds. However, doing so may result in a taxable long-term capital gain. Giving appreciated stock directly to a qualified charity may be a more efficient way to maximize the value of your donation. Ensure that the charity accepts this type of donation before exploring it as a financial strategy.

    2. Establish a charitable trust

      Another way to consider gifting assets is to set up a charitable trust. Trusts can help you manage highly appreciated assets in a more tax-efficient manner, in some cases, allowing you to split assets among charitable and non-charitable beneficiaries. The timing of each gift and the flexibility you want dictates the type of trust that works best. With a Charitable Lead Trust, a charity is funded with income from assets placed in the trust for a specified time period. After that time, the remaining assets revert to other named beneficiaries. In a Charitable Remainder Trust, the reverse occurs. The trust makes regular payments back to you or another beneficiary. After a period of time specified in the trust, the remaining assets are directed to the named charities. A donor-advised fund allows you to make a large donation that may be immediately deductible from taxes, but gives you flexibility to recommend gifts to charities spread out over the years.

    3. Maximize donations through your employer

      Your employer may offer the convenience of making contributions through payroll deductions, allowing you to give systematically with each paycheck. In addition, your employer may match a certain donation amount, which can add to the impact your gift makes. Check to see if the charities you care about are eligible for this type of donation.

    4. Make a charitable individual retirement account (IRA) donation

      If you have reached the age at which you are required to take distributions from your traditional IRA each year, but you don’t need the money to meet your essential and lifestyle expenses, you may prefer to avoid the resulting tax bill. The Qualified Charitable Distribution rule allows you to transfer funds directly from your IRA to a qualified charitable organization. By doing so, you may avoid having to claim income (and subsequent tax liability) since you would not receive the required distribution. To determine when required distributions will start for you (based on your birth year), visit IRS.gov.

    As you consider these strategies, consult with your financial advisor and tax advisor, who can help you evaluate the choices to ensure the gifts you make are most effective for your goals and consistent with your overall financial plan.

    MICHAEL W. K. YEE, CFP,® CFS,® CLTC, CRPC®
    1585 Kapiolani Blvd., Ste. 1100, Honolulu, HI 96814
    808-952-1240 | michael.w.yee@ampf.com
    ameripriseadvisors.com/michael.w.yee
    Michael W. K. Yee, CFP®, CFS®, CLTC, CRPC®, is a Private Wealth Advisor, Certified Financial Planner™ practitioner, with Ameriprise Financial Services, LLC ,in Honolulu, HI. He specializes in fee-based financial planning and asset management strategies and has been in practice for 40 years. Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP® certification mark, the CERTIFIED FINANCIAL PLANNER™ certification mark, and the CFP® certification mark (with plaque design) logo in the United States, which it authorizes use of by individuals who successfully complete CFP Board’s initial and ongoing certification requirements. Ameriprise Financial, Inc. and its affiliates do not offer tax or legal advice. Consumers should consult with their tax advisor or attorney regarding their specific situation. Investment products are not insured by the FDIC, NCUA or any federal agency, are not deposits or obligations of, or guaranteed by any financial institution, and involve investment risks including possible loss of principal and fluctuation in value. Investment advisory products and services are made available through Ameriprise Financial Services, LLC, a registered investment adviser. Securities offered by Ameriprise Financial Services, LLC. Member FINRA and SIPC. ©2025 Ameriprise Financial, Inc. All rights reserved.

    Many investors give back to their communities through traditional monetary gifts. But other gifting strategies may help maximize the value of your generosity and provide tax advantages. Four strategies that may be worth exploring: As you consider these strategies, consult with your financial advisor and tax advisor, who can help you evaluate the choices to…

  • Is Travel on Your Retirement Agenda?

    One of the great benefits of retirement is having the freedom to pursue new interests and hobbies at your leisure. For many, travel is at the top of their retirement bucket list. The key question is how to make sure your retirement savings can keep up with your travel ambitions. The following considerations can help you determine your answer:

    ◆ Make travel a part of your retirement budget. Without the funds to pursue travel, you likely won’t get too far. As you plan for your living expenses, include travel as a line item in your retirement budget. Identify a portion of your monthly income to cover travel expenses before you hit the road.

    ◆ Consider travel timing. Most retirees plan their biggest travel excursions in the early years of retirement, when health challenges may be fewer and they have more stamina. Therefore, your travel budget may represent a larger portion of your overall expenses in the first years of retirement. If this aligns with your travel vision, factor it into your retirement budgeting strategy.

    ◆ Determine your travel style. To come up with a reasonable cost estimate, identify the types of traveling you plan to do. Are you more interested in short trips to nearby locations, mostly traveling by car? Do you plan to explore the country in an RV? Are you looking to visit foreign destinations on a regular basis? Your travel goals will tell you a lot about how much you are likely to spend, which should be reflected in your retirement plan.

    ◆ Find ways to cut costs. You’re likely to face “sticker shock” when you travel. Expenses such as food (usually eating out), lodging and transportation can add up quickly. If you plan to stay in one place for an extended period, look into renting a home or apartment rather than “hoteling” it. Try to eat like the locals by buying food at grocery stores and markets. Take the time to look for flight deals or make your automobile travel routes as efficient as possible. One of the perks of being retired is that you may have more flexibility than working people to lock in deals by traveling off-season or at other unpopular times.

    ◆ Don’t overlook insurance needs. Travel insurance may be appropriate in case you get sick or lose luggage on a trip. Keep in mind that Medicare is not accepted outside the US, and even within the US, you want to be sure your health insurance has you covered in states outside your own.

    ◆ Look for discounts and rewards. Seniors have a unique advantage in that costs for some activities are reduced. Even though the discounts may be modest, every dollar helps stretch your travel budget. Check to see what discounted options are available through clubs like AAA or AARP. Also pursue smart credit card strategies that help you earn rewards like free travel or cash back on your purchases.

    If travel is in your plans when you leave the workforce, it’s key to go beyond dreaming and do some significant preparation in advance. Use the time you have now to set specific goals and build savings that will help make your dreams a reality.

    MICHAEL W. K. YEE, CFP,® CFS,® CLTC, CRPC®
    1585 Kapiolani Blvd., Ste. 1100, Honolulu, HI 96814
    808-952-1240 | michael.w.yee@ampf.com
    ameripriseadvisors.com/michael.w.yee
    Michael W. K. Yee, CFP®, CFS®, CLTC, CRPC ®, is a Private Wealth Advisor, Certified Financial Planner ™ practitioner, with Ameriprise Financial Services, LLC in Honolulu, HI. He specializes in fee-based financial planning and asset management strategies and has been in practice for 40 years. Investment products are not insured by the FDIC, NCUA or any federal agency, are not deposits or obligations of, or guaranteed by any financial institution, and involve investment risks including possible loss of principal and fluctuation in value. Investment advisory products and services are made available through Ameriprise Financial Services, LLC, a registered investment adviser. Ameriprise Financial Services, LLC. Member FINRA and SIPC.
    © 2024 Ameriprise Financial, Inc. All rights reserved.

    One of the great benefits of retirement is having the freedom to pursue new interests and hobbies at your leisure. For many, travel is at the top of their retirement bucket list. The key question is how to make sure your retirement savings can keep up with your travel ambitions. The following considerations can help…

  • Financial Success for Parents & Kids

    Financial Success for Parents & Kids

    According to a recent study published by Ameriprise Financial, individuals in their 30s and 40s have received significant financial help from family and expect additional assistance in the future. And over a quarter of those surveyed said they received $25,000 or more.(1)

    It’s admirable to see that parents want to go to such great lengths to help their children achieve financial success. Yet parents need to be mindful that they don’t inadvertently diminish their own success in doing so. As a financial advisor, here’s the advice I offer parents who want to give their adult children a financial head start without harming their own financial future:
    ■ Prioritize saving for your own retirement. It takes many years to accumulate the savings you need to retire comfortably. Your children are likely just starting their careers, while your time remaining in the workforce may be limited to five, 10 or 15 years. Putting yourself first isn’t a selfish move. It’s about being wise with your money. If you make it a priority to have enough saved when you retire, your kids won’t have to worry about providing you with financial support later in life.
    ■ Be strategic with your financial gifts. Like other monetary goals, it’s important to add gifts of cash to your overall financial plan. When you treat cash gifts separately, you shortchange other priorities such as retirement. What will it cost you to divert savings from your retirement plan? With a complete list of financial priorities, you can see how much you need to save to reach them all.
    ■ Consider alternate approaches to helping your kids. There may be ways to help your kids other than by dipping into savings. Encourage them to take financial responsibility when they can do so. Your college-bound son or daughter may be able to take out student loans at a low interest rate, which will reduce or eliminate the amount you need to contribute for tuition. Instead of writing a check to help your child buy a car or house, you might co-sign a loan to help them lock in a lower interest rate or more favorable repayment terms.
    ■ Have conversations about money. Your willingness to talk about your finances is a valuable example for your adult children. So, too, is your attention to your retirement savings. I encourage parents to invite their adult children to attend a financial planning session with a financial advisor. It’s a time to address money concerns and explore how actions today can affect your future finances.

    MICHAEL W. K. YEE, CFP,® CFS,® CLTC, CRPC®
    1585 Kapiolani Blvd., Ste. 1100, Honolulu, HI 96814
    808-952-1240 | michael.w.yee@ampf.com
    ameripriseadvisors.com/michael.w.yee

    Michael W. K. Yee, CFP®, CFS®, CLTC, CRPC ®, is a Private Wealth Advisor, Certified Financial Planner ™ practitioner, with Ameriprise Financial Services, LLC in Honolulu, HI. He specializes in fee-based financial planning and asset management strategies and has been in practice for 40 years. Investment products are not insured by the FDIC, NCUA or any federal agency, are not deposits or obligations of, or guaranteed by any financial institution, and involve investment risks including possible loss of principal and fluctuation in value. Investment advisory products and services are made available through Ameriprise Financial Services, LLC, a registered investment adviser. (1) The 2023 research was created by Ameriprise Financial Inc. and conducted online by Artemis Strategy Group from Jan. 19 to Feb. 14, 2023, among 3,518 Americans ages 27 to 77. Millennial respondents have $25,000 or more in investable assets, and Gen X and boomer respondents have $100,000 or more. The sample is weighted on region and by generation on age, gender, race/ethnicity, assets and income based on the Federal Reserve 2021 Survey of Household Economics and Decision making (SHED). To ensure sufficient response sizes for additional analysis, Ameriprise oversampled investors who identify as millennials. For further information and details about the study, including verification of data that may not be published as part of this report, please contact Ameriprise Financial or go to ameriprise.com/millennials. Ameriprise Financial Services, LLC. Member FINRA and SIPC. © 2024 Ameriprise Financial, Inc. All rights reserved.

    According to a recent study published by Ameriprise Financial, individuals in their 30s and 40s have received significant financial help from family and expect additional assistance in the future. And over a quarter of those surveyed said they received $25,000 or more.(1) It’s admirable to see that parents want to go to such great lengths…