Category: Articles

Maui Sunset Lilikoi Bars

There’s nothing better than sharing a perfect, tropical sunset with friends and family. The only thing that can enhance the experience further is sharing a favorite dessert. Here’s mine!

INGREDIENTS

Crust

1 cup butter (softened)
1/2 cup powdered sugar
2 cups all-purpose flour

Filling

1-1/4 cup white sugar
1 tsp. baking powder
1/4 cup all-purpose flour (to help set)
4 eggs (slightly beaten)
1/3 cup fresh lilikoi juice without seeds (use a citrus juicer) or packaged lilikoi juice purchased online from Amazon.com or at an island grocer in Hawai‘i

INSTRUCTIONS

Crust

Preheat the oven to 350°F/175°C. Prepare the crust using a medium bowl. Blend together all of the crust ingredients. Mix with a wooden spoon or a mixer on low until it has a crumbly texture.

Using your hands, press the uncooked crust evenly throughout an ungreased 9-by-13-inch pan.

Bake 20 minutes until firm and golden. Timing should be just about right for the lilikoi filling after the crust is baked.

Filling

In another bowl, whisk together the white sugar and all-purpose flour. Add the four slightly beaten eggs and whisk until smooth. Add in the lilikoi juice, then whisk again together.

Once the crust is baked, pour the filling over the crust and return it to the oven for an additional 20 minutes. Then remove and let it sit to cool.

The bars will firm up as they cool completely, then you may cut the bars. (Optional: sprinkle 1-1/2 tablespoons of powdered sugar on top before cutting.)

Serve loosely on a platter and enjoy.

Serves: 30 2-by-2-inch bars

Total time: approximately 55 minutes

There’s nothing better than sharing a perfect, tropical sunset with friends and family. The only thing that can enhance the experience further is sharing a favorite dessert. Here’s mine for Maui Sunset Lilikoi Bars.
How to Join the Flexible Workforce
I have often written to you about imagining your future — daring to dream and following your own internal journey as you think about the many opportunities for work in the year ahead.

FIRST THINGS FIRST — YOU! Your first step in exploring your future is to take an internal journey in order to make a decision to work for pay, for fun or for the good of others. Part-time and other ways of working flexibly are bountiful. Many offer unique advantages to mature workers over that old classic — the 9-to-5 job.

Think of this new time, with its many new ways to work, as the time that change and innovation are opening financial and social opportunities for those of us who need or wish to continue working over our much longer lifetimes. Think you’re alone in this new quest? Think again, as older workers form more than 30 percent of the flexible workforce; the number is growing daily.

Where do you find flexible work in Hawai‘i?

Google “temporary staffing agencies in Hawai‘i.”

Or, search for opportunities my way and Google product or service areas that interest you. I am a writer and find many options by Googling “opportunities for writers and editors in Hawai‘i and beyond.”

Join LinkedIn. For example, through my 1,100 people connections on LinkedIn, I have been able to link with people who are working remotely — here, there and everywhere. For me, the most appealing way to work is remotely from my lānai in Hawaii Kai.

Of course, you need to have relevant market skills in order to secure new opportunities of interest to you, as well as to clients and customers.

Adding basic skills to your experience is the easiest way to prepare. How easy is it? Well, I learned many necessary technical user skills from my 16-year-old granddaughter! In exchange, I helped her to develop the confidence and skills to drive a car!

Unfortunately, unrealistic fears block many mature workers from new learning experiences. Here are two sources that have helped me overcome the reluctance to reinvent myself. AARP and OSHER (www.osher.socialsciences.hawaii.edu/) offer ideas, connections and referrals to suitable skill building programs throughout Hawai‘i. Step up. Find renewed purpose through some form of work. You’ll be glad you did!

NEW WORKFORCE HAWAII
Carleen MacKay
916-316-0143 | carleenmackayhi@gmail.com
www.newworkforcehawaii.com

Contact Carleen via her website and receive New Ways to Work, a free PDF book co-written with Phyllis Horner.
our first step in exploring your future is to take an internal journey in order to make a decision to work for pay, for fun or for the good of others. Part-time and other ways of working flexibly are bountiful. Many offer unique advantages to mature workers over that old classic — the 9-to-5 job.
US Commissaries Open to 3M More Vets
On Jan. 1, 2020, 15,000-plus veterans in Hawai‘i — a “high cost area”— became eligible to shop in military stores. Commissaries have low prices and no state tax. Commissaries are like big box stores — some brands may be missing, but they carry almost everything you need. (Note that you will pay an additional fee if you use a credit card, so use cash if you can.)

How do I receive this benefit?

Disabled and other eligible veterans can just use their veteran health card to get in. The commissaries scan your card and they are gearing up inventory for the influx of new customers.

Caregivers who are primary caregivers for a wounded/injured veteran and are registered with the Department of Veterans Affairs caregiver program. You will see a memo posted to VA.gov for use to access front gates.

You will also have to show your driver’s license. In the near future, the VA will transition all to a caregivers ID card for base access.

How do I receive a veteran health card?

Call 1–877–222–8387 before 4 pm Hawai‘i time. They can access your DD 214 (discharge papers). You will then be asked numerous questions, but because you called them, the information is secure.

If your records were destroyed in the 1973 fire in St. Louis, it will take longer. A form will be sent to you to have Archives assist.

In person, you can visit either of two locations:

459 Patterson Road, Spark Matsunaga VA Medical Center at Tripler. Call 800–214–1306 for information/directions/room number.

91-2135 Ft. Weaver Road, Leeward Community Based Outpatient Clinic in room 501. 808–312–6800

Enjoy all the commissary has to offer; shopping with Veteran Health Card is just one more opportunity your VA card gives you.
On Jan. 1, 2020, 15,000-plus veterans in Hawai‘i — a “high cost area”— became eligible to shop in military stores. Commissaries have low prices and no state tax. Commissaries are like big box stores — some brands may be missing, but they carry almost everything you need. (Note that you will pay an additional fee…
Honorees Take a Stand Against Falls

(L–R, standing) Stan Michaels, Chris Pa, Percy Ihara, Michael Dowell, Peter Reyes, (seated) Tito Villanueva and Phoebe Hwang (DrPH, owner-operator, Omniworks).

More than 9,950 injuries from falls occur annually among seniors statewide. Each year, the Hawai‘i Fall Prevention Consortium (HFPC) identifies individuals with passionate dedication to reducing the number and severity of injuries from falls among seniors and honors their efforts to promote fall prevention initiatives in the state.

The HFPC presented its Annual Fall Prevention Awards for Outstanding Community Service at the end of 2019 to: Chris Pa, activities director at Leeward YMCA; Peter Reyes, program director at Catholic Charities Hawai‘i (CCH); Percy Ihara, owner/publisher of Generations Magazine (GM); and Tito Villanueva, Kauai Operations Manager for American Medical Response (AMR).

Chris Pa’s leadership has enabled many kūpuna to actively attend tai chi classes and events at Leeward YMCA. “Chris is truly a community treasure,” said Ileina Ferrier, master trainer for the Tai Chi for Health Institute.

Peter Reyes became a master trainer for Matter of Balance at CCH. “Peter is a great trainer who truly believes in the importance of reducing the fear of falling and of preventing falls,” said Diane Terada, division administrator at CHC Community & Senior Services.

Percy Ihara is one of the great forces in senior well-being and understanding through GM, said Michael Dowell, chair of the HFPC and owner of Ohana Stairlifts. “Percy is amazing in his continual energy and drive to improve the lives of all of Hawai‘i’s kūpuna.”

Tito Villanueva is the inspiration and driving force behind the growth and success of Kauai’s Home Safety Program for Seniors and has also provided mentoring and support for other programs as the AMR operations manager. “His dedication is astounding,” said Stanley Michaels, senior fall prevention coordinator at the DOH.

In addition, Phoebe Hwang, DrPH, was honored for her outstanding contract work for the HFPC. “Phoebe is truly amazing,” said Michaels.

EMERGENCY MEDICAL SERVICES & INJURY PREVENTION PROGRAM
808-733-9202 | stanley.michaels@doh.hawaii.gov
www.health.hawaii.gov/injuryprevention

A complete summary of the fall prevention campaign, special videos for seniors and/or their care-givers, and a recap of accomplishments is online at www.nogethurt.hawaii.gov.

More than 9,950 injuries from falls occur annually among seniors statewide. Each year, the Hawai‘i Fall Prevention Consortium (HFPC) identifies individuals with passionate dedication to reducing the number and severity of injuries from falls among seniors and honors their efforts to promote fall prevention initiatives in the state.
2020 Census Forms Will Be Available Online
Every 10 years, the U.S. government embarks on the herculean task of counting every person in the country. An accurate decennial census count is important in order to allocate more than $675 billion in federal funds annually for community programs and services, such as healthcare services for the elderly, education programs, housing and community development, and job training. For example, in federal Fiscal Year 2016, Hawai‘i received over $3.6 billion from 55 different federal programs, including nearly $1.5 billion in Medicaid funding.

Starting in March 2020, people will receive postcards alerting them that the census will begin on April 1, Census Day. Unlike past census events, the 2020 census may be completed online. Between March 12 and 20, the majority of people will receive a letter advising them that they may complete the census survey online. However, about 20 to 25 percent of the population will still receive a paper survey due to demographic characteristics and internet connectivity in their area.

The 2020 census general questions will be:

How many people were living or staying in this house, apartment or mobile home on April 1, 2020?

Were there any additional people staying here on April 1, 2020 that you did not include in Question 1?

Is this a house, apartment or mobile home?

What is your telephone number?

Please provide information for each person living here. If there is someone living here who pays the rent or owns this residence, start by listing him or her as Person 1. If the owner or the person who pays the rent does not live here, start by listing any adult living here as Person 1.

Name, Sex, Age

Is Person 1 of Hispanic, Latino, or Spanish origin?

What is Person 1’s race?

It will not contain a citizenship question.

If you are not able to complete the census by April 1, you will get several reminder mailings through April. Thereafter, through August, census enumerators will conduct door-todoor interviews to collect information from those who have not completed the questionnaire.

COMMON CAUSE HAWAII
P.O. Box 2240, Honoulu, HI 96804
808-275-6275 | www.commoncause.org

The decennial census is a huge endeavor to ensure a fair, accurate and complete count. The U.S. Census Bureau is looking to hire enumerators and other positions throughout Hawai‘i. Consider being a census worker. Applicants must: 1) have a valid email address; 2) be a U.S. citizen; 3) be 18 years of age or older. Apply now at www.2020census.gov/jobs.
Every 10 years, the U.S. government embarks on the herculean task of counting every person in the country. An accurate decennial census count is important in order to allocate more than $675 billion in federal funds annually for community programs and services, such as healthcare services for the elderly, education programs, housing and community development,…
Elder Abuse: Senior Advocates & Your Rights
Senior advocates understand personal rights, elder abuse, consumer rights, the legislative process and how programs are funded. They also see that agencies correctly implement laws and draw attention to the ones needing changes. This article focuses on personal rights and elder abuse law. Effective advocates begin by reading the laws and understanding what rights they protect. Hawai‘i law defines six kinds of abuse: physical, psychological, sexual, caregiver neglect, financial exploitation and self-neglect.

“Capacity” means the ability to understand and appreciate the nature and consequences of making decisions concerning one’s person or to communicate these decisions.

“Caregiver” means any person who has knowingly and willingly assumed the care, supervision or physical control of, or who has a legal or contractual duty to care for the health, safety and welfare of a vulnerable adult.

“Caregiver neglect” means the failure of a caregiver to exercise that degree of care for a vulnerable adult that a reasonable person with the responsibility of a caregiver would exercise within the scope of assumed, legal or contractual duties:

(1) Assist with personal hygiene

(2) Protect the vulnerable adult from abandonment

(3) Provide, in a timely manner, necessary food, shelter or clothing

(4) Provide, in a timely manner, necessary healthcare, access to healthcare, medication, psychological and physical care, or supervision

(5) Protect the vulnerable adult from dangerous, harmful or detrimental drugs, except those provided to the vulnerable adult pursuant to the direction or prescription of a practitioner

(6) Protect the vulnerable adult from health and safety hazards

(7) Protect the vulnerable adult from abuse by third parties

“Financial exploitation” means the wrongful taking, withholding, appropriation or use of a vulnerable adult’s money, real property or personal property, including but not limited to:

(1) The breach of a fiduciary duty, such as the misuse of a power of attorney or guardianship privileges, resulting in the unauthorized appropriation, sale, or transfer of property

(2) The unauthorized taking of personal assets

(3) The misappropriation or misuse of moneys belonging to the vulnerable adult

(4) Failure to effectively use a vulnerable adult’s income and assets for the necessities required for his or her support and maintenance It’s the government’s job to ensure that these kinds of abuse do not happen.

KOKUA COUNCIL
20 S. Vineyard Blvd., Honolulu, HI 96813
facebook.com/KokuaCouncil/
Senior advocates understand personal rights, elder abuse, consumer rights, the legislative process and how programs are funded. They also see that agencies correctly implement laws and draw attention to the ones needing changes. This article focuses on personal rights and elder abuse law.
Aging in Hawai‘i – The Wise-Soul Perspective of a Baby Boomer Turning 62

An interview: author Michael W. K. Yee, Financial Advisor and Ameriprise Certified Financial Planner

by Generations Magazine Staff

Are Hawai‘i seniors living well and thriving?

Hawai‘i is the best place to retire and thrive. The climate and culture of ‘ohana is second to none for living a good life with family and friends. Also on the plus side, seniors get to enjoy more quality of life here. It’s no surprise Hawai‘i has the highest longevity in the country.

That said, in 36 years of financial advising, I have learned not to predict longevity for anyone. Longevity statistics are just average ages. Some people still die before they get old. Instead, I tell my clients, “I have no idea how and when a person is going to die. What I do know is that not many people die quickly; whether life is long or short, we will likely experience long-term care.

So should we still wish for a long life?

I used to say, “I hope you live a good life.” I define “good” as living a full life that quickly ends in a painless death. Sadly for many, this scenario is not the case. Advances in medicine and technology that extend quality of life are good, but when they increase what I call the “slow go,” (the time of disability and diminished capacity to enjoy life), it may not be so good. Extending slow go with long-term care can become a lengthy “no go” (living in complete dependency on caregivers). Preventing the “let go” (the end of life) may not be the kind of longevity we wished for.

Dementia care is long-term care, too.

Yes, social security states that seven in 10 persons will experience long-term care. The average time they spend in “slow go” through “no go” is three years. Half of Hawai‘i seniors over 85 experience some form of dementia. The average length of care for dementia is 10 years. Caregiving is not free. There is always a huge price — physical, emotional, relational and financial. We have to focus not only on the person receiving care, but also on the caregiver. Some families break apart when caregiving — others come together. If family members cannot be caregivers, they have to pay professional services. That can cost lots of money.

In 2019, a private room in a Hawai‘i nursing home cost an average of $160,418 per year (Genworth study). Few of us have so much money that we can write a check of any size without dipping into savings or our retirement account. It’s easy to see why many families facing enormous costs of long-term care feel depressed and hopeless.

What planning options do seniors have?

Many seniors are proactive about improving their health and quality of life. That’s the first thing to take care of. Others are planning their dying experience with their doctors. But between living and dying is a guessing game. The good news is that I see many seniors taking a proactive approach to improve their financial readiness for whatever comes. They have an idea what they would like, so they discuss their wishes with their family and heirs. The conversation generates many financial questions for me — legal questions for their attorney. They want to maintain their independence and they see planning ahead as a way to do that. Into the bargain, they can enjoy a better retirement experience and better quality of life later on if they face sickness, decline and dying.

Describe the kind of seniors who take the proactive approach to life?

There are no accidents. I see that people who are proactive and intentional are more successful at living a life of choice rather than one of chance. People who plan look ahead to the future. Seniors come in different sizes and shapes financially, as well as family-wise. The right thing to do for one is different for another, but in general, people who succeed are comfortable with setting goals. They like to focus on the prize — and use it to measure their progress. To succeed, they must have both a good plan and good execution. Their plan must be holistic and comprehensive in that it includes every aspect of their lives. It must address retirement, long-term care, death and legacy.

Another aspect of successful seniors is that they appreciate teamwork. They realize they aren’t going to be good at everything so they pick a dream team of their favorite health, financial and legal professionals to work together for their benefit . They want all their experts on the same page — not working independently. These kind of seniors wants to get their big decisions right. Lastly, these people communicate well and share their plan with their families.

Boomers your age are seniors now. What kind of care can they expect in the future?

Experts call baby boomers “the sandwich generation.” They experienced their parents facing the benefits and hardships of retirement and long-term care. Many helped care for grandparents and parents at the same time they were educating their kids. I don’t know all things, but I do observe that more boomers — especially women — own long-term care insurance based on their personal experience with caregiving.

I am optimistic; boomers don’t see caring for a parent as just hardship or burden. Many view caregiving as lesson and a gift. I believe our world view is the sum of past learning and experiences. This is the essence of Hawaiian ho‘oponopono — keeping things righteous. Past knowledge and wisdom descends from our ancestors and parents; from us, it flows forward to coming generations. Our parents brought us into this life with love, so the greatest gift we can give them is to walk them home with love. Yes, I have faith in the boomers and their kids. And faith is not blind; it comes from an abundance of undeniable evidence.

An interview with author Michael W. K. Yee, Financial Advisor and Ameriprise Certified Financial Planner
Where’s That Donation Going?

If you want to make a donation, first go online and research the charity. Check the Better Business Bureau or the Federal Trade Commission for any scams or complaints connected to the organization. Scammers attempt to fool you into thinking they are a legitimate, so before donating, verify that the URL and email address are correct.

Be very cautious if making donations via social media, even if a “friend” contacted you. Scammers often impersonate individuals and organizations, so contact your friend by phone or email, not by responding via the social media post, to verify that they contacted you about the charity.

If you receive a solicitation via telephone, don’t let the caller pressure you into donating. Ask for the charity’s exact name, web address, email address and mailing address so you can confirm it later. Do not volunteer any personal information nor confirm any when the caller asks you to identify yourself. Do not trust Caller ID. Scammers can spoof the Caller ID to make it appear the call is from a legitimate organization or person.

Donating using a credit card with a low line of credit or with a cashier’s check are the safest forms of payment. Do not pay with gift cards, wire transfers or Western Union.

Always do your research before donating! If you feel that you’ve been scammed, report it immediately to law enforcement.

THE DEPARTMENT OF THE PROSECUTING ATTORNEY
1060 Richards St., Honolulu, HI 96813
808-768-7400 | Office hrs: Mon – Fri, 7:45 am – 4:30 pm
www.honoluluprosecutor.org/contact-us/

If you want to make a donation, first go online and research the charity. Check the Better Business Bureau or the Federal Trade Commission for any scams or complaints connected to the organization. Scammers attempt to fool you into thinking they are a legitimate, so before donating, verify that the URL and email address are…
Recognizing Warning Signs of Abuse

I was a guest on “Generations Radio,” AM 690, on Nov. 22, 2019 with Lt. John McCarthy of the Financial Crimes Unit of the Honolulu Police Department. The 39-year department veteran is nationally recognized as an expert in financial crimes and elder abuse.

On the show, we discussed how scams go undetected because victims don’t recognize the warning signs of abuse. What follows are danger signals that should prompt further investigation.

ISOLATING THE VICTIM: Abusers don’t want the victim to have a support system and will either try and physically remove the person from a loved one (like a caregiver not letting family members visit the elder) or deceive the victim into thinking that a concerned person is really trying to harm them (like one sibling telling the parent that another sibling wants everything).

SECRECY: A lot of scams involve instructing the victim not to reveal that the transaction/event is occurring. For example, a letter indicating that a senior has won the lottery will instruct the “winner” not to tell anyone about the prize because “there are a lot of scams going on right now.”

URGENCY: Scammers will try to rush victims into making poor decisions. Often, they be make tempting offers, such as, “I have extra building materials and can do some repairs really cheap if you hire me right now.”

EMERGENCY/TRAGEDY: Scammers will also try to take advantage by forcing victims into making emotional decisions. A good example of this technique is the Grandparent Scam, in which victims receive a frantic call saying a loved one is in dire straits and needs money immediately.

GREEN DOT/MONEYPAK CARDS: Asking victims to purchase a Green Dot/MoneyPak card is a common way criminals transfer money from accounts around the world. Any transaction where money is to be paid using one of these cards should be suspect, including the IRS calling and demanding payment for delinquent taxes.

LONELINESS: The promise of companionship in exchange for money is another form of abuse. Online dating site users asking for a loan or a caregiver accepting generous gifts to stay longer attempt to take advantage of an elder’s loneliness.

TOO GOOD TO BE TRUE: Remember, offers, promises, business deals and investments that sound too good to be true are just that.

If you suspect elder abuse, call these numbers:
– Police: 911
– Adult Protective Services: 808-832-5115
– Elder Abuse Unit: 808-768-7536
If you have questions about elder abuse, call or email: 808-768-7536 | ElderAbuse@honolulu.gov

I was a guest on “Generations Radio,” AM 690, on Nov. 22, 2019 with Lt. John McCarthy of the Financial Crimes Unit of the Honolulu Police Department. The 39-year department veteran is nationally recognized as an expert in financial crimes and elder abuse. On the show, we discussed how scams go undetected because victims don’t…
What to Do Before a Loved One Passes

We have been receiving an increased number of phone calls from our clients’ children, notifying us about the imminent death of one of their parents. The children usually call in a panic, asking if anything needs to be done before their parent passes. We do our best to assist them; however, sometimes it is just too late.

When a client’s child, who is usually the trustee, contacts the estate planner right after their parent passes, the trustee is usually advised to call back sometime after the funeral.

When the trustee is ready to proceed, he or she is asked to identify and collect financial information and important documents (i.e. wills, trusts, partnership documents, etc.), and bring several certified copies of the death certificate and an inventory of the assets. How the decedent’s assets are to be distributed and handled is determined in the initial estate administration meeting.

If no issues or problems arise, the entire estate administration process generally takes about six to eight months — up to several years.

Estate planners strongly suggest conducting an estate plan review at least every three to five years so that important decisions don’t have to be made during the very stressful time of a loved one’s waning days.

STEPHEN B. YIM, ATTORNEY AT LAW
2054 S. Beretania St., Honolulu, HI 96826
808-524-0251 | www.stephenyimestateplanning.com

We have been receiving an increased number of phone calls from our clients’ children, notifying us about the imminent death of one of their parents. The children usually call in a panic, asking if anything needs to be done before their parent passes. We do our best to assist them; however, sometimes it is just…
Smart Charitable Giving

The people of Hawai‘i are generous with public charities. On the other hand, most of us do not have money to burn. Here are some good ideas about choosing where and how to give.

♦ DO YOUR HOMEWORK. The good works that charities do often overlap and some charities are more effective than others. Websites like charitynavigator.org and charitywatch.org can help you compare established charities to find out, for example, how much of your gift will go to charitable work versus administrative and fundraising overhead. While it costs money to run a charity and it also costs money to raise money, if expenses exceed 25 percent of a charity’s revenue, you should ask why. If the charity cannot give you a good answer, you should consider giving elsewhere.

♦ DON’T SELL AN APPRECIATED ASSET TO MAKE A CASH GIFT. If you own Apple stock that you bought in 2000 for $2 per share, don’t sell it now at $200 per share to raise the cash to make a charitable gift. Although you will get a deduction for your cash gift, you will also be liable for capital gains tax on the difference between the $200 sale price of the stock and the $2 purchase price. You will have less after-tax cash to give the charity and your deduction will be limited to the amount of your gift. Instead, make a bigger gift and get a bigger deduction by giving the stock to the charity. The charity can then sell the stock without having to pay capital gains tax, and you will get a deduction for the full fair market value of the stock at the time of the gift.

♦ MAKE GIFTS FROM YOUR IRAS. If you make your loved ones the beneficiaries of your traditional IRAs after you die, they may have to pay income tax on most of what they receive. However, if you make charities your beneficiaries, there will be no income tax. So to the extent you can, name charities as beneficiaries of your retirement plans and use your non-taxable assets for making gifts to loved ones.
If you have begun taking required minimum distributions (RMDs) from your traditional IRA, you can give up to $100,000 of your annual RMD to charity. These gifts are not deductible, but you will end up paying less tax because the gifted portion of your RMD is not taxable.

As always, talk with your trusted advisors to find out how to make charitable giving a win-win for you and the charities you support.

SCOTT MAKUAKANE, Counselor at Law
Focusing exclusively on estate planning and trust law.
www.est8planning.com
808-587-8227 | maku@est8planning.com

The people of Hawai‘i are generous with public charities. On the other hand, most of us do not have money to burn. Here are some good ideas about choosing where and how to give…
Better Pay Attention to ‘the Fed’

We hear frequent references to the Federal Reserve (“the Fed”) in the news, but the way it affects our lives seems a bit cloudy. So, let’s clear the air.

The Federal Reserve, our nation’s central bank, has a fair degree of independence, but it is directly accountable to Congress. Among its primary duties, is to oversee U.S. banking and financial services industries and establish U.S. monetary policy. Here are five ways the Fed impacts us.

#1 – Sets interest rates for mortgages & loans
One of the key monetary policy functions of the Federal Reserve’s Open Market Committee is to set the Federal Funds interest rate. This is a rate charged when banks borrow and lend funds from one another. That does not directly determine what banks and other institutions will charge for consumer loans like mortgages or auto financing, but it does have an indirect impact. If the Fed is lowering or raising interest rates, a similar trend is likely to follow for other types of borrowing.

#2 – Changes in your cost of living
One of the mandates of the Federal Reserve is to try to manage the inflation rate. The level of change in the cost of living from year to year can have a major impact on your bottom line. The Fed seeks to keep the annual inflation rate at 2 percent or less. It has generally succeeded in maintaining that level in recent years. But it structures monetary policy to respond to current economic conditions in order to keep the inflation rate in check.

#3 – The employment environment
Another of the Fed’s mandates is to maintain what is referred to as “full employment,” an environment where most who are seeking work can find it. The Fed tries to accomplish this by managing monetary policy to create favorable conditions so employers can hire more workers. This mandate has to be balanced with the desire to maintain a modest rate of inflation.

#4 – Short-term investment performance
Again, the Fed does not have any direct impact on investment markets, but its monetary policy stances, including interest rate policies, are closely watched, particularly by investment professionals. Stock and bond markets can fluctuate depending on expectations of Fed actions or specific policies it implements.

#5 – Earnings on bank savings
Banks will often adjust the rates they pay for Certificates of Deposit (CDs) or interest-bearing accounts based on the Fed’s interest rate policy. Yields will improve when the Fed is raising short-term interest rates, but decline if the Fed decides to cut rates.

To determine your financial position in light of the current state of the Fed’s policies, it may make sense to sit down with a financial advisor and review your portfolio.

MICHAEL W. K. YEE, CFP
1585 Kapiolani Blvd., Ste. 1100, Honolulu, HI 96814
808-952-1222, ext. 1240 | michael.w.yee@ampf.com
Michael W. K. Yee, CFP®, CFS®, CLTC, CRPC ®, is a Private Wealth Advisor, Certified Financial Planner ™ practitioner with Ameriprise Financial Services, Inc. in Honolulu, HI. He specializes in fee-based financial planning and asset management strategies and has been in practice for 32 years. Investment advisory products and services are made available through Ameriprise Financial Services, Inc., a registered investment adviser. Ameriprise Financial Services, Inc. Member FINRA and SIPC. ©2019 Ameriprise Financial, Inc. All rights reserved.

The Federal Reserve, our nation’s central bank, has a fair degree of independence, but it is directly accountable to Congress. Among its primary duties, is to oversee U.S. banking and financial services industries and establish U.S. monetary policy. Here are five ways the Fed impacts us…