Category: Wisdoms

  • Rules for Adult Kids Returning Home

    As the COVID-19 pandemic spread across the country, parents saw a wave of adult children move back home. Pew Research recently found that 52 percent of 18- to 29-year-olds now live in a parent’s house.

    Some children may have moved back simply due to safety during the virus response or because universities switched to e-learning. Others may have returned because of financial reasons.

    As parents, it’s important to help your children find their footing, but you also don’t want to put your own financial security at risk. You can achieve this by setting boundaries and providing clear expectations for how you expect your child to contribute while they live under your roof.

    Discuss Whether They Will Pay Rent

    Will you expect them to pay rent while they are living with you? It’s important to have this discussion before they move in. Your child might assume he or she can live in your house rent-free for as long as they want. You want to ensure that everyone has the same expectations for the arrangement — before they move in.

    Before they move in, have a conversation regarding what they can afford to pay and what you require from a financial standpoint, so each of you remains on the same page.

    Find Other Ways They Can Contribute

    It’s possible that your child needs to move back because they’ve lost his or her job. If they’re under financial hardship, then it’s understandable if you don’t want to charge them rent. But that doesn’t necessarily mean you have to let them sit on the couch all day watching TV, using your kitchen as their own free grocery store.

    Instead, set ground rules for their stay. Are they  looking for a job? Do you want free rent to be contingent on them following through with job searches? Do you want them to pitch in for food costs? Will you allow them to borrow cash?

    If your adult child is not paying rent, give him or her tasks that will help save you money. Ask them to mow the lawn or paint the house in between their job searches. It will give them something to do beyond worrying about their next interview.

    Set a Timeframe

    While you may love having your child back at home — and they may enjoy it as well — set expectations regarding the length of his or her stay. Talk with your child about when they hope to move out. If it’s until they can afford a place to live by themselves, then also ask them what they need in order to feel comfortable enough to live on their own. Do they need a few months’ worth of paychecks first? Will they move as soon as they have a job? Are they saving for a down payment on a house?

    By agreeing to a plan, you’re protecting yourself in case they are thinking about an extended stay. Plus, it will help you enjoy this time you have with your child at home.

    MICHAEL W. K. YEE, CFP,® CFS,® CLTC, CRPC®
    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, Hawai‘i. He specializes in fee-based financial planning and asset management strategies, and has been in practice for 36 years. Investment products are not federally or FDIC-insured, 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 advisor.
    Ameriprise Financial Services LLC. Member FINRA and SIPC.
    © 2020 Ameriprise Financial Inc. All rights reserved.

    As the COVID-19 pandemic spread across the country, parents saw a wave of adult children move back home. Pew Research recently found that 52 percent of 18- to 29-year-olds now live in a parent’s house. Some children may have moved back simply due to safety during the virus response or because universities switched to e-learning.…

  • Trust, Talk & the Grieving Process

    It’s natural to experience grief when we lose a loved one. While we often associate grief with the death of a loved one, we can also experience it when we get divorced or when ties with a friend become severed.

    Everyone experiences grief differently. Some are able to move on, while others are unable to process their loss. This is referred to as “complicated grief” and occurs when an individual remains in a state of acute grief for a prolonged period. It can be so debilitating that professionals may refer to it as a disease.

    During complicated grief, symptoms of loss, bitterness or detachment can cause confusion or disorganized thinking, and a whirlpool of emotions. Counseling is sometimes needed to help guide the individual back to calmer waters.

    Confiding in someone you trust can be helpful in healing the pain of loss. Estate planning is all about trust and listening. Candid conversations between a grieving client and an estate attorney help the attorney understand what the client has been through.

    Listening to clients speak openly provides the attorney with a solid foundation for an estate plan. A deeper understanding of the clients’ grief also makes it possible for the attorney to serve as a resource if they need help with other life challenges.

    STEPHEN B. YIM, ATTORNEY AT LAW
    2054 S. Beretania St., Honolulu, HI 96826
    808-524-0251 | www.stephenyimestateplanning.com
    Source: www.mayoclinic.org/diseases-conditions/complicated-grief/symptoms-causes/syc-20360374

    It’s natural to experience grief when we lose a loved one. While we often associate grief with the death of a loved one, we can also experience it when we get divorced or when ties with a friend become severed. Everyone experiences grief differently. Some are able to move on, while others are unable to…

  • The Trouble With Family Secrets

    When there are secrets within a family, it has been my experience that no good has ever come from them. Now, I am not talking about secrets that a family might keep from non-family members, such as,  grandma is a witch and Uncle Joe has 12 toes, but secrets family members keep from each other.

    I have gotten many calls over the years that typically start out saying a sibling did this or that with a parent and did not tell anyone about it. Usually the “this or that” involves a large sum of money, ownership of the house, or a change in the trust or estate plan. When the family member discovers this secret, their first reaction is to accuse the sibling of financial exploitation and call my office.

    Although secrecy is often a red flag when looking for elder abuse, it alone is not evidence of  wrongdoing. Although it can be a sign that a vulnerable loved one is being taken advantage of, it can also just be a signal that open communication is lacking in the family and it is felt that secrecy is needed to spare hurt feelings.

    More than once has brother or sister accused each other of misdeeds because the parent wanted to keep peace in the home, and wasn’t honest with each child as to what they were actually getting. When they both have been told the house is going to them and this information is brought to light, finger-pointing and accusations ensue. These claims of wrongdoing eventually seem to come into my inbox and I get to peel away the layers of the truth onion to see why the situation smells bad to certain family members.

    AARP has several aids that can help families have open and honest conversations with each other about sensitive matters, such as exploring caregiving options or the distribution of wealth upon the parent’s death. Another resource that is the Kupuna Pono Program with the Mediation Center of the Pacific. Trained mediators (like myself) have experience leading conversations among family members concerning aging issues. It’s been my experience that the only secrets that should be kept among family members are those that involve surprise parties and how your wife’s new hairstyle really looks.

    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

     

    When there are secrets within a family, it has been my experience that no good has ever come from them. Now, I am not talking about secrets that a family might keep from non-family members, such as,  grandma is a witch and Uncle Joe has 12 toes, but secrets family members keep from each other.

  • What is a Trust?

    A trust is created when a person transfers “stuff” to a trustee who will manage the stuff for the benefit of one or more beneficiaries. “Stuff” includes real property — such as land and buildings — and personal property — such as bank accounts, stocks and bonds, and personal effects. The person who transfers the stuff to the trustee is called the trustmaker. Often, the trustmaker is also the trustee (or perhaps co-trustee) and the initial beneficiary of the trust. The trust agreement between the trustmaker and the trustee sets out the rules about how the trust will be run.

    Revocable & Irrevocable Trusts

    If the trust agreement says that the trustmaker can revoke it or change it, the trust is called a “revocable trust.” If the trust agreement does not allow the trustmaker to change or revoke it, it is called an “irrevocable trust.” Irrevocable trusts are used in many estate plans to enable trustmakers to make gifts but keep the recipients from having complete control over the gifted assets.

    Living & Testamentary Trusts

    A living trust is one that is created and funded (that is, stuff is transferred into it) during the trustmaker’s lifetime. It can be revocable or irrevocable, depending on how much control the trustmaker wants to maintain over the trust and its assets. A revocable trust gives the trustmaker complete control, whereas an irrevocable trust gives the trustmaker limited or no control. A testamentary trust is one that goes into effect and is funded following the trustmaker’s death because it is governed by the trustmaker’s last will and testament.

    Trusts are often the building blocks of effective estate plans. They provide simplicity, flexibility and predictability in dealing with your assets. Trusts also give you the peace of mind of knowing that you have arranged your affairs to ensure that your wishes will be carried out just the way you planned, and that future transitions (such as your incapacity or death) will be much easier on your loved ones.

    If a trust is not already part of your estate plan, talk with your trusted advisors about how a trust might benefit you and your ‘ohana.

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

    A trust is created when a person transfers “stuff” to a trustee who will manage the stuff for the benefit of one or more beneficiaries. “Stuff” includes real property — such as land and buildings — and personal property — such as bank accounts, stocks and bonds, and personal effects. The person who transfers the…

  • Is Now a Good Time to Refinance?

    Interest rates recently hit all-time lows as the Federal Reserve made cuts to mitigate the financial impacts of COVID-19. If you’re a homeowner with a monthly mortgage payment, you might be wondering if now is a good time to refinance. While a lower interest rate may yield a more affordable monthly payment, there are other factors to consider. Here are seven questions to ask yourself before making the decision to refinance:

    1) Will you qualify for a better rate?

    The best interest rates are reserved for borrowers with optimal credit. If you are one of the millions of Americans who has filed for unemployment benefits during the COVID-19 outbreak, your employment status is not included in your credit report. However, your credit score can be affected by many factors, such as if you suddenly carry more credit card debt, have missed or made late payments or have applied for new credit during this challenging time.

    2) What will your new loan cost?

    A lower interest rate and lower monthly payment do not always add up to savings in the long run. Your loan will have closing costs and fees. Factor in prepayment penalties, if applicable. Costs often vary by lender, so it may be a good idea to shop around for the best rate. Talk to your financial advisor or reference one of the many online refinance calculators to help you determine the break-even period, or how long it will take before you realize savings with a new loan.

    3) Do you plan to move in the next five years?

    The value of refinancing can be diminished when you exit a new loan before you’ve had the chance to recoup closing costs and fees.

    4) Will your new loan eliminate lender insurance?

    If your home’s market value has increased enough to grow your equity, refinancing with a conventional mortgage can potentially remove private mortgage insurance (PMI) sooner. Federal Housing Administration (FHA) loans require mortgage insurance regardless of equity.

    5) Are you trying to get out of an adjustable-rate mortgage (ARM)?

    Switching from an ARM to a fixed-rate mortgage can mean more predictable monthly payments.

    6) Are you seeking a new term length?

    A shorter-term loan may offer better rates, but it can mean a higher monthly payment. This may not be a good time to increase your monthly obligations if your income is threatened by the current situation. On the flip side, you may want lower monthly payments that come with a longer-term loan. It’s important to note you will have to make those payments for many more years, incurring greater expense and reducing your ability to save.

    7) Can you afford your current home?

    If you’re having trouble making your loan payments, refinancing is not the only way to find relief. As an alternative to refinancing, you might explore downsizing to a property with a mortgage your budget can handle.

    These uncertain times reinforce the importance of financial planning. Talk to your financial advisor for guidance on how to build equity in your financial future.

    MICHAEL W. K. YEE, CFP,® CFS,® CLTC, CRPC®
    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, Hawai‘i. He specializes in fee-based financial planning and asset management strategies, and has been in practice for 36 years. Investment products are not federally or FDIC-insured, 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. © 2020 Ameriprise Financial, Inc. All rights reserved.

    Interest rates recently hit all-time lows as the Federal Reserve made cuts to mitigate the financial impacts of COVID-19. If you’re a homeowner with a monthly mortgage payment, you might be wondering if now is a good time to refinance. While a lower interest rate may yield a more affordable monthly payment, there are other…

  • Needs Planning During a Pandemic

    I recently received a call from a concerned parent of an adult special needs child. Her son was recently diagnosed with schizophrenia, refuses to take his medication and has been living on the street. Unable to physically care for her child and experiencing a health scare of her own, she decided it was time to get “her ducks in order” and contacted our office. Her main wish is to continue to provide financially for her son’s present and future care without disrupting his governmental disability benefits. My client’s situation is not unique. According to the CDC, a total of “61 million adults in the US live with a disability;” that’s 26 percent or one in four adults.

    Life during a pandemic is difficult enough. It forces us to look at our mortality as well as the mortality of our loved ones. The good news is that for families who have a disabled child or loved one who is receiving or qualifies to receive governmental benefits, it is an opportune time to plan. The SECURE Act recently adopted considerable changes regarding Inherited Retirement Accounts or IRAs. Those who wish to leave their IRAs to a disabled family member or loved one may chose to preserve the IRA for their benefit and stretch its distributions throughout the disabled loved one’s life.

    STEPHEN B. YIM, ATTORNEY AT LAW
    2054 S. Beretania St., Honolulu, HI 96826
    808-524-0251 | www.stephenyimestateplanning.com
    For more information online about the CDC and disability, go to https://www.cdc.gov/ncbddd/disabilityandhealth/infographic-disability-impacts-all.html

    I recently received a call from a concerned parent of an adult special needs child. Her son was recently diagnosed with schizophrenia, refuses to take his medication and has been living on the street. Unable to physically care for her child and experiencing a health scare of her own, she decided it was time to…

  • Cybercrime Claims

    One of the most common problem I encounter investigating a cybercrime is that the reporting person and/or victim fail to provide any records and/or documentation to support their claim that they had been victimized — more so in cases involving online fraud.

    One of the simplest and quickest methods of documentation is printing out the webpage offer, sale or service. The URL (or webpage address) and the date and time the printout was made will usually be found at the bottom of the page.

    Another good practice is to print out any confirmation of sale, receipt of funds and delivery notices, etc. Bookmarking the webpage is also a good record-keeping method.

    Solicitations and purchases done via email should follow the same practice. Print out the emails offering the sale of items and/or services. Likewise, print emails reflecting the receipt of funds and delivery notices, etc.

    In addition, all emails involving the transaction should not be deleted, but saved in a separate folder.

    And finally, obtaining any bank or credit card statements reflecting the transactions would greatly assist in the investigation.

    Again, prevention is the key. “If it’s too good to be true…”

    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/ 

    One of the most common problem I encounter investigating a cybercrime is that the reporting person and/or victim fail to provide any records and/or documentation to support their claim that they had been victimized — more so in cases involving online fraud. One of the simplest and quickest methods of documentation is printing out the…

  • Hiring a Caregiver is Tricky

    You may be tempted to treat a caregiver as a “private contractor” in order to avoid the humbug of tax withholding and buying the right insurance policies. You would do so at your peril. The IRS and the state will take the position that the caregiver is an  employee, that you are an employer and that all of the legal obligations that attach to those labels apply to your situation.

    IRS Publication 926 gives outstanding guidance about employment issues. One of the points raised is the need to verify and document that your prospective caregiver can legally work in the US. On that subject, you can find all of the information and forms you will need on the US Citizenship and Immigration Services website (www.uscis.gov). Or, it may make sense to avoid becoming an employer by working with an agency, which will be the caregiver’s employer and will deal with all of the legalities. What you pay for this kind of service may make the extra cost a bargain. Note that even if you work with an agency that carries worker’s compensation insurance, you should still ask your personal insurance professional whether there is anything else you should do to protect yourself through your homeowner’s and umbrella policies.

    Ask your trusted advisors for guidance and check out resources. You will be glad you did.

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

    You may be tempted to treat a caregiver as a “private contractor” in order to avoid the humbug of tax withholding and buying the right insurance policies. You would do so at your peril. The IRS and the state will take the position that the caregiver is an  employee, that you are an employer and…

  • Publishers Clearing House Scams

    In the last couple of months, I have had two people come to my office because they were not millionaires yet. You see, they each had won the Publishers Clearing House sweepstakes (PCH) and had not received their monies yet.

    The first case was a gentleman named “Clyde” (not his real name) who was notified by telephone that he won $2.2 million. All he had to do was pay taxes on this amount and the prize money would follow. He was instructed to purchase gift cards and also send cash. Clyde maxed out all his credit cards to purchase the gift cards and cleaned out his life savings to mail the cash. In total, he was out $64,000. He came to my office when the credit card companies started harassing him and wanting payments from him.

    The second case involved “Mary” (again, not her name), a retired school teacher who supposedly won $5 million (and two new cars) from PCH. Over the course of a year, with almost daily phone calls from strangers representing themselves as PCH employees, she gave them over $300,000 in cash and gift card numbers. When she was brought into my office by her son, she was still of the belief that she was a legitimate winner. Unfortunately, I had to break the news: My job was to educate her that she was not.

    It should first be noted that PCH is legitimate company that was founded in 1953 to sell magazines. In 1967, the company started its sweepstakes to garner publicity and now is known worldwide for its prize giveaways. Because PCH is so recognized for giving away money, many scams have used this company’s name and reputation and fooled thousands of people into believing they won the sweepstakes.

    If you have been told you have won, verify with PCH. Do not use the telephone number or email of the person who told you that you won, but speak directly to PCH at 1-800-392-4190. They will confirm if you won or if someone is lying to you.

    Lastly, never send money to collect prize money if it is for fees or taxes. It is illegal for any legitimate lottery or sweepstakes company to demand payments for prizes before the money has been given personally to the winner.

    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

    In the last couple of months, I have had two people come to my office because they were not millionaires yet. You see, they each had won the Publishers Clearing House sweepstakes (PCH) and had not received their monies yet.

  • Will the Election Impact Markets & Investments?

    Investors are understandably wondering — and maybe even anxious — about how the US presidential election will affect the stock market. Election years often come with increased market uncertainty. And this year, COVID-19 and a fragile economy have added new dimensions to what may be a landmark US election cycle.

    Regardless of who wins in November, the election will likely play a factor in the markets. Here are a few things investors should consider:

    Dealing with uncertainty

    This year’s election season has been marked by unusual circumstances. Republican incumbent Donald Trump is running for a second term as president after a surprise victory in 2016. Former Vice President Joe Biden began the campaign season competing against 25 candidates for the Democratic presidential nomination before emerging as the party’s nominee after a rocky start.

    There are many important issues at stake, including trade, healthcare, tax policies, social justice and our relationship with China. How well the economy is doing is also a significant influence on the election outcome, especially for an incumbent or incumbent party. But that calculus suddenly became clouded by the onset of the COVID-19 pandemic. How long the virus will persist and how significant the impact on economic growth will be remains unclear at the moment.

    Even without these unusual circumstances created by the pandemic, it isn’t uncommon for the stock market to exhibit a degree of volatility in the run-up to an election. This can be particularly true in the final weeks leading up to the election and if the race is neck and neck. Investors should be prepared for circumstances where the “noise” generated by the campaign contributes to overall market fluctuations.

    It’s not just about the president

    It’s true that our president has tremendous influence in the direction our country takes. However, it is important to keep in mind that regardless of who is successful in winning the White House, there is a significant difference between proposals and policy. How much any administration can accomplish is influenced quite heavily by the makeup of the House of Representatives, Senate, local and state legislatures, federal regulators, as well as circumstances in the economy and the country at large.

    In addition to electing a president this fall, voters will also be electing 35 senators; there are now 23 Republicans and 12 Democrats. Currently, the Republican Party has a three-seat majority in the Senate. And as happens every two years, the entire House, where the Democratic party currently controls a 35-seat majority, is up for reelection.\

    Is history a guide?

    While no two election years offer the same set of economic or political circumstances, it may be instructive to take a look back to see how markets have performed in the past as a means of providing some context for the present.

    • Historically, market volatility begins to rise about 45 days ahead (about three weeks into September) before peaking one week before the election.¹
    • When control of the White House changes parties, stock market volatility tends to increase.²
    • During an election year, US stocks and bonds tend to perform better compared to the year after.³
    • Interestingly, there has been very little difference in the performance of the economy under Democratic and Republican presidents since 1977. According to recent analysis by Deutsche Bank, “The average growth rate for a Democrat president is 2.9 percent compared to 2.7 percent for a Republican president.[4] However, the economic performance during a president’s term isn’t necessarily a direct result of the actions of their administration, as presidents ultimately inherit an economy shaped by their predecessor’s actions, as well as other structural factors.

    What may be a more important consideration for investors than who is elected president are the longer-term drivers of economic growth and corporate profits, which are shaped by policy, but also other factors outside Washington.

    The impact on specific market sectors

    Although it’s speculative to try and predict the outcome of the election and all of the policy implications each party would impose, the result of the election is likely to influence key industries, such as healthcare, energy and technology.

    What this means for your finances

    Keep your long-term goals in mind. Review your portfolio diversification and risk tolerance with a financial advisor for an objective perspective on your financial situation.

    MICHAEL W. K. YEE, CFP,® CFS,® CLTC, CRPC®
    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 LLC in Honolulu, HI. He specializes in fee-based financial planning and asset management strategies and has been in practice for 36 years. 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.

    1– David Joy, Ameriprise Chief Market Strategist. Aug. 2020.
    2– Ameriprise Financial: “Committee Perspectives: U.S. Election Guide.” Aug. 2020.
    Compiled by Ameriprise Global Asset Allocation Committee.
    3– “Report: Stock Market Performance By President,” Darrow Wealth Management.
    4– Deutsche Bank Economic Analysis, 2020.

    Investors are understandably wondering — and maybe even anxious — about how the US presidential election will affect the stock market. Election years often come with increased market uncertainty. And this year, COVID-19 and a fragile economy have added new dimensions to what may be a landmark US election cycle.

  • Beware of Coronavirus Scams!

    Cybercriminals and online fraudsters are sending out phishing emails, text messages and setting up robocalls offering “discounted” coronavirus test kits, masks and even hand sanitizers — all bogus offerings — in an attempt to scam the public.

    Claiming to be medical experts, they are also advertising bogus treatments and vaccines.

    They are also creating fake websites purporting to be the Centers for Disease Control and Prevention (CDC), the World Health Organization (WHO) or even the Internal Revenue Service (IRS), and tricking unsuspecting visitors into clicking on links that will infect their devices with malware that steals financial and personal information.

    Phishing emails have also offered to expedite government relief checks.

    Here are some preventive tips on how not to be duped by these cybercriminals:

    • Beware of online requests for personal information, such as your Social Security number.
    • Check the email address or link. You can inspect a link by hovering your mouse button over the URL to see where it leads.
    • Do not click on links in emails or texts.
    • Watch for spelling and punctuation mistakes, and bad grammar.
    • Beware of contact tracing scams. Do not provide personal information or click on any links from an unverified source.
    • Avoid emails that insist you act now. Phishing emails often try to create a sense of urgency or demand immediate action.
    • Do not download, view or open any email attachments sent to you.
    • Do not reply to the email, text message or robocall.
    • Ignore online offers for vaccinations. They do not exist yet.
    • Be wary of ads for test kits. Most test kits being advertised have not been approved by the FDA and are not accurate.

    If you feel you have been victimized by a scam, contact your financial institution or credit card company, and report it to your local law enforcement agency.

    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/

    It may be hard to believe, but even during the coronavirus pandemic, criminals are targeting and preying upon the public via phony websites, bogus emails and text messaging, and by phone.

  • Timeshares Pt. 3: Scam or Investment?

    {Play}As I indicated in the last issue, under Hawaii Revised Statute §514E-9, timeshare companies are required to give clients all information regarding the unit for purchase, including all the fees attributed to that unit that are due immediately and the “hidden” fees that require seemingly endless future payments — the monthly mortgage, property tax, maintenance fees and interest.

    Don’t Succumb to Pressure

    Because timeshare agents usually don’t verbally deliver the “caveats” of the transaction to the clients, it is with utmost importance that prospective timeshare buyers read through those contracts  thoroughly. If the salesman tries to subtly pressure you into just signing the paperwork and indicates you can change your mind later, stand up and walk away.

    There have been local stories of people feeling trapped in the sales pitches, having their intelligence questioned, having their emotions played upon and being made to feel guilty for “wasting” the salesman’s time.

    How to Exit From Ownership

    If you have actually bought into a timeshare and you can no longer afford it, options include renting or selling, going into foreclosure, or hoping that the hotel/resort can take back the deed of the unit if the mortgage agreement will allow it.

    These options in exiting a timeshare, however, are fraught with pitfalls. It’s important to verify the legitimacy of the companies that approach for the purpose of resale. There are also signs to be wary of, including huge initial fees, overseas bank account addresses for wire transfers and asking for personal or financial information. Reputable companies will use written contracts specifically outlining the services to be provided. These contracts should include the services the resellers will perform, outlined fees with deadlines, the length or term of the contract to sell the timeshare, and it should note the person responsible or documenting and closing the sale.

    A timeshare is not a bad thing in itself. It is the lack of understanding of the industry and contracts that lead people to become victims of the system. So, read and understand the details of everything you sign — or prepare for unforeseen and unpleasant consequences.

    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

    As I indicated in the last issue, under Hawaii Revised Statute §514E-9, timeshare companies are required to give clients all information regarding the unit for purchase, including all the fees attributed to that unit that are due immediately and the “hidden” fees that require seemingly endless future payments — the monthly mortgage, property tax, maintenance…