Category: Wisdoms

  • Tis the Season for Holiday Scams

    The holiday season is a happy time celebrated with food, family and friends. Unfortunately, it’s also a time for fraud at the hands of identity thieves, computer hackers and deceptive sellers. Hawai‘i’s Better Business Bureau (BBB) offers advice on how to recognize and avoid common holiday scams.

    Online Shopping Scams

    Some Web sites use tantalizingly low prices to lure in victims. If the price seems too good to be true, it probably is. Also, scammers often request wire payment through Western Union or MoneyGram because the money cannot be easily tracked or retrieved. Never wire money to strangers and always use a credit card to pay for items online. If the site or seller is fraudulent, you can dispute the charge with your credit card company.

    Identity Theft at the Mall

    Don’t let yourself be bogged down with packages or so rushed that you lose track of your wallet. Know where your credit and debit cards are at all times, and only carry the ones you’re going to use. Also, cover the keypad when entering your personal identification number while purchasing items or when getting money from the automated teller machine (ATM).

    Phishing E-mails

    Phishing e-mails fraudulently represent a trustworthy source. It is a way for ID thieves to get your personal information, or for hackers to install malicious software on your computer. Beware of unsolicited e-mail from unfamiliar people and companies. Don’t click on any links or open any attachments the e-mail contains. Always be sure your computer has current antivirus software and security patches installed.

    Charitable Giving Scams

    Beware of tear-jerking appeals that tell you little about what the charity or its cause. Ask questions about how your donation will be used. For example, if a charity claims to help the homeless, ask how and where this is taking place. Also, don’t succumb to pressure to give money on the spot. A charity that needs your money today will welcome it just as much tomorrow … after you’ve confirmed that it is legitimate.

    Have a happy, scam-free holiday!

    Bonnie Horibata is vice-president of Hawai‘i’s Better Business Bureau. BBB provides objective advice, business and charity reports, and information about topics affecting marketplace trust at bbb.org.

    The holiday season is a happy time celebrated with food, family and friends. Unfortunately, it’s also a time for fraud at the hands of identity thieves, computer hackers and deceptive sellers. Hawai‘i’s Better Business Bureau (BBB) offers advice on how to recognize and avoid common holiday scams.

  • The Secret of Happy Holidays: Spending with Discretion

    As we enter the third holiday season after the onset of the “Great Recession,” American consumers may be battling penny-pinching fatigue. We’ve scrimped. We’ve saved. When do we get to reward ourselves?

    Sure, it would be fun to celebrate the holidays with a big spending binge, but if there’s one lesson to be learned from the recession, it’s the importance of fiscal prudence. Don’t let the impulse to buy your way to happy holidays overrule your good judgment. Here are some tips for keeping your holiday spending within reason and the limits of your wallet.

    Step back from the hype. Retailers want you to get caught up in the holiday spirit and spend with abandon. Instead, take a more mindful approach to holiday shopping and consciously commit to responsible spending. Reinforce your conviction by imagining how good it will feel to enter January with money in the bank rather than paying off credit card bills.

    Make a firm budget. Think realistically about how much you have available to spend. If you’re tempted to spend lavishly, force yourself to imagine the painful consequences of overextending yourself. Keep track of your purchases and monitor your progress to avoid getting carried away.

    Narrow your list. If you’ve fallen into a trap of “gift-sprawl,” make this the year to pull in the reins. Prioritize your list and give according to your ability.

    Start early. Last-minute shoppers tend to spend more on impulsive purchases. Spreading your holiday shopping across 12 months is easier on your monthly budget. It’s also easier to find deals in the off season when retailers are anxious to move last year’s merchandise and make way for the new.

    Shop on a cash-only basis. When possible, pay with cash rather than checks, debit cards or credit cards. The tangible aspect of spending cash allows you to see how quickly money goes and can help you stick to your budget.

    Think outside the store. Save money by giving homemade gifts rather than store-bought items. Encourage your kids to skip the malls and give of themselves. Grandparents are likely to appreciate a child’s artwork or helping hands far more than a scented candle.

    Rethink excess. Does everyone in your family really need a dozen presents under the tree? Some large families and groups of friends choose to limit overall spending by drawing names so that each person receives one nice gift rather than buying for the entire gang.

    Put people first. Our consumer society encourages us to get carried away with material things. Yet the most meaningful part of the holidays is spending time with the people we love and sharing our abundance with those who are less fortunate. It doesn’t cost a thing to step back from the shopping rat race and savor the moments.

    Michael W. Yee is a senior financial advisor with Michael W. Yee, a financial advisory practice of Ameriprise Financial Services, Inc. As a financial advisor, Yee provides customized financial advice that is anchored in a solid understanding of client needs and expectations, and provided in a one-on-one relationship with his clients. For more information, please contact Michael W.Yee at (808) 952-1240. Advisor is licensed/registered to do business with U.S. residents only in the states of Hawaii. Brokerage, investment and financial advisory services are made available through Ameriprise Financial Services, Inc. Member FINRA and SIPC. Some products and services may not be available in all jurisdictions or to all clients. © 2010 Ameriprise Financial, Inc. All rights reserved.

    As we enter the third holiday season after the onset of the “Great Recession,” American consumers may be battling penny-pinching fatigue. We’ve scrimped. We’ve saved. When do we get to reward ourselves? Sure, it would be fun to celebrate the holidays with a big spending binge, but if there’s one lesson to be learned from…

  • Do You Really Want to be a Trustee?

    You were named as successor Trustee of a trust created by a family member or friend, and that person just died. What now? Before you rush in, think about what awaits.

    Until you sign on the dotted line, the fact that you have been named as a trustee does not obligate you to accept that position. Decide carefully, because once you accept the job, you accept all that goes with it. It is a position of great honor, and it involves great responsibility.

    A trustee is what the law calls a fiduciary. A fiduciary is a person who is responsible for taking care of something that belongs to someone else. Under the law, fiduciaries are answerable to the beneficiaries (and possibly the Court) for the things they do—or fail to do.

    A trust is a legal relationship that results when a person (who we’ll call the trustmaker) makes a written agreement with a trustee to handle stuff for the benefit of beneficiaries. (“Stuff” is what the author calls everything a person owns. It could include real property—land and buildings— and personal property—everything else). Your primary duty as a trustee is to read, understand, and faithfully follow the terms of the trust agreement.

    When the trust agreement is made, the trustmaker transfers stuff to the trustee. The trustee actually becomes the legal owner of the stuff. However, the beneficiaries are the ones who are supposed to benefit from the stuff. Chances are, you will hear from them if they are not receiving the benefits they expect.

    The “dark side” of serving as a trustee is that you can be held personally liable in the event that you do something you shouldn’t have, or you fail to do something you should have, and the trust is harmed as a result. Even if you acted with a pure heart and noble intentions, you could have to reach into your own wallet to restore any losses to the trust.

    Before you rush into the job of trustee, be sure to determine whether you can devote adequate time and attention to the job, be armed with a clear understanding of the trust agreement and your duties, and have a team of legal, accounting, financial, and other advisors at your side to help you do your best by the beneficiaries.

    SCOTT MAKUAKANE is a lawyer whose practice has emphasized estate planning and trust law since 1983. He hosts Est8Planning Essentials, a weekly TV talk show which airs on KWHE (Oceanic channel 11) at 8:30 p.m. on Sunday evenings. For more information about Scott and his law firm, Est8Planning Counsel LLLC, check out www.est8planning.com

    You were named as successor Trustee of a trust created by a family member or friend, and that person just died. What now? Before you rush in, think about what awaits. Until you sign on the dotted line, the fact that you have been named as a trustee does not obligate you to accept that…

  • Decision Time About Benefits

    One of the rites of fall for most employees is the opportunity to review and revise their benefit options for the next year (the next benefits year could start in January or sooner). This is often referred to as the “open enrollment” period. Typically, all employees of a company or organization can make adjustments to their benefit options at this time.

    Although the opportunity is there to make changes, many employees do little more than confirm the benefits they already have in place. Failure to act during the open enrollment period may represent a missed opportunity. For today’s worker, retirement plans, health care coverage and other important benefits represent a significant piece of overall compensation. More effective management of the benefits available to you can, in effect, represent a pay raise.

    Changes in the law that impact your benefits:

    The health care reform law that passed in March includes several changes that will begin to take effect with your employer’s new benefit year (after September 23, 2010). The biggest that impact employee benefits are:

    • Dependent health insurance coverage – parents with adult children no longer in school can now include them as part of their dependent care coverage up to the child’s 26th birthday. To qualify, children must not have access to coverage through another employer (either their own or their spouse’s workplace).
    • Flexible Spending Accounts (FSAs) — FSAs allow individuals to save pre-tax dollars in an account designed to reimburse them for out-of-pocket medical expenses. Beginning in 2011, purchases of overthe-counter medications will no longer qualify for reimbursement from an FSA, except in cases where a physician prescribes them. If you defer income into an FSA, you should consider what is an appropriate amount given the new limitations for over-the-counter medications. It is also a good time to begin preparing for a future change to FSAs. Beginning in 2013, the maximum that can be set aside in an FSA will be limited to $2,500/year. You may want to accelerate spending for costly procedures (such as dental or orthodontic work) in advance of this change. Accurate planning is critical with FSAs, because any money leftover at the end of the plan year is lost.

    Given the important role that benefits play in your overall financial picture, the decisions you make should not occur in a vacuum. Your financial advisor can help assess what changes to your benefits might be advantageous for your overall financial position. An advisor can also provide perspective on how to plan for your long-term goals as they relate to your workplace compensation package.

    Michael W. K. Yee, CFP®, CFS, CRPC® Senior Financial Advisor Ameriprise Financial, Inc. 1585 Kapiolani Blvd., Suite 1100 Honolulu, HI 96814, Tel: 808-952-1222 ext 1240 “This communication is published in the United States for residents of Hawaii only; and this advisor is licensed only in the state of Hawaii.” Brokerage, investment and financial advisory services are made available through Ameriprise Financial Services, Inc. Member FINRA and SIPC. Some products and services may not be available in all jurisdictions or to all clients.

    One of the rites of fall for most employees is the opportunity to review and revise their benefit options for the next year (the next benefits year could start in January or sooner). This is often referred to as the “open enrollment” period. Typically, all employees of a company or organization can make adjustments to…

  • Who Gets My Stuff?

    You may have heard the old joke, “where there’s a will … I want to be in it.” That may be true, but is estate planning really all about “who gets my stuff?” Who gets your stuff is important, but when you sift through the reasons for doing estate planning, you may find that identifying who gets your stuff takes a distant back seat to far more important considerations.

    The primary concern most of us have about our estates is figuring out how to stay in control. Does it really matter who gets your stuff if you don’t get to enjoy it during your lifetime? So the foundation of your estate plan should be making sure you are in control of your stuff for as long as you are alive and well, and so your hand-picked decision makers will step in if you are unable to manage your stuff yourself. Choosing your successor fiduciaries is as important as any decision you will make about your estate plan.

    Part of staying in control of your stuff involves protecting it from creditors, predators and plain old bad luck. Think of your estate plan as a castle. Imagine a large stone enclosure surrounded by a moat. In the old days, the moat would be stocked with alligators to discourage anyone from approaching the walls. With your present-day estate plan, you can stock the moat with a different kind of gator: litigators — attorneys paid for with insurance — to protect you from people who would like your stuff to be their stuff. Having adequate liability insurance is a critical element of your estate plan.

    The walls of your castle represent various legal structures you can put in place to protect your home, business, rental properties and other assets. The legal structures might include trusts, limited liability companies, corporations, limited partnerships or a combination of entities. You can also consider using a special kind of ownership with your spouse called tenancy by the entirety to protect your stuff from claims against one spouse, and to make it so that both spouses must agree to any mortgage, sale, or other transfer of the tenancy by the entirety property.

    Ultimately, you will want your estate plan to assure that your stuff goes to whom you want, when you want, the way you want, with the lowest overall cost, delay and loss of privacy. You may want to put special restrictions on a gift to one beneficiary without imposing the same restrictions on your other beneficiaries. You might have special assets or special situations (including a special needs loved one) that require careful planning. The only way to navigate the alternatives is with the help of experienced counsel who can educate you as to the available options and help you pick the ones that are right for you and your loved ones. Good counsel can help you build the castle that is just right for your situation.

    Thinking of your estate plan as your castle helps you to zero in on your true values and objectives when it comes to making arrangements with your assets that will put you and your loved ones in the best possible position when something bad happens in the future.

    SCOTT MAKUAKANE is a lawyer whose practice emphasizes estate planning and trust law. He is a graduate of Ka‘u High School, Duke University, and the University of Hawaii School of Law. Scott has practiced estate planning law since 1983. He is the principal of Est8Planning Counsel LLLC, a 6-lawyer firm with offices in Honolulu, Kihei (Maui) and Kalaheo (Kauai). Scott has chaired the Elder Law and the Probate & Estate Planning Sections of the Hawaii State Bar Association, has served as President of the Financial Planning Association of Hawaii, President of the Board of Trustees of the Foundation of the Rotary Club of Honolulu, and President of the Christian Legal Society of Hawaii

    You may have heard the old joke, “where there’s a will … I want to be in it.” That may be true, but is estate planning really all about “who gets my stuff?” Who gets your stuff is important, but when you sift through the reasons for doing estate planning, you may find that identifying…

  • Retirement Planning in Stages

    If you are closing in on retirement, planning for the day you leave the workforce is probably at the top of your mind. But retirement planning is critical at any age. It’s never too early to begin putting a retirement savings strategy in place.

    Here are suggestions on how to plan for retirement based on the amount of time you have left to save and invest for your ultimate financial goal:

    Stage 1 — Retirement is 10–20 or more years away

    Don’t be fooled by the time-frame — even if retirement is 30 or 40 years away, you should think about putting a savings plan in place. If you are employed and a workplace retirement plan is available to you, it makes sense to start saving there. This is especially true if your employer makes matching contributions. Many younger people qualify, from an income standpoint, to make Roth IRA contributions as well.

    From an investment perspective, take a long-term view. You should be in a position to ride out short-term market swings and maintain at least a moderately aggressive mix of investments in your retirement portfolio, seeking the greatest long-term return. The biggest advantage you have in your favor is time. The longer you can let your money work for you, the greater the opportunity to accumulate notable wealth from the dollars you’ve saved.

    Stage 2 — The decade leading up to retirement

    For many people, the final years before retirement are the peak income earning years. This also may be the time when financial commitments for goals such as paying for a child’s education are behind you. It is important to make large contributions to your retirement savings plans — through work, into an IRA or using other vehicles such as tax-deferred annuities. The emphasis now is to do all you can to prepare for the day when you will need to depend on your retirement savings to meet your lifestyle goals.

    Note that those who are 50 or older are allowed to make what are referred to as “catch-up” contributions — additional sums above standard contribution limits that exist for workplace savings plans or IRAs. Take advantage of this special opportunity to maximize your savings.

    Make sure you are prepared for unexpected events by having appropriate levels of insurance in place. Start thinking seriously about what age you plan to retire, and how other sources of income, such as Social Security or a company pension, will be affected by the timing of your retirement.

    Stage 3 — Starting retirement

    As you enter retirement, a lot of changes may occur. You need to determine how to generate current income from your existing savings while still trying to keep your money growing to meet your needs well into the future, when the cost of living is likely to be higher. You want to protect your assets from market volatility, but still be an active investor.

    There are a number of other key issues to deal with as retirement begins, including:

    • Applying for Social Security — the longer you delay taking Social Security (up to age 70), the larger your monthly benefit will be.
    • Applying for Medicare — you need to do this when you reach age 65, whether or not you are taking Social Security. Also, to help cover expenses not paid for by Medicare, you will need a supplemental insurance policy.
    • Determining other sources of income — you need to arrange for payments from a company retirement plan, and determine how you will draw income from your own savings, if you need to.
    • Managing taxes — you want to take steps to help reduce the tax impact on any sources of income you receive.

    Looking at retirement planning at three different stages of life can make it easier for you to keep a focus on achieving your ultimate financial goal. Consult a financial advisor to make sure you’re taking the right steps at the right time.

    Michael W. K. Yee, CFP®, CFS, CRPC® Senior Financial Advisor Ameriprise Financial, Inc., 1585 Kapiolani Blvd., Ste. 1100, Honolulu, HI 96814, Tel: 808-952-1222 ext 1240

    This communication is published in the United States for residents of Hawaii only; and this advisor is licensed only in the state of Hawaii.” Ameriprise Financial does not provide tax or legal advice. Consult your tax advisor or attorney. Brokerage, investment and financial advisory services are made available through Ameriprise Financial Services, Inc. Member FINRA and SIPC. Some products and services may not be available in all jurisdictions or to all clients. © 2010 Ameriprise Financial, Inc. All rights reserved

    As you enter retirement, a lot of changes may occur. You need to determine how to generate current income from your existing savings while still trying to keep your money growing to meet your needs well into the future, when the cost of living is likely to be higher. You want to protect your assets…

  • Retirement: Yesterday, Today and Tomorrow

    Planning for the Unknown

    Think about those planning retirement in 1991 —the year the World Wide Web (www.) was introduced. There was no Internet service in homes, few people had cell phones and many considered cable TV and health club memberships luxuries. Now, 20 years later, as those people prepare to retire, these items alone can take a considerable bite out of their budgets. Add escalating health care, gas and oil prices to the mix and the nest egg that seemed adequate may now fall short. We’ve also seen medical advancements over the past two decades that have allowed Americans to live longer, more active lives. While this is good news, it will also put additional strain on retirement budgets.Those planning retirement 20 years ago were also unaware of the realities facing Social Security today. It was an expectation that the program would fund a portion of most retirements. However, with the Congressional Budget Office reporting in January of 2011 that the program will run a $547 billion deficit over the next 10 years, Social Security’s future is uncertain.

    Preparing for the Future

    If we only could look into a crystal ball and see the future, planning for retirement in 20 or 30 years would be much easier. Unfortunately, we don’t have that luxury. Here’s what we can do:

    • Plan for new technologies. Odds are, progress will come with a price tag. Plan dollars in your retirement budget for items that will make the world operate faster and more efficiently.
    • Plan to live a long time. There is a good chance that you and your partner will live longer lives than the generation before you. With life expectancies on the rise, most financial advisors now recommend that clients plan for a 30-year retirement.
    • Plan for inflation. While increases in the cost of living have been modest for the past several years, that trend will likely end soon. Experts predict that an inflationary period may follow in an economic cycle like we are currently experiencing.
    • Plan to live without Social Security. With the government funded program spending more on benefits than it receives in revenue, its demise is almost certain unless the program is revamped. Planning retirement without Social Security will take the uncertainty out of your future.

    Taking matters into your own hands

    Having realistic expectations about future retirement income needs is the first step in securing your future. The next step is to take matters into your own hands and start saving for the day when work becomes optional. If the idea seems daunting, you don’t have to do it alone. Your financial advisor can help you develop a plan to reach your goals in retirement, and feel more confident along the way.
    Try to close your eyes and imagine what realities we’ll face 20 or 30 years from now. It’s fun to dream, but it’s also possible to turn those dreams into a realistic plan for the future if you start now.

    For more information, please contact Michael W. Yee at (808) 952-1240.

    It’s safe to say that your retirement will bear little resemblance to that of your grandparents—and even your parents. The world has changed so much in the past 20 years that even the savviest prognosticators couldn’t have predicted all changes in society and technology that have transformed our daily lives. We now know there is…

  • Sneaky Scams

    Work-at-home and make $500 dollars a day, lose 30 lbs. in one week, and the secrets of becoming financially secure for the price of shipping and handling all “risk free.”

    Hawai‘i’s Better Business Bureau (BBB) warns against offers that claim a “risk free” trial but takes your payment information up front. Many consumers allege that after providing credit card or banking information that they are bombarded with fees and other charges before the free trial is over. When attempts are made to contact the company to cancel the trial; phone calls, letters and emails are ignored and the consumer is facing charges totaling hundreds if not thousands of dollars.

    While there are offers that are absolutely free, with no cost or obligation, many of them have stipulations to which you need to pay attention. Hawai‘i’s BBB recommends that you:

    • Read all stipulations and fine print carefully
    • Make notes if you need to cancel within a certain amount of time
    • Write down the offer and save information like websites, phone numbers and other contact information you have for that offer and keep it near your computer or write it on a calendar.

    Hopefully, by doing your due diligence; there will be no unpleasant surprises when you receive your financial statements.

    For more information about topics affecting marketplace trust, visit www.bbb.org. {Play}

    Work-at-home and make $500 dollars a day, lose 30 lbs. in one week, and the secrets of becoming financially secure for the price of shipping and handling all “risk free.” Hawai‘i’s Better Business Bureau (BBB) warns against offers that claim a “risk free” trial but takes your payment information up front. Many consumers allege that…

  • Is a Bargain Estate Plan Really a Bargain?

    The attorney’s ad tells you that you can get a “comprehensive estate plan” for $800. Does that sound too good to be true? It may be. Before you rush in, here are some questions to ask. If you get positive answers to every question, then maybe you have a real bargain on your hands.

    1. Will the attorney (not a secretary or paralegal) sit down with you for as long as it takes to get a thorough understanding of your goals, and to educate you about alternative approaches? Most attorneys start to charge by the hour after the documents are signed. Find out how the attorney will charge if you have questions after your estate plan is established.

    2. Once you decide on a plan, what will be included? Your plan should probably include one or more trust agreements:
    • a pour-over will (for each spouse, if you are planning as a couple)
    • durable power(s) of attorney
    • advance health-care directive(s)
    • authorization(s) for your health providers to talk with your decision-makers and family members/loved ones
    • documents to transfer your assets into your trust(s): This last point is crucial. Your estate won’t work unless title to each of your assets is reviewed and transferred as appropriate.

    3. Is the attorney experienced in estate planning (not every attorney is good at every area of law), and does he or she have a good reputation? Visit www.martindale.com to find out how an attorney is regarded by his or her peers.

    4. Will you meet with a paralegal or an attorney when it comes time to sign your documents? You have the right to legal counsel at that time, which only a licensed attorney can give you.

    5. Are all costs included in the fee? Don’t be surprised by “add ons” for such things as recording fees, notary fees and photocopies.

    6. Will your estate plan include provisions to address the possibility of someone being disabled or incapacitated? And, will the attorney’s law firm be there to help when someone dies or becomes incapacitated?

    7. If you need to go to hospital locally or while traveling, will you have immediate access to your advance directive?

    8. Does the attorney have a program to make sure that your estate plan will be kept current? If not, it will be deficient within a year or two and it may do you and your loved ones more harm than good. One thing you can be sure of is that things will change: the law, your assets, your health, and maybe even your decision makers.

    9. Will working with this attorney give you the peace of mind of knowing you have done the best you can do by yourself and your loved ones? Too many estate plans fail because of the client’s lack of understanding, implementation (such as by making sure that assets that should be transferred into a revocable trust are actually transferred) and by lack of updating. There is no point in investing in an estate plan that you are not confident will work when the inevitable or unexpected happens, such as death, incapacity, divorce, or other events that will rob your loved ones of their inheritance.

    The attorney’s ad tells you that you can get a “comprehensive estate plan” for $800. Does that sound too good to be true? It may be. Before you rush in, here are some questions to ask. If you get positive answers to every question, then maybe you have a real bargain on your hands.

  • How to Avoid Charity Fraud

    It may be hard to believe, but during natural disasters such as hurricanes and earthquakes — and even the current COVID-19 pandemic — unscrupulous scammers set up fraudulent fundraising operations to take advantage of Good Samaritans who want to help.

    Charity fraud is committed when a perpetrator creates a bogus fundraising operation, aiming to take advantage of our sympathies, goodwill and generosity. Charity fraud may also occur when a legitimate charity represents that funds will be used for one particular purpose, but the money is used for other purposes. There are many worthy causes, so don’t let the possibility of fraud dissuade you from donating. Here are tips to help ensure your donations are put to good use.

    • Ask how your donation will be used. Make the caller be specific. If the answer is vague, be wary.
    • Check registration. Every charity that solicits contribution in Hawai‘i must register with the Tax and Charities Division of the Department of the Attorney General. Search the AG registered charities database at www.ag.hawaii.gov/tax.
    • Check the IRS website EO Select Check at www.irs.gov/charities-&-non-profits/exempt-organizations-select-check. Type in the charity name to see if its federal tax standing is valid.
    • You may also check other charity watchdogs, such as Charity Watch (www.charitywatch.org), Better the Business Bureau’s Wise Giving Alliance (www.give.org), Charity Navigator (www.charitynavigator.org) or GuideStar www.guidestar.org).An internet search is also advised.
    • Make sure you understand which organization is requesting your money. Some scammers use names that sound similar to legitimate charities.
    • Ask what percentage of your donation goes toward admini {Play}strative costs versus the program itself. The acceptable percentage is up to you. To check the charity’s financial reports, go to www.ag.hawaii.gov/tax.
    • Do not pay over the phone and scrutinize written material sent to you.
    • Pay by check or credit card; never cash.
    • Note that scammers can change their caller ID to make it appear as a local number.
    • Call the organization to verify the caller’s name and request. Despite these safeguards, if you feel that you have been the victim of a scam:
    • Call 9-1-1.
    • Call the Department of the Attorney General, Tax and Charities Division, at 808-586-1480 or email ATGCharities@hawaii.gov.
    • Call the Federal Bureau of Investigation at 808-566-4300.
    • File a report on the Federal Trade Commission website: www.ftc.gov/complaint.

    Follow these tips to help ensure your money is going to a worthwhile program.

    STATE OF HAWAI‘I DEPARTMENT OF THE ATTORNEY GENERAL, TAX AND CHARITIES DIVISION
    425 Queen St., Honolulu, HI 96813
    808-586-1480 | ATGCharities@hawaii.gov
    www.ag.ehawaii.gov

    It may be hard to believe, but during natural disasters such as hurricanes and earthquakes — and even the current COVID-19 pandemic — unscrupulous scammers set up fraudulent fundraising operations to take advantage of Good Samaritans who want to help.

  • Timeshares Pt. 2: Scam or Investment?

    It’s not uncommon to see advertisements promoting timeshares, as well as promotions for timeshare cancellation programs. The contradictory nature of these ads begs certain questions:

    What is a timeshare?

    Timeshares grant percentage ownership of a vacation unit for periods of time during the year. The ownership is shared with other clients who use the unit. Another way to stake an interest in a timeshare property is through the “lease” option, where the developer holds the title to the deed and the owner holds a leased interest in the property.

    How does it work?

    The way that a timeshare is sold in promotional campaigns makes it seem like a great investment. They have nice kiosks at Ala Moana Center and various exhibition halls. There are promises of cheaper vacations along with graphs seemingly showing a cost analysis of how it pays for itself and will only appreciate in value. Realize, however, that all the caveats, fees and associated, ongoing, allowable fee increase percentages will be in the middle of the dense, ironclad contract. By not mentioning these added costs with the same enthusiasm as they do the great views, the message to any prospective consumer is that this investment is doable and affordable.

    Why is there a market for timeshare cancellation programs?

    It is important to remember that there is no federal body of law or agency regulating the timeshare industry. The rule of law with regard to timeshares varies upon the location where a particular timeshare is purchased. Therefore, it cannot be stressed enough that those interested in purchasing a timeshare need to study and completely understand the sales contract before it is signed. The contract should state the withdrawal period of the purchase.

    In Hawai’i, this period is seven days. Getting out of a timeshare after the rescission period has passed can be extremely difficult and payment will still be required. However, if it is suggested that you stop making payments for the timeshare, it is important to know this will limit potential timeshare exit options.

    In the next issue, we will explore options for exiting your timeshare.

    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

    It’s not uncommon to see advertisements promoting timeshares, as well as promotions for timeshare cancellation programs. The contradictory nature of these ads begs certain questions:..

  • Meaningful Estate Planning

    As with many issues, to those who know, no explanation is necessary. To those who don’t know, no explanation is sufficient.

    In medicine, there is cure and care; in finance, there is worth and value. In estate planning, there is wealth and meaning. Most people see the estate planner’s role as writing a document that transfers wealth at death. Just as significant is our role to communicate our client’s meaning clearly. This meaning is the foundation for estate planning.

    The vast majority of estate plan failures occur because there was not a clear transfer of meaning. Clients who know that meaning serves as the foundation of the plan need no explanation; but there is no sufficient explanation for those who view the plan merely as transferring of property. And that is OK, if that is truly what they want.

    Clients sometimes think that they start estate planning when they see the lawyer. But the estate planning process starts long before that as each person begins to fashion a life of meaning and accumulate wealth. The result of one’s life is revealed at death. If one dies well, they lived well, with meaning, and passed meaning on as the underlying foundation for wealth. This challenging time offers an opportunity for us to choose what matters to us — what is meaningful; what is not.

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

    In medicine, there is cure and care; in finance, there is worth and value. In estate planning, there is wealth and meaning. Most people see the estate planner’s role as writing a document that transfers wealth at death. Just as significant is our role to communicate our client’s meaning clearly. This meaning is the foundation…