Category: Wisdoms

  • 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…

  • Preparing for Death… Now

    If nothing else, recent events have brought us face-to-face with mortality. Although none of us knows when death will overtake us or a loved one, we know that someday it is going to do exactly that. We can deny the inevitable, or we can prepare for it. By preparing for death, we can make that transition much easier on ourselves and our loved ones.

    Talk with your family members about what you want done with your body after you pass, and find out what their wishes are for theirs. Keep notes of those conversations, since “the dullest pencil is sharper than the sharpest memory.”

    If you have specific wishes about who will be in charge of your funeral arrangements and what will be done, you can put these directives into a legally enforceable document. As long as the document is notarized, your wishes are lawful and your estate can pay the bill, your instructions will be carried out. Most estate planning attorneys can advise you about preparing your written “Directions for Disposition of Remains.” Let your loved ones know about your directions and keep a copy with your estate planning documents.

    Review your estate planning documents to make sure they reflect your current wishes. Your Advance Health-Care Directive sets out who can make what kinds of medical decisions (including end-of-life decisions) for you if you cannot speak for yourself, so it is particularly valuable for your peace of mind and your family’s harmony. Having a clear line of authority and clear instructions can alleviate family stress and conflict.

    You also need to make sure that the documents that dispose of your assets are clear and state your precise wishes. If there is a conflict between your documents and the words you say to your loved ones, the documents will control what happens. So it is important for you to understand what your documents say and update them if your wishes have changed.

    Doing these things can be uncomfortable, but they can also go a long way toward giving you peace of mind and helping your loved ones move forward in harmony and with sweet memories of you and your life.

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

    If nothing else, recent events have brought us face-to-face with mortality. Although none of us knows when death will overtake us or a loved one, we know that someday it is going to do exactly that. We can deny the inevitable, or we can prepare for it. By preparing for death, we can make that…

  • COVID-19 and The Market

    Historic market volatility has washed over the globe in recent weeks. The spread of COVID-19 (the disease caused by coronavirus) has precipitated a record drop in the stock market and a sharp plunge in bond yields, sending the U.S. into its first bear market in over a decade. People around the world are facing a health crisis that’s driving an economic crisis, which are leading to high levels of anxiety for families and individuals regarding their well-being and financial situation. Unfortunately, it’s too soon to tell just how long this environment will last. So, what can you do to cope with market volatility in the meantime? And what can we learn from past global pandemics?

    Virus Outbreaks and Stock Market Performance

    There is no doubt that this pandemic is different and has caused a larger dislocation than past virus outbreaks. However, it’s still encouraging to note how financial markets have historically rallied following major health crises. The S&P 500® Index reveals that markets have generally delivered positive returns in the six to 12 months following the peak of a virus outbreak.

    This isn’t to say that investors should stick their heads in the sand and pretend the downturn isn’t happening — this is a very serious and difficult situation. Eventually though, markets should return to some level of normal and slowly, the economy will come back to life. Of course, the past is no guarantee of future results, but historically, even the worst markets have been temporary dips in a general march higher for stocks.

    What you can do during this time of volatility:

    ■ Remember the power of diversification:
    Instead of selling your stocks in an attempt to cut losses, review your portfolio to see if it is properly balanced between stocks, bonds and cash that align with your goals, time horizon and ability to manage risk. While a diversified portfolio can’t guarantee profits or protect against all losses, it can greatly reduce the impact of volatility.

    ■ Stay focused on your long-term goals:
    Remember, your investment strategy is based on your goals, not headlines. While it’s important to be aware of the news related to COVID-19, particularly from a health perspective, don’t let your emotions affect your investing. Keep your  portfolio on a steady course. Volatile periods in the market can create good opportunities to either invest more or to adjust your portfolio. Ensure that any investment decisions you make are in line with your long-term interests and financial objectives.

    ■ Revisit your views on risk:
    A significant market downturn serves to remind you that investing involves risk. Market swings provide an opportunity to reassess your portfolio’s risk level and determine whether that amount is appropriate for your circumstances. The level of comfort (or discomfort) you feel when the market fluctuates substantially is a good way to assess whether your portfolio reflects your current risk profile.

    ■ Meet with a financial professional:
    If you are concerned about the recent performance of the markets, contact your financial advisor. Together, you can talk about your financial goals for the future and what steps you can take next to start on the path to achieving them.

    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, Hawai‘i. He specializes in fee-based financial planning and asset management strategies and has been in practice for 35 years. Investment advisory products and services are made available through Ameriprise

    Financial Services Inc., a registered investment advisor.
    Ameriprise Financial Services Inc. Member FINRA and SIPC.
    © 2020 Ameriprise Financial Inc. All rights reserved.

    Historic market volatility has washed over the globe in recent weeks. The spread of COVID-19 (the disease caused by coronavirus) has precipitated a record drop in the stock market and a sharp plunge in bond yields, sending the U.S. into its first bear market in over a decade. People around the world are facing a…

  • SCAMMER Red Flags

    How do you know that you are the target of a scam? Here are some red flags that you should be aware of:

    ♦ There is an air of urgency in the message. The scammer will claim that your reply and/or transaction must happen ASAP.
    ♦ They are adamant that you must send them your banking or identity details to get payment.
    ♦ They may instruct you to only use their escrow person for payment.
    ♦ They insist you must take a check and no other payment method will work.
    ♦ They offer to let you pay in gift cards.
    ♦ They want to send you a check for more than what is owed and have you remit the excess to someone else.
    ♦ They want you to send them money to enable them to send you even more money.
    ♦ You can’t find their company name, telephone number and/or email address on the internet.
    ♦ Their message contains very poor grammar and/or misspellings.

    A very good rule of thumb is always be skeptical. Before returning calls or replying to emails, verify the telephone number, email address and/or URL to ensure they are legitimate. Go online and see if there are any complaints or reports that their telephone number has been linked to scams. Spending a few moments before responding may prevent some serious heartbreaks in the future.

    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/

    How do you know that you are the target of a scam? Here are some red flags that you should be aware of…