Category: Wisdoms

Don’t Be Duped By a Text Message
There’s been a marked increase in text messages with a spoofed Caller ID that ask the recipient to click on a hyperlink — that’s always the objective of this type of scam. It is their methodology to hijack your device.

Two Major Risks

The recipient does not know who really sent the message.

The hyperlink may redirect the message recipient to a website where malicious software may compromise the recipient’s cellphone.

These programs may allow “spying” on your calls and text messages, and stealing personal and financial information and passwords. The program may even take control of the cell phone’s functions, such as the camera and/or microphone.

Signs of Caller ID Spoofing

If the message is written using bad grammar and/or misspelling.

The message creates a sense of urgency and demands an immediate response.

The Caller ID is not in your address book — a big red flag!

You should never respond to a text message from an unknown sender.

Prevention Tips

Keep your address book current to include financial services you use regularly.

If you receive a text message with a hyperlink, do not click on it until you can determine it is legitimate. Use Google to determine the validity of the web address in the text message. Do the same with the Caller ID of the sender.

If neither is legit, do not reply to the sender and/or click on the hyperlink.

If it is legit, contact the sender of the message through other means; do not reply to the text message. If it is a company, find its contact phone number and call them to verify that they sent the message.

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/
There’s been a marked increase in text messages with a spoofed Caller ID that ask the recipient to click on a hyperlink — that’s always the objective of this type of scam. It is their methodology to hijack your device. Two Major Risks include: The recipient does not know who really sent the message; and…
Stealing Home: An Ultimate Betrayal

The term “stealing home” is associated with baseball. It occurs when a runner is on third base and uses guile, speed and luck to make a dash for home plate to score a run. This usually happens when the runner takes advantage of the pitcher being distracted.

In the Elder Abuse Unit, however, my team has come to know the term in a different context. We have seen situations when a homeowner literally has had their residence stolen.

The first time I saw this happen was when I got a call from Mark (story real; names changed) about what his brother, Tony, had done to their mother, Alice. Tony asked if she could co-sign on a loan for him. Given that Tony seemed responsible and had a job, she agreed. The two of them went to an office downtown and Alice was presented with many papers to sign. She didn’t think any more about it, assuming that she would have heard if he defaulted on the loan.

Years later, when Mark and his mother began to plan her estate, they discovered that Alice was no longer the owner of her house. She had signed it over to Tony without realizing it. Tony even let his mother continue paying the mortgage as to not tip her off to what he had done. Tony committed the felony crime of Theft in the First Degree by Deception. Alice was in such shock over this betrayal of trust that she did not know what to do — and that is when Mark made the call to our office for help.

I wish I could say that Alice’s story is an anomaly, but I have seen houses being stolen by caregivers using powers of attorney and con men using illegal contracts that promise help with foreclosures and debt, only to instead transfer ownership to these charlatans.

I have seen families misuse monies from reverse mortgages and adult children draining bank accounts of home equity loans, leaving the parents to face financial uncertainty and foreclosure.

Your house is the single largest investment you’re likely to make. And the equity in your home (or your actual house itself) is very attractive to others who see it as “free money.” It’s like an amber light at night, attracting mosquitoes, but this time, the bloodsuckers could be family members, or “helpful” friends or even strangers.

When presented with any legal papers to sign, read them carefully or have someone else look them over. You may feel embarrassed asking to do this, but you will feel even more embarrassed if you lose your house. Also, tell your trusted family members and friends, and bring them along. Swindlers hate questions from protective loved ones. If these papers are so good for you, why keep this deal a secret?

If you have questions about elder abuse, call or email: 808-768-7536 | ElderAbuse@honolulu.gov

The term “stealing home” is associated with baseball. It occurs when a runner is on third base and uses guile, speed and luck to make a dash for home plate to score a run. This usually happens when the runner takes advantage of the pitcher being distracted. In the Elder Abuse Unit, however, my team…
Spam, Eggs and Rice

A few years ago, I created the Heartfelt Advance Care Plan booklet to provide my clients with a tool to improve their end-of-life care, to honor their choices and to reduce conflict and guilt among surviving family members. Those who do fill it out usually comment about how difficult yet rewarding it was to complete.

Asking and answering detailed questions about end-of-life wishes, regardless of how difficult it may be, is tremendously helpful to both the dying and their survivors.

For example, a wife and husband discussed in detail his wishes during his last days, as well as what he would like to see happen after he passed. The husband, who was usually not a humorous man, answered the uncomfortable questions with a sense of playfulness and humor. In response to one of the questions about his last meal, he said he would like spam, eggs and rice — and so she prepared this last meal to enjoy with her family. To onlookers, this may appear to be a rather minor thing. To his family, it was profoundly meaningful.

After he passed, she followed his instructions and planned the funeral in accordance with his wishes. She was able to carry out his expressed wishes, allowing him to take control of his life, the end of his life and thereafter, through his answers to the hard questions.

She was able to be by his side during his waning days, fully present and at peace because she knew what he desired during this transitional period of life.

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

A few years ago, I created the Heartfelt Advance Care Plan booklet to provide my clients with a tool to improve their end-of-life care, to honor their choices and to reduce conflict and guilt among surviving family members. Those who do fill it out usually comment about how difficult yet rewarding it was to complete.…
HELOC Growth Rate

In recent years, financial planners have shown the effectiveness of using a reverse mortgage line of credit to supplement a retirement portfolio. But while a line of credit can be a strategic part of a retirement income plan, there are often misconceptions related to how the credit line grows.

In yet another Forbes article focused on reverse mortgages, *Wade Pfau, Ph.D., CFA, professor of retirement income at The American College, sets the record straight with an in-depth analysis of how a Home Equity Conversion Mortgage (HECM) works, grows and stands to benefit borrowers.

“The ability to have an unused line of credit grow is a valuable consideration for opening a reverse mortgage sooner rather than later,” Pfau writes. “It is also a detail that creates a great deal of confusion for those first learning about reverse mortgages, perhaps because it seems this feature is almost too good to be true.”

Pfau speculates that the motivation for the government’s design of the HECM program is based on the underlying assumption that borrowers would spend from their line of credit sooner as opposed to later.

“Implicitly, the growth in the principal limit would then reflect growth of the loan balance moreso than the growth of the line of credit,” Pfau writes. “In other words, designers assumed the loan balance would be a large percentage of the principal limit.”

The line of credit, however, grows at the same rate as the loan balance, which if left unused, could become quite large.

“There was probably not much expectation that individuals would open lines of credit and then leave them alone for long periods of time,” he writes. “However… the brunt of the research on this matter since 2012 suggests that this sort of delayed gradual use of the line of credit can be extremely helpful in prolonging the longevity of an investment.”

RETIREMENT FUNDING SOLUTIONS
A Mutual of Omaha Bank Company
808-234-3117 | percyihara@hotmail.com
*Pfau, W. (2016, March 1). How Does The Line of Credit For A Reverse Mortgage Work? From http://www.forbes.com/sites/wadepfau Synergy One Lending Inc. dba Retirement Funding Solutions, NMLS 1025894. 3131 Camino Del Rio N 190, San Diego, Calif. 92108. These materials are not from HUD or FHA and the document was not approved by HUD, FHA or any government agency. Subject to credit approval. www.nmlsconsumeraccess.org

In recent years, financial planners have shown the effectiveness of using a reverse mortgage line of credit to supplement a retirement portfolio. But while a line of credit can be a strategic part of a retirement income plan, there are often misconceptions related to how the credit line grows. In yet another Forbes article focused…
When Should I Review My Estate Plan?

Unless you keep up with critical changes, your estate plan will become ineffective and maybe even become harmful to you and your ‘ohana. What kinds of changes are we talking about?

Changes to your HEALTH

If you lose the capacity to sign legal documents, your family may be stuck with an under performing estate plan that cannot be fixed. The general trend of your health and your ability to make decisions will usually not improve over time, so don’t put off updating your estate plan. You should dust it off and talk about it with your trusted advisors at least once a year for as long as you are in your right mind.

Changes to your ASSETS

All of your assets must be properly titled in order for your estate plan to work properly. If you have a revocable living trust, just about all of your assets should be owned by your trust. If the status of one major asset changes, your whole estate plan could be thrown off course.

Changes to your FAMILY SITUATION

Whenever there is a marriage, divorce, birth or death in your family, you should consider how those events could affect your estate plan. That is unless you are okay with your assets ending up in the hands of someone you would
prefer did not receive them, such as your ex-son-in-law.

Changes to your WISHES

Over time, you will change your mind about who you trust and where you want your assets to go, and your estate plan must reflect those changes. If you do not state your wishes in writing, they will not be carried out.

Changes to the LAW

The law has changed dramatically over the past several years, and while those changes have generated uncertainty, they also give rise to opportunities. You will never seize those opportunities if you ignore them. Not only that, but the law will not always change in ways that benefit you and your loved ones. Especially when “bad” changes happen, you need to be on top of them and adjust your estate plan accordingly.

Review your estate plan at least once a year so you can stay on top of changes and make the updates that could make a huge difference for you and your ‘ohana. Estate planning is an ongoing process, not an event.

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

Unless you keep up with critical changes, your estate plan will become ineffective and maybe even become harmful to you and your ‘ohana. What kinds of changes are we talking about?
The Key to Financial Advisor Acronyms

Professionals in many industries tout their education and professional experience as a way to demonstrate their expertise and set themselves apart. The financial industry is a prime example. With almost 200 professional credentials available, advisors can sharpen their ability to serve clients well. If you are searching for a financial advisor and seeking clarity on what the acronyms after each professional’s name means, below is a primer on eight of the most commonly used designations.

Accredited Estate Planner® — Advisors seek the AEP® designation to learn more about designing an estate plan focused on the accumulation, conservation, preservation and transfer of an estate in a way that also helps individuals achieve their estate and wealth management goals.

Accredited Portfolio Management AdvisorSM — Individuals who hold the APMA® designation have completed a course of study to learn more techniques to create and maintain portfolios for clients. The coursework includes client assessment and suitability, risk/return, investment objectives, bond and equity portfolios, modern portfolio theory and investor psychology.

Chartered Advisor in Philanthropy® — The CAP® designation provides professionals in the nonprofit and financial services fields with the knowledge/tools needed to help clients reach their charitable giving objectives while also helping them achieve their estate planning and wealth management goals. The curriculum addresses the advanced design, implementation and management of charitable gift techniques and strategies.

Certified Divorce Financial Analyst® — The CDFA® designation is growing in popularity because it helps financial and legal professionals support clients going through or managing assets after divorce. Those with this credential are trained to evaluate the tax implications of dividing property, settlement options for dividing pensions, marital property, awarding of child and spousal support and to help determine the financial needs and outcomes for couples after divorce.

Certified Financial Planner™ (CFP®) and Chartered Financial Consultant® (ChFC®) — Advisors with either or both credentials have studied key financial planning topics in-depth — including risk management, tax planning, retirement and employee benefits, estate planning and insurance — to help develop well-balanced financial strategies for their clients.

Certified Long-Term Care® — The CLTC® program is independent of the insurance industry and is designed to provide financial service professionals with expertise and tools to address long-term care planning with their clients.

Certified Retirement Planning CounselorSM — A financial professional seeks the CRPC® credential to learn the finer points of helping clients implement financial strategies to cover pre- and post-retirement needs, asset management and estate planning. Coursework touches on the entire retirement planning process using models and techniques from real client situations.

A professional’s education background is just one factor to consider when deciding who is right for you. For more designation explanations, check out FINRA’s (a financial service industry regulator) website: www.finra.org/investors/professional-designations.

MICHAEL W. K. YEE, CFP
1585 Kapiolani Blvd., Suite 1100, Honolulu HI 96814
808-952-1222, ext. 1240 | michael.w.yee@ampf.com
Michael W. K. Yee, CFP®, CFS®, CLTC, CRPC ®, is a Private Wealth Advisor, Certified Financial Planner ™ practitioner with Ameriprise Financial Services, Inc. in Honolulu, HI. He specializes in fee-based financial planning and asset management strategies and has been in practice for 31 years. Investment advisory products and services are made available through Ameriprise Financial Services, Inc., a registered investment adviser. Ameriprise Financial Services, Inc. Member FINRA and SIPC. ©2019 Ameriprise Financial, Inc. All rights reserved. File #2450617

Professionals in many industries tout their education and professional experience as a way to demonstrate their expertise and set themselves apart. The financial industry is a prime example. With almost 200 professional credentials available, advisors can sharpen their ability to serve clients well. If you are searching for a financial advisor and seeking clarity on…
Creating Secured Passwords
You generally want to set the minimum password length to at least eight characters, but a minimum length of 14 characters is better. If it’s a single word, I recommend using a non-English word. Or you could use a phrase like “the cow jumped over the moon” without spaces between the words in the phrase.

One or more characters should be upper case.

One or more of the letters should be transposed as a numeral. For example, “i” or “l” can be the number 1. And “E” could be 3.

If permitted, include a control character such as “*” (shift-8) or “^” (shift-6).

That is the core password, which is the base from which you create the password for the account you are using it for. For example, if your core password is “theC0wjumped^0verthem00n” you can add an “F” at the beginning and a “B” at the end for your Facebook account. For your Gmail, you can add “GM” at either end.

How to remember passwords

Write them down in a notebook kept in a locked desk or file cabinet. Note what account it is for and the date it was created.

Do not keep them on your cellphone, tablet, computer or in your wallet or handbag.

When you’re done using the password, make sure to destroy the paper and discard it. Passwords ARE the “Keys to the Kingdom”.

——————-

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/
To create secure passwords, you generally want to set the minimum password length to at least eight characters, but a minimum length of 14 characters is better.
High Cost of Saving Money

It’s expensive living in paradise. It’s really expensive aging in paradise. Many seniors have had to resort to relying on the “cash economy” to help them out. “Cash economy” is the term used to refer to hiring or purchasing things“ under the table” or with cash so that there is no paper trail and therefore no taxes have to be paid. These workers usually are unlicensed, carry no insurance in case they get injured on your property or damage something when doing their job, and have no office you can go to if there is a problem with non-performance or faulty construction.

It is a very common practice in Hawai‘i to hire people in this manner for yard work, car repairs or construction projects. And it is very common for the police or me to receive calls from victims of scams who tried to save money in this manner only to receive little or nothing in return. In fact, our office is prosecuting one person who defrauded over 24 people by simply representing himself as a licensed landscaper and taking their money and disappearing. When arrested, it was revealed that he not only didn’t have a license, but also had a criminal record for doing this crime before. If you have questions about elder abuse, call or email: 808-768-7536 | ElderAbuse@honolulu.gov

To check if the person you are hiring has a license or complaints from previous clients, use the Department of Commerce and Consumer Affairs (DCCA) website, which is an easy and free tool to use.

 On your computer, type in the website: http://cca.hawaii.gov/

 Click on the blue box that says “Check A Business or License”.

 On the left-hand side of the new page, choose the type of search you want: business complaint history, business name, professional and vocational license, or licensee complaint history.

 Follow the directions on the next new page.

 If you have any questions you can call DCCA during business hours at 808-587-4272.

Another good site is the Better Business Bureau. It displays information and reviews/complaints about local businesses, and scorecards.

 On your computer or device, type in the website: https://www.bbb.org/en/us/hi/honolulu

 Type the business name and location in the search bar and click on it in the list that appears.

If you don’t have access to the internet there are public services at the library. ——-

If you have questions about elder abuse, call or email: 808-768-7536 | ElderAbuse@honolulu.gov

It’s expensive living in paradise. It’s really expensive aging in paradise. Many seniors have had to resort to relying on the “cash economy” to help them out. “Cash economy” is the term used to refer to hiring or purchasing things“ under the table” or with cash so that there is no paper trail and therefore…
Adequate, Equal, Equitable, or Fair?

We often struggle with the concepts of equal, equitable, fair, and adequate when it comes to the distribution of our assets among our children. Understanding the meaning of each term helps us make the decision that most closely reflects our intention.

Adequate: the minimum level of money for children to survive. Raising our children to be independent and reasonably assured their situation will not turn to dependency meets the definition of adequacy.

Equal: the same amount of financial value to each child. Our focus as parents changes from meeting the needs of our children to simply dividing our assets equally, regardless of each child’s station in life.

Equitable: receiving the same financial opportunity to reach a specific objective considering current personal conditions, but without regard to how those happened.

Fair: morally equal — a non-discriminatory attitude regardless of personal conditions, but with regard to how it happened. If one child chooses not to work and is still living at home, and one child works and is living independently, leaving the house for the non-working child to live in may be equitable (each having a place to live) but not fair (in a way, penalizing the working child).

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

We often struggle with the concepts of equal, equitable, fair, and adequate when it comes to the distribution of our assets among our children. Understanding the meaning of each term helps us make the decision that most closely reflects our intention.
Managing Risk at Retirement

We encounter risk in all facets of our life. Why do we take risk if we have a choice? Simply put: We take on risk in exchange for some kind of return.

Generally, the potential for higher returns from investments comes with greater risks. One philosophy to keep in mind, especially for those approaching retirement, is that Losses Hurt More than Equivalent Gains Help®. In other words, if you have $100,000 in a portfolio and it goes down 50 percent in a year, a 50 percent gain in the following year would result in your portfolio being valued at only $75,000. Keeping this in mind reminds you to seriously weigh any risks against potential returns.

It is especially imperative to consider the balance of risk and potential return as investors approach retirement as they have less time to recover their losses if their portfolio declines in value. A financial professional can help you assess your personal risk parameters for your investment portfolio.

LEE FINANCIAL GROUP HAWAII, INC.
808-988-8088 | info@leehawaii.com
www.leehawaii.com

We encounter risk in all facets of our life. Why do we take risk if we have a choice? Simply put: We take on risk in exchange for some kind of return. Generally, the potential for higher returns from investments comes with greater risks.
Blessing or Curse?

Receiving an inheritance is like winning the lottery. What could possibly be wrong with that?

Callie Rogers, age 16, won $3.1 million in a British lottery. By the age of 22 she was broke, living with her mother, and working three cleaning jobs. William Post won $16.2 million in the Pennsylvania Lottery in 1988. By the time he died in 2006, Post had gone from scooping up annual lottery payments of $497,953.47 to scraping by on $450 per month in disability compensation. Jack Whittaker won what was then the largest Powerball payout in history. It took him four years to blow through $113,386,407.77 of his winnings. The impact on himself and his family was catastrophic.

These examples show how a sudden windfall can turn from a blessing into a curse. The lesson applies to all of us. Instead of giving your loved ones direct access to what you leave behind, consider protecting any intended beneficiaries whose youth, bad habits, or bad friends might turn your gift into dust and destruction. By placing their inheritance in trusts, administered by people or institutions who will provide good judgment and wise guidance, you can protect your legacy with wise planning.

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

Receiving an inheritance is like winning the lottery. What could possibly be wrong with that? Callie Rogers, age 16, won $3.1 million in a British lottery. By the age of 22 she was broke, living with her mother, and working three cleaning jobs. William Post won $16.2 million in the Pennsylvania Lottery in 1988…
Making a Smart Move in Retirement

Searching for warmer weather, moving closer to adult children and grandkids or pursuing a change in scenery are just a few reasons why many Americans choose to move in retirement. These retirees often relocate for emotional reasons, but it’s important to consider the financial impacts, too. If you have a desire to pull up roots in retirement, pause to think about the following financial items.

Consider the costs to sell your home. Even if you’re downsizing, trading spaces comes with a price tag. Staging, finding a realtor, hiring a moving company and cleaning services are all expenses that may be key to putting your home on the market. You may need to be prepared to manage two mortgages for some time or be ready for a quick closing time frame depending on the housing market in your area.

Be strategic about the long-term financial effects. If you make a profit on the sale of your current home, use the money to fund one of your financial goals. Adding it to your retirement fund, investing it to pay for your grandkids’ college education, or putting it into a trust are some of the many ways the windfall can accelerate achieving a financial milestone. If you acquire a higher mortgage to purchase your new home, map out how the additional debt impacts your retirement long-term. Ideally, you’ll be able to absorb the increased cost without compromising your retirement lifestyle.

Know the potential tax impacts. Moving across state lines can change how much you pay in taxes. This is particularly true for retirees because there’s wide variation in whether and how much states tax retirement income. Property and income taxes can also vary, which may be important if you plan to work or own a business in retirement. Check with your tax professional to assess the tax impact of your new locale. If you sell your current home and it has appreciated in value, discuss whether you owe a capital gains tax.

Research health care services in your new location. Ask your medical insurance provider if your plan covers the services, specialists, prescription drugs and medical clinics that you need near your new home. The quality of care and cost may be different than what you’re used to, so it’s important to do your research. Additionally, it’s worth thinking about the long-term care and assisted living facilities that are nearby. Even if you hope to age in your new home, knowing your options can be crucial in case you or your spouse experience an unexpected medical event.

Account for your retirement lifestyle. The reason many retirees move in retirement is to live out a lifestyle they have dreamed about for years. As you decide whether you want to move, be prepared for additional expenses to travel, invest in a hobby or start a business. Your food and entertainment spending may also increase as you fill your newfound time and explore your new city.

Moving to pursue your retirement dreams is exciting, but there can be a lot of factors to consider in deciding when and where to purchase your new home. For expert help reviewing your options, connect with a realtor, financial advisor and tax professional.

MICHAEL W. K. YEE, CFP
1585 Kapiolani Blvd., Suite 1100, Honolulu HI 96814
808-952-1222, ext. 1240 | michael.w.yee@ampf.com
Michael W. K. Yee, CFP®, CFS®, CLTC, CRPC ®, is a Private Wealth Advisor, Certified Financial Planner ™ practitioner with Ameriprise Financial Services, Inc. in Honolulu, HI. He specializes in fee-based financial planning and asset management strategies and has been in practice for 31 years. Investment advisory products and services are made available through Ameriprise Financial Services, Inc., a registered investment adviser. Ameriprise Financial Services, Inc. Member FINRA and SIPC.©2018 Ameriprise Financial, Inc. All rights reserved. File #2251865

Searching for warmer weather, moving closer to adult children and grandkids or pursuing a change in scenery are just a few reasons why many Americans choose to move in retirement. These retirees often relocate for emotional reasons, but it’s important to consider the financial impacts, too.