Category: Wisdoms

  • 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.

  • Resolve to Have a Healthy Computer

    At the start of a new year, many of us make a New Year’s resolution to get healthy. Did you make a resolution to start the year with a “healthy” computer, too? Here are some computer health tips:

    ❖         Back up your data: Back up all your important data such as photos, documents, calendar, contact list, e-mails, etc. The best options are to back up your data to an external hard drive, burn your data to CD/DVD, or use iCloud or Google Drive.

    ❖         Clean up your storage: AFTER backing up your data, start deleting apps, programs and files that you rarely use or that are outdated. This alone can speed up your computer.

    ❖         Maintenance: If you are tech savvy, you can use a utility program to do low-level diagnostics on your computer’s hardware and operating system, but my advice is to use a professional service to do the examination and fix any problems found. The store where you bought it may offer this service or can recommend a reputable local service agent.

    ❖         Change passwords: Start with the password to your computer (and phone) and then move on to any online accounts. Write passwords down in a notebook along with the date and secure the notebook in a safe place. WARNING! Your wallet or purse is NOT a safe place!

    —————

    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/

    At the start of a new year, many of us make a New Year’s resolution to get healthy. Did you make a resolution to start the year with a “healthy” computer, too? Here are some computer health tips…

  • Visit Often to Forestall Elder Abuse

    Recently, I had the opportunity to spend a couple of weeks with my parents on the mainland, attending family functions, overeating and watching more “Murder She Wrote” than at any other time in my life. As I tried to learn to appreciate afternoon naps, their phone would constantly ring. Various solicitors, scam artists and charities seemingly thought my parents had all this money and that they wanted to invest, spend, or give it away to strangers over the phone.

    I tried to explain to my folks that by answering the phone each time it rings, the robocallers knew there was a live person connected to their phone number. If my parents simply let the answering machine screen the calls first, the amount of unwanted calls would slowly die down (and nap time could last longer). They insisted, however, on picking up the phone in case it was someone they wanted to talk with or if there was an emergency that they had to respond to immediately.

    In addition to all the phone calls they were getting throughout the day, the doorbell rang constantly with a salesman, pollster, huckster, or charity/church solicitor on the other side of the door when I answered. I simply told these uninvited/unwelcome strangers that I wasn’t interested and shut the door on them before their pitch began.

    This whole experience reminded me of the importance of visiting my family often and seeing what is going on in their lives. Over the years, I have received many calls to the Elder Abuse Unit from adult children in distress because they just discovered something that happened to their parents.  Usually, it is along the lines of finding out their mom or dad has been giving large sums of money to others (like neighbors, caregivers, other relatives) despite the fact they really can’t afford to do so. Occasionally,  the family member will discover that a con man has scammed their parents out of a large sum of money (so far the largest amount reported was $400,000 to some “contractors” for work never done). And in two separate instances, adult daughters reported that widowed fathers married bar girls 30 years their junior.

    It is only by knowing what is going on in our parents’ and grandparents’ lives that we can prevent certain abuses from occurring. Get involved and find out your loved one’s routine. Talk to them. Any deviation from their norm may be a warning sign to you that they are being targeted for a possible scam.

    ——————-

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

    It is only by knowing what is going on in our parents’ and grandparents’ lives that we can prevent certain abuses from occurring. Get involved and find out your loved one’s routine. Talk to them. Any deviation from their norm may be a warning sign to you that they are being targeted for a possible…

  • Honoring the Mighty Pen

    In the movie “The Descendants” the main character, Matt King, must explain to family and friends that his wife Elizabeth made an end-of-life decision by way of an Advance Health Care Directive and, because she was determined not to be kept alive in a persistent vegetative state, the doctors will withdraw life-sustaining treatment.

    Matt shares the advance directive with his father-in-law, whose response was “this is like reading Korean.” Matt’s 10-year-old daughter Scottie didn’t read the advance directive, but she remembered her mom stating: “Racing or competing. I’ve heard her say, ‘I’m going out with a bang.’” And that is exactly what happened: a speedboat accident.

    The end-of-life decision document written by legislators as a “one size fits all check the box”  is anything but clear with regard to intention and could very well be written in a foreign language.

    Every family has its own unique culture and identity which is reflected in the language they speak to one another.

    Making an estate plan that clearly documents intention helps surviving family members avoid fighting; especially in court. Yet lawyers will write the estate plan for exactly that purpose — writing as if it were going to be fought over in court. I call this legalese legal dis-ease.

    Write your intentions down in your own hand-writing for inclusion in your estate plan so that you don’t risk miscommunication or misunderstanding among surviving family members.

    ———————-

    STEPHEN B. YIM, ATTORNEY AT LAW
    2054 S. Beretania St., Honolulu HI 96826

    808-524-0251  |  www.stephenyimestateplanning.com

    Making an estate plan that clearly documents intention helps surviving family members avoid fighting; especially in court. Yet lawyers will write the estate plan for exactly that purpose — writing as if it were going to be fought over in court. I call this legalese legal dis-ease. Write your intentions down in your own hand-writing…

  • Everybody Should Have One

    The one estate planning document that everyone 18 and older should have is an advance health care directive.

    Karen Ann Quinlan and Nancy Cruzan were young women whose legacies are legal battles over medical care for individuals who cannot speak for themselves.

    Karen’s case determined that “medical treatment” includes life-sustaining measures, and that those measures can be declined by a patient or someone acting on the patient’s behalf.

    Nancy’s case was a battle between Nancy’s family, who believed that Nancy would not want to be sustained on a tube, and the State of Missouri, which asserted that only the patient can make that decision. Nancy’s family convinced the court that Nancy did not want to be kept alive artificially, and food and water were withdrawn.

    The bottom line?

    We have a right to say “enough is enough” when it comes to medical care, including the use of respirators and tube feeding. We also have the right to name who will speak for us when we cannot speak for ourselves. Having a clear and comprehensive advance health care directive is only way to be sure that your wishes will be known and carried out.

    ——————-

    SCOTT MAKUAKANE, Counselor at Law
    Focusing exclusively on estate planning and trust law.

    www.est8planning.com
    808-587-8227  |  maku@est8planning.com

     

    We have a right to say “enough is enough” when it comes to medical care, including the use of respirators and tube feeding. We also have the right to name who will speak for us when we cannot speak for ourselves. Having a clear and comprehensive advance health care directive is only way to be…

  • 5 Retirement Planning Mistakes to Avoid

    The most important goal for many of my clients is to retire on their terms – which often means planning a long, secure retirement that enables them to check off items on their ultimate bucket list. Retirement requires careful planning in addition to avoiding financial missteps along the way. Here are five common mistakes, and strategies to avoid them.

    Preparing for retirement can be overwhelming, so it’s easy to think, “I’ll tackle it next year.” Simply put, the earlier you start focusing on retirement, the earlier you can prepare a plan that accounts for your goals and concerns. And, focusing on saving today gives your investments the opportunity to snowball in value through the power of compound interest.

    Medical costs are rising, with no clear end in sight. Your best defense is to figure out what protection and sources of income you could ap-ply toward potential medical expenses. Common vehicles include Medicare and supplemental insurance premiums, long-term care policies, continuing health insurance through an employer and health savings accounts. Know which policies cover various expenses, and stay familiar with the amount of your deductibles, co-pays and out-of-pocket maximums.

    Predicting your tax bill in retirement can be complicated, but it’s worth the effort. Retirement income for many retirees comes from a variety of taxable and non-taxable sources. Your tax rate will be based only on your taxable income, so it’s important to know and manage the tax treatment of your retirement paycheck. When you turn age 70-½, you are required to take a minimum distribution from your traditional IRA. This money is generally taxable. If you don’t need the money and want to avoid the resulting tax bill, consider transferring your distribution (up to $100,000) directly from your IRA to a qualified charitable organization. A tax professional can help you determine the strategy that’s right for your situation.

    Before you tap your retirement savings early, think through the consequences. IRS rules allow investors to withdraw 401(k) savings for qualified expenses (non-qualified items trigger a 10 percent penalty). But just because you can, doesn’t mean you should. Removing money from an income-bearing account reduces the long-term growth potential you can earn through continued saving and compound interest.

    A well-rounded retirement plan includes documenting your wishes for how you want your affairs handled if you become incapacitated or when you pass away. Creating (or updating) your estate plan enables you to help minimize any estate or inheritance tax for your beneficiaries and add in other specifications that help your assets transfer smoothly to the next generation.

    Time is on your side when you start preparing early. Tackling one step at a time is a great way to make progress on your retirement plan and avoid potentially costly missteps. If you want a second opinion, engage a financial advisor who can review your situation in detail.

    ————–

    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 #2248827

    The most important goal for many of my clients is to retire on their terms – which often means planning a long, secure retirement that enables them to check off items on their ultimate bucket list. Retirement requires careful planning in addition to avoiding financial missteps along the way. Here are five common mistakes, and…

  • How to Avoid ‘Donating’ to Scammers

    [et_pb_section][et_pb_row][et_pb_column type=”4_4″][et_pb_text]With all the natural disasters happening throughout the world, unscrupulous scammers are looking to take advantage of our empathy and generosity as we seek ways to help the victims of those disasters. These scammers will be soliciting donations using telephone messages, emails, and even social networking services like Facebook. They will be claiming to represent charity organizations which are completely fictitious or even claim to represent or be connected to legitimate charity organizations such as the Red Cross. If you decide to donate to any charity organization, you need to do your homework.
    • Verify if in fact the organization you are donating to is accepting donations for the specified charity.
    • If so, make sure the mailing address to send the donation is accurate.
    • Try not use a credit card or a debit card. Preferably send a cashier’s check from your bank and not from your personal checking account.
    • If donating via an online service like GoFundMe.com, again make sure the charity is legitimate and be cautious about giving personal financial information, like credit/debit card numbers, PIN numbers, etc.
    • Be very wary if they ask for donations ONLY using Western Union.
    • And finally, legitimate charity organizations do not solicit donations in the form of gift cards.
    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/[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section]

    With all the natural disasters happening throughout the world, unscrupulous scammers are looking to take advantage of our empathy and generosity as we seek ways to help the victims of those disasters. These scammers will be soliciting donations using telephone messages, emails, and even social networking services like Facebook.

  • Please, Make the Time to Visit

    When my father-in-law “Gramps” had a stroke, he spent time at the hospital, rehab, and then a nursing home, before finally being able to return to his house. During those months of recovery away from home, my family made every effort to visit him daily. Between my wife, brother-in-law, mother-in-law and myself, we were pretty successful in making sure he would have the company of a loved one every day.

    We did this initially because we didn’t want Gramps to feel alone. Eventually, however, we discovered that he was getting better care and more attention from the staff because of our visits. When we walked into the facility, it would coincidentally seem to be at the exact time for the staff to check on Gramps. Once they saw one of us walking down the hall towards his room, they would leave their duty station and follow us inside, telling us all the details of his care as they fluffed his pillows and made sure he was comfortable.

    We could not help but notice, however, that his roommate and other patients did not get the same treatment. They were either lying in bed all day in
    silence or sitting in a wheelchair parked outside in the hall watching us come and go with lonely stares.

    Over the years, I have gotten many calls from people suspecting abuse or neglect of loved ones at care facilities. During these conversations, I would always ask them when was the last time they saw their loved one before the alleged abuse. I did this to get an idea how quickly the neglect occurred or see if there were signs of abuse witnessed.

    Despite my intentions, however, the callers would get defensive, relating various reasons why they were not more attentive nor visiting that often. Their reasoning was that if the place did their job correctly, they wouldn’t have to check on things themselves and visit that often. And while this is true in theory, the reality is that there are some care facilities that are understaffed or have employees under trained and a regular visit could detect such problems if they exist.

    While I am sure that the majority of residential facilities provide quality, attentive care, more and more instances of the opposite happening are coming to my attention. Recently, the Honolulu Medical Examiner’s Office called me, concerned with the number of bodies they were receiving from such places whose cause of death could only be attributed to “extreme neglect”. Additionally, the Long-Term Care Ombudsman has some concerns about oversight and care of seniors in facilities and has invited our office to join them in examining the problem.

    In the meantime, I urge family to always make the time to visit loved ones. No amount of money spent for care is a substitute for actually being there yourself. Your visits will not only be appreciated, but also noticed.

    To report suspected elder abuse, contact the Elder Abuse Unit at 808-768-7536  |  ElderAbuse@honolulu.gov

    When my father-in-law “Gramps” had a stroke, he spent time at the hospital, rehab, and then a nursing home, before finally being able to return to his house. During those months of recovery away from home, my family made every effort to visit him daily. Between my wife, brother-in-law, mother-in-law and myself, we were pretty…

  • Understanding Grieving Styles

    There is no “good grief” or “bad grief”— there is only grief. Drs. Kenneth Doka and Terry Martin* suggest that there are two types of grievers: “instrumental” and “intuitive.” Neither type is deficient; only different. Understanding the difference can allow family members to empathize with, rather than attribute bad motives to, another family member.

    It is critical, at this moment when the loved one is gone and the estate administration starts, that we seek to understand each family member’s grieving style, as how we act at this highly sensitive moment can lead to family harmony or fracture for years to come.

    So, before you get mad at your sibling for wanting to “get it over with” or “not wanting to have anything to do with it,” try to understand your sibling’s grieving style, as it is this empathy for your sibling that can foster loving relationships in this difficult time.

    Stephen B. Yim, Attorney at Law
    2054 S. Beretania St., Honolulu HI 96826

    808-524-0251  |  www.stephenyimestateplanning.com

    *Drs. Kenneth Doka and Terry Martin, “Grieving styles: Gender and grief” Grief Matters Winter 2011, pp 42-45

    There is no “good grief” or “bad grief”— there is only grief. Drs. Kenneth Doka and Terry Martin* suggest that there are two types of grievers: “instrumental” and “intuitive.” Neither type is deficient; only different. Understanding the difference can allow family members to empathize with, rather than attribute bad motives to, another family member.

  • Setting Financial Goals You Can Keep

    Setting New Year’s resolutions is a tradition for millions of Americans who see January 1 as a fresh start. However, we all know how easy it is to have resolutions fall to the wayside as the year progresses.

    Fortunately, if the goal you have in mind is a financial one, there are ways you can break it down into steps that will keep you motivated and on track to achieve it. Here are some tips to help you set attainable goals:

    Setting aspirational goals, such as living the life you want in retirement or taking a coast-to-coast road trip, is exciting and can be a great place to start. Yet, broad goals can quickly become overwhelming, so tangible ones can help you keep the commitment. The best way to make your dreams a reality is to break each goal into small, specific tasks that are realistic to accomplish this year.

    You’re not alone if you have a myriad of financial goals. However, it can be hard to achieve them all without focus or unlimited resources. Pick one or two goals, tailoring your savings, time and resources accordingly. If you have competing priorities such as saving for your child’s education and retirement, create a plan that will help you make measurable progress toward both. Remember, incremental changes (or savings) made over time can make a big difference in the long run.

    Strengthen your resolve by anticipating events and triggers that might derail you from your goals such as overspending on dining out or purchasing that is outside of your budget. Be as specific as possible, and brainstorm strategies to overcome these potential obstacles. This mental exercise will help you
    be more aware and better equipped to resist
    temptations.

    Without target dates in mind, goals tend to drift. As you set deadlines for each task, consider adding a reminder on your calendar so you keep the goal a priority throughout the year. If you fall short of what you want to accomplish, don’t give up. Adjust your dates and get back on track.

    If you’re married or in a committed relationship, involve your spouse or partner in financial goal setting. If your goal is a family affair, consider including your children in the process. Your children can benefit from watching you make smart financial choices. With everyone on the same page, you can support one another and overcome obstacles together.

    Share your goals with your financial advisor, tax professional or estate planner, as appropriate. These specialists may be able to suggest additional strategies to help you reach your goals, while being mindful of your other financial priorities.

    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.

    ©2017 Ameriprise Financial, Inc. All rights reserved. File #1952908

    Setting New Year’s resolutions is a tradition for millions of Americans who see January 1 as a fresh start. However, we all know how easy it is to have resolutions fall to the wayside as the year progresses. Fortunately, if the goal you have in mind is a financial one, there are ways you can…