Category: Wisdoms

If Inflation Returns, Are You Ready?

Inflation is the normal state of affairs in the U.S. economy. Most economists consider an annual increase in the cost-of-living of two or three percent per year to be a manageable level of inflation. This increase usually is a good trend, because it is an indication of a growing economy.

While inflation has not been a concern in recent decades, the 1970s and early 1980s are remembered as a time when inflation created major economic challenges. In some years during this timeframe, the cost-of-living (as measured by the Consumer Price Index or CPI) increased more than 10 percent per year.

Signs of an inflation uptick

Through much of the current economic recovery, which began nine years ago, inflation has remained modest. Some economists and analysts believe this could change going forward. One key factor that could contribute to an accelerated inflation rate is the unemployment rate, which dipped to its lowest level in years. This may mean employers will have to start offering higher wages to attract and retain qualified staff, which could trigger higher inflation. Another contributing factor could be that most global economies are simultaneously experiencing economic growth. This synchronized expansion may continue to stimulate demand for products and services, leading to faster price increases. Investors are also watching for the impact of the recent tax reform legislation, which could contribute to inflation should consumers spend more, and prices rise.

Watch the Federal Reserve

Follow actions taken by the Federal Reserve (the Fed). It targets an annual inflation rate of 2 percent, a goal it has had little difficulty maintaining in recent years. If the Fed begins lifting the short-term interest rates it controls more quickly than expected, it may be a sign that Fed policymakers are concerned that the threat of higher inflation is upon us. If the Fed raises rates quickly, consumers could see rising interest rates and a more volatile stock market.

The potential impact on your bottom line

While no one can predict what will happen in the future, you should consider how to respond to a changing environment for living costs. If inflation increases rapidly, the impact can be dramatic for consumers. When prices of everyday items begin to noticeably increase, consumers could have less disposable income. The greatest impact can often be on big-ticket items. For example, the price of houses or cars could begin to climb. In select housing markets, this has already happened even though the broader inflation rate has, at least until now, remained subdued.

Does that mean you should quickly adjust your spending? While it may seem prudent, you must be careful not to let short-term economic trends overly influence your long-term financial strategy.

Prepare your portfolio

In what has generally been a period of low inflation (the 1980s through now), stocks and bonds have both performed consistently well. In the 1970s, when inflation was much higher, stocks lagged their historical averages and bonds were negatively affected by rising interest rates.

If inflation rises, interest rates historically have tended to follow that trend. If inflation should begin to accelerate, bond yields may as well. This could hurt bond investors, as existing bond holdings can lose value when yields rise in the broader bond market.

If you are concerned that inflation risks will become a concern, this may be a good time to review your portfolio with your financial advisor.

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 Financial Advisor, Certified Financial Planner ™ practitioner with Ameriprise Financial Services, Inc.

Ameriprise Financial, Inc. and its affiliates do not offer tax or legal advice. Consumers should consult with their tax advisor or attorney regarding their specific situation.

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 #2042638

Inflation is the normal state of affairs in the U.S. economy. Most economists consider an annual increase in the cost-of-living of two or three percent per year to be a manageable level of inflation. This increase usually is a good trend, because it is an indication of a growing economy.
Don’t Give Wrongdoers a Free Pass

Recently, I took my youngest daughter to the Punahou Carnival, where waiting in line for the adult rides she has now graduated to is sometimes 40 minutes. As we were getting close to the front, I noticed four young adults walk several feet in front of us and stand in line. It took me a moment to realize these people were cutting in. I approached and politely informed them where the end of the line was. One of the group replied that they had been standing in line all along. Unsure of myself now, I asked the man in front of me if this were true, to which he replied, “It’s only four people.” I looked back at the group and told them to get in the back of the line. After a moment, they went to some place that wasn’t near me. The man in front of me looked down and didn’t say anything to me or his two kids.

In handling hundreds of elder abuse cases over the years, I have heard excuses being made all the time as to why someone should not be held accountable for bad behavior. For a variety of reasons, people allow wrongdoers and criminals to get away with their actions without incurring any consequences. The excuses range from “it’s not a big deal now” to “I am sure it won’t happen again” to “I don’t want to upset anyone.” Invariably, however, the unchecked misdeeds don’t stop and, in fact, get worse.

The biggest excuse-makers for people behaving badly are parents. Countless times I have seen a mom or dad turn a blind eye to their adult child’s misconduct, only to suffer worse later on. For instance, the father who refused to have his son arrested for stealing $12,000 by forging his name on checks he stole from him. The father convinced himself — without any evidence to support this belief — that the son wouldn’t do it again. Two months later, he called the police. This time he wanted his son arrested for new charges — the son took $20,000 from his aunt, the father’s sister.

Door-to-door con men, who convince a senior that yard work or construction needs to be done, then take an upfront payment and disappear, get away with their crimes multiple times because their victims feel it is only a “minor” crime, or that it is too much hassle to report it to the police. One of the first such con men the Elder Abuse Unit prosecuted was arrested for deceiving six people by claiming he would do tree trimming then disappearing after receiving the money upfront. After his arrest, eight more victims were discovered who initially didn’t want to call the police. When the story made the news, 20 more people called our offices saying they were also victims but never reported their crimes for a variety of reasons.

Crime, like a cancer, doesn’t disappear when it is ignored. It often spreads and becomes more serious in the long run. If someone has committed a wrongdoing against you, hold that person accountable for their actions. It will save you or someone else more suffering in the future.

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

Recently, I took my youngest daughter to the Punahou Carnival, where waiting in line for the adult rides she has now graduated to is sometimes 40 minutes. As we were getting close to the front, I noticed four young adults walk several feet in front of us and stand in line. It took me a…
Distributions – Consider Two Standards

As an estate planning attorney, I have the privilege of observing how families decide how to distribute their assets between and among their children. I have come to understand that there are two distinct standards that parents use to determine the gift.

First, there is the standard of meeting needs. As parents, we observe the needs and wants of our children and do our best to meet both. One child might need or want a musical instrument because of their interest in music, and another child may need volleyball shoes as her interest is in volleyball. While the dollar worth of the musical instrument may not match the dollar worth of the volleyball shoes, we meet each child’s needs and wants equally. This standard parent is alive.

It becomes difficult and near impossible to meet needs and wants once the parent dies, as they are no longer around to make those observations. At best, they can make an educated guess based on prior experience. However, situations change dramatically during the course of life, and what one needs or wants today could be entirely different tomorrow. Because of this uncertainty, many parents shift the standard from “needs and wants” to “equal worth” after they die.

Often, parents think of their Last Will and Testament or Living Trust as the last letter to their children, and many children receive these as a statement of how much their parent loves them. And most parents want their children to know that they are loved equally.

Stephen B. Yim, Attorney at Law
2054 S. Beretania St., Honolulu HI 96826
808-524-0251 | www.stephenyimestateplanning.com

As an estate planning attorney, I have the privilege of observing how families decide how to distribute their assets between and among their children. I have come to understand that there are two distinct standards that parents use to determine the gift. First, there is the standard of meeting needs. As parents, we observe the…
Irrevocable Life Insurance Trust Benefits

Including a trust that owns life insurance in your estate planning strategy can have the following benefits:

MANAGEMENT. If you have a large estate and plan to pass a significant inheritance to children, an Irrevocable Life Insurance Trust (ILIT) enables you to appoint someone to manage the trust’s assets. The trustee you select could be an individual, such as one of your adult children, or a financial institution. Be sure to select someone qualified to manage significant assets.

INCOME RATHER THAN PRINCIPAL. Many times, parents have one or more children who will not act responsibly if they receive a substantial or lump-sum inheritance, so they designate an insurance trust to receive the insurance proceeds. The trust holds and invests the trust assets and then pays income to the children, either for a specified number of years, with a lump-sum payout of the trust balance at the end of such term, or for the lives of the children. The trustee may also be given the discretion to distribute principal to the beneficiaries to cover education expenses or unanticipated healthcare or other needs.

TAX SAVINGS. If your estate is more than the federal exemption, it may be subject to taxes at a very high rate. An ILIT is an attractive planning tool for individuals with taxable estates. The trust can be used to leave an inheritance to family that is exempt from federal estate and income taxes. For this reason, many people like to combine a charitable remainder trust (CRT) with an insurance trust. With the CRT, parents can fund a trust, tax-free, that pays them income for life and the ILIT will provide their children with an inheritance.

National Kidney Foundation of Hawaii
808-593-1515 | www.kidneyhi.org | www.kidney.org

Including a trust that owns life insurance in your estate planning strategy can have the following benefits: MANAGEMENT. If you have a large estate and plan to pass a significant inheritance to children, an Irrevocable Life Insurance Trust (ILIT) enables you to appoint someone to manage the trust’s assets. The trustee you select could be…
Hawaiian-Style Estate Planning

Estate planning is the process of protecting that which is important (far beyond simply financial or physical assets) and then passing those important things on to our loved ones and future generations. Many concepts that are central to Hawaiian culture are particularly applicable to estate planning. Starting with the concept of ‘ohana (a very inclusive notion of family) all the way through lōkahi (a sense of unity — especially appropriate at the passing of a loved one), estate planning and the culture of our Islands interweave to form a rich tapestry of aloha.

The term ha‘aha‘a describes an attitude of humility, which promotes family harmony at stressful times. Stress may arise in dealing with the emotions associated with illness and death, and it may arise in dealing with the distribution of the assets of the deceased. It takes a measure of humility for family members to form closer bonds in light of these trials.

Sometimes, dealing with issues surrounding the disposition of a loved one’s remains, much less the disposition of assets, requires family members to talk out differences and come to consensus regarding what is the right, or pono, thing to do, as well as respecting the wishes of the deceased and the living. It is not uncommon for different family members to have different views of what a deceased person’s wishes were in various contexts. This may result in disagreements that can be both heated and destructive.

A complicating factor is that all of the disputing parties may be right, on some level. The deceased may have had many conversations with different members of the ‘ohana over the course of many years. It is easy to see how one family member could remember instructions given on one date that conflict with instructions given to another family member on another date. If both family members can come together through the process of ho‘oponopono, or making things right through talking out differences, a consensus may be reached that is healing and positive for all involved.

Ho‘oponopono is a delicate process, and a successful conclusion may depend on the leadership of an experienced individual who can help family members clearly express their views and then validate those views so that all involved can both understand and respect the feelings and positions being communicated. Although ho‘oponopono may be employed after the fact in resolving disputes, it can also be used while the senior family member is still alive to head off disputes and instill unity in the family, who will hopefully have a clear memory of what was communicated during the ho‘oponopono process.

Finally, the concept of mālama, or caring for and perpetuating one’s legacy, infuses and motivates Hawaiian-style estate planning. This extends from caring for one’s family to caring for one’s community through charitable giving. People from Hawai‘i tend to be generous when it comes to giving back to organizations that have benefited their families, such as hospice providers, hospitals, and church-related organizations.

Remembering our root values helps to ensure that we are leaving a legacy of aloha.

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

Estate planning is the process of protecting that which is important (far beyond simply financial or physical assets) and then passing those important things on to our loved ones and future generations. Many concepts that are central to Hawaiian culture are particularly applicable to estate planning. Starting with the concept of ‘ohana (a very inclusive…
Working Part-Time in Retirement

Traditionally, retirement means leaving the workforce to pursue decades of relaxation. However, today’s retirees and pre-retirees are reshaping what it means to leave the workforce. Retirement may be an opportunity to pursue a small business, start consulting or land a side job that explores your passions. If your next phase includes earning an income, there are some financial considerations to keep in mind:

Social Security could be reduced

If you haven’t yet reached full retirement age (65 or older) and already collect benefits, the wages you earn through continued work could result in reduced Social Security payments. In 2017, an individual earning more than $16,920 who hasn’t reached full retirement age will see a $1 reduction in Social Security benefits for every $2 earned above that level. The earnings limit is higher in the year you reach full retirement age, and no longer applies after you reach full retirement age. If you haven’t already claimed Social Security, you may wish to delay your benefits to earn a higher amount later in life.

Prepare for higher taxes

If you are taking income from retirement accounts or generating earnings from your savings or investments, at least some of that money is subject to tax. Earning income from work may move you into a higher marginal tax bracket, meaning those distributions and investment earnings could be taxed at a higher rate. Be prepared for a potential bump in your tax bill.

Keep saving money

Ongoing work may allow you to preserve your retirement savings for later in life and even continue to build those savings. As long as you have earned income, you can put money away in tax-advantaged retirement plans. This includes an employer-sponsored plan, if it is available to you, a traditional IRA, or a Roth IRA. Contributions to traditional IRAs can only continue up to the year in which you turn 70-1/2. If you earn income past that point, you may be able to continue making contributions to a Roth IRA indefinitely, based on your income level.

Pay attention to health insurance

Even if you retain health care coverage from an employer, you should consider signing up for Medicare Part A at age 65. There is generally no cost, and it provides coverage for care in hospitals and other institutions. Talk to your employer about whether you should sign up for Medicare Part B (a monthly premium applies). You may be able to delay doing so if you are covered by your employer’s plan without being subject to a 10 percent annual penalty for delaying enrollment in Part B. Check the rules carefully before you turn 65.

Whatever your motivation for continuing to earn a paycheck, the income you earn could impact several aspects of your financial life. Evaluating and planning for the effects working will have on your finances may help you feel more confident about living decades in retirement.

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 Financial Advisor, Certified Financial Planner ™ practitioner with Ameriprise Financial Services, Inc.

Ameriprise Financial, Inc. and its affiliates do not offer tax or legal advice. Consumers should consult with their tax advisor or attorney regarding their specific situation. 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 #1909079

Traditionally, retirement means leaving the workforce to pursue decades of relaxation. However, today’s retirees and pre-retirees are reshaping what it means to leave the workforce. Retirement may be an opportunity to pursue a small business, start consulting or land a side job that explores your passions. If your next phase includes earning an income, there…
Thanatology Makes Us Think

I am honored that Marian University accepted me into the Masters of Thanatology program this past Fall. “Thanatology? What is that?” is the common remark I hear when I tell people of my new adventure.

A thanatologist is a designated thinker about death. They help people die better than they otherwise might.

I believe every estate-planning attorney is a thanatologist. But we, like many of our clients, allow the underbrush of life, such as tax and probate, to cover up what we really face — our mortality.

In his book, A Commonsense Book of Death: Reflections at Ninety of a Lifelong Thanatologist, Dr. Edward Shneidman sets out 10 Criteria for a Good Death (page 132). Of the 10 criteria, two directly relate to estate planning.

First, it is common sense and good manners to complete the administrative chores associated with death, specifically to have a certified will and, if possible, a living trust. “Every responsible adult should assist his loved ones by doing these thanatological chores.”

Dr. Shneidman refers to the second criteria that directly relates to estate planning as “generative.” He states that a good death has a quality of being generative because, living between your parents and grandchildren, you take pains to relay family stories to the younger generation before you die.

Please consider taking on this thanatological chore of making your estate plan. Take the time to pass on family stories.

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

808-524-0251 | stephenyimestateplanning.com

I am honored that Marian University accepted me into the Masters of Thanatology program this past Fall. “Thanatology? What is that?” is the common remark I hear when I tell people of my new adventure. A thanatologist is a designated thinker about death. They help people die better than they otherwise might. I believe every…
Making the Call for Help

On average, I get one to three calls a day from the public seeking advice about elder abuse. Fortunately, only about 20 percent of the calls involve matters needing my office’s involvement. The rest are from people that see “elder abuse” in our name and hope we can help with their situation. It is a learning experience for me as I research various resources available to seniors. (These are real calls with minor facts changed to protect the identity.)

“Hi. My wife has spent over $30,000 on a gifting program. She doesn’t think it is a scam but she has given these people a lot of money and hasn’t gotten anything in return. I think it is pyramid scam.”

Pyramid/Gifting Scams are considered investment frauds and can be reported to the Department of Commerce and Consumer Affairs (DCCA) office at 1-877 HI-SCAMS (1-877-447-2267). Additionally, you can report it to the Financial Crimes Unit at the Honolulu Police Department (HPD) at 808-732-3609.

“I want to report a timeshare company that signed up my dad. He didn’t know what he was signing and wants to get out of the contract. He is on a fixed income and should have never been qualified to make the purchase.”

For complaints against individual companies, DCCA’s Consumer Protection Division (808-587-4272) can investigate claims and seek civil restitution in certain instances.

“We just discovered that my brother stole $20,000 from my dad, but he doesn’t want to do anything about it. What can we do?”

This is a common call we get, and unfortunately, if the victim — the parent — doesn’t want to prosecute, law enforcement can’t really get involved (in most situations).

“Can someone from your office speak to our group about elder abuse?”

Yes. We have done over 400 presentations to various senior groups and organizations in the past 10 years.

“I live in the mainland and just discovered my father gave over $400,000 to two men he hired to do some house repairs. He says they are nice men who bring him lunch when they stop by. He doesn’t believe they are con men and doesn’t want the police involved.”

This is similar to the situation above concerning the son stealing from the dad. If he doesn’t want to prosecute the matter, the police can do very little.

What we see happen a lot is that the children will berate the parent to the point that the parent will stop speaking to the child. This then allows the con artist free rein to continue taking advantage of the senior. I caution children to adopt a non-judgement tone with their folks in order to get more information regarding the situation. In this situation, the daughter was able to convince her dad that these men didn’t have the father’s best interest at heart, and he allowed law enforcement to get involved.

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

On average, I get one to three calls a day from the public seeking advice about elder abuse. Fortunately, only about 20 percent of the calls involve matters needing my office’s involvement. The rest are from people that see “elder abuse” in our name and hope we can help with their situation.
Love, Honor and a Final Resting Place

Disney theme parks receive millions of visitors each year. Many park-goers repeat their visits annually, if not more often. Most of the time, their visits are routine (or as routine as they can be in a magical place). From time to time, however, guests do the unexpected. Disney cast members have a code language they use when referring to unusual events. The purpose of the code is to avoid alarming other guests. For example, if someone vomits on property, Disney staff refer to it as a “protein spill.” A particularly rude or difficult visitor is referred to as a “treasured guest.” The phrase, “Have a magical day,” even when uttered with a Disney smile, can mean the opposite when a guest has been especially troublesome.

One Disney code phrase is particularly interesting. A “white powder event” might sound like a staff member has discovered illegal drugs on property or there was a potentially dangerous chemical spill from which guests must be shielded. However, the phrase is used when someone attempts to spread the ashes of a deceased loved one on park premises. Many people ask to have their ashes spread at places that hold treasured memories for them, and Disney theme parks are not the exclusive venue for these requests.

More often than you realize, human ashes are scattered covertly at sports stadiums, concert halls and golf courses. Of course, these activities are inappropriate, and they are generally unlawful.

Disposing of your cremated remains on your own private property is generally not a problem, at least within the United States. Each state has its own laws when it comes to the practice, and federal laws and regulations apply when remains are scattered within the ambit of federal jurisdiction. Not surprisingly (as every Disney cast member knows), many people proceed without checking the applicable rules. While a “white powder event” may go unnoticed, it is important to realize it can be the subject of criminal prosecution.

In Hawai‘i and other states blessed with beautiful coastal areas, it is common for ashes to be scattered at sea. While this is a beautiful gesture, it may violate the federal Clean Water Act, which requires cremated remains be scattered at least three nautical miles from land in water that is at least 800 feet deep. This means no scattering at beaches or wading pools. On top of this, the EPA requires 30 days advance notice of a scattering at sea. If you have lived in Hawai‘i for any length of time, you know that these rules are rarely observed or enforced. However, this does not give anyone license to flout the law.

If you would like your ashes to be spread somewhere special after you pass away, get advice from your attorney as you complete your estate plan. That way, you can tailor your request to ensure that none of your loved ones will end up in jail for carrying out your wishes.

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

est8planning.com
O‘ahu: 808-587-8227 | maku@est8planning.com

Many people ask to have their ashes spread at places that hold treasured memories for them, and Disney theme parks are not the exclusive venue for these requests.More often than you realize, human ashes are scattered covertly at sports stadiums, concert halls and golf courses.
Are You Ready for Emergencies?

The wrath of natural disasters has been on full display in recent weeks as hurricanes, earthquakes, wildfires and floods have ravaged large swaths of the world. While our first thoughts go to the victims of these tragic events and the challenges ahead for recovery, it may also cause you to step back and think about your own preparedness for a natural disaster. If you’re feeling under prepared, from a financial standpoint, for the possibility of an unwelcome weather event, consider creating an emergency plan.

Create A Plan. Just as you plan ahead for your retirement or children’s college tuition, you need to prepare for risks related to a financial emergency. Any type of unforeseen event could jeopardize your financial security. Work with your financial advisor, estate planner and attorney to identify and address potential financial risks.

Protect Your Property. One common concern in such events is catastrophic damage to your home. Start by making sure your property is appropriately insured. Review your homeowner’s insurance policy to make sure there is sufficient coverage for unforeseen events. Remember that typical home insurance does not include coverage for flood damage, which needs to be purchased separately. Homeowners may assume they are not at risk of such damage, but unusual circumstances might mean your risk is greater than you think, so it’s best to double check. Those who rent their living space should consider renter’s insurance.

In the case of disasters like a flood or tornado, you want to make sure you have sufficient coverage for possessions, including valuables, vehicles (e.g. cars, boats, ATVs), and technology. Maintain good records of the valuable items you own and keep them in a safe place. It can be helpful to take pictures of your property before and after an event to help the insurance claims process.

Establish An Emergency Fund. A general rule of thumb is to have at least three-to-six months’ worth of expenses saved in case of an emergency. Consider saving more if you have children or live in an area where severe weather threats are more common. Keep these funds in accounts that offer liquidity like a money market fund or in bank savings. Make sure you have some cash on hand in case power outages or other issues prevent ATMs from working.

The money you set aside could be used for temporary housing, medical care or to cover your essential expenses if you’re unable to return to work. The funds can also jump-start your relief and clean-up efforts.

Safeguard Your Information. When unanticipated events occur, you will need access to your financial information and personal identification documents. Store copies of your insurance policies, financial account statements, medical information, Social Security cards, driver’s licenses, passports and other important records in a secure location, such as a bank safety deposit box or a secure electronic vault. Having documentation readily available allows you to quickly verify your identity and work through your emergency plan after disaster strikes.

Recent events remind us of the importance of having an emergency financial plan in place to help protect against worst-case scenarios.

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 Financial 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 33 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 #1892811

The wrath of natural disasters has been on full display as hurricanes, earthquakes, wildfires and floods have ravaged large swaths of the world. While our first thoughts go to the victims of these tragic events, it may also cause you to step back and think about your own preparedness for a natural disaster.
Part II: Zero Chance of A Lottery Win

In the October/November issue of Generations Magazine, I explained that it is better to make a logical and legal argument against someone being a winner of a lottery, as opposed to showing them they are a victim of a lottery scam.

The following facts prove that you have a zero percent chance of winning a lottery if you live in Hawai‘i.

There are no registered lotteries in Hawai’i. Businesses that operate in Hawai’i must register with the Department of Commerce and Consumer Affairs’ Business Registration Division. This allows the state to regulate businesses and ensure compliancy with local laws. The only states that don’t have state lotteries or don’t participate in multi-state lotteries are: Hawai’i, Alabama, Alaska, Arkansas, Oklahoma, Utah and Wyoming.

Tax liability only occurs after the money is received. Once you receive a lottery payout, Uncle Sam wants a fair share, because prize winnings are considered income. The state and federal governments collect taxes after, not before, you receive your money (either earned or won).

In lottery-participating states, you must buy the ticket yourself and in person. Lotteries were created to generate revenue for states conducting the lotteries. These states receive a portion of the purchase price of the lottery ticket and place taxes on the prize money.

If you want to participate in the lottery, you must physically go to that state and buy a ticket yourself. It is illegal for businesses to buy tickets for non-residents. If tickets were bought online, there would be no control over who won the lottery. You cannot win the lottery if you didn’t enter the contest yourself.

It is illegal to play foreign lotteries while in the United States. Governments from every country (including the U.S.) want to regulate funds that enter and leave their economies. This includes lottery winnings. No government wants to lose millions to someone outside their country. Therefore, lotteries are specific to residents.

You have time to collect your money. Lottery-participating states allow ticketholders a set amount of time, typically one year, to receive winnings. For every day that a state holds the unclaimed lottery money, interest is collected on the money. States benefit when money isn’t claimed right away.

You are required to notify the lottery that you won. The lottery doesn’t notify you. Millions of dollars have not been claimed in lottery winnings because no one went to the lottery office in the participating state to present the winning ticket.

If you live in Hawai’i and are contacted by a lottery or sweepstakes, you now know the truth. And you also know how to break the news to a scam victim.

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

In the October/November issue of Generations Magazine, I explained that it is better to make a logical and legal argument against someone being a winner of a lottery, as opposed to showing them they are a victim of a lottery scam. The following facts prove that you have a zero percent chance of winning a…
Family Peacekeeping Methods

Central to the Hawaiian culture is the value of ‘ohana,’ or family. Maintaining the “family health” was of utmost importance and was achieved through the regular practice of ho‘oponopono. In the article, “To Set Right Ho‘oponopono A Native Hawaiian Way of Peacemaking,” Manu Meyer discusses how families practice ho‘oponopono.

Traditionally, ho‘oponopono discussions were facilitated by a haku, who assisted the family in working out problems through a series of discussions. This led to understanding of each family member’s perspectives and resulted in mutual forgiveness and resolution.

Ho‘oponopono has been compared to the modern-day Alternative Dispute Resolution. A key difference is that ho‘oponopono was not only used to resolve dispute, it also was used to prevent disputes within the family.

According to Roy William & Vic Pressor of Preparing Heirs, “Sixty percent of transition failures were caused by a breakdown of communication and trust within the family unit.” The potential influx in trust litigation is foreseeable, due to the aging demographic of baby boomers, Hawai’i’s high cost of living and the increase in multigenerational homes.

Encouraging clients to partake in often difficult and sometimes messy family discussions, while everyone still is alive and able, is integral in preventing unwanted litigation. A haku or a ho‘oponopono facilitator may be effective in resolving family disputes.

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

808-524-0251 | stephenyimestateplanning.com

Central to the Hawaiian culture is the value of ‘ohana,’ or family. Maintaining the “family health” was of utmost importance and was achieved through the regular practice of ho‘oponopono. In the article, “To Set Right Ho‘oponopono A Native Hawaiian Way of Peacemaking,” Manu Meyer discusses how families practice ho‘oponopono. Traditionally, ho‘oponopono discussions were facilitated by…