Category: Wisdoms

  • Adjusting Your Money Mindset

    Money is a powerful influence on our lifestyle, emotions and behaviors. If you’re serious about improving your financial life, examine your money mindset

    Acknowledge your personal history. If you grew up in poverty, you may have an underlying sense of scarcity–never having “enough.” If you were accustomed to abundance, you may not know how to manage money wisely. Such patterns may prevent you from earning what you’re worth, saving adequately, spending responsibly or being more philanthropic.

    Evaluate your emotional response to money. Is your mood tied to your assets? Does your bank account define you? When money occupies the driver’s seat, anxious thoughts can prevent you from making reasonable choices.

    Stop playing these money mind-games.

    • I’ll be happy when I make more money. Happiness comes from within. It is important to enjoy the successes you’re experiencing today as well as working on future goals.
    • Money is the only thing that matters. Money is an important means to an end. Worshipping money at the expense of people, nature, art and ideas may lead to loneliness and disappointment.
    • Money is meaningless. This harmful idea feeds reckless spending, de-motivate your work life, and stress those who depend on your productivity. Money should be treated with respect and not frittered away.

    Let go of the past. Stop beating yourself up for your financial mistakes. Reframe regrets as lessons and opportunities to grow. People recover from a failed business, job loss, stock tumble, or tax trouble. Keeping an open mind and focus on what you can do now.

    Curtail the time spent thinking about money. Dwelling on dollars and cents or fantasizing about winning the lottery doesn’t get you any closer to your goals. Step back; switch gears and identify\ tried and true actions to help you reach your goals. Daydream for short bursts of time; then get back to the business of living.

    Enlist a financial ally. A skilled financial advisor will be very familiar with mental, emotional and behavioral landmines you want to avoid on the road to a solid financial future. With tools to plan, save, and invest, within your timeframe and budget, you can live without financial stress, now and In the future. Look to your advisor for guidance and encouragement to sharpen your mental game and develop a new money mindset.

     

    Michael W. K. Yee, CFP
    1585 Kapiolani Blvd., Suite 1100, Honolulu
    808-952-1222 ext. 1240 | michael.w.yee@ampf.com
    Michael W K Yee, CFP®, CFS®, 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 26 years.
    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.
    Brokerage, investment and financial advisory services are made available through Ameriprise Financial Services, Inc. Member FINRA and SIPC.
    © 2014 Ameriprise Financial, Inc. All rights reserved. File # 975765

    Money is a powerful influence on our lifestyle, emotions and behaviors. If you’re serious about improving your financial life, examine your money mindset Acknowledge your personal history. If you grew up in poverty, you may have an underlying sense of scarcity–never having “enough.” If you were accustomed to abundance, you may not know how to…

  • When Home is Anything But Sweet

    Hawaii has the largest number of Homeowner’s Associations (HOA) per capita than other state. In these structured communities, residents agree when purchasing their homes to follow certain rules to ensure a certain quality of life is maintained for residents. They pay monthly fees to maintain amenities like, common areas, landscaping and pools, also other expenses, including hiring lawyers to enforce the rules. Governing body of HOA is the Association Board made up of residents elected to their position and to act in the community’s best interest. These communities, are only as good as the members elected to the Boards. Run well and responsibly, neighborhoods become everything residents desire and more. Run poorly, abuse can occur.

    An increasing number of instances nationwide where these Boards, hiding behind the excuse of enforcing the rules, have abused their powers, often times targeted the elder members of their community, using harassment, confusion, shame and fear in order to financially bully them.

    One example, when Walter (not his real name) returned home from a trip, he discovered in his mailbox letters from his HOA Board, fining him for not maintaining his lawn — an HOA violation. Since he was comfortable speaking up at previous Board meetings, he ignored the correspondence with the intent of explaining the circumstances of his trip at the next meeting. Before the next meeting, he received a letter from an attorney the Board hired, threatening legal action if Walter didn’t pay not only the original fine, but also the legal expenses the lawyer charged to write the letter. Walter found himself not only the target of the Board that didn’t appreciate his outspokenness, but the subject of a lawsuit demanding thousands of dollars in unreasonable legal expenses.

    Actions that can be taken to minimize harm done and protect yourself and home.

    If you are being treated unfairly by a HOA:

    • Learn your HOA’s rules and the consequences.
    • Know what fee’s you’ve agreed to pay for.
    • Know how fee increases are set, how often they occur, how much is in the HOA’s reserve fund, and the operating expenses and the budget.

    If you feel abuse is occurring:

    • Keep records: document abuses and keep all your correspondences with your HOA.
    • The worst thing is refusing to pay HOA fees and not telling your reasons — the risk is foreclosure.
      Call the Department of Commerce and Consumer Affairs at 586-2643.
    • Seek out legal advice from an attorney specializing in defending homeowners from HOA; depending on your circumstances, they may take the case on contingency (pay if you win).

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

    Hawaii has the largest number of Homeowner’s Associations (HOA) per capita than other state. In these structured communities, residents agree when purchasing their homes to follow certain rules to ensure a certain quality of life is maintained for residents. They pay monthly fees to maintain amenities like, common areas, landscaping and pools, also other expenses,…

  • Signs of the Economic Times

    The state of the economy can make a big difference in our lives. It affects opportunities in the job market, drives stock market, determine prices and influences buyer behavior.

    When economy is robust, there’s optimism in the air. Companies’ hire, investors invest and consumers spend. When economy is sluggish, mood is somber, companies struggle to make a profit, investors are more cautious and consumers tighten their wallets.

    How do we know if the economy is doing well?

    Economic indicators that go hand-in-hand with economic health, provide clues. Direct economic indicators go up when economy is rosy and down when economy tanks. Other factors have an inverse relationship with the economy. These inverse factors fall and rise opposite the strength of the economy.

    Leading economic indicators are considered most important factors to watch. Unlike lagging economic indicators that appear after economic change, these indicators come first, helping economists predict the direction of the economy. Here are some of the most discussed leading economic indicators.

    Consumer Price Index (CPI) — Is a consolidated measure of price of goods and services over time at the consumer level. Observed changes in CPI help determine inflation and cost of living, help shape our monetary policy. Measured by the Bureau of Labor Statistics, the CPI is calculated for food, energy and other consumer goods. Further analysis within these categories reveal what influences price fluctuations.

    Prices of some goods and services are more influential than others. For example, we are a nation of automobile owners; price of gas is closely watched. When prices get too high or too low, government may intervene with policies intended to cap consumer costs and spur economic activity.

    Producer Price Index (CPI) — Prices paid at the store, the Producer Price Index (PPI) considers what wholesalers pay for U.S. goods and services (food and energy, not factored). Wholesale prices influence consumer prices; PPI can be a useful predictor of impending inflation.

    U.S. Import and Export Price Indexes — Our nation relies on foreign trade to sustain economic activity. Price we charge foreign trading partners for goods and services, can reveal a good deal about our economic standing. Fluctuations in supply and demand, competition and stability of our global partners make these measures more vulnerable to variability.

    Productivity and Costs — Productivity statistics tell how well our economy is working. When businesses are able to do more in less time, profits rise, in turn paves the way for more investment, more jobs and prosperity.

    Real Earnings — Looks at real average hourly earnings to estimate consumer-buying power. Comparing real earnings to the CPI, shed light on how far the U.S. dollar can go.

    New Construction — Housing starts and building permits are regularly monitored by the financial industry, they reflect both business growth and consumer confidence.

    Employment Situation — Stock market tends to perk at announcement of new hires and fewer unemployment claims. Investors like a healthy economy. Job security also tends to give consumers more confidence.

    Visit the Bureau of Economic Analysis at www.bea.gov and U.S. Census Bureau at www.census.gov. Apply what you learn with your financial advisor, who can help you consider important financial decisions.

     

    Michael W. K. Yee, CFP
    1585 Kapiolani Blvd., Suite 1100, Honolulu
    808-952-1222 ext. 1240 | michael.w.yee@ampf.com
    Michael W K Yee, CFP®, CFS®, 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 26 years.
    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.
    Brokerage, investment and financial advisory services are made available through Ameriprise Financial Services, Inc. Member FINRA and SIPC.
    © 2014 Ameriprise Financial, Inc. All rights reserved. File # 823751.

    The state of the economy can make a big difference in our lives. It affects opportunities in the job market, drives stock market, determine prices and influences buyer behavior. When economy is robust, there’s optimism in the air. Companies’ hire, investors invest and consumers spend. When economy is sluggish, mood is somber, companies struggle to…

  • Retirement Assets for Charitable Giving

    If you are like many people; you may desire to make a charitable gift as part of your estate plan, a way to give back, when your need for assets is done. This kind of planning is done when retirement is also on our minds.

    Most of us hold retirement savings in an IRA, 401(k) or 403(b). Because of the way these funds are used, you may not exhaust all of your retirement money during your lifetime. So, the question is, “What will I do with my unspent retirement savings?”

    A Common Solution

    Most people designate family members as beneficiaries of retirement accounts. The problem with doing this is that much of your savings may never go to your loved ones. By giving your unspent retirement savings to your family (other than your surviving spouse), your retirement savings will be taxed. First, if you have a taxable estate, your estate will pay tax on the asset. Second, your family members will pay tax at their ordinary income rate resulting in very little of your remaining money actually going to your family.

    A Better Solution

    When leaving assets to family, it’s best to give your family assets that step-up in basis at death such as stock and real estate, these assets may be received and sold by your family without paying any tax. Your retirement assets actually make a better gift to charity because a charitable organization can receive the entire asset tax free and make use of it to further its mission.

     

    National Kidney Foundation of Hawaii
    808-589-5976 | jeff@kidneyhi.org
    www.kidneyhi.org | www.kidney.org

    If you are like many people; you may desire to make a charitable gift as part of your estate plan, a way to give back, when your need for assets is done. This kind of planning is done when retirement is also on our minds. Most of us hold retirement savings in an IRA, 401(k)…

  • Our Story

    I have had the great fortune to be able to go on a cruise this summer with my family and visited many different places in Europe.

    We barely heard any English spoken on this trip and while the languages are varied, I’ve noticed more commonalities than differences among the people we’ve had the privilege of meeting during our travels.

    These commonalities include (1) the love of family as I hear universal laughter coming from parents and children, (2) enjoying freedom other countries may not yet enjoy, including the freedom of speech, to vote, to drive and (3) a desire to tell one’s story.

    Fittingly, the person’s name assigned to help us during our cruise in the Mediterranean is Story. We visited museums in Paris, the incredible ruins in Pompeii, and the young democracy in Tunisia. In each place, I noticed that the people have a desire to tell one’s story, through pictures, writing,\ and oral history.

    Estate planning, to me, is much more than leaving cash to someone. Cash is so quickly gone. It is one’s legacy that continues on.

    I believe that this legacy, your story, is just as important as the legal estate plan leaving assets by way of will or trust and have created what I’ve coined “My Heartfelt Will.” Please consider taking the time and giving yourself permission to write your story.

    I encourage you to consider writing your legacy down, the memories and experiences that continue to shape your lives. Are you considering making your estate plan this summer?

     

    Stephen B. Yim, Attorney at Law | 2054 S. Beretania St., Hon. | (808) 524-0251 | stephenyimestateplanning.com

    I have had the great fortune to be able to go on a cruise this summer with my family and visited many different places in Europe. We barely heard any English spoken on this trip and while the languages are varied, I’ve noticed more commonalities than differences among the people we’ve had the privilege of…

  • Clarke v. Rameker and Your IRA

    In Clark v. Rameker, decided on June 12, 2014, the U.S. Supreme Court boldly went where it has seldom gone before. It waded into the estate planning world and decided that the creditor protection rules that generally apply to IRAs do not apply to inherited IRAs.

    The Federal law that governs retirement plans, known as ERISA, provides protections against creditors trying to raid your IRA in order satisfy their claims against you. The Clark case answered the question of whether those same protections apply to the unspent balance of your IRA that you leave to your spouse or children after your death. The answer is a resounding “no.”

    This case is important for those of us who want to include protective measures in our estate plans to prevent a beneficiary’s ex-spouse or creditor from enjoying what was intended for the beneficiary. The good news is that there is a tried and true means of providing these kinds of protections despite the outcome in Clark.

    Stand Alone Retirement Plan Trusts (SARPTs) are particularly attractive to those who have substantial (more than $250,000) in qualified retirement plan assets. Instead of naming your loved ones as beneficiaries of your IRAs, you name an irrevocable trust that divides into separate trusts for each of your beneficiaries upon your death. Each trust receives the annual distribution that the beneficiary otherwise would have received. The trustee then has the discretion to either distribute the money to each beneficiary, or to withhold the distribution of any beneficiary or beneficiaries who are in legal hot water.

    The upsides of this strategy are that they provide creditor protection for retirement plan assets, and they also enable beneficiaries to “stretch out” distributions, so they pay income tax on those distributions in small increments, keeping the remaining assets growing for them on an income tax-deferred basis.

    The downside is that if an IRA distribution is not distributed to the beneficiary in the year of receipt by the trustee, the trust (instead of the beneficiary) will pay the income tax on the distribution, and the tax rates for trusts are almost always higher than the tax rates for individuals. However, this is the one time that the beneficiary may appreciate seeing 40% of the distribution go to the IRS, because the alternative might be for 100% of it to go to a creditor or ex-spouse.

    SARPTs can be helpful for the families of many IRA owners, and they are worth discussing with your trusted advisors.

     

    Scott Makuakane, Counselor at Law
    Focusing exclusively on estate planning and trust law.
    Watch Scott’s TV show, Malama Kupuna
    Sundays at 8:30 p.m. on KWHE, Oceanic channel 11
    www.est8planning.com
    O‘ahu: 808-587-8227 | maku@est8planning.com

    In Clark v. Rameker, decided on June 12, 2014, the U.S. Supreme Court boldly went where it has seldom gone before. It waded into the estate planning world and decided that the creditor protection rules that generally apply to IRAs do not apply to inherited IRAs. The Federal law that governs retirement plans, known as…

  • Qualifying for Medicaid is Unpatriotic?

    Some people question whether Medicaid planning might be unpatriotic. After all, Medicaid is a “welfare” benefit funded by our tax dollars. Is it “wrong” to put yourself in the position to have the taxpayers pay for your long-term care? Let us begin by considering what it means to be a taxpayer.

    Everyone knows that it is immoral and illegal (and unpatriotic) to cheat on your income taxes. But does that mean any of us has an obligation to pay more taxes than the law requires? Of course not. The Internal Revenue Code allows us to take various kinds of deductions when we file our annual income tax returns. As long as we deduct no more than the law allows, we are engaging in the noble practice of tax avoidance. However, if we knowingly take a tax deduction in an amount or of a kind that we are not entitled to take, the terminology changes to tax evasion. For tax avoidance, a person is praised, for tax evasion, a person goes to jail.

    In the 1916 U.S. Supreme Court case of Bullen v. Wisconsin, Justice Oliver Wendell Holmes wrote “when the law draws a line, a case is on one side of it or the other, and if on the safe side is none the worse legally that a party has availed himself to the full of what the law permits. When an act is condemned as an evasion, what is meant is that it is on the wrong side of the line.” Taking economic advantage of what our law allows—staying on the “safe” side of the line—is both legal and patriotic.

    Justice Louis Brandeis, whose tenure on the U.S. Supreme Court overlapped that of Justice Holmes, famously stated this same principle another way: I live in Alexandria, Virginia. Near the Supreme Court chambers is a toll bridge across the Potomac. When in a rush, I pay the dollar toll and get home early. However, I usually drive outside the downtown section of the city and cross the Potomac on a free bridge. If I went over the toll bridge and through the barrier without paying the toll, I would be committing tax evasion. If, I drive the extra mile and drive outside the city of Washington to the free bridge, I am using a legitimate, logical and suitable method of tax avoidance. For my tax evasion, I should be punished. For my tax avoidance, I should be commended.

    Knowing the alternatives that are available to you is the essence of wise planning. You cannot make a choice that you do not know you have. So if paying for long-term care is an issue for your family, learn about Medicaid qualification so you can plan your and family’s financial future wisely. Availing yourself of a benefit that the law allows and intends cannot be unpatriotic.

    Scott Makuakane, Counselor at Law
    Focusing exclusively on estate planning and trust law.
    Watch Scott’s TV show, Malama Kupuna
    Sundays at 8:30 p.m. on KWHE, Oceanic channel 11
    www.est8planning.com
    O‘ahu: 808-587-8227
    Email: maku@est8planning.com

    Some people question whether Medicaid planning might be unpatriotic. After all, Medicaid is a “welfare” benefit funded by our tax dollars. Is it “wrong” to put yourself in the position to have the taxpayers pay for your long-term care? Let us begin by considering what it means to be a taxpayer. Everyone knows that it…

  • Two Days in the Summer

    The Fourth of July is the cornerstone of summer. It is a date where families will get together; BBQ’s will occur; and fireworks will be watched. Memories of our youth will resurface, and stories of our nation’s birth will be told.

    Independence Day being on Friday this year, will turn the weekend into a three-day break. In short, it will be celebrated as a holiday.

    Nineteen days prior to Independence Day, on Sunday June 15, World Elder Abuse Awareness Day (WEAAD) will happen. No parades, however, will be marking this day, nor will picnics be planned around it. If you don’t read the paper that day or watch the news carefully, it will go unnoticed.

    In 2006, WEAAD was created to bring awareness that elder abuse exist in our society. Judging from my experiences as supervisor of the Elder Abuse Unit at the Prosecutor’s Office, this goal has not been achieved. I get calls from victims and their families who are in shock that these crimes exist and they have fallen victims to them. Even within law enforcement, there is surprise at the rate these crimes occur and the ingenuity these criminals employ.

    Part of our collective ignorance comes from the fact that these offenses are rarely reported to the police or covered by the media. This lack in reporting leads to the belief that these crimes do not occur that often, gives potential victims a false sense of security that this could never happen to them.

    Another reason we don’t think about elder abuse is that, quite frankly, it’s depressing. Stories of elder abuse are reminders that this situation could be a possible future in our own lives. We don’t like to think that when we get older we might need assistance or become vulnerable. Just look at the small minority of us that have invested in long-term care insurance. We want to believe we are going to grow old — being healthy the entire time — and then, at the ripe age of 112, we will go to sleep and gently pass into the night. Events like WEAAD are not conducive to the “ignorance is bliss” mentality many of us share.

    This observance day, however, does serve a purpose. Once a year, we might stumble upon a mentioning of this day and take a moment to think about our parents or grandparents and give them a call to see how they are doing. OR perhaps take another look at that piece of mail we got and question the sincerity of its claim that it has made us rich.

    So, although WEAAD will most likely not become an event in the future where fireworks will be lit, it will for some remind us that although we won independence centuries ago, and we are not free from the crimes that target our seniors.

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

    The Fourth of July is the cornerstone of summer. It is a date where families will get together; BBQ’s will occur; and fireworks will be watched. Memories of our youth will resurface, and stories of our nation’s birth will be told. Independence Day being on Friday this year, will turn the weekend into a three-day…

  • Retiring Into Your Dream Job

    Americans in general have strong work ethic, so a life of extended leisure doesn’t appeal to everyone. With the average U.S. life expectancy estimated at 80.1 years, there’s no reason why you can’t pursue meaningful work in retirement especially if your health is good and your mind is sharp. The desire for activity and income are other important reasons you may decide to return to the workforce and stay well beyond age 65.

    Retirees today can consider a number of opportunities, such as turning special expertise into a consulting gig, taking a part-time job, starting a small business or volunteering for non-profit work. Let’s take a closer look.

    Become a consultant. Many retired professionals turn their past into thriving consulting businesses, often providing services to their former employers.

    Others blog about their fields of expertise. Speaking engagements, seminars and webinars are additional ways you can share your knowledge, which can bring income and provide you with the professional and in-tellectual stimulation your former work life provided.

    Get a part-time job. If your former field offers part-time opportunities, you may be the lucky ones to land a less-than-full time job with betterthan- average compensation.

    Some seniors go back to school to get another degree, training or certification that will qualify them for a challenging part-time job in a field of interest. Or, decide to take a low stress, entry-level job simply to remain active — bagging groceries, working a cash register or becoming a barista to stay busy while lining your pockets with a little extra cash.

    Start your own small business. Merchandising and auction sites such as eBay and Etsy are where people turned their hobbies of collecting or crafting into thriving businesses.

    In your former work life, you may not have had as much time to devote your hobby as you would have liked. Now you can pursue selling your collectibles or handmade treasures and enjoy the rewards of a small business.

    Volunteer. Many retirees take advantage of their open calendars to ramp up volunteering for organizations they support.

    While giving your services freely to your favorite nonprofit won’t pad your pocketbook, it can be extremely rewarding and meaningful. Whether you choose to help your favorite church, hospital, professional organization or animal shelter, volunteering your time can enrich your life and benefit your community in important ways.

    It’s up to you to create a rewarding retirement.

    If you choose to continue working for a paycheck, your financial advisor can help you examine how additional income will impact your overall retirement finances.

    Remember, the point of a work commitment in retirement is not to replicate your former 40-plus hour workweek. Ideally, your retirement career is about staying active and engaged in ways that keep you young.

    Whether or not you pursue a new line of work in retirement, be sure to leave room for activities and interactions that will make your golden years as rewarding as they can be.

    Michael W. K. Yee, CFP
    1585 Kapiolani Blvd., Suite 1100, Honolulu
    808-952-1222 ext. 1240 | michael.w.yee@ampf.com

    Michael W K Yee, CFP®, CFS®, 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 26 years.
    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.
    Brokerage, investment and financial advisory services are made available through Ameriprise Financial Services, Inc. Member FINRA and SIPC.
    © 2014 Ameriprise Financial, Inc. All rights reserved. File # 823751

    Americans in general have strong work ethic, so a life of extended leisure doesn’t appeal to everyone. With the average U.S. life expectancy estimated at 80.1 years, there’s no reason why you can’t pursue meaningful work in retirement especially if your health is good and your mind is sharp. The desire for activity and income…

  • The Professional Criminal Magician

    Financial abuse of seniors oftentimes goes unreported. Studies have estimated that as few as 1 in 30 cases are brought to the attention of authorities. There are many reasons why these matters don’t get reported.

    The two main reasons for none reporting are:

    the abuser is a family member and the victim doesn’t want to get them in trouble
    the victim is too embarrassed about being taken advantaged of that they would rather no one know about it than to be humiliated
    The first reason, although misguided, is understandable, but second reason, however, is not.

    To be direct and word this in no uncertain terms, victims of financial abuse should not feel embarrassed about being tricked out of their money. Today’s criminals who target seniors are smart criminals with hundreds of hours of experience and sophisticated tools that can convince even professionals that they are legitimate in their business dealings.

    Generations Magazine- The Professional Criminal Magician - Image 01Encountering today’s scam artist is very similar to seeing a professional magician perform. He has spent countless hours practicing his act, invested in resources and props, and achieved a certain level of competence that earned him his own show. When the audience leaves the performance, they are often left wondering how the tricks were accomplished. They are not, however, embarrassed that they could not figure out how a particular illusion was accomplished. The same should be said about victims of today’s scams.

    An example of the skill level of these criminals is seen in a rash of sweepstakes/lottery scams occurring in the Islands today. Potential victims are sent a personalized message (mail, email or telephone) telling them of their good fortune at winning a prize. How did the criminal get this contact information? They spent money getting it. Just like the magician going into a magic shop to buy a deck of marked cards or a collapsible wand, the scam artist can purchase personal information from various sources including people who steal mail; telemarketers who compile information from people who fill out contest entry forms; or computer programs designed to hack email accounts or link addresses to names.

    Gone are the misspelled, poorly written emails and letters. These scam artists have learned from past mistakes and perfected their trade. Today’s personalized lottery winning letters are well-written and look legitimate. Some include pre-printed checks that will initially fool even a bank teller into giving a sum of money that is suppose to be sent to the scam artist to pay for “taxes and fees” on the prize money. Other letters include a credit card that the victim is told has the lottery winnings on it and it just needs to be activated with a payment.

    So professionally done are these notifications, that some banking personnel, financial planners, lawyers and judges have been fooled by these scams.

    In short, if you have been scammed, do not feel embarrassed. You were taken by a professional. Report the crime so that there is a chance these criminal magicians will disappear. All reports are confidential.

     

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

    Financial abuse of seniors oftentimes goes unreported. Studies have estimated that as few as 1 in 30 cases are brought to the attention of authorities. There are many reasons why these matters don’t get reported. The two main reasons for none reporting are: the abuser is a family member and the victim doesn’t want to…

  • Backwards Planning

    In my 19 years as an estate planning attorney, I’ve noticed that many of the things we do as attorneys seem backward. The consequence of backward estate planning is dire, causing failed estate plans and fractured family relationships. To ensure a successful estate plan, we must reverse the way we view many of the common estate planning practices:

    • “Read the Will” prior to, not after, someone dies. In a family meeting, discuss your estate plan. What better time to reveal and clarify intentions than when we are alive.
    • It is not solely the document that makes up a sound estate plan, it is the underlying intent that provides the foundation for each document.
    • Start with “why”, then get to the “how” and “what.” Often lawyers want to rush into telling people what to do without exploring the client’s desires and hopes. If we don’t start with asking why the client wants to complete a plan, the what and how will miss the mark.
    • Stop the tail from chasing the dog. Meaning, lawyers often prioritize artificial tax planning over spending time in the relational aspects of estate planning, only to see that while we may minimize taxes, relationships fail.
    • Mend relationships now. We often avoid strained relationships, and leave it to the estate plan to speak to fractured relationships. While some relationships are not “fixable,” now is the time to try.
    • What is most important is not only equal distribution of assets to our children, but also preserving and nurturing the relationships between those we leave behind.
    • We might feel that it is only the worth (dollars and cents) of our assets that is important. However when pressed, most of us feel it is the value (emotion/relational) of our gift that is our most important legacy.
    • Change “I just completed my plan, now I’m done” to: “I just completed my plan and now I’m ready to start.” Once you’ve signed your estate planning documents, I believe you’ve just started the estate planning process because life changes. Now you’ve committed to something that you can review as change occurs.
    • It’s not an entitlement to receive an inheritance. It’s a loving gift.
    • “It’s family so we don’t have to write legal instructions.” It is because it is family, there is much at stake. The clearer the communicate, the better chance for a successful estate plan.

    Stephen B. Yim, Attorney at Law | 2054 S. Beretania St., Hon. | (808) 524-0251 | stephenyimestateplanning.com

    In my 19 years as an estate planning attorney, I’ve noticed that many of the things we do as attorneys seem backward. The consequence of backward estate planning is dire, causing failed estate plans and fractured family relationships. To ensure a successful estate plan, we must reverse the way we view many of the common…

  • Financial: Time for a Retirement Dress Rehearsal

    Two emotions are likely to strike those who are nearing retirement — excitement and fear. Leaving the world of alarm clocks and cubicles is liberating, but feelings of apprehension about entering a new life stage can easily creep in. The responsibility of pursuing your passions and filling each week in a satisfying way can be a challenge. Then, top that off with the ever-present concern about long-term financial security in retirement.

    Feeling excitement and fear is ok, but what if life after work isn’t everything you envisioned it to be?

    Try A Practice Run

    If you’re nearing retirement, you’ve likely taken steps to prepare financially for the future. But there’s one important thing you might not have considered adding to your pre-retirement checklist — a practice run. How you choose to spend your time (and in many cases, your money) is not always an easy decision. As we age, our interests, hobbies and relationships change. What you may consider your “ideal” retirement when you’re 55 may not fit when you’re 65. This evolution can make it hard to plan accurately for retirement.

    To the extent you’ve made a financial commitment to a certain lifestyle, changing your mind in 10 or 15 years could throw a wrench in your long-term financial plan.

    For example, consider an individual who has lived his entire life in New York, but retires to Florida where taxes and cost-of-living are generally lower. Deciding after several years to relocate back to New York to be near family — where cost of living and tax rates differ — can mean the dollars he’s saved will have to be re-allocated and his savings may not go as far as he’d planned.

    The idea of practicing retirement may also mean leaving the 40-hour work week for something that’s more part-time. Some people may want to take a part-time role with their current employer, or work as a consultant. This also can offer important financial benefits that help preserve their nest egg.

    Financial Rehearsal

    Practice can also be beneficial in another way — simulating how to manage your expenses in retirement. The idea that your cash flow no longer comes from a reliable paycheck, but from other sources like Social Security and personal savings can come as a shock … even to those who are well-prepared for this change.

    One idea to accomplish this is to run two accounts for a certain period of time. Through one account, manage all of your household and lifestyle expenses that you expect during retirement. This includes the costs for necessities such as food, clothing, shelter, utilities, taxes and insurance as well as “nice-to-have” items like dining out, traveling, etc.

    Through the second account, manage all of your expenses that are expected to end in retirement like principal and interest on a mortgage payment (if your home will be paid off), car payments (although car payments can certainly happen again in retirement), college costs for your kids and contributions to retirement plans.

    Perfecting Life In Retirement

    A little practice can go a long way toward easing emotional and financial concerns when it comes to making the jump into retirement. A retirement trial run may not answer all of your questions — and it doesn’t necessarily include the unexpected events that can often throw retirement off track — but doing it for six months or so can be very beneficial in determining whether your retirement budget is realistic. Consider working with a financial advisor who can help you reach your retirement dreams.

     

    Michael W. K. Yee, CFP
    1585 Kapiolani Blvd., Suite 1100, Honolulu
    808-952-1222 ext. 1240 | michael.w.yee@ampf.com

    Michael W K Yee, CFP®, CFS®, 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 26 years. Brokerage, investment and financial advisory services are made available through Ameriprise Financial Services, Inc. Member FINRA and SIPC. © 2014 Ameriprise Financial, Inc. All rights reserved. File # 783860

    Two emotions are likely to strike those who are nearing retirement — excitement and fear. Leaving the world of alarm clocks and cubicles is liberating, but feelings of apprehension about entering a new life stage can easily creep in. The responsibility of pursuing your passions and filling each week in a satisfying way can be…