Category: Wisdoms

  • What Does Gender Have to Do With Retirement?

    When it comes to planning for retirement, women feel less prepared than men. That’s according to the New Retirement Mindscape® 2013 City Pulse index survey, commissioned by Ameriprise Financial. Only 38 percent of women surveyed say that they feel on track for retirement (or the remainder of retirement) compared to 46 percent of men.

    Women’s lack of confidence in the realm of retirement readiness may be tied in part to planning. Seventy-five percent of men surveyed reported that they’ve done at least some preparation for retirement, compared to 70 percent of women. And over half of men (55 percent) say they’ve contributed to a 401(k) plan, while only 47 percent of women claim they’ve done the same.

    What accounts for the gender divide? It may have to with the fact that women often face three unique financial hurdles on the road to retirement, including:

    1. Women often take time away from work to be caregivers. While caregiving is often the best option for a family’s situation, the reality is that spending time out of the workforce — whether to raise children or to provide care for a family member — can have a negative impact on one’s earning potential. Women (and men) who anticipate pausing their careers at some point in time to focus on other priorities should consider setting aside extra money at other times when they’re able to do so, in order to offset the loss of income.
    2. On average women live longer than men. This results in the need for additional retirement funds and increased health and long-term care costs. Yet, only 15 percent of women surveyed in the New Retirement Mindscape survey say that they’ve estimated the amount of money they’ll need to pay for healthcare during retirement, compared to 21 percent of men. It’s critical to create a plan for how you’re going to handle healthcare expenses.
    3. Women tend to be more conservative with investments. This may not be all bad, but defining and taking the appropriate amount of risk with your investment portfolio may be beneficial. Although, it’s important to have a balanced approach in your investments.

    Gender aside, baby boomers are feeling unprepared for retirement. With fewer years left to build up a nest egg, it’s important to focus on what you can control. Here are five steps you can take to feel more prepared for retirement:

    1. Think about what you want retirement to look like. Do you want to travel? Relocate? Spend more time with your grandkids? When you have a clear vision of retirement, it’s easier to determine what it will take to get there.
    2. Take advantage of employer-sponsored retirement plans. Make sure you’re maxing out your 401(k) contributions if you’re able. If you’re selfemployed, take the time to establish your own retirement plan.
    3. Consider purchasing long-term care insurance.
    4. Break down your expenses into two categories — essential and lifestyle. Determine if there’s anything you could forego on the lifestyle side.
    5. Focus on saving more, especially while you’re still working.

    Planning for retirement is complex and it’s not the same for everyone. Each person’s situation is unique. The key is to outline your goals for retirement, and then determining a path to get there. Consider meeting with a financial advisor who can help you with this.

     

    Michael W. K. Yee at (808) 952-1222 ext. 1240

    Michael W K Yee, CFP®, CFS®, CRPC®, is a Financial Advisor and 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 25 years. To contact him, michael.w.yee@ampf.com, 808.952.1222 ext 1240, 1585 Kapiolani Blvd., Suite 1100 Honolulu, Hawai‘i 96814.
    Advisor is licensed/registered to do business with U.S. residents only in the states of Honolulu, Hawai‘i.
    1 The Money Across Generations IISM study was commissioned by Ameriprise Financial, Inc. and conducted by telephone by GfK in December 2011 among 1,006 affluent baby boomers (those with $100,000 or more in investable assets); 300 parents of baby boomers; and 300 children of baby boomers at least 18 years old. The margin of error is +/- three percentage points for the affluent boomers segment and +/- six percentage points for the parents and children of boomers segments.
    2 United States Department of Labor, Wage and Hour Division, Family and Medical Leave Act http://www.dol.gov/whd/fmla/
    Ameriprise Financial and its representatives do not provide tax or legal advice. Consult with your tax advisor or attorney regarding specific tax issues.
    Brokerage, investment and financial advisory services are made available through Ameriprise Financial Services, Inc. Member FINRA and SIPC.
    ©2012 Ameriprise Financial, Inc. All rights reserved.

    When it comes to planning for retirement, women feel less prepared than men. That’s according to the New Retirement Mindscape® 2013 City Pulse index survey, commissioned by Ameriprise Financial. Only 38 percent of women surveyed say that they feel on track for retirement (or the remainder of retirement) compared to 46 percent of men. Women’s…

  • Boo! Now Give Me Your Money

    Fear has always been a tool criminals use to get money from others. Whether it is created by holding a weapon to a cashier to get their compliance, or simply using a verbal threat against someone on the street to make him/her surrender their wealth, a robber wants his victim to believe they have to act quickly to avoid being harmed.

    The Office of the Prosecuting Attorney’s Elder Abuse Unit has seen fear also being used to scam seniors out of their money and assets. Unlike direct threats to their safety, however, many fear-based scams involve the illusion that the victim will lose their wealth, their security, or someone close to them if they don’t act quickly.

    One such scam that is occurring in Hawai‘i is the Distressed Relative Scam. This scam relies on the victim making a quick emotional decision, before they have time to verify the facts or to ask for advice from others. The victim will get a message, either a telephone call or an email, relating to them that a family member is in dire straights and money will solve the problem.

    An example of the charade can include a “doctor” calling the victim to inform them that their family member was injured while traveling and money needs to be sent immediately so that the loved one can be saved. Another has involved the con-man (or woman) claiming to be their grandchild or some other relation to the victim and informing them they were unlawfully arrested and need bail money to escape the mistreatment they are receiving in jail.

    Generations - 2014-02 - Boo Now Give Me Your Money - Image 01
    The Scream by Edvard Munch (1893)

    The perpetrator of this scam goes on to instruct the victim how they can either wire the money to them or tells them to get a Green Dot loadable charge card from Walgreens or Wal-Mart and put money into the card’s account and relay the account number on the back of the card to them.

    When hearing about this scam in the light of day, one can easily realize that there is something suspicious about the above scenarios. But as any parent or grandparent will tell you, the call they dread the most is one informing them that someone precious to them needs help. It is a message like this that will force them to panic and act before they think clearly about what is being said.

    Fear is also incorporated into other types of scams seniors encounter — such as when seniors receive a call from “the bank” saying that suspicious activity is occurring on their account, and then they are asked to give the caller their personal account information so that “the bank” can secure the account’s money. Additional scams include the lottery and sweepstakes scams featured in the December/January 2014 issue of Generations, and Sweetheart Swindles featured in the August/September 2013 issue.

    If you are ever contacted by someone and feel pressured to make a decision out of fear, then it is time to stop and verify the facts. This can be as easy as calling a relative to compare notes or calling Crime Stoppers at 808-955-8300.

     

    To Report Suspected Elder Abuse, call:
    Adult Protective Services
    808.832.5115
    ElderAbuse@honolulu.gov
    or visit www.ElderJusticeHonolulu.com.
    All reports are confidential.

    Fear has always been a tool criminals use to get money from others. Whether it is created by holding a weapon to a cashier to get their compliance, or simply using a verbal threat against someone on the street to make him/her surrender their wealth, a robber wants his victim to believe they have to…

  • Lotteries & Sweepstakes: You’re Not That Lucky

    Generations - 2014-12-01 - Lotteries and Sweetstakes - Image 01When Betty Lau (victim’s name changed) of Kaimuki opened her mail, she could not believe how lucky she was to find out that she won the $3-million Australian Lottery. The official looking letter explained that an unnamed company bought her a ticket as a promotional program and the enclosed Gold Credit Card from VISA contained the prize money. With the plastic card in hand, Betty felt confident this lottery was legitimate. Betty then read that the card had to be activated with a payment in order for her to gain access to the funds she had won. She was told, however, that any funds she paid would be put right back on the credit card. However, after making payment after payment, she received yet another notice that there was one more fee she had to pay in order for her to get access to the money. She had the feeling of playing a slot machine that kept showing “bar” “bar” cherry”— one more spin (or, in this case, payment) and she would win big. For the next three months, Betty sent more than $150,000 in an attempt to activate the card. It was only when she went through her entire savings account that she was forced to stop pursuing this fantasy.

    Unfortunately, the Elder Abuse Unit at the Prosecutor’s Office and the Honolulu Police Department are seeing the above scene being played out repeatedly in Hawai‘i. Letters, emails, and telephone calls are being received by seniors in increasing numbers. Each giving news that is too good to be true.

    These notices are official looking with impressive wording and says the victim must pay a small fee to receive their winnings. Some include credit cards, like in Betty’s case, while others include a real looking check. The victim is told to cash the check and send the money to another party to pay for the transaction/processing fees. The bank cashes the check without verifying it is real (because they are customer friendly after all). The victim then sends the money to the third party. When the bank discovers that the check was fake, they make the victim pay the cash back and threatens to call the police on the victim for passing a bad check.

    These scams have some things in common. Firstly, the notices state that the victim must act soon or the monies won will be put back into some sort of “general lottery fund.” Secondly, the letters advise the victims to not tell anyone they won so that they do not become victims of fraud. And finally, each of these letters ask for an advanced payment of fees in order to access the winnings.

    How can you prevent this from happening to you?

    Watch the news for information about recent scams.

    Review your bank statements for any unauthorized withdraws.

    Never rush into sending money to strangers. Talk to family, friends or financial advisors before taking action.

    Do not fill out contest entry forms. The entries are made into lists that can be bought by scam artists who can then contact you with accurate information you provided for the contest.

    And, finally, realize you are not that lucky to have won a contest you never entered.

     

    To Report Suspected Elder Abuse, call:
    Adult Protective Services
    808.832.5115
    ElderAbuse@honolulu.gov
    or visit www.ElderJusticeHonolulu.com.
    All reports are confidential.

    When Betty Lau (victim’s name changed) of Kaimuki opened her mail, she could not believe how lucky she was to find out that she won the $3-million Australian Lottery. The official looking letter explained that an unnamed company bought her a ticket as a promotional program and the enclosed Gold Credit Card from VISA contained…

  • Home Equity Into Retirement Income

    The long-struggling housing market is finally showing signs of recovery, giving many homeowners more equity in their properties. This is prompting more pre-retirees to consider if, and how, home equity can be turned into a source of cash to help fund their retirement.

    Home equity represents one of the biggest assets for many Americans. However, there are risks in assuming that your home’s equity will be a guaranteed source of income in retirement. For starters, home equity, like any investment, is subject to the fluctuations of the market and may have tax consequences. Also, you will always need a place to live, so you can’t assume that the full value of a home is at your disposal. Remember that the primary function of your home is to provide a roof over your head, and using equity to fund retirement requires careful planning. Here are three primary options:

    • Home Equity Lines of Credit (HELOC): A HELOCS (second mortgage) is a reasonable option for an employed individual, but it may be less practical for someone in retirement. HELOCs need to be repaid, and using the proceeds from a home equity loan to help fund retirement often means taking on interest costs in order to generate that income. It’s important to note that an individual puts a lien on their home by taking a HELOC, and risks losing it should he or she fail to repay under the terms of the loan.
    • Reverse Mortgage: A popular alternative is a reverse mortgage. This allows a homeowner to tap into the home equity while still occupying it. A reverse mortgage provides payment to homeowners for the bulk of the value of their homes via a lump sum, a line of credit or periodic payments. In essence, this is a loan to the homeowner paid back when the house is sold at some future date. However, interest accrues throughout the duration of the loan and upfront fees apply, so it can be expensive.

    A standard reverse mortgage, also called a Home Equity Conversion Mortgage, charges a 2 percent mortgage insurance premium on the full value of the home. The government now offers a lower cost “Saver” loan with a mortgage insurance premium of just 0.01 percent of the home’s value, but applying a higher interest rate. Over time, the combination of fees and interest charges can significantly deplete the value of the home’s equity.

    Reverse mortgage applicants must be at least 62 years old. The older a retiree is, the more he or she can receive from the home’s equity. Understanding the complicated terms of a reverse mortgage before signing on the dotted line is crucial.

    Selling & Downsizing: The other way to tap a home’s equity is to sell it. Many retirees are ready to “downsize” or to buy or rent a smaller residence. If the market is right, they can sell their existing home, buy a new place and have equity leftover to add to their retirement nest egg.

     

    Michael W. K. Yee at (808) 952-1222 ext. 1240

    Michael W K Yee, CFP®, CFS®, CRPC®, is a Financial Advisor and 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 25 years. To contact him, michael.w.yee@ampf.com, 808.952.1222 ext 1240, 1585 Kapiolani Blvd., Suite 1100 Honolulu, Hawai‘i 96814.
    Advisor is licensed/registered to do business with U.S. residents only in the states of Honolulu, Hawai‘i.
    1 The Money Across Generations IISM study was commissioned by Ameriprise Financial, Inc. and conducted by telephone by GfK in December 2011 among 1,006 affluent baby boomers (those with $100,000 or more in investable assets); 300 parents of baby boomers; and 300 children of baby boomers at least 18 years old. The margin of error is +/- three percentage points for the affluent boomers segment and +/- six percentage points for the parents and children of boomers segments.
    2 United States Department of Labor, Wage and Hour Division, Family and Medical Leave Act http://www.dol.gov/whd/fmla/
    Ameriprise Financial and its representatives do not provide tax or legal advice. Consult with your tax advisor or attorney regarding specific tax issues.
    Brokerage, investment and financial advisory services are made available through Ameriprise Financial Services, Inc. Member FINRA and SIPC.
    ©2012 Ameriprise Financial, Inc. All rights reserved.

    The long-struggling housing market is finally showing signs of recovery, giving many homeowners more equity in their properties. This is prompting more pre-retirees to consider if, and how, home equity can be turned into a source of cash to help fund their retirement. Home equity represents one of the biggest assets for many Americans. However,…

  • Is Physician-Assisted Suicide Legal in Hawaii?

    A large, well-funded national organization has been taking out print ads and airing TV commercials that claim that doctors in Hawai‘i are providing lethal doses of medication to individuals who desire “aid in dying.” According to the ads and commercials, this is perfectly legal because of a newly discovered loophole inHawai‘i law.

    As it turns out, however, the ads and commercials ignore what Hawai‘i’s chief law enforcement officer, attorney general David Louie, has said about this topic. In an opinion letter dated December 8, 2011, Louie addresses:

    • whether section 453-1 of the Hawai‘i Revised Statutes (the supposed newly discovered loophole) authorizes a physician to assist a terminally ill patient with dying
    • whether any criminal laws prohibit “aid in dying”

    Louie opines that the loophole being touted in favor of physician-assisted suicide simply allows doctors to prescribe unconventional “remedial agents or measures” (i.e. medication or treatment intended to make the patient better — or at least to provide pain relief and comfort), not cause the patient’s death. In the attorney general’s view, the law clearly does not allow doctors to prescribe lethal doses of medication.

    As to the second question, Louie opines that physician-assisted suicide would constitute the crime of manslaughter. However, proving that the crime had been committed would involve convincing a jury that the physician intended for the patient to commit suicide, and that the lethal medication prescribed by the physician accomplished its intended task. As we all know, proving that a crime has been committed is not necessarily an easy task. But the fact that a crime is difficult to prove does not mean that no crime was committed. Obviously, any physician who follows interpretation of Hawai‘i law urged in the current advertising blitz could be in for serious trouble.

    So don’t be fooled by the commercials and ads. Our existing hospice and palliative care (alleviating pain) physicians and services do a wonderful job of assisting the terminally ill and their families face death. There are legitimate and compassionate ways of dealing with end of life issues that do not involve suicide or raise the prospect of euthanasia.

    For more information, or if you would like a copy of the Attorney General’s opinion, email info@est8planning.com.

     

    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

    A large, well-funded national organization has been taking out print ads and airing TV commercials that claim that doctors in Hawai‘i are providing lethal doses of medication to individuals who desire “aid in dying.” According to the ads and commercials, this is perfectly legal because of a newly discovered loophole inHawai‘i law. As it turns…

  • Are You ‘Good to Go?’

    We all know death is a natural part of life and something we will all experience. But have you thought about how you want to be treated during your final days? How you would like to die?

    Though it’s not an easy topic, and most of us avoid thinking about it, consider giving your death some thought this holiday season. What better way to start the New Year than with a resolution to complete your advance healthcare directive and talk to your family about what you want at the end of life?

    In fact, there is a growing movement in Hawai‘I and the nation toward considering how we want to die and sharing those wishes with doctors, caregivers and loved ones. Increasingly, people feel everyone deserves to make their own personal decisions for dying with comfort, dignity and control.

    Compassion & Choices Hawai‘i is part of this movement. They help people receive state-of-the-art care and the full range of options at the end of life, including disease-specific treatment, palliative care, hospice, avoidance of unwanted medical treatment and access to aid in dying, which is the option to advance the time of death if suffering becomes unbearable.

    How do you get the conversation started?

    After many attempts to engage family members, one Compassion & Choices client set her holiday table with advance directive forms at every place setting and announced, “Nobody gets dinner until these are filled out.” Now that’s some tough turkey!

    And while the paperwork is important, the essential thing is to get the conversation going. Try starting with, “If one of us ever had to make decisions about your treatment because you couldn’t, it would be much easier if we knew what you really want.” Then ask the following:

    • Would you want life support if you have a terminal illness? What if you’re in a permanent coma? What if you have a chronic illness such as Alzheimer’s disease?
    • Do you always want to know the truth about your condition? About treatment options and their odds of success? And what does “success” mean to you and quality of life?
    • What will be important to you when you are dying? No pain? Hold on as long as possible? Family members present? What are your priorities?
    • Would you want to be in a nursing home if your condition warranted?

    Compassion & Choices has a free Good-to-Go Toolkit to guide your conversation and document the results at www.CompassionAndChoices.org/advance-directive.

    Compassion & Choices’ End-of-Life Consultation is a free service. Professional consultants listen to each unique situation and provide information, emotional support and patient advocacy as people navigate complex choices about terminal illness or the dying process.

    For more information, free consultation, access to the Good-to-Go Toolkit and much more, call 1-800-247-7421 or visit www.CompassionAndChoices.org/hawaii.

    We all know death is a natural part of life and something we will all experience. But have you thought about how you want to be treated during your final days? How you would like to die? Though it’s not an easy topic, and most of us avoid thinking about it, consider giving your death…

  • Legal: Siblingship

    siblingship [sib-ling-ship]
    noun (November 9, 2013):
    1. The state of being related or interrelated
    2. A state of affairs existing between one of two or more individuals having one common parent.

    You will not find this word in the dictionary — it is a new word as of November 9, 2013. It describes the unique, textured, dynamic relationship existing between siblings. Think about the uniqueness of this relationship. Siblings begin their relationship at a very young age. My twins, for example, literally started their lives together. And, if they are fortunate, they will experience their lives to old age together. They experience joys and setbacks together, laugh and cry together, and fight together. And through the fighting, they can learn conflict resolution together. No other relationship is quite like a “siblingship.” Parents are there at the beginning, but all too often they leave too early. Spouse’s join us in our adult lives. Friends often come and go.

    When parents die, siblings are called home to “divide up the pie.” And what I experience all too often with the families that I work with, is that the siblings fight over the same things that they fought over when they were kids — property and fairness. However, the parents are no longer there to referee and help divide up the pie fairly.

    The estate planning process, if done properly, can do much to minimize the risk of fighting when parents die. However, many plans do not speak clearly enough in this respect. Leaving a family home or a heirloom “equally to the children” does not go far enough to help avoid the family fight. To leave it up to grieving adult children to decide what is “equal” when it comes their inheritance, puts too much pressure on their relationship.

    If the parents and the estate planning attorney do not spend enough time minimizing the risk of fighting between the siblings, we risk fracturing, or worse destroying this unique, wonderful relationship — the siblingship.

    The estate plan ultimately is supposed to mirror and reflect our lives, and the relationships we built. If your plan does not mirror and reflect your most important values, or does not speak clearly enough to ensure that it helps to preserve the relationships between your children — their siblingship — I encourage you to review your plan with your estate planning attorney.

     

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

    siblingship [sib-ling-ship] noun (November 9, 2013): 1. The state of being related or interrelated 2. A state of affairs existing between one of two or more individuals having one common parent. You will not find this word in the dictionary — it is a new word as of November 9, 2013. It describes the unique,…

  • Abuse of Trust: When Caregivers Become Criminals

    When May Lee (victim’s name changed) hired Susan Chin to be her caregiver, it seemed like the perfect solution to her long-term care needs. Over time, however, when Chin gained Lee’s trust, she slowly gained access to Lee’s finances and convinced her to sign a “power of attorney” (sometimes referred to in our office as a “license to steal”). It was not long after getting this legal document, that Chin violated the trust given to her and sold Lee’s house for more than $600,000, of which Chin kept the money for herself.

    Although Susan Chin’s actions were found out and she was prosecuted for her crimes, May Lee still endured financial hardship, emotional stress and, ultimately, the loss of her dream of spending the rest of her life in the home that she had once owned.

    When Yumi Smith (victim’s name changed) hired an agency to assist her in caring for her husband who was in poor health, she trusted that the company would provide her with caregivers who were not only responsible and professional, but who also wanted to sincerely help her in caring for her husband. Unfortunately, this business sent Kathlyn Lepena, a caregiver who ended up helping herself to Smith’s jewelry.

    The Honolulu Police Department investigated this crime and was able to recover most of the jewelry Lepena stole. Eventually, Lepena pled guilty to the felony offense of Theft in the Second Degree and is presently under court supervision for her crime.

    Unfortunately, the above two cases are only a couple of the many crimes the Elder Abuse Justice Unit at the Office of the Prosecuting Attorney has handled in the past several years. It is cases like these that highlight the risks involved when hiring a stranger to care for yourself or a loved one in your own home.

    So, how should you hire a caregiver to come into your home? How can you prevent abuses?

    When looking for an agency or service that will provide a skilled worker to come into the home and provide assistance, it is important to do your homework first.

    Here are two agencies that can let you know if any complaints have been made against a business:

    • Better Business Bureau
      (808) 536-6956
    • Consumer Resource Center
      State Dept. of Commerce and Consumer Affairs (808) 587-3222

    Additionally, if you type in the company’s name with the word “review” in an Internet search engine (such as Google and Bing), you might find reviews from people, either offering praises or warnings. Also, seek recommendations from friends who have already gone through the process of finding somebody.

    Perhaps the best thing that can be done, however, is to protect your financial information. Upon hiring a caregiver, never give out private financial or personal information, account numbers or blank checks. Your caregiver is there to take care of your family — not your money.

    Remember, a stranger is entering your home or the home of someone you care for. It is a lot better to know the background of these providers, than to assume they are the caregivers you envisioned them to be.

    To Report Suspected Elder Abuse, call:
    Adult Protective Services
    808.832.5115
    ElderAbuse@honolulu.gov
    All reports are confidential.

    When May Lee (victim’s name changed) hired Susan Chin to be her caregiver, it seemed like the perfect solution to her long-term care needs. Over time, however, when Chin gained Lee’s trust, she slowly gained access to Lee’s finances and convinced her to sign a “power of attorney” (sometimes referred to in our office as…

  • Retirees Have Confidence Yet Lack Finances

    Just five years after the onset of the financial crisis, Americans’ confidence about retirement is rising with the strengthening economy. According to the New Retirement Mindscape® 2013 City Pulse index, two in five (42%) Americans feel on track for retirement. This is more than last year (37%), and more than any other year since the index began in 2010.

    Yet, the lack of action people are taking to prepare financially for retirement has remained relatively unchanged over the past few years. While nearly three in four (72%) have taken some action to prepare for retirement, this number is smaller than in 2011 and 2010 when the economic recovery was still unstable.

    The annual New Retirement Mindscape City Pulse index examines the 30 U.S. Metropolitan areas. The index serves as a barometer for national and local retirement trends.

    According to the index, nearly half (45%) of Americans think that healthcare expenses during retirement will be one of the most challenging financial issues. Likewise, two-thirds (68%) of Americans express concern about the pending changes due to the Affordable Care Act, and half (51%) of those concerned say that their top worry is that they will end up paying more for healthcare.

    Of the 30 largest U.S. metro areas, San Francisco–Oakland–San Jose (#1), Detroit (#2) and Hartford-New Haven (#3) were the most confident and prepared. There are a few things that set these cities apart. If you’re preparing for retirement, take note of the following factors:

    • Contribute to retirement accounts beyond a workplace-sponsored plan. More residents than average in the top three cities contribute to IRAs or other personal investment accounts (other than or in addition to workplace-sponsored plans). Making regular financial contributions to these types of accounts and maintaining a diversified portfolio will likely make you feel more confident about life after you leave the workforce. You may also have more control over your personal accounts as you do in an employer-sponsored plan, and withdrawals typically carry fewer penalties — though it’s important to avoid withdrawing from you retirement savings accounts if possible.
    • Maintain positive feelings about retirement. Although the financial market fluctuates, you have control over how you respond to its ups and downs. Respondents in two of the top three cities were far more likely than the national average to say that thinking about retirement makes them feel empowered. Thinking positively about the future — and acting on those feelings by taking proactive steps to prepare — is key to helping build retirement confidence.
    • Consider working with a financial professional. Residents in two of the three most retirement-ready cities were more likely to work with a financial advisor. The national survey results uncovered that only one in four (23%) Americans say they have determined the amount of money they need to save for retirement and even fewer (11%) report having a written financial plan. A financial advisor can help you define and work toward your retirement goals.

    Michael W. K. Yee at (808) 952-1222 ext. 1240

    Michael W K Yee, CFP®, CFS®, CRPC®, is a Financial Advisor and 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 25 years. To contact him, michael.w.yee@ampf.com, 808.952.1222 ext 1240, 1585 Kapiolani Blvd., Suite 1100 Honolulu, Hawai‘i 96814.
    Advisor is licensed/registered to do business with U.S. residents only in the states of Honolulu, Hawai‘i.
    1 The Money Across Generations IISM study was commissioned by Ameriprise Financial, Inc. and conducted by telephone by GfK in December 2011 among 1,006 affluent baby boomers (those with $100,000 or more in investable assets); 300 parents of baby boomers; and 300 children of baby boomers at least 18 years old. The margin of error is +/- three percentage points for the affluent boomers segment and +/- six percentage points for the parents and children of boomers segments.
    2 United States Department of Labor, Wage and Hour Division, Family and Medical Leave Act http://www.dol.gov/whd/fmla/
    Ameriprise Financial and its representatives do not provide tax or legal advice. Consult with your tax advisor or attorney regarding specific tax issues.
    Brokerage, investment and financial advisory services are made available through Ameriprise Financial Services, Inc. Member FINRA and SIPC.
    ©2012 Ameriprise Financial, Inc. All rights reserved.

    Just five years after the onset of the financial crisis, Americans’ confidence about retirement is rising with the strengthening economy. According to the New Retirement Mindscape® 2013 City Pulse index, two in five (42%) Americans feel on track for retirement. This is more than last year (37%), and more than any other year since the…

  • Secret Money for Senior Veterans

    Many Veterans believe that they have to have suffered an in-service disability to qualify for monetary benefits from the Veterans Administration. This is a common misconception. Depending on health, income and assets, many senior Veterans (and their dependent or surviving spouses) can qualify for not only basic “Improved Pensions” based on low income, but also supplemental benefits of up to $2,053 per month as of 2013. The supplemental benefits are called “Housebound Benefits” and “Aid & Attendance Benefits.”

    In order to qualify for any of these pension benefits, the Veteran (or surviving spouse, based on the Veteran’s military service record), must satisfy the following general criteria:

    • The Veteran must have served at least 90 days of active duty.
    • At least one day out of the 90 days of active duty must have been during war time (there are defined dates for the beginning and end of World War II, the Korean War and the Vietnam Conflict; and the Gulf War, which began on August 2, 1990, is not concluded yet, and its ending date will be set by Presidential Proclamation at the appropriate time).
    • The Veteran must have received a discharge other than dishonorable.
    • The claimant and household must have limited income and assets.
    • The claimant must have a permanent and total disability at the time of application (note that a surviving spouse can qualify for a basic low income pension without being disabled, but the Veteran must be disabled—although the disability does not have to be related to war time or military service).
    • The disability must have been caused without the willful misconduct of the claimant and must not have been due to the abuse of alcohol or drugs.

    As the name implies, Housebound Benefits are payable where the claimant is substantially confined to his or her home because of permanent disability. In order to qualify for Aid & Attendance benefits, the claimant must:

    • Require the aid of another person in order to perform personal functions required for everyday living (such as bathing, feeding, dressing, toileting, transferring from bed to a wheelchair, or dealing with incontinence) OR
    • Be bedridden, in that he or she must remain in bed apart from any prescribed course of convalescence or treatment OR
    • Be a patient in a nursing home due to mental or physical capacity OR
    • Be blind or have very poor vision.

    Applying for these supplemental benefits is not a quick or simple process, and if you decide to apply, you may want to enlist the help of a Veterans’ assistance organization or a specially-trained individual. Note that whoever assists with the application cannot charge a fee for that service. However, other services by the individual or organization may be chargeable.

    Scott Makuakane, Attorney at Law
    Specializing in estate planning and trust law.

    Watch Scott’s TV show, Malama Kupuna
    Sundays at 8:30pm on KWHE, Oceanic channel 11

    www.est8planning.com
    O‘ahu: 808-587-8227, Maui: 808-891-8881
    Email: maku@est8planning.com

    Many Veterans believe that they have to have suffered an in-service disability to qualify for monetary benefits from the Veterans Administration. This is a common misconception. Depending on health, income and assets, many senior Veterans (and their dependent or surviving spouses) can qualify for not only basic “Improved Pensions” based on low income, but also…

  • Estate Planning: Preventing the Fight

    You kids, don’t fight when I’m gone. These were always my Mom’s words as she left to go grocery shopping, and left my brothers and me home alone. I remember, as soon as we’d heard the car leave the garage, we would start fighting over something.

    Now as an adult, I notice that the same experience happens among adult children when their parents leave for the last time. While parents are with us, we tend to behave and get along. And once our parents die, many of us begin to argue and fight.

    This is sad for me to see time and again … As children not only lose a parent, but also their relationships with their siblings. None of my clients want their children to fight — especially after they’re gone. In fact, this is one of the main reasons why people set up estate plans. And estate planning attorneys can advise parents how to minimize the risk of jealousy, rivalry and infighting between their children. Sometimes we must continue to parent beyond the grave.

    Here are five estate planning suggestions to minimize fighting:

    • Don’t give your children the same asset, give them different things
    • Make it as equal as possible
    • Don’t leave decision-making up to them — you are the parent and these are your assets … you make the call
    • Meet with the family and explain the estate plan
    • Clearly explain your reasoning behind your decisions and share the “why” behind each gift

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

    You kids, don’t fight when I’m gone. These were always my Mom’s words as she left to go grocery shopping, and left my brothers and me home alone. I remember, as soon as we’d heard the car leave the garage, we would start fighting over something. Now as an adult, I notice that the same…

  • Sweetheart Swindles

    An elderly man was in the gym working out with his trainer when they saw an attractive young woman enter the workout area and begin to exercise. The older man asked his trainer what machine he should use to impress the young woman. The trainer replied he should use the ATM machine in the lobby.

    This joke highlights two reasons why scams are often targeted against the elderly. First, seniors have more money and assets than any other segment in our community. And second, seniors are (or perceived to be) lonely, oftentimes surviving their spouse of many years. It is for these two reasons that the Elder Abuse Unit, as well as the Honolulu Police Department, has seen an increase in the crimes known as Sweetheart Swindles.

    Although this scam takes on several distinct forms, the scam artist finds a lonely senior, makes promises of companionship, and convinces him/her to give/loan the scam artist large sums of money or property.

    How do scam artists find lonely seniors? Very easily. If you Google “senior dating,” you will find 160 million websites in less than a second. As seniors become more comfortable with using the computer, they get exposed to websites that promise that companionship is at the tip of their fingers.

    Sally (alias), thought lightning struck twice in her life when she met “Sam,” a man who had the same values and beliefs she shared with her deceased husband. She “met” Sam on a well known dating site when he replied to her profile and sent her pictures he claimed to be of himself. The emails quickly became telephone calls filled with words of romance and security. However, they could not begin their fairytale romance until he completed some business he was conducting in London. Sam shared that his financial trouble relating to his business was the only thing preventing him from flying to Hawai‘i and sweeping her off her feet. Once Sally offered to help, she began a journey that would result in her losing $160,000, by wiring money overseas as a loan to help Sam. With her money gone, so was Sam.

    Unfortunately, the police were not able to retrieve the money lost by Sally, but they have been able to recover moneys taken in other Sweetheart Swindles that have occurred in Hawai‘i. This only happens, however, when the crime is reported, which, given the humiliation and betrayal felt by victims of this scam, is not very often. If you suspect you are being targeted in this type of scam or have any questions relating to elder abuse in general, please contact us.

     

    To Report Suspected Elder Abuse, call:

    Adult Protective Services
    808.832.5115
    ElderAbuse@honolulu.gov
    or visit www.ElderJusticeHonolulu.com.

    All reports are confidential.

    An elderly man was in the gym working out with his trainer when they saw an attractive young woman enter the workout area and begin to exercise. The older man asked his trainer what machine he should use to impress the young woman. The trainer replied he should use the ATM machine in the lobby.…