Category: Wisdoms

Build Financial Literacy in Your Children

Children often learn their first lessons about money from the adults they’re closest to. Whether it’s listening to parents discuss a purchase or watching them pay bills online, kids are observant and their relationship with money is often shaped by what surrounds them. If you are a parent looking to instill financial wisdom in your children, here are some ways to get started.

◆ Set a good example. Kids often model what they see. Be intentional about the example you’re setting. Proactively discuss money with your children. Talk about what’s important to you moneywise and use everyday moments to bring it to life, such as bringing them along when you speak to a financial advisor or consider an expenditure.

◆ Share knowledge. You can give your kids important life skills by building their foundation of financial knowledge. Shape good habits with simple lessons about how to track spending or saving up for something special. Why wait until they’re on their own to talk about the value of good credit or to explain how compound interest can make savings grow? Talk about the rewards (and challenges) of delayed gratification and the perils of debt. As they get older, emphasize the importance of financial security and the value of professional guidance.

◆ Encourage goal setting. Instill the habit of goal setting early. Discuss your own goals — such as paying for a family vacation or saving for a new car — and how you follow through on them. Encourage your children to set a goal or two of their own.

◆ Reinforce the value of work. Children learn the value of a dollar sooner when they are exposed to the effort that goes into earning each one. Consider whether you want to provide an allowance or pay them for helping with chores. When they start a part-time job, talk through the various ways they can allocate the money earned. It’s human nature to be more careful when spending your own versus someone else’s money.

◆ Introduce the concept of budgeting. A spending plan can be empowering because you know exactly what money is going to meet each need and goal. Start explaining this concept early. Kids should understand that you impose limits on your own spending and why it’s important to live within your means. A trip to the grocery store can be an opportunity to share why you make the choices you do.

◆ Model philanthropy. If you donate to causes important to you, it can be impactful to show your children the power of giving. You might suggest they apply a save-spend-share philosophy toward their own money. The idea is to set aside a portion of their allowance or earnings for future wants or needs, spend another portion on today’s wants or needs and give a portion to causes they care about. Whether it’s enacting a spending philosophy or having a conversation with your child about how you use your money to give back, passing down your philanthropic values can be a rewarding experience for both parties.

◆ Be a resource. Most kids make a few financial mistakes as they mature into adulthood. So let them know they can turn to you for guidance. Encourage them to continue to build smart money habits and remind them they don’t have to navigate their financial journey alone.

MICHAEL W. K. YEE, CFP,® CFS,® CLTC, CRPC®
1585 Kapiolani Blvd., Ste. 1100, Honolulu, HI 96814
808-952-1240 | michael.w.yee@ampf.com
ameripriseadvisors.com/michael.w.yee
Michael W. K. Yee, CFP®, CFS®, CLTC, CRPC®, is a Private Wealth Advisor with Ameriprise Financial Services, LLC. in Honolulu, Hawai‘i. He specializes in fee-based financial planning and asset management strategies and has been in practice for 41 years. Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP® certification mark, the CERTIFIED FINANCIAL PLANNER™ certification mark, and the CFP® certification mark (with plaque design) logo in the United States, which it authorizes use of by individuals who successfully complete CFP Board’s initial and ongoing certification requirements.
Investment products are not insured by the FDIC, NCUA or any federal agency, are not deposits or obligations of, or guaranteed by any financial institution, and involve investment risks including possible loss of principal and fluctuation in value. Securities offered by Ameriprise Financial Services, LLC. Member FINRA and SIPC. ©2025 Ameriprise Financial, Inc. All rights reserved.

Children often learn their first lessons about money from the adults they’re closest to. Whether it’s listening to parents discuss a purchase or watching them pay bills online, kids are observant and their relationship with money is often shaped by what surrounds them. If you are a parent looking to instill financial wisdom in your…
Navigating Hawai‘i’s Condo Laws, Part I

Hawai‘i’s unique housing landscape relies heavily on condominium and community association laws, which manage shared living spaces, properties and the intricate relationships within them. Governed by specific statutes, these laws include HRS 514B for condominiums, HRS 421J for community associations, HRS 421I for cooperatives and HRS 514E for timeshares. Of these, condominium laws stand out for their comprehensiveness, detailing everything from a developer’s responsibilities to the finer points of house rules. On the other hand, statutes for other housing types are strikingly thin, often leaving owners with little guidance in case of disputes.

This imbalance becomes even more apparent in properties that combine housing models. For example, a condominium might house timeshare organizations or rental pool groups within it, creating a complicated web of governance. These associations function as hybrid entities: They resemble corporations with directors and shareholders (owners), operate like families with close living arrangements that foster interpersonal conflicts, and act like governments with the authority to create rules and collect fees. Each aspect presents opportunities for friction and dysfunction, making their efficient operation critical for residents’ quality of life.

Hawai‘i’s Invisible County

The importance of these laws extends beyond their governance structures. Hawai‘i’s condominiums and community associations represent over $100 billion in real estate value. Condominiums alone make up more than 31% of the state’s housing units, the highest percentage in the US. About 420,000 people — nearly 30% of Hawai‘i’s population — reside in these communities.

To put this into perspective, this population is larger than the combined populations of Kaua‘i, Maui, and Hawai‘i Counties. These associations form Hawai‘i’s “invisible second-largest county,” and their influence on housing and the economy is undeniable.

Beyond housing, these associations help drive Hawai‘i’s economy, supporting contractors, landscapers, property managers and numerous service providers. As new housing developments increasingly adopt these models, the reliance on condominium and community association laws will only grow. These associations are not only residential communities but also economic ecosystems, ensuring jobs and livelihoods for thousands of workers who support their operations.

Despite their pivotal role, these associations often go unnoticed until governance issues erupt into public disputes. Disputes can arise from disagreements over shared expenses, misuse of funds, or lack of communication between boards and residents. These problems underscore the importance of proactive attention, improved transparency and ongoing reforms to make the system more equitable for all involved.

Hierarchy of Governance

To understand the structure of these associations, it’s essential to examine their hierarchical governance system. At the federal level, statutes like the Fair Housing Act (FHA) and the Americans with Disabilities Act (ADA) set broad protections to ensure equal access and non-discrimination. State laws, particularly HRS 514B and HRS 421J, provide detailed regulations governing everything, from how condos are developed to how they are marketed and managed. These state laws work in conjunction with community-specific documents: declarations (the “mini-constitutions”), bylaws (operational rules) and house rules (everyday guidelines). Meetings are governed by Robert’s Rules of Order, which help maintain procedural order and promote fair participation.

Inconsistencies in Governance

Despite this framework, the system is far from perfect. Condominium laws are significantly more detailed than those for cooperatives or timeshares, creating inconsistencies in governance. Judges often rely on condominium laws to resolve disputes in other association types, which can lead to misapplication of the statutes. This tendency can create further confusion and exacerbate tensions between owners and boards. Moreover, developers and management companies have historically played a significant role in drafting these laws, often prioritizing their interests over those of the residents. This influence can result in regulations that favor financial expediency or development goals at the expense of fairness or long-term sustainability. However, growing owner activism has resulted in notable reforms, including the anti-retaliation provision (HRS 514B-191), which protects residents who raise concerns from being targeted by their boards. Those dealing with condominiums are also required to act in good faith (HRS 514B-9). These requirements are a significant step forward but highlight the ongoing need for balance and equity in the governance structure. While the governance structure of community associations is designed to promote fairness and efficiency, several practical challenges arise.

■ Misuse of Executive Sessions. One persistent issue is the misuse of executive sessions. These private board meetings are intended for sensitive topics, such as personnel matters or potential litigation. However, boards frequently abuse this power to obscure discussions and decisions that should be made publicly. This lack of transparency undermines trust and leaves owners uninformed about critical matters affecting their community. For example, major decisions like approving large-scale renovations or reallocating shared expenses are sometimes made behind closed doors, leading to frustration and disputes among residents.

■ The Voting Process. Another common problem is the voting process. Boards often control proxies and voting timelines, giving incumbents a significant advantage. This kind of manipulation allows them to campaign more effectively than challengers, leading to imbalanced governance outcomes. Some boards also engage in practices such as targeting voters who have not yet participated, using direct outreach to sway results. Quite often, incumbents have the email addresses of owners via the management company which are not shared with challengers. These tactics undermine the principle of democratic representation and create divisions within communities.

■ Financial Planning. Financial planning also poses significant challenges. Hawai‘i’s reserves law mandates that condominiums set aside funds for future repairs and maintenance, but compliance is inconsistent.

Many associations neglect this requirement, resulting in sudden special assessments that burden owners with unexpected costs. This lack of planning is particularly problematic in aging buildings, where deferred maintenance can lead to significant safety risks and expensive emergency repairs. Ensuring adequate funding for reserves is critical to maintaining the long-term viability of these properties. The recent insurance crisis also is putting a significant strain on condominiums across the state.

■ Gender Disparities. Gender disparities further complicate the governance dynamics of community associations. Women, especially single women, frequently face harassment or discrimination from male board members or neighbors. This issue underscores the need for greater inclusivity and respect within community associations.

Advocacy and education are crucial to addressing these inequities, creating an environment where all residents feel empowered to participate in decision-making processes.

In the May-June issue, Part 2 of this two-part series will continue to cover how to navigate challenges in the complex world of condominium law and how to pave the way for reform.

REVERE & ASSOCIATES
970 Kealaolu Ave., Honolulu, HI 96816
808-791-9550
officemanager@revereandassociates.com
revereandassociates.com

Hawai‘i’s unique housing landscape relies heavily on condominium and community association laws, which manage shared living spaces, properties and the intricate relationships within them. Governed by specific statutes, these laws include HRS 514B for condominiums, HRS 421J for community associations, HRS 421I for cooperatives and HRS 514E for timeshares. Of these, condominium laws stand out…
Estate and Gift Tax Exemption Changes

Hau‘oli Makahiki Hou! We hope 2025 is filled with prosperity, vitality and good health for you and your loved ones!

If Congress doesn’t act, the federal lifetime estate tax and gift tax exemption is due to sunset at the end of 2025 and will revert back to the 2017 exemption amount of approximately $5.6 million per individual, adjusted for inflation. This would result in a significant increase in the number of estates subject to federal estate tax and a higher estate tax liability for estates already subject to the tax.

Currently per person, the Hawai‘i estate and gift tax exemption is $5.49 million and the federal lifetime estate and gift tax exemption is $13.61 million (or $27.22 million per married couple). If you are married, under the current estate tax exemption and have separate trusts, it may be a good time to explore a joint trust. A joint trust can significantly reduce or even eliminate capital gains tax for your children, should they sell inherited real estate or other appreciating assets.

If you are hedging up to the current estate tax exemption or you exceed the estate tax exemption, contact your estate planning attorney to see how possible changes to the estate and gift tax exemption may affect you.

YIM & YEMPUKU LAW FIRM
2054 S. Beretania St., Honolulu, HI 96826
808-524-0251 | yimandyempukulaw.com

Hau‘oli Makahiki Hou! We hope 2025 is filled with prosperity, vitality and good health for you and your loved ones! If Congress doesn’t act, the federal lifetime estate tax and gift tax exemption is due to sunset at the end of 2025 and will revert back to the 2017 exemption amount of approximately $5.6 million…
Some Final Considerations

Donating your body to the local medical school is a way to both dispose of your remains and benefit your community. The most valuable resource for learning about a human body is, well, a human body. Many medical schools will have your body picked up (at no charge to your family) and delivered to the school to be used for educational purposes. After a time, your remains will be cremated and the ashes can be returned to your family for disposition.

Yet another set of considerations is whether there will be some kind of public or private celebration of life or religious service after your demise. You can have some say in what those festivities might include. Of course, even if you direct that there be no observance of your death, that may not stop the people who love you from indulging in an event that will help them deal with their grief. If you want to be proactive, you can write your own funeral service, including such things as what musical selections will be shared, who will deliver your eulogy and whether you will ask for donations to your favorite charity in lieu of enriching a local florist. Frankly, most people leave all these details to their loved ones, but a funeral service planned and written by you might be one of the most loving things you can do for the people who will mourn your loss.

EST8PLANNING COUNSEL LLLC
Scott Makuakane, Counselor at Law
808-587-8227 | maku@est8planning.com
Est8planning.com

Donating your body to the local medical school is a way to both dispose of your remains and benefit your community. The most valuable resource for learning about a human body is, well, a human body. Many medical schools will have your body picked up (at no charge to your family) and delivered to the…
Maximize Your Charitable Giving
Many investors give back to their communities through traditional monetary gifts. But other gifting strategies may help maximize the value of your generosity and provide tax advantages. Four strategies that may be worth exploring:

Gift highly appreciated stocks or other assets

If you hold stocks or other investments for more than one year that have gained value, you may consider liquidating the asset to make a charitable donation with the proceeds. However, doing so may result in a taxable long-term capital gain. Giving appreciated stock directly to a qualified charity may be a more efficient way to maximize the value of your donation. Ensure that the charity accepts this type of donation before exploring it as a financial strategy.

Establish a charitable trust

Another way to consider gifting assets is to set up a charitable trust. Trusts can help you manage highly appreciated assets in a more tax-efficient manner, in some cases, allowing you to split assets among charitable and non-charitable beneficiaries. The timing of each gift and the flexibility you want dictates the type of trust that works best. With a Charitable Lead Trust, a charity is funded with income from assets placed in the trust for a specified time period. After that time, the remaining assets revert to other named beneficiaries. In a Charitable Remainder Trust, the reverse occurs. The trust makes regular payments back to you or another beneficiary. After a period of time specified in the trust, the remaining assets are directed to the named charities. A donor-advised fund allows you to make a large donation that may be immediately deductible from taxes, but gives you flexibility to recommend gifts to charities spread out over the years.

Maximize donations through your employer

Your employer may offer the convenience of making contributions through payroll deductions, allowing you to give systematically with each paycheck. In addition, your employer may match a certain donation amount, which can add to the impact your gift makes. Check to see if the charities you care about are eligible for this type of donation.

Make a charitable individual retirement account (IRA) donation

If you have reached the age at which you are required to take distributions from your traditional IRA each year, but you don’t need the money to meet your essential and lifestyle expenses, you may prefer to avoid the resulting tax bill. The Qualified Charitable Distribution rule allows you to transfer funds directly from your IRA to a qualified charitable organization. By doing so, you may avoid having to claim income (and subsequent tax liability) since you would not receive the required distribution. To determine when required distributions will start for you (based on your birth year), visit IRS.gov.

As you consider these strategies, consult with your financial advisor and tax advisor, who can help you evaluate the choices to ensure the gifts you make are most effective for your goals and consistent with your overall financial plan.

MICHAEL W. K. YEE, CFP,® CFS,® CLTC, CRPC®
1585 Kapiolani Blvd., Ste. 1100, Honolulu, HI 96814
808-952-1240 | michael.w.yee@ampf.com
ameripriseadvisors.com/michael.w.yee
Michael W. K. Yee, CFP®, CFS®, CLTC, CRPC®, is a Private Wealth Advisor, Certified Financial Planner™ practitioner, with Ameriprise Financial Services, LLC ,in Honolulu, HI. He specializes in fee-based financial planning and asset management strategies and has been in practice for 40 years. Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP® certification mark, the CERTIFIED FINANCIAL PLANNER™ certification mark, and the CFP® certification mark (with plaque design) logo in the United States, which it authorizes use of by individuals who successfully complete CFP Board’s initial and ongoing certification requirements. 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 products are not insured by the FDIC, NCUA or any federal agency, are not deposits or obligations of, or guaranteed by any financial institution, and involve investment risks including possible loss of principal and fluctuation in value. Investment advisory products and services are made available through Ameriprise Financial Services, LLC, a registered investment adviser. Securities offered by Ameriprise Financial Services, LLC. Member FINRA and SIPC. ©2025 Ameriprise Financial, Inc. All rights reserved.
Many investors give back to their communities through traditional monetary gifts. But other gifting strategies may help maximize the value of your generosity and provide tax advantages. Four strategies that may be worth exploring: As you consider these strategies, consult with your financial advisor and tax advisor, who can help you evaluate the choices to…
Prepare Today, Protect Tomorrow

In our island community, where the bonds of family and tradition run deep, facing a long-term care event is one of the most challenging experiences we may encounter.

Long-term care is important to
the Ignacio-Yanger family.

Such events can place emotional, physical and financial strains on even the strongest ‘ohana. Without a clear and thoughtful plan, families often find themselves making difficult decisions during a crisis, leading to stress, burnout and potential conflicts among loved ones.

As a caregiver myself, I’ve experienced the profound impact this role can have. In our close-knit community, caregiving is seen as either a blessing or a curse, depending on one’s perspective and level of preparedness. I’ve chosen to view it as a blessing, embracing the opportunity to care for my loved ones as an honor. This positive outlook is possible because of a well-thought-out plan that relieves pressure and ensures everyone knows their role in supporting our beloved kūpuna.

A well-crafted long-term care plan safeguards the future of those we care for and preserves the unity and well-being of the entire ‘ohana. It provides peace of mind, knowing that decisions have been made in advance, reducing the risk of family disputes and allowing us to focus on what truly matters — caring for one another with aloha.

HAWAI‘I LONG-TERM CARE SOLUTIONS
1555 Ala Puumalu St, Honolulu, HI 96818
808-330-4691 | roger@hilongtermcaresolutions.com
hawaiilongtermcaresolutions.com

In our island community, where the bonds of family and tradition run deep, facing a long-term care event is one of the most challenging experiences we may encounter. Such events can place emotional, physical and financial strains on even the strongest ‘ohana. Without a clear and thoughtful plan, families often find themselves making difficult decisions…
Naughty or Nice?

Your estate plan is the set of documents that you use to say who gets your stuff when you go. It is also where you can say who doesn’t get any of your stuff — with some important exceptions.

In most states, you can disinherit everybody but your spouse. You can even disinherit the IRS. Louisiana requires you to leave something to each of your children. In every other state, you can cut out the kids, but not your spouse. Spouses traditionally had ongoing support rights expressed in a variety of ways.

The bottom line is that if you want to leave nothing to your spouse, you will need to have him or her agree to that in a prenuptial agreement before the wedding. Of course, following up a marriage proposal with a request that your beloved sign a “prenup” is not the most romantic move. It has even been known to derail wedding plans. Some states also allow married couples to use postnuptial (after marriage) agreements to accomplish the same results as a prenup. Suggesting to your spouse that you enter into a postnup may not lead to good results, either, but at least you know that the option may be out there.

So to exclude someone (other than your spouse), just say that so-and–so is being omitted deliberately. But use the person’s name — don’t call the person a “so-and-so” unless you want to invite a libel lawsuit against your estate.

EST8PLANNING COUNSEL LLLC
Scott Makuakane, Counselor at Law
808-587-8227 | maku@est8planning.com
Est8planning.com

Your estate plan is the set of documents that you use to say who gets your stuff when you go. It is also where you can say who doesn’t get any of your stuff — with some important exceptions. In most states, you can disinherit everybody but your spouse. You can even disinherit the IRS.…
Is Travel on Your Retirement Agenda?

One of the great benefits of retirement is having the freedom to pursue new interests and hobbies at your leisure. For many, travel is at the top of their retirement bucket list. The key question is how to make sure your retirement savings can keep up with your travel ambitions. The following considerations can help you determine your answer:

◆ Make travel a part of your retirement budget. Without the funds to pursue travel, you likely won’t get too far. As you plan for your living expenses, include travel as a line item in your retirement budget. Identify a portion of your monthly income to cover travel expenses before you hit the road.

◆ Consider travel timing. Most retirees plan their biggest travel excursions in the early years of retirement, when health challenges may be fewer and they have more stamina. Therefore, your travel budget may represent a larger portion of your overall expenses in the first years of retirement. If this aligns with your travel vision, factor it into your retirement budgeting strategy.

◆ Determine your travel style. To come up with a reasonable cost estimate, identify the types of traveling you plan to do. Are you more interested in short trips to nearby locations, mostly traveling by car? Do you plan to explore the country in an RV? Are you looking to visit foreign destinations on a regular basis? Your travel goals will tell you a lot about how much you are likely to spend, which should be reflected in your retirement plan.

◆ Find ways to cut costs. You’re likely to face “sticker shock” when you travel. Expenses such as food (usually eating out), lodging and transportation can add up quickly. If you plan to stay in one place for an extended period, look into renting a home or apartment rather than “hoteling” it. Try to eat like the locals by buying food at grocery stores and markets. Take the time to look for flight deals or make your automobile travel routes as efficient as possible. One of the perks of being retired is that you may have more flexibility than working people to lock in deals by traveling off-season or at other unpopular times.

◆ Don’t overlook insurance needs. Travel insurance may be appropriate in case you get sick or lose luggage on a trip. Keep in mind that Medicare is not accepted outside the US, and even within the US, you want to be sure your health insurance has you covered in states outside your own.

◆ Look for discounts and rewards. Seniors have a unique advantage in that costs for some activities are reduced. Even though the discounts may be modest, every dollar helps stretch your travel budget. Check to see what discounted options are available through clubs like AAA or AARP. Also pursue smart credit card strategies that help you earn rewards like free travel or cash back on your purchases.

If travel is in your plans when you leave the workforce, it’s key to go beyond dreaming and do some significant preparation in advance. Use the time you have now to set specific goals and build savings that will help make your dreams a reality.

MICHAEL W. K. YEE, CFP,® CFS,® CLTC, CRPC®
1585 Kapiolani Blvd., Ste. 1100, Honolulu, HI 96814
808-952-1240 | michael.w.yee@ampf.com
ameripriseadvisors.com/michael.w.yee
Michael W. K. Yee, CFP®, CFS®, CLTC, CRPC ®, is a Private Wealth Advisor, Certified Financial Planner ™ practitioner, with Ameriprise Financial Services, LLC in Honolulu, HI. He specializes in fee-based financial planning and asset management strategies and has been in practice for 40 years. Investment products are not insured by the FDIC, NCUA or any federal agency, are not deposits or obligations of, or guaranteed by any financial institution, and involve investment risks including possible loss of principal and fluctuation in value. Investment advisory products and services are made available through Ameriprise Financial Services, LLC, a registered investment adviser. Ameriprise Financial Services, LLC. Member FINRA and SIPC.
© 2024 Ameriprise Financial, Inc. All rights reserved.

One of the great benefits of retirement is having the freedom to pursue new interests and hobbies at your leisure. For many, travel is at the top of their retirement bucket list. The key question is how to make sure your retirement savings can keep up with your travel ambitions. The following considerations can help…
Doing Good While Doing Well

Enjoying a successful career or owning a profitable business can enable a person to give some wealth back to the community where it was generated. If this describes you, consider the following pointers:

■ NEVER SELL APPRECIATED ASSETS IN ORDER TO MAKE CASH GIFTS
If you sell an asset in order to generate cash to make a charitable gift, you may rob the charity of a bigger gift and yourself of a bigger income tax deduction. There is a better way.

Let’s say you own property worth $100,000 that you inherited back in the ’70s when it was worth next to nothing. If you sell the property now because you want to make a big gift to your favorite charity, you may have to recognize a capital gain of $100,000 and pay $22,500 or so in tax on that gain. This will leave you with $77,500 to donate to the charity, for which you will get a deduction of $77,500.

While the tax deduction is nice and the gift is generous, what if you gave the property to your favorite charity and then the charity sold it? In that case, the charity would receive the $100,000 sales proceeds, and you would get a charitable deduction of $100,000. That’s a great deal for your favorite charity and for you.

There is an annual limit on how much you can deduct each year for gifts to charity, but you can carry forward the excess of what you gave over the amount you could deduct for up to five years. Even with the carry forward, if your gift is very generous, you might not be able to deduct the full amount of your gift.

■ YOUR TRADITIONAL IRA MIGHT BE A CHARITABLE GIFT CASH MACHINE
Once you reach a certain age (currently, 73, but this number may go up in the future), you have to take Required Minimum Distributions (RMDs) from your IRA so the IRS can collect some tax.

However, if you direct your IRA trustee to send your RMD directly to one or more charities, you will not have to pay tax on the RMD, up to $100,000 worth of charitable gifts per year.

Unfortunately, you will not get a deduction for your gift, but when you crunch the numbers, not having to recognize the RMD as income is usually a far better deal for you than being able to deduct your gift.

As pointed out above, there is a limit on how much of your RMD can go to charity without you being taxed on it. Moreover, you cannot apply future years’ RMDs against a current gift of IRA assets in excess of $100,000.

■ TALK WITH YOUR TRUSTED ADVISORS
Meet with your trusted advisors to discuss the best way to benefit your favorite charities that will also reduce your income tax.

There are lots of complicated rules to navigate, but making enhanced gifts to charity while reducing your income tax liability just might make the effort worthwhile.

And please remember that there are many more ways to make charitable gifts. Your trusted advisors can help you to explore them.

EST8PLANNING COUNSEL LLLC
Scott Makuakane, Counselor at Law
808-587-8227 | maku@est8planning.com
Est8planning.com

Enjoying a successful career or owning a profitable business can enable a person to give some wealth back to the community where it was generated. If this describes you, consider the following pointers: ■ NEVER SELL APPRECIATED ASSETS IN ORDER TO MAKE CASH GIFTSIf you sell an asset in order to generate cash to make…
Siblingship

Siblingship describes the unique relationship between siblings. Siblings begin their relationship at a young age, and if they are fortunate, they reach old age together. They experience joys and setbacks, they laugh and cry — and they fight. Through the fighting, they can learn conflict resolution. Spouses join us in our adult lives. Friends often come and go. But no other relationship is quite like a siblingship.

When siblings fight as kids, it’s over property and fairness. Parents make sure property is divided up fairly — they are the ones to “divide up the pie,” so siblings don’t fight over things as much.

When parents die, siblings are called home to “divide up the pie,” this time, without parental supervision. In my experience, adult 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.

Estate planning can minimize the risk of fighting when parents die. If parents and the estate planning attorney don’t spend enough time anticipating and planning to minimize the risk of fighting, there exists a risk of fracturing, or worse, destroying this unique, wonderful relationship — the siblingship.

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

Siblingship describes the unique relationship between siblings. Siblings begin their relationship at a young age, and if they are fortunate, they reach old age together. They experience joys and setbacks, they laugh and cry — and they fight. Through the fighting, they can learn conflict resolution. Spouses join us in our adult lives. Friends often…
Financial Success for Parents & Kids

According to a recent study published by Ameriprise Financial, individuals in their 30s and 40s have received significant financial help from family and expect additional assistance in the future. And over a quarter of those surveyed said they received $25,000 or more.(1)

It’s admirable to see that parents want to go to such great lengths to help their children achieve financial success. Yet parents need to be mindful that they don’t inadvertently diminish their own success in doing so. As a financial advisor, here’s the advice I offer parents who want to give their adult children a financial head start without harming their own financial future:
■ Prioritize saving for your own retirement. It takes many years to accumulate the savings you need to retire comfortably. Your children are likely just starting their careers, while your time remaining in the workforce may be limited to five, 10 or 15 years. Putting yourself first isn’t a selfish move. It’s about being wise with your money. If you make it a priority to have enough saved when you retire, your kids won’t have to worry about providing you with financial support later in life.
■ Be strategic with your financial gifts. Like other monetary goals, it’s important to add gifts of cash to your overall financial plan. When you treat cash gifts separately, you shortchange other priorities such as retirement. What will it cost you to divert savings from your retirement plan? With a complete list of financial priorities, you can see how much you need to save to reach them all.
■ Consider alternate approaches to helping your kids. There may be ways to help your kids other than by dipping into savings. Encourage them to take financial responsibility when they can do so. Your college-bound son or daughter may be able to take out student loans at a low interest rate, which will reduce or eliminate the amount you need to contribute for tuition. Instead of writing a check to help your child buy a car or house, you might co-sign a loan to help them lock in a lower interest rate or more favorable repayment terms.
■ Have conversations about money. Your willingness to talk about your finances is a valuable example for your adult children. So, too, is your attention to your retirement savings. I encourage parents to invite their adult children to attend a financial planning session with a financial advisor. It’s a time to address money concerns and explore how actions today can affect your future finances.

MICHAEL W. K. YEE, CFP,® CFS,® CLTC, CRPC®
1585 Kapiolani Blvd., Ste. 1100, Honolulu, HI 96814
808-952-1240 | michael.w.yee@ampf.com
ameripriseadvisors.com/michael.w.yee

Michael W. K. Yee, CFP®, CFS®, CLTC, CRPC ®, is a Private Wealth Advisor, Certified Financial Planner ™ practitioner, with Ameriprise Financial Services, LLC in Honolulu, HI. He specializes in fee-based financial planning and asset management strategies and has been in practice for 40 years. Investment products are not insured by the FDIC, NCUA or any federal agency, are not deposits or obligations of, or guaranteed by any financial institution, and involve investment risks including possible loss of principal and fluctuation in value. Investment advisory products and services are made available through Ameriprise Financial Services, LLC, a registered investment adviser. (1) The 2023 research was created by Ameriprise Financial Inc. and conducted online by Artemis Strategy Group from Jan. 19 to Feb. 14, 2023, among 3,518 Americans ages 27 to 77. Millennial respondents have $25,000 or more in investable assets, and Gen X and boomer respondents have $100,000 or more. The sample is weighted on region and by generation on age, gender, race/ethnicity, assets and income based on the Federal Reserve 2021 Survey of Household Economics and Decision making (SHED). To ensure sufficient response sizes for additional analysis, Ameriprise oversampled investors who identify as millennials. For further information and details about the study, including verification of data that may not be published as part of this report, please contact Ameriprise Financial or go to ameriprise.com/millennials. Ameriprise Financial Services, LLC. Member FINRA and SIPC. © 2024 Ameriprise Financial, Inc. All rights reserved.

According to a recent study published by Ameriprise Financial, individuals in their 30s and 40s have received significant financial help from family and expect additional assistance in the future. And over a quarter of those surveyed said they received $25,000 or more.(1) It’s admirable to see that parents want to go to such great lengths…
SECURE Act 2.0

According to a Federal Reserve System report on the Economic Well-Being of U.S. Households in 2022–May 2023 in 2023, “3/4 of non-retired adults had at least some retirement savings, about 28% did not have any. This share who did not report any retirement savings was up from 25% in 2021. While most non-retired adults had some type of retirement savings, only 31% of non-retirees thought their retirement savings were on track, down from 40% in 2021.”

In 2019, the SECURE (Setting Every Community Up for Retirement Enhancement) Act was signed into law, and in 2022, SECURE Act 2.0 passed and amended its predecessor. The purpose of the SECURE Act was to assist Americans in saving for retirement by increasing access and encouraging contributions.

How does the new law affect estate plans? Prior to 2019, most retirement plan beneficiaries had the option to stretch taxable distributions and allow the assets to grow tax-free over the beneficiary’s life. The SECURE Act 2.0 changed the stretch rules to apply to only a limited group — Eligible Designated Beneficiaries. So most beneficiaries will have to take distributions within 10 years.

Contact your estate planning attorney and financial advisor to review your financial and estate planning goals, and to ensure your retirement accounts name the proper beneficiaries.

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

According to a Federal Reserve System report on the Economic Well-Being of U.S. Households in 2022–May 2023 in 2023, “3/4 of non-retired adults had at least some retirement savings, about 28% did not have any. This share who did not report any retirement savings was up from 25% in 2021. While most non-retired adults had…