Category: Wisdoms

Combating Investment Fraud

Unfortunately, too many seniors across the United States fall victim to investment fraud. It is a growing trend we see here in Hawai‘i where criminals are targeting our seniors. To protect yourself, family and other loved ones, Hawai‘i’s BBB provides a few sound tips on how to spot the red flags and avoid investment fraud.

Red Flags For Fraud And Persuasion Tactics

How do successful, financially intelligent people fall prey to investment fraud? Researchers have found that investment fraudsters hit their targets with an array of persuasion techniques that are tailored to the victim’s mental profile.

No such thing as a “Guaranteed Return”: Every investment carries a certain degree of risk. Safe investments generally yield very low returns. Most con-artists spend a lot of time trying to convince investors that extremely high returns
are guaranteed, don’t believe it!

Reciprocity: Scammers often try to entice investors through free investment seminars; they hope that by doing a small favor for you, such as a free lunch, you will invest in their pitch. There is never a reason to make a quick decision on
an investment. If you attend a free seminar, take the material home and research it.

Pressure to invest right now: Scammers often tell their victims that this is a once in a lifetime offer and it they won’t see it again. It is important to resist the pressure to invest immediately and take the necessary time to investigate before
committing your hard earned money.

What You Can Do to Avoid Investment Fraud

Ask questions: Scammers are counting on you not to investigate before you invest. It is imperative that you take the time to do your own independent research.

Research before you invest: Unsolicited emails, fliers and company investment letters should never be used as the only basis for your investment decisions. Understand a company’s business and its products or services before investing.

Know the salesperson: Take the time to check out the person offering the investment before you invest — even if you know the person. Always find out whether the securities salespeople who contact you are licensed to sell securities in your state and whether they or their firms have had run-ins with regulators or other investors. You can check out brokers and their licensing for free with FINRA’s database and call Hawai‘i’s BBB for information on any firm they work for.

During 2013, Hawai‘i’s BBB, in conjunction with FINRA, will be educating the public on investment fraud. If you have any questions or would like someone from our office to speak with your group, give us a call at 808.536.6956.

Better Business Bureau, Hawai‘i
808-536-6956 | 877-222-6551 Neighbor Islands

www.hawaii.bbb.org

Unfortunately, too many seniors across the United States fall victim to investment fraud. It is a growing trend we see here in Hawai‘i where criminals are targeting our seniors. To protect yourself, family and other loved ones, Hawai‘i’s BBB provides a few sound tips on how to spot the red flags and avoid investment fraud.…
Update: Queen’s Medical Center vs. Koga
The Honolulu Star-Advertiser has featured several stories about Karen Okada, a 95-year-old woman who signed a “Death with Dignity Declaration” and a “Durable Power of Attorney for Health Care Instructions” back in 1998. Both documents purport to control “in all circumstances.”

In mid-2012, shortly after Karen was admitted to The Queen’s Medical Center for treatment for pneumonia, the doctors at Queen’s determined that Karen was essentially brain dead, or, in any event, had “permanently” lost the ability to participate in medical treatment decisions. Accordingly, Queen’s wanted to enforce the provisions of her Death with Dignity Declaration and withdraw the feeding tube that had been surgically placed in Karen’s side more than six months before she was admitted to Queen’s.

On the other hand, Karen’s health-care agent (her brother), in consultation with doctors who are not associated with Queen’s, disagreed with the conclusions reached by the Queen’s physicians. What Karen’s agent knew, and the Queen’s physicians did not find relevant, was that shortly before she came down with pneumonia, Karen was conscious and able to interact meaningfully with her family and caregivers. During the time she was at Queen’s, Karen was unresponsive when doctors examined her, but she reportedly smiled at least twice at her adult grandchildren and nodded to her grandson when he asked her whether she was able to breathe freely.

Although Karen breathes on her own, she has to do so through a tube that was inserted into her windpipe. At some point in time, her family hopes the tube can be removed, which will enable Karen to eat normally. In the meantime, Karen has to be fed through a tube that goes through her side and into her stomach.

Because Queen’s policy is to give precedence to an advance health-care directive over a durable power of attorney in all events, and because Queen’s believed that the terms of the directive required removal of Karen’s feeding tube, Queen’s sued Karen’s brother in order to get a court to order that Karen’s feeding tube be removed.

After delays in the court process, Queen’s relented and to allowed Karen to be placed in another facility with her feeding tube intact. As subsequently reported in the Star-Advertiser, Karen’s condition improved to the point where she could once again interact meaningfully with her family members and caregivers.

In the meantime, Karen and her family experienced a drama that no one would want to repeat. So what are some steps that you can take to spare yourself and your family from being the characters in a similar story?

Get an advance health-care directive, and make sure your loved ones have them too.

Make sure your advance directive and power of attorney work together to express your wishes clearly.

Give your health-care providers permission to give your medical information to your trusted decision makers. Otherwise, privacy laws can restrict your doctor from talking with your health-care agent.

Have a way to get access to your advance directive. You never know when or where an emergency might occur.

Talk with your family about your wishes BEFORE a crisis arises. Make sure everybody is on the same page, or at least clearly understands your wishes.

Knowledge is power. Learn all you can about advance health-care directives, and put that knowledge into practice. You will make things much easier on yourself and your family when you do.

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

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

www.est8planning.com
O‘ahu: 808-587-8227, Maui: 808-891-8881
Email: maku@est8planning.com
The Honolulu Star-Advertiser has featured several stories about Karen Okada, a 95-year-old woman who signed a “Death with Dignity Declaration” and a “Durable Power of Attorney for Health Care Instructions” back in 1998. Both documents purport to control “in all circumstances.” In mid-2012, shortly after Karen was admitted to The Queen’s Medical Center for treatment…
Special Needs Planning

Statistics reveal that about 16% of children in the United States have some sort of disability. The concerns of parents of these children are the same for most any parent and that is to make sure that their children are safe, happy, and live a meaningful life.

Some of these children may not be able to earn a living on their own. Both the federal and state governments understand this and provide benefits for these children, so that they receive food and shelter and medical care. Many of these benefits are “means tested”, meaning that the child cannot have much in terms of assets and cannot make much in terms of income, and if the child inherits assets from the parents, these benefits will discontinue, and the child must use up all of the inheritance before having to reapply for benefits.

This leaves parents to think that they must disinherit their children so that they can continue to receive benefits or entrust another family member to manage money for the benefit of the child.

The better alternative is the Supplemental Needs Trust. Properly written and administered, this trust allows parents to leave the child their inheritance and allows the child to continue to receive the much needed governmental benefits. This Supplemental Needs Trust is written instructing the trustee to pay assets from the trust for the benefit of the child only over and above what the child receives from the government.

This partnership between the federal and state governments and the parents allow the child to live the most meaningful, happy, and independent life possible.

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

Statistics reveal that about 16% of children in the United States have some sort of disability. The concerns of parents of these children are the same for most any parent and that is to make sure that their children are safe, happy, and live a meaningful life. Some of these children may not be able…
How Much Money Do I Need?

The “million dollar” question many of those preparing for retirement ask themselves is simply stated but not necessarily easy to answer — “how much money do I need to save to secure a comfortable retirement?” In some circles, this is referred to as “the number” — that magical figure that tells pre-retirees how prepared they may be.

A recent survey from Ameriprise Financial found that working Americans ages 50–70 with at least $100,000 in investable assets estimated that what’s needed to comfortably retire, on average, was $930,000.

But what does that number really mean? How important is it? What assumptions must you make to arrive at a number — and how many rapidly changing factors impact your number? Preparing for retirement is about much more than arriving at a number, but some calculation is necessary.

Calculate Your Retirement Expenses

When determining how much you’ll need to save, it’s helpful to think in terms of how much income you’ll need to withdraw to cover expenses. But projecting future spending is an inexact science. Some expenses might go away (mortgage, FICA taxes, retirement plan contributions), but you may also have more time and energy to spend money on things you need and want to do. However, medical expenses could greatly increase too.

Essential Expenses

These are the required costs associated with daily living — food, shelter, utilities, transportation, insurance (health, life, long-term care) and taxes — that most likely will persist in retirement.

Lifestyle Expenses

This is the “fun” part of retirement — interests that you want to pursue such as golfing, travel, owning a vacation property or starting a business. To make these lifestyle choices a reality, enough money needs to be in place to finance them. Though separating out lifestyle expenses from required expenses can help you prioritize, using funds from your nest egg too quickly can jeopardize your long-term financial security. Spending on lifestyle needs can be adjusted as needed throughout retirement, as these are considered discretionary expenses.

Your remaining available assets can be used to fund lifestyle expenses. You may choose to invest this money more actively with a strategy of drawing down assets over time using a sustainable withdrawal rate.

A true number may be elusive, but using this process, you may have a better sense of what your ultimate savings goal is. It may be useful to set multiple goals — or “numbers” — to reach enough to cover essential expenses and then lifestyle expenses. Beyond these goals, you might also consider the amount you’ll need to cover unexpected expenses in retirement and to leave a legacy.

Planning financially for retirement can be complex as you near retirement: taking appropriate steps to calculate income needs in an evolving economic and political environment can become more complicated. Consider working with a financial professional who can help you work toward your short- and long-term 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.

The “million dollar” question many of those preparing for retirement ask themselves is simply stated but not necessarily easy to answer — “how much money do I need to save to secure a comfortable retirement?” In some circles, this is referred to as “the number” — that magical figure that tells pre-retirees how prepared they may be. A recent…
Your Favorite Charity in Your Estate Plan
Charitable giving can be complicated, especially when it moves beyond cash or writing a check. A recent Forbes article provides some advice you may not have considered. The article is titled “Five Ways To Be Charitable Even If You Aren’t Bill Gates.” Take heart in knowing that even if you’re not Bill Gates, the “five ways” do not require the complexities of his estate plan.

Here are the Forbes tips (with some commentary by yours truly) for your consideration:

Give the gift of education and medical care. Have you thought about giving your children or grandchildren in the form of a 529 college savings plan or a direct gift to the college? Gifts by way of 529 plans use up your annual gift tax exclusion (which is $14,000 per recipient per year as of 2013), but they are a wonderful way to benefit your loved ones. You can also pay tuition directly to a private school or college and not have to treat that payment as a gift for gift tax purposes. A similar exclusion applies to payments made directly to doctors, dentists, orthodontists or other medical care providers. These latter kinds of gifts are called “qualified transfers” and are worth discussing with your financial and estate planning advisors.

Give your IRS distribution to charity. Since you have to take your required minimum distribution anyhow, send it directly to a charity instead. This is a no-brainer if you are taking RMDs from your traditional IRA and are also charitably inclined. You won’t get a deduction, but you won’t have to take the charitable gift into income either. The net result is a win for you and your favorite charity. This strategy may have a limited shelf life, as it is set to expire at the end of 2013. Hopefully, Congress will make it permanent at some point.

Name your charity as your beneficiary on your retirement account. This option is appropriate if you’ve decided that left over retirement funds should pass to charity instead of loved ones. Be sure to designate your charitable beneficiaries accordingly! Note: The full amount of your retirement account given to charity is income tax free. If left to a non-charity, then the full amount is taxable as ordinary income, AND your retirement account is includible in your estate for estate tax purposes. If you are charitably inclined and have substantial retirement plan assets, this is an opportunity to avoid some double taxation (income tax+estate tax).

Donor-advised funds. By giving to a donor advised fund, you can give today, take the charitable deduction in this year’s taxes, but decide which charities to benefit next year or beyond. They are easy to establish too. In Hawai‘i, you can work with the Hawai‘i Christian Foundation or the Hawai‘i Community Foundation.

Charitable gift annuity. Are you keen on the idea of receiving a guaranteed lifetime monthly income, especially as an assurance in old age? If you also want to benefit charity, then consider hitting two birds with one stone by opting for a charitable gift annuity. Not every charity will do this for you, but it’s worth asking if your favorite ones will. One Hawai‘i charity that will offer charitable gift annuities is the YMCA of Honolulu.

This is just an overview of the “five ways” featured by Forbes, so be sure to consult with your financial, tax and legal advisors regarding the appropriateness of each for your circumstances.

Another important point to remember is that paying estate tax (the tax on owning stuff when you die) is 100% optional. You can give your loved ones a decent inheritance, benefit one or more charities for a term of years, and then have whatever is left of your estate go to your descendants. This is a very powerful technique, called a Charitable Lead Trust. Again, talk with your trusted advisors about whether this might make sense for you and your ohana.

Scott Makuakane, Attorney at Law

Specializing in estate planning and trust law.

www.est8planning.com
O‘ahu: 808-587-8227, Maui: 808-891-8881
Email: maku@est8planning.com
Charitable giving can be complicated, especially when it moves beyond cash or writing a check. A recent Forbes article provides some advice you may not have considered. The article is titled “Five Ways To Be Charitable Even If You Aren’t Bill Gates.” Take heart in knowing that even if you’re not Bill Gates, the “five…
BBB: Volunteering: Keep Yourself Active
For the past 50 years, May has been a month to appreciate and celebrate the vitality and aspirations of older Americans and their contributions to our communities. Many seniors are productive, active, and influential members of society, sharing essential talents, as well as passing on wisdom, and life experience with their families, friends, and neighbors.

With busy lives, it can be hard to find time to volunteer. However, the benefits are enormous to you, your family, and your community. The right match can help you find friends, reach out to the community and even learn new skills.

Volunteers are often the glue that holds a community together. It allows you to connect to your community and make it a better place. However, volunteering is a two-way street. Dedicating your time expands your network and can help you maintain a healthy lifestyle.

Hawai‘i’s BBB recommends taking the four following steps to make sure your time and energy are put to great use as a volunteer:

Identify your skills. Volunteering opportunities are available for any skill level. Consider what you’re good at and what services you’d be particularly well-equipped to provide. From stuffing envelopes to construction, to providing pro bono legal advice, you can find a good fit regardless of your education or talents.

Consider your passions. Maximize your enthusiasm for volunteering by finding an issue that resonates with your own personal passions. If you’re a runner, consider a marathon fundraiser. If you like history, look for opportunities to help out at an archeological dig. By identifying your passions, you’re more likely to stay engaged with the charity and be a more effective volunteer.

Determine your availability. Make a realistic estimate of how much time you’re willing to give. Maybe it’s just a weekend of picking up trash at a park, a week of building schools in a foreign country or maybe you’re willing to make a long-term commitment to tutor someone to read. It’s better to volunteer the amount of time you can reasonably handle, rather than drop out in the middle of a longer commitment.

Research the charity thoroughly. Just as you would before making a cash donation, research the charity fully before you volunteer to make sure the organization has a commitment to standards and accountability. You can contact Hawai‘i’s BBB to hear or get news on local and national BBB charity reviews.

Better Business Bureau, Hawai‘i
808-536-6956 | 877-222-6551 Neighbor Islands

www.hawaii.bbb.org
For the past 50 years, May has been a month to appreciate and celebrate the vitality and aspirations of older Americans and their contributions to our communities. Many seniors are productive, active, and influential members of society, sharing essential talents, as well as passing on wisdom, and life experience with their families, friends, and neighbors.…
Time for a Meeting

Many people think that when they retire they would be able to travel, or sit and read a book worry-free. Sadly, many also express that their experience during retirement is not at all that way. Some are caring for spouse’s who have dementia or other mental or physical challenges. Some are fearful that they do not have enough money to last their lifetime. Others face their own mental and/or physical challenges as well.

These challenges can turn into crisis rapidly in all areas of life, including mental, physical, legal, economic, social and spiritual.

Successfully managing these myriad of issues requires family members and their advisors to unify their efforts together in a holistic approach synergistically to ensure that our elders remain safe, healthy and as independent as possible, preserving their dignity for the duration of their life.

For this purpose, engage in a family meeting with all family members, fiduciaries and the financial advisor so that everyone gains an understanding of the estate plan and the underlying intent and wish of the maker of the plan. Not only can this provide for a meaningful discussion, a “circle of trust” can be established to provide protection from anyone outside of this circle attempting to take advantage of our elders.

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

Many people think that when they retire they would be able to travel, or sit and read a book worry-free. Sadly, many also express that their experience during retirement is not at all that way. Some are caring for spouse’s who have dementia or other mental or physical challenges. Some are fearful that they do…
Caring for Aging Parents: Don’t Wing It
As the parents of boomers age, more family members are managing eldercare responsibilities. Healthcare and finances aren’t easy topics for many families to broach. In fact, research from the Money Across Generations IISM study shows that 36 percent of boomers’ parents feel that talking about healthcare with family will likely or very likely create tension or spark an argument.1

This is where a long-term financial plan comes into play. Your plan should support your financial goals and help to care for your parents needs, especially when there are unexpected expenses and emotions involved.

To get started:

Talk about finances now. While it may be uncomfortable to discuss finances, it’s essential that you’re familiar with your parents finances. This includes medical, disability and long-term care insurance policies. Use this information—along with your own funds—to choose healthcare options.

Create a contact list. Ask your parents to compile a list of account numbers, computer login names and passwords, plus the names, addresses and phone numbers of the professionals they work with. Also, ask about the location of important financial and legal documents and lockbox keys.

Identify current healthcare costs and needs. Learn about your parents medical and pharmaceutical expenses and identify any cost savings. For example, change from a name brand to a generic prescription or, instead of filling prescriptions at your pharmacy, order a long-term supply from a mail-order provider.

Build a support network. Talk with family members, neighbors and industry professionals to see who can help you care for your parents and in what capacity and at what cost.

Anticipate future lifestyle changes. Even if they aren’t yet needed, explore the costs of in-home, senior apartment, assisted living and memory care housing and services, as well as the costs of having a parent live with you. Consider the pros and cons of each option.

Become familiar with assistance programs. Your parents may qualify for government programs, supplements or services. For information, visit www.Govbenefits.gov. Also, contact your local Area Agency on Aging for information about elder programs and services.

Keep your retirement goals in mind. Continue to manage your budget and save for your future. Be mindful that exiting and re-entering the workforce even temporarily may affect your earning power and employer-sponsored retirement plan.

Know your rights at work. The Federal Family and Medical Leave Act of 1993 (FMLA) allows covered employees up to 12 weeks of unpaid leave to provide care for a family member with a serious health condition.2 If you’re caring for a parent, inform your Human Resources department about your situation to take advantage of this legal protection, if relevant, and create a workable plan within your company’s policies.

Thinking about caring for an ill or aging parent isn’t easy to do, but creating a plan now can help immensely down the road. Consider working with a financial advisor who can help you plan for unexpected expenses and prepare for the costs of healthcare during your own retirement.

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.
As the parents of boomers age, more family members are managing eldercare responsibilities. Healthcare and finances aren’t easy topics for many families to broach. In fact, research from the Money Across Generations IISM study shows that 36 percent of boomers’ parents feel that talking about healthcare with family will likely or very likely create tension…
Legal: Fighting Over Assets?
“My parents made a trust with a lawyer. Why is it not working and the trustee and beneficiaries are fighting over the assets?”

Sadly, these are words I often hear from families who call me after the second parent dies to settle their parents’ estate. The Trust might have worked from the drafting attorney’s point of view in that the assets did not go through probate and the taxes were minimal. However, the drafting lawyer probably did not investigate and counsel their clients as to the relational aspects of estate planning.

In my 25 years’ experience as a lawyer, I’ve come to realize that there are five questions that must be answered with a “Yes” to ensure that the estate plan will work:

Did the plan properly transfer the assets to the beneficiaries avoiding probate and minimizing tax?

Did the beneficiaries receive the assets properly to minimize the risk of mismanagement and misspending of assets?

Did the parents clearly convey their message, meaning, and intent to their trustee and beneficiaries?

Did the beneficiaries and trustee clearly receive the message, meaning, and intent from the parents?

Will the trustee and beneficiaries honor the message, meaning, and intent of the parents?

In other words, making the estate plan is not enough. Communication, verbally and in writing, with the trustee and beneficiaries over time conveying the message, meaning and intent, and making sure they clearly receive your message, meaning and intent is critical to a successful estate plan.

Stephen B. Yim, Attorney at Law | 2054 S. Beretania St., Hon. | (808) 524-0251 | stephenyimestateplanning.com
“My parents made a trust with a lawyer. Why is it not working and the trustee and beneficiaries are fighting over the assets?” Sadly, these are words I often hear from families who call me after the second parent dies to settle their parents’ estate. The Trust might have worked from the drafting attorney’s point…
Better Business Bureau: Tax and Scams
This time of year, fliers, yard signs, emails and other advertisements offering tax preparation assistance and promising bigger, faster refunds are popping up everywhere. When you alone are ultimately responsible for the information on
your tax returns, how do you separate the professionals from the scammers? Over the past few years seniors have become prime targets of the tax scammers.

One popular scheme works by convincing seniors that they qualify for reimbursement through the American Opportunity Tax Credit (AOTC). The AOTC allows people paying for college to reduce their taxable income by as much as $2,500.

A key requirement of the AOTC is that a person be currently enrolled in an institute of higher education — a condition that most seniors do not meet. But, scammers lie, telling seniors that they can collect benefits even if they went to school many years ago or even if they helped pay for their children’s schooling.

Here is a list of some of other recent tax related scams:

Fictitious claims for refunds or rebates based on excess or withheld Social Security benefits.

Claims that Treasury Form 1080 can be used to transfer funds from the Social Security Administration to the IRS enabling an IRS-payout.

Unfamiliar for-profit tax services teaming with local churches.

Homemade fliers or brochures implying credits or refunds available without proof of eligibility.

Offers of free money with no documentation required.

Promises of refunds for “Low Income — No Documents Tax Returns.”

Claims for the expired Economic Recovery Credit Program or for the Recovery Rebate Credit.

Senior stimulus payment. Retirees and other Social Security beneficiaries are eligible for a senior stimulus payment — $250 for individuals and $500 for couples — as part of the new stimulus plan. Some scams claim seniors can get a second, much larger payment by calling a telephone number and surrendering personal information.

Hawaii’s BBB offers the following tips for avoiding tax preparation scams:

Be cautious of tax preparers who claim they can get larger refunds than other preparers, or who base their fee on a percentage of your refund.
Consider whether the individual or firm will be around to answer questions about the preparation of the tax return months, or even years, after the return has been filed.

Check the preparer`s credentials. Only attorneys, certified public accountants (CPAs) and enrolled agents can represent taxpayers before the IRS
in all matters including audits, collections and appeals.

Find out if the preparer is affiliated with a professional organization that provides its members with continuing educational resources and holds them to a code of ethics.

Ask friends and family if they know of people who has used the tax preparer before, and whether they were satisfied with their service.

Check out the firm with Hawaii’s Better Business Bureau at Hawaii.bbb.org

Keep your money and your identity safe this tax season. And remember the IRS provides free telephone assistance for people who have questions at 1-800-829-1040.
This time of year, fliers, yard signs, emails and other advertisements offering tax preparation assistance and promising bigger, faster refunds are popping up everywhere. When you alone are ultimately responsible for the information on your tax returns, how do you separate the professionals from the scammers? Over the past few years seniors have become prime…
Financial: Home Exemptions for Seniors

Many have told us that their Real Property Taxes seem to be going up. This may be true since our property taxes are a direct relation with the City’s value of the property. The higher the assessed value of your property, the higher your property taxes will be..

We have clients from all over the world. And believe it or not, our property taxes are not as high as some states. As of the 2008 U.S. Census, the state of New Jersey holds the #1 position for the highest median property tax paid per year at $6,320. The lowest median property tax paid was Louisiana at just $188.

Home exemptions reduce the net taxable assessed value of the property used in determining your property tax and apply only to your primary residence. You can only have one primary residence which is tracked by your Social Security number. The current basic home exemption is $80,000. This means that $80,000 is deducted from the assessed value of the property and the homeowner is taxed on the balance. If you’re 65 years and older, the home exemption is $120,000. To qualify for the higher exemption you must be 65 years or older on or before June 30 preceding the tax year for which the exemption is claimed. Your exemption amounts will automatically increase depending on the age of the homeowner. The current property tax rate is $3.50 per $1,000 of assessed value. This rate is set in May or June by the City Council and may be adjusted for the July statement of this year.

If you believe your property taxes are too high, there is a way you can file for an appeal. These are what you need to know:

You’ll need to complete the Notice of Real Property Assessment Appeal form and submit a $25.00 deposit. This form as well as other valuable information can be found online at www.realpropertyhonolulu.com.

There are 4 ways to appeal. The most common is based on your belief that the assessment of the property exceeds more than 10% the market value of the property.

Once the form is completed a hearing is scheduled before the Board of Review. This board is made up of private citizens in an informal setting. You’ll want to bring documentation to validate your statement and then they’ll remedy a decision.

If you purchase a property, remember to file for the exemption immediately, so you don’t forget later. Ownership must be recorded at the Bureau of Conveyances on or before September 30 preceding the tax year.

We’ve known seniors who have lived in their home for years and never took advantage of their home exemptions and they’ve paid more property taxes than needed — imagine the extra savings.

Dan Ihara (RA) & Julie Ihara (RA)
Dani@iharateam.com, juliei@iharateam.com
808-256-7873
www.oahuhomes.biz

Many have told us that their Real Property Taxes seem to be going up. This may be true since our property taxes are a direct relation with the City’s value of the property. The higher the assessed value of your property, the higher your property taxes will be.. We have clients from all over the…
Financial: Selecting Your Financial Advisor
Speaking from experience, the relationship between financial advisors and their clients is incredibly important. Whether you rely on your advisor to help with retirement planning, saving for college, or meeting other goals, this individual will help determine how you approach some of life’s biggest financial decisions. Here are a few things to keep in mind when choosing an advisor.

Find someone who shares an interest in your future. Your financial advisor should ask questions about your hopes, dreams and concerns. Your advisor should not be someone who only talks at you, but also listens to you.

Your advisor should know the marketplace. A good advisor should offer a tailored plan based on your goals — whether it’s building cash reserves, protecting your income against death or disability, or creating a balanced portfolio.

Financial advisors shouldn’t be know-it-alls. A smart advisor knows when it’s time to gather input from other experts, such as tax and legal professionals. Find an advisor who is willing to use a team approach to help you reach your goals.

Select an advisor with a solid reputation. When interviewing advisors, ask for references and specific examples of how they helped clients reach their goals. Check the advisor’s educational background and note any professional designations they have earned. You may find this infor-mation and on websites like FINRA.org.

Once you choose an advisor, you can start customizing a financial plan that fits you. Here’s what to expect during the planning process:

Set Goals: Your advisor will ask questions to help you identify your financial needs and dreams. These might include:

Envisioning your future — what’s next for you?

Where do you see yourself living?

What lifestyle goals are important to you?

Providing for your children’s education?

How do you envision your retirement?

Do you want help to reduce the effect of taxes on your assets?

Don’t worry if you can’t provide detailed answers. As you go through the financial planning process, your responses will become clearer to both you and your advisor.

Determine the Facts. After setting goals, assess your current financial picture. This includes gathering information and materials for your advisor to get a clear picture of your present situation.

Create the Plan. Your financial advisor will work with you to establish a course of action designed to help you achieve your goals. This strategy may cover things like:

Your needs, goals and values.

Current assets and liabilities.

Investment portfolio recommendations.

Retirement plan.

Insurance audit and needs analysis.

Estate planning analysis.

Product recommendations and action items.

Implement the Plan. After reviewing your strategy and consulting with your financial, tax and legal professionals, you and your advisor will implement the plan.

Meet and Review. Now that your plan is in motion, you will want to meet once or twice a year to review progress and make updates.

Selecting an advisor and creating a financial plan does take some time and effort. Once you take action to achieve your goals, you’ll likely discover life’s challenges can be better managed with the security of having a plan in place.

For info, contact Michael W.K. Yee at (808) 952-1240.

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.

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. Some products and services may not be available in all jurisdictions or to all clients. ©2012 Ameriprise Financial,Inc. All rights reserved. File # 143286
Speaking from experience, the relationship between financial advisors and their clients is incredibly important. Whether you rely on your advisor to help with retirement planning, saving for college, or meeting other goals, this individual will help determine how you approach some of life’s biggest financial decisions. Here are a few things to keep in mind…

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