Category: Wisdoms

  • Financial: Retirement Confidence Boost

    Dos and Don’ts on Preparing for Retirement

    As baby boomers near retirement, many are discovering that they aren’t yet financially prepared to leave their careers. Moving from a full-time job to a life of travel, volunteer work and time spent with family and friends may seem like a natural next step. For those who are still determining how they’ll fund their retirement, however, cutting the strings of employment may not look so appealing.

    Here are several sobering facts from the New Retirement Mindscape® 2012 City Pulse index1, an annual survey that examines retirement readiness among individuals in 30 of the largest U.S. cities: Just 63 percent of respondents say they’re saving for retirement. What’s worse, only 37 percent of respondents nationwide say they feel “on track” to retire, and just 11 percent say they were able to retire earlier than planned because they were financially able to do so.

    Here are some important do’s and don’ts designed to help you move toward punching the clock for the last time and living a happy, healthy retirement.

    Do strive to be debt free upon retirement.

    This involves making well-planned, wise choices — and sometimes making trade-offs — during your last 10 to 15 years of your career. If possible, maximize funding into your 401(k) plan before refinancing or adjusting your 30-year mortgage to a 15-year term in order to retain the tax advantages available to you that come with saving for retirement. That might mean focusing on savings vs. paying off a mortgage or other long-term debt.

    Don’t assume your retirement will be “traditional.”

    In recent years, baby boomers have redefined what “retirement” really means. Some choose to work part time or start a career in which they’re really passionate about. If you aspire to have a part-time career, start laying the foundation now. Identify what you hope to do as well as the companies or organizations that might benefit most from your experience.

    Don’t disregard your health.

    As we age it becomes more important to carefully monitor our physical and mental well being. Obesity, high blood pressure and high cholesterol are the most common health issues in America. So get an annual physical and health screening and talk to your doctor about any health concerns you may have and what the future costs may be so you can accurately plan for them in your retirement savings.

    Don’t underestimate.

    When determining your retirement expenses think about the rising costs of health care, gasoline and travel (just to name a few) that you’ll continue to consume in retirement. Remember to create some contingency plans to cover unforeseen expenses. You likely won’t regret saving a little extra now for your retirement years rather than not having what you will need once you leave the workforce.

    It may be a bumpy ride to retirement, but the surest way to feel confident about your future is to plan for it right now.

    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

    Dos and Don’ts on Preparing for Retirement As baby boomers near retirement, many are discovering that they aren’t yet financially prepared to leave their careers. Moving from a full-time job to a life of travel, volunteer work and time spent with family and friends may seem like a natural next step. For those who are…

  • Queen’s Medical Center vs. Koga

    The Honolulu Star-Advertiser has featured several stories by reporter Dan Nakaso about the plight of Karen Okada. Karen is 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.”

    The Queen’s Medical Center has determined that Karen is essentially brain dead, or, in any event, has “permanently” lost the ability to participate in medical treatment decisions, and that the provisions of her Death with Dignity Declaration now require that her feeding tube be withdrawn.

    On the other hand, Karen’s healthcare agent, in consultation with doctors who are not associated with Queen’s, disagrees with the hospital’s physicians. What the agent knows, and the Queen’s physicians discount, is that just before she was hospitalized, Karen was conscious and able to interact meaningfully with her family and caregivers. During the time she has been at Queen’s with pneumonia, Karen has been unresponsive during examinations, but she has smiled at least twice at her adult grandchildren and nodded to her grandson in response to his question of whether she was able to breathe freely.

    The policy of Queen’s is to give precedence to an advance healthcare directive over a durable power of attorney in all events, and without inquiring into why a person may have signed contradictory documents. Accordingly, Queen’s sued Karen’s healthcare agent in order to get a court order forcing him to order that Karen’s feeding tube be removed.

    Since no one would want to be part of this kind of drama, what can you do to make your wishes clearly known so there will be no questions?

    1. If you do not have an advance health care directive, get one. Make sure your loved ones, including your children over the age of 18 have one too.

    2. Learn all you can about the options that can be written into your advance health care directive. These are not “one size fits all” documents. Your wishes may differ greatly from those of your friends and family members, and the document you sign should express your particular desires.

    3. If you have an advance health care directive that is more than 5 years old, there is a good chance that it will not accomplish what you think it will. Review it right away with your legal counsel. Make any appropriate changes and updates.

    4. If you want to give a trusted family member or friend the power to make health care decisions for you, make sure the power of attorney meshes well with any other instructions.

    5. Be sure to give your health care providers your permission to give your medical information to your family members or other trusted decision makers. Federal and state privacy laws restrict your doctor from talking with your health care agent unless you grant that permission.

    6. Review your advance health care directive periodically to make sure it accurately states your current wishes. Once per year is not too often.

    7. Make sure you have a mechanism in place for giving you access to your advance health care directive, no matter when or where an emergency might occur. Not all health problems happen at home, and if you have a crisis while you are traveling, you will need a way to make your health care documents accessible to your caregivers.

    8. Talk with your family about your wishes before a crisis arises. Make sure everybody is on the same page. If your decision makers indicate hesitation about carrying out your wishes, think about naming someone who will. Your assurance to your loved ones of how seriously you intend your instructions to be taken will give them the courage to carry them out.

    Knowledge is power. The more you know about advance health care directives, the more likely it will be that your wishes will be carried out.

    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

    The Honolulu Star-Advertiser has featured several stories by reporter Dan Nakaso about the plight of Karen Okada. Karen is 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.” The Queen’s Medical Center has…

  • The Perfect Match

    A living donor offers a two-for-one gift of life

    Nearly 15 years ago Andrea Lee’s youngest daughter Jenevieve was diagnosed with systemic lupus erythematosus (SLE), a long-term autoimmune disorder that may affect the skin, joints, kidneys, brain and other organs. Jenevieve was 15, an age where her main concern should have been friends and fun. Instead, she focused on staying out of the sun, away from those who were sick and eating bananas for potassium. By the time she was 25, her ravaged body needed drugs, surgeries and dialysis. Her kidneys were functioning at a dismal 7 percent.

    Jenevieve made many friends at the three-times-a-week dialysis treatments. She knew the nurses by first name, befriended the regulars, and made craft gifts for everyone. Outside of dialysis, except for a limp from osteoporosis of a hip joint, one would never guess that she was so sick with Chronic Kidney Disease (CKD). A life of dialysis seemed the answer until Jenevieve and Andrea were sent to a class about kidney transplantation.

    The transplant coordinator helped them navigate the world of organ donation. She scheduled tests and put Andrea in touch with organ donors and recipients. They had experience, tips and connections, plus they understood what Jenevieve and Andrea were going through.

    Jenevieve put her name onto a national list of patients who needed a kidney and then waited. While waiting, Andrea learned that one of the best organ donor candidates is a family member. She decided to undergo prescribed lab tests and passed every single test. After a few months, Andrea was cleared as a good donor match for Jenevieve.

    In August 2008, Jenevieve and Andrea spent a week in the hospital and the kidney transplant was a success.

    Once at home, Andrea allowed her body to heal. Soon she was back to normal— playing with grandkids, working, traveling, and other life activities that she enjoys. At the follow-up visit, her doctor told her that her lab results were so good that it looked like she still had two kidneys!

    Today, Jenevieve, who turned 30 this year, thrives. She is a full-time student studying radiology at Kapi‘olani Community College. She wants to give back to the medical community that helped her through her journey. She continues her jewelry craft and makes herself available to those who want to learn about kidney dialysis, transplant or SLE.

    Also, Andrea’s family volunteers for the newly established Hawai‘i Organ Transplant (H.O.T.) Support Group, a council of the National Kidney Foundation of Hawai‘i. Its mission is to support and educate people who have had, or are in the process of, an organ transplant. For more information, please visit www.hawaiiorgantransplant.wordpress.com.

    National Kidney Foundation of Hawaii
    1314 South King St., #304, Honolulu, Hawaii 96814
    808.589.5976
    info@kidneyhi.org
    www.kidneyhi.org

    A living donor offers a two-for-one gift of life Nearly 15 years ago Andrea Lee’s youngest daughter Jenevieve was diagnosed with systemic lupus erythematosus (SLE), a long-term autoimmune disorder that may affect the skin, joints, kidneys, brain and other organs. Jenevieve was 15, an age where her main concern should have been friends and fun.…

  • Creditor-Protection Gets a Boost

    Due to recent changes in our state law, Hawai‘i is one of a handful of states that affords creditor-protection to those who hold “Tenants by the Entirety” property. Tenants by the Entirety is a method by which married couples have equal interest in a property and hold the title together. Each owns the undivided whole of the property. In order for one spouse to modify his or her interest in the property in any way, the consent of both spouses is required. One of the benefits of Tenants by the Entirety is that it protects property from creditors. A home held as Tenants by the Entirety may only be reached by creditors of joint debts of both the husband and wife. In the event of an individual debt of (or judgment against) a husband or wife, the property may not be partitioned, sold or encumbered without the permission of both spouses — in essence, protecting the property from a forced sale.

    This type of property ownership can cause uncertainty for married couples. Prior to July of this year, couples that wanted to transfer their real estate to a revocable inter-vivos trust (or living trust) would lose the creditor-protection associated with Tenants by the Entirety. Having to choose between the two plans always had a proposed risk — there was never a perfect solution.

    Effective July of this year, Congress amended Section 509-2, Hawaii Revised Statues. This law allows couples to hold their real estate in their living trust, as well as maintain creditor-protection. To be effective, the real estate needs to be held as Tenants by the Entirety first and then transferred into the trust.

    In order to be eligible to hold real estate as Tenants by the Entirety, you must be a legally married couple, which includes civil unions (effective January of this year) or reciprocal beneficiaries. A valid reciprocal beneficiary relationship must include the following:

    • each of the parties be at least eighteen years old
    • neither of the parties be married nor a party to another reciprocal beneficiary relationship
    • the parties be legally prohibited from marrying one another under chapter 572
    • consent of either party to the reciprocal beneficiary relationship has not been obtained by force, duress, or fraud
    • each of the parties sign a declaration of reciprocal beneficiary relationship as provided in Section 572C-5

    If you do not have an estate plan or it has been a while since you last visited with your estate-planning attorney, this would be a great time to create or update your estate plan in order to fully optimize these new laws.

    Stephen B. Yim, Attorney at Law
    2054 S. Beretania Street, Honolulu, HI 96826
    (808) 524-0251 stephenyimestateplanning.com

    Due to recent changes in our state law, Hawai‘i is one of a handful of states that affords creditor-protection to those who hold “Tenants by the Entirety” property. Tenants by the Entirety is a method by which married couples have equal interest in a property and hold the title together. Each owns the undivided whole…

  • Important Tips for Giving Grandparents

    If you enjoy supporting your grandchildren financially — or if this is one of your goals — you’re not alone. Eighty-four percent of seniors say that creating a financially secure life for themselves and their family is an important goal.*

    Yet, deciding how to best help your grandchildren can be a struggle, especially if you share some of the same financial concerns as your peers. For example, you may be among the 27 percent of seniors who say changes to Social Security are most likely to jeopardize your retirement plans, or the 23 percent who identify health care costs as the biggest threat.

    When evaluating how much financial support to provide, consider the following:

    • Give only what you can afford. Your financial security should be your first priority. Since there is no way to know with any certainty how long you’ll live, how the market will perform or how inflation may impact your purchasing power, make sure that you gift within your means. Doing so will help ensure your generosity today doesn’t create a financial hardship for you — or your family members — down the road.
    • Give equally. To help prevent family conflict and avoid damaging relationships, give equally to your grandchildren. If you need to give more to help one of them through a rough patch, adjust your will to even things out and clearly communicate your intentions.
    • Clarify whether you’re making a loan or giving a gift. If you’re giving a gift, familiarize yourself with federal tax rules, which are based on the calendar year. For example, in 2012 you were able to give up to $13,000 before the federal gift tax is applied. Also, be sure the recipient knows it’s a gift to alleviate any uncertainty about whether they’re required to pay you back.
      If you are loaning money, be specific about the terms and repayment. Make sure you have a written document that both parties sign and date.
    • Discuss your intentions. Only 61 percent of seniors say they regularly discuss finances with their family. If you would like to support your grandchildren and save for their college or home down payment, be sure to communicate this with their parents. This can help your adult children with their own financial planning.

    If you want to provide financial support to a family member, consider consulting a financial professional. He or she can help you evaluate your finances and goals and create a strategy. A realistic understanding of your financial picture can help you identify how much you can comfortably give, as well as the most tax-efficient and effective way to go about it.

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

    *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

    If you enjoy supporting your grandchildren financially — or if this is one of your goals — you’re not alone. Eighty-four percent of seniors say that creating a financially secure life for themselves and their family is an important goal.* Yet, deciding how to best help your grandchildren can be a struggle, especially if you…

  • Wire Fraud

    How money coming in is actually going out

    Western Union, Moneygram and similar businesses allow you to send money quickly. Their services are useful for transmitting funds to friends, relatives and others you know well. But scammers frequently take advantage of victims by convincing them to wire money to a stranger, often someone in a foreign country.

    The initial hook can take many forms. In every case, the scam ends the same way … you are asked to wire money; once you do, it’s gone for good.

    Consumers lose millions of dollars each year through wire fraud. Hawai‘i’s BBB receives calls often from duped residents who believed they “won a prize” or they were going to “work” as a secret shopper. Locally, we have seen consumers lose as much as $50,000, or taking a mortgage out on their house in order to claim a winning.

    The most important thing for consumers to remember is this: Never wire money to someone you haven’t known for a long time. If you have truly won a lottery (which are illegal in Hawai‘i) or a sweepstakes, you would not need to pay a penny to receive your winnings.

    Hawai‘i’s BBB warns residents to look for the following red flags:

    • You are asked to wire transfer money.
    • You are sent a check in connection with a payment request. Scammers often win their victims’ confidence by sending a fake check for more than the so-called processing fees, shipping costs or other expenses. It may be a cashier’s check, personal check or money order. They instruct the victim to cash the check at their personal bank account and send them a portion of the money back.
    • The contact indicates a confirmation code or money transfer control number (MTCN) is needed before your money can be withdrawn. Once you wire money, it can be picked up immediately.
    • A caller or e-mail appears to originate from overseas.
    • The person communicates via TTY service. TTY is used by the hearing impaired. Cons prefer the service because it disguises thick accents and makes calls untraceable.

    If you are a victim of fraud, report it to the police and FBI. If you have any questions about someone who wants you to wire or tranfer money, contact Hawai‘i’s BBB for information.

    Complaints or Questions, contact BBB:

    808-536-6956 (O‘ahu)
    877-222-6551(Neighbor Islands)
    www.bbb.org/file-a-complaint/

    How money coming in is actually going out Western Union, Moneygram and similar businesses allow you to send money quickly. Their services are useful for transmitting funds to friends, relatives and others you know well. But scammers frequently take advantage of victims by convincing them to wire money to a stranger, often someone in a…

  • A Conversation about Long Term Care with Michael Yee

    Generations Magazine interviewed Mike Yee on his expertise on long-term care insurance (LTCI) and to learn more about this important policy and common questions asked.

    GM: I understand you are a national leader in the LTCI industry. Could you elaborate your accomplishment?

    MY: Actually, I happen to be the # 1 LTCI producer for John Hancock in the US for 2010 and 2011, which includes some 51,000 agents nationwide. That was not something I was striving for, as I would give it up any day if it meant that more professionals understood and recommended it. The results were more a reflection of my conviction, knowing what I know now about aging and long-term care.

    GM: Is caregiving a huge problem in Hawai‘i and why? Where do you see these important long-term care issues in the future?

    MY: The number of people needing care in Hawai‘i is staggering now and will grow in the future. There is a difference between being a companion, care manager, and caregiver. Family and friends have personal and financial lives of their own, increasing the demand for private paid homecare, assisted living, and nursing home care services. How to pay for these services is the challenge. There are already concerns about not having enough money from Medicare, Medicaid, and Social Security.

    Currently, there is LTCI, life insurance with LTCI riders, and annuities with LTCI riders. Each with benefits and drawbacks; no “one size fits all.” Hawai‘i will be best served by combining public and private resources and advocating advanced financial planning for LTCI, sooner is better than later. Heading off now could be a win-win for all, better for the senior, better for the caregiver, better for the state, better for all.

    GM: Do you have LTCI and why?

    MY: At age of 54, my wife and I both own LTCI. We bought it at a time when we still have a mortgage, private school tuition, and college costs ahead of us. After a required physical to participate as assistant scoutmaster with the Boy Scouts, my doctor told me that I had high blood pressure and the beginning of diabetes. He gave me an ultimatum, “either lose 25 lbs. in the next 6 months or go on medication. Diabetes and high blood pressure can’t be felt. Left untreated, you can either have a stroke or heart attack.” Affordability and insurability have no correlation. I was smart enough to know it could happen to me; and if it did, I worry more about the ones I love and what would happen to them, than myself.

    For more information, please contact Michael W. K. Yee at (808) 952-1240

    Advisor is licensed/registered to do business with U.S. residents only in the states of Hawaii. 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.© 2010 Ameriprise Financial, Inc. All rights reserved.

    Generations Magazine interviewed Mike Yee on his expertise on long-term care insurance (LTCI) and to learn more about this important policy and common questions asked. GM: I understand you are a national leader in the LTCI industry. Could you elaborate your accomplishment? MY: Actually, I happen to be the # 1 LTCI producer for John…

  • Add the Color Into Your Estate Plan

    Leaving one’s legacy, in my opinion, involves much more than writing a Will to say who gets your things when you die. It involves reaching into your past and telling your life story including recalling specific memories, telling of family history, expressions of love and regret, and granting or requesting forgiveness. It also involves looking into the future to express values, hopes and wishes for loved ones. It is not only comforting for our loved ones to receive a personal written legacy, it can also be satisfying for you to know that your loved ones will receive your personal written legacy if you die suddenly.

    Sadly, not many individuals make a Will. Statistics reveal that about 30% of individuals make an estate plan. Significantly fewer people take the time to write a personal legacy. Understandably this is difficult to do as we must face death and pause from our fast-paced lives long enough to reflect and write. And the world now is calling to each of us to do just that. According to the 2012 Allianz Life Insurance Company of North America American Legacies Pulse Study, 86% of baby boomers said that family stories are the most important aspect of their legacy, rather than receiving assets.

    My hope for our community is that we establish this personal writing as part of a ritual in preparation of death. Long ago, our ancestors wrote their own Will. They would tap into stone admonishments such as “don’t drink, don’t smoke, marry
    a Doctor or don’t marry a Doctor.” Now things have become so complicated that people hire lawyers to write their Will for them, and in the course of writing the legal documents, the lawyer bleaches out all of the heartfelt personal statements.

    I ask my clients after they sign their estate planning documents to tell me what color they are. Perplexingly, they respond: “black and white.” Yet, everyone’s life is everything but black and white, it is colorful, full of depth, and is dynamic.

    I urge you to go beyond the legal estate plan and write your own personal legacy to put the color back into your estate plan, add your voice into your plan and provide you with peace of mind knowing that your heart will be felt. It also provides your loved ones with a lasting personal legacy providing comfort in years to come.

    I created a booklet for my clients to use to write their personal legacy, called My Heartfelt Will. I encourage each of my clients to take time out of their busy lives to sit quietly and contemplatively to write their own personal legacy. I tell them that they are doing a great job as they just completed their estate plan and are among the 30% of people to do so, and this gives them the opportunity to take the next very important step and create their own personal legacy.

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

    Leaving one’s legacy, in my opinion, involves much more than writing a Will to say who gets your things when you die. It involves reaching into your past and telling your life story including recalling specific memories, telling of family history, expressions of love and regret, and granting or requesting forgiveness. It also involves looking…

  • From Charity is Received Income

    If you are concerned about how your investments are performing in today’s financial markets, you are not alone. Whether you are trying to build a retirement nest egg, or already living on one, it is important to make informed choices.

    Sometimes people would like to help support the mission of an organization such as ours, but they are uncertain about what to do in the current economy. There is a way that you can help and create a more secure future for you and your family, regardless of how the economy fares. It’s called a charitable gift annuity and it is a way for you to help with the good work of a charity now and receive fixed income for the rest of your life.

    What is a Charitable Gift Annuity?

    A Charitable Gift Annuity is an agreement between you and a qualified charitable organization. When you transfer your cash or appreciated property to the charity, the charity agrees to pay you income for the rest of your life. Your payment will be fixed, which means that your income will never change. Your rate is based on your age at the time you make the agreement with the charity (or, if you decide to defer receipt of the income until a later time, the age at the time the income is to begin).

    Hawaii law requires a charity to satisfy certain requirements in order to be able to enter into a charitable gift annuity agreement. It’s important to know that the charity of your choice meets those requirements. Not every charity does.

    What are the Benefits?

    There are many benefits to establishing a Charitable Gift Annuity. In addition to fixed income for life, you will receive a charitable income tax deduction to reduce your taxes in the year you make your gift. If you make a gift of appreciated property such as stock or real estate, you may also avoid paying some of the capital gain tax on the sale of your property.

    What’s My First Step?

    Since a Charitable Gift Annuity payment rate is based upon your age, you might want to start by requesting a charitable gift annuity illustration from a charitable organization. This will give you some information and will also enable you to make sure the charity qualifies to make charitable gift annuities in Hawaii. You will then be able to evaluate your potential benefits.

    It is also a good idea to talk with your accountant or other tax advisor to determine how the tax benefits of a charitable gift annuity will fit with your overall tax situation and retirement income sources. A simple call to the planned giving office of your favorite charitable organization is a good way to get the information your accountant or other tax advisor will need to properly advise you.

    National Kidney Foundation of Hawaii
    1314 South King St., #304, Honolulu, Hawaii 96814

    808.589.5976 info@kidneyhi.org www.kidneyhi.org

    If you are concerned about how your investments are performing in today’s financial markets, you are not alone. Whether you are trying to build a retirement nest egg, or already living on one, it is important to make informed choices. Sometimes people would like to help support the mission of an organization such as ours,…

  • Planning for Incapacity

    In our lifetime, we have seen incredible advances in medical science. Think back 30 years. In 1982, a heart bypass operation was a really big deal. It meant weeks in the hospital and very risky surgery. Today, surgeons barely have to cut us open to reach into our bodies with instruments that enable them to do multiple bypass surgeries and have us out of the hospital in a matter of days. As a result of these kinds of advances, people in this country are living longer and longer. What we are finding, however, is that longer life does not necessarily mean improved quality of life.

    For a growing number of us, the chances of needing nursing home or other kinds of long term care are increasing. The average person in 2012 stands a 66% chance of being completely incapacitated for some period of time (which may or may not include a stay in a nursing home), and 25% of us will require long-term care. Planning for this eventuality is something we should all make a high priority.

    Figuring out how to finance long term care and choosing the right retirement community or nursing home involves an important set of issues that you should discuss with your financial planner, your insurance professional, and your other trusted advisors. A different, but related, set of issues arise in the legal arena.

    If you have not done this already, do not wait another day before you contact your attorney or find someone who can advise you about planning for the possibility of incapacity. The concerns break down into two categories: dealing with your person (making decisions about your medical care, your living situation, and when — if ever—to stop medical intervention), and dealing with your stuff (taking care of everything you own if you lose the ability to do it yourself).

    Both of these categories involve choosing and then legally empowering your hand-picked decision makers. Taking care of you and taking care of your stuff involve different issues, so think about whether to have the same people in charge of both. You may want one set of people or institutions to be your caretakers, and another set to be your trustees.

    At a bare minimum, you will probably want to have an Advance Health-Care Directive (AHCD), an authorization to your medical personnel to share your health information with your Health-Care Agents, and a Durable Power of Attorney (DPA). Depending on the complexity of your estate and your family situation, you may want to have other things in your estate planning toolkit, such as a will and a revocable living trust agreement.

    It is critical for you to learn your options and what kind of instructions you can give your loved ones in the event that you cannot speak for yourself. There are many good books, websites, and workshops available.

    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

    In our lifetime, we have seen incredible advances in medical science. Think back 30 years. In 1982, a heart bypass operation was a really big deal. It meant weeks in the hospital and very risky surgery. Today, surgeons barely have to cut us open to reach into our bodies with instruments that enable them to…

  • Better Business Bureau: Scammers Take Advantage of Health Reform

    Con artists are always seizing on the public’s financial struggles and confusion in order to make a quick buck. Not long ago we saw them come out of the woodworks during the housing crisis and now we are seeing a pattern again as health care reform laws are upheld.

    Scammers are already trying to cash in on the fact that there is still confusion about health reform. Hawai‘i’s BBB is warning consumers that these scammers are trying to sell fake “Obamacare” policies over the phone and other health care policies under the guise of being able to be grandfathered into a policy before the Patient Protection and Affordable Care Act is “official”. Some of these scam artists have even set up toll-free numbers to sell these fake policies.

    The con-artists attempt to create a sense of urgency by telling consumers that there is a limited enrollment period and coverage is required by law. Often, these thieves can’t explain what is covered by the policy nor do they have any answers related directly to healthcare that are not very general.

    Here are a few things to keep in mind if someone solicits you about obtaining new health insurance.

    • There is no open enrollment period currently associated with the new law, so if the salesperson is pressuring you to buy the policy because the price or option is only good for a short time, be wary.
    • You may have heard that all Americans will be required to purchase health insurance under the new law, but this requirement does not go into effect until 2014 for most people. If a salesperson implies you have to purchase coverage now, hang up the phone immediately.
    • If a salesperson claims that by getting a different coverage now that you will be “grandfathered” or exempted from changes required by the health care reform law in the future. It is a red flag as this is no longer true.

    Hawai‘i’s BBB recommends that you don’t sign a contract or send money before you check out the company you plan on doing business with. Consumers have resources such as Hawai‘i’s BBB and the States Insurance Commissioner (808-586-2790, 808-586-2799, www.hawaii.gov/dcca/ins/)that they can check with before doing business with a company. Stay safe, healthy and informed!

    Complaints or Questions, contact BBB:

    808-536-6956 (O‘ahu)
    877-222-6551 (Neighbor Islands)
    www.bbb.org/file-a-complaint/

    Con artists are always seizing on the public’s financial struggles and confusion in order to make a quick buck. Not long ago we saw them come out of the woodworks during the housing crisis and now we are seeing a pattern again as health care reform laws are upheld. Scammers are already trying to cash…

  • Our Kupuna, Our Kuleana

    Decades of service protect seniors from fraud

    This year, Hawai‘i’s Better Business Bureau (BBB) will be turning 67 years old. The bureau was here from when Hawai‘i became a state to when one of its citizens became the U.S. President — and it’s still going strong. In fact, you could say that the BBB is a kupuna of local business.

    As the BBB continues to grow and serve the people of Hawai‘i, it takes on local culture, values and traditions. The bureau’s position has become much like the kupuna of Hawaiian culture; a major source of wisdom and the transmitters of knowledge and training to younger generations. Simultaneously, it helps to keep kupuna safe as consumers.

    While being the revered segment of Hawai‘i’s society, many of our kupuna are still at risk for becoming victims of fraud. According to Consumer Sentinel and the bureau’s own data, the rate of fraud against seniors continues to rise. With Hawai‘i’s senior population growing faster than the rest of the country (State of Hawai‘i Executive Office on Aging report and the 2010 US Census Data), it is safe to say that Hawai‘i’s kupuna could use every extra set of eyes and ears to help watch over them.

    Hawai‘i’s BBB, through the BBB Foundation of Hawai‘i, contributes to the protection of kupuna through various educational outreaches. It offers informational presentations to many senior clubs on O‘ahu and the Neighbor Islands. It also staffs a table at every major senior fair in the state. Additionally, it serves on the Advisory Council of the Executive Office on Aging’s Senior Medicare Patrol program.

    Hawai‘i’s BBB is the first place you come to get the answers if:

    • You are looking for an ethical business to patronize
    • You are looking for an honorable charity
    • You have questions about the trustworthiness of a business or charity
    • You have questions about a letter, email or phone call you’ve received
    • You have a complaint against a business or charity you would like resolved

    Just as the Hawaiian culture believes one’s life essence (i.e., spiritual energy and ancestral knowledge) can be transmitted through the sharing of the ha, Hawai‘i’s BBB believes that it facilitates the perpetuation of our local culture and protects kupuna through sharing knowledge with seniors and the next generation.

    Better Business Bureau of Hawai‘i
    1132 Bishop Street #615, Honolulu, HI 96813-2813
    Phone & Phone Hours: 808-536-6956 (O‘ahu) | 877-222-6551 (Neighbor Islands) | 808-628-3970 (Fax) 9:00 am – 2:00 pm, Mon. – Thurs., 9:00 am – Noon, Friday
    File Complaint: www.bbb.org/file-a-complaint/

    Decades of service protect seniors from fraud This year, Hawai‘i’s Better Business Bureau (BBB) will be turning 67 years old. The bureau was here from when Hawai‘i became a state to when one of its citizens became the U.S. President — and it’s still going strong. In fact, you could say that the BBB is a kupuna…