Category: Wisdoms

Financial: Uplifting Choices

Getting Your Plan in Order

Perhaps you’ve asked yourself questions like, “How can I plan? We just sold our home and bought a retirement condo. Our older child just moved across the country and our younger child will be getting married later this year. With so much change, how can we make plans?”

Life Changes Quickly

In each of our lives, change comes very quickly. You are going to face new circumstances every year. Yet planning exists to prepare for life - and to give your family members better lives. It is essential to create goals that help your family live better in the midst of new circumstances. Even if you or your family is going through major changes, there are several basic steps that will help you succeed in your plans.

Set Goals

Step one for a successful life is to have goals. It has been said, “If you don’t know where you’re going, you’re not likely to get there.” This is very true about goals for your family and for your estate. Think about goal-setting as though you are purchasing a birthday gift for a family member in a clothing store. A clothing store might have 20 or 30 different sizes. One size does not fit all in the area of clothing and it also doesn’t work for your family and estate plan.

How do you find the “right size?” Just like clothing for a family member must fit properly, in your planning for family, it’s important to decide the right time and amounts for an inheritance to be most beneficial for your children, grandchildren, nephews and nieces. Your other goals may include the age for heirs to receive property and reducing costs and estate taxes.

What Do You Own?

Can you write down a list of all the property you own? I once represented a married couple who estimated that they owned about $500,000 worth of property. However, when we went through their assets carefully it turned out they owned more than twice that amount and were millionaires. It’s not uncommon for people to “forget” or undervalue some of their assets.

Understanding your property starts with listing all of your assets – your savings account, certificates of deposit, home, IRA, 401(k) and personal assets, among others.

Children, Grandchildren, Nephews and Nieces

Your plan to benefit family during your lifetime or through your estate will vary greatly depending upon the ages and circumstances of your children and their needs. For parents with minor children, a key decision is to select a guardian. Minor children also need to have property held in trust, so there is appropriate investment and expenditure of those funds. For adult children, it’s important to think through the right time, right amount and right type of inheritance. Many families find that a trust that pays income for a number of years to adult children is also a very helpful method to provide added security for them. Some families get energized when they find that they can leave a legacy of significance to their community, while at the same time making sure to provide for their family needs.

A Convenient Way to Plan

Would you like to have a convenient way to think through some of these issues before you consult with your financial advisor or attorney? A free tool is available at kidney.giftlegacy.com where you can plan your will, consider whether a trust is right for your family, and request a free wills guide from the National Kidney Foundation of Hawai‘i. The secure web site lets you gather your information and ideas together, read general information about planning, and even prepare for a meeting with your advisors. Why not take a look at kidney.giftlegacy.com today? It just may help you answer the question, “How can I plan?”

For consultation call 589-5976. Be sure to register for a free eNewsletter and check out the wealth of information at www.kidneyhawaii.org.

Getting Your Plan in Order Perhaps you’ve asked yourself questions like, “How can I plan? We just sold our home and bought a retirement condo. Our older child just moved across the country and our younger child will be getting married later this year. With so much change, how can we make plans?” Life Changes…
New and Powerful Estate Planning Tool: the Hawai‘i Asset Protection Trust (APT)

Two years ago, Hawai‘i joined Delaware, Nevada and 11 other states in validating self-settled spendthrift trusts. What this means is that you can now create a trust for yourself that will protect your assets from your own creditors. This is a huge departure from prior law, which expressly prohibited such trusts. For convenience, we will call them APTs, which stands for Asset Protection Trusts.

Not only do APTs provide asset protection, they can also be made to last forever, or at least until all of the assets are used up. Hawai‘i law has long recognized something called the rule against perpetuities, which essentially says that a private trust (that is, any trust other than a charitable trust) can last for about 100 years, and then the trust must terminate, and the assets must be distributed. This is a throwback to the law of England (where most American law comes from) and a time when the king did not want land being tied up in trusts because it impaired his ability to tax it. Now that our government has developed a solution to this problem, Hawai‘i has joined the ranks of states that allow the creation of so-called Dynasty Trusts.

Hawai‘i’s first attempt at allowing APTs, which was back in 2010, was doomed to failure. For one thing, the law imposed a 1% tax on all assets transferred to APTs. The law also limited the kinds of assets that could be put into APTs, and it allowed a trustmaker (someone creating an APT) to place assets comprising no more than 25% of his or her net worth into an APT. Since the laws of other states did not include these restrictions, there was very little incentive for someone to create a Hawai‘i APT.

In 2011, our Legislature removed the restrictions on APTs, so that a person can place any kind of property into his or her APT, and there is no 1% tax imposed on each asset transferred into the trust. The new law became effective on July 1, 2011, and Hawai‘i APTs are now viable tools in many people’s estate plans.

A Hawai‘i APTs is not for everybody. You should only create one if you understand what it is and how it works, and before you do anything else, you should seek the assistance of competent legal counsel and other advisors who can help you evaluate whether this is a workable strategy for you.

The new Hawai‘i law says that you cannot be the trustee of your own APT, but you can pick any Hawai‘i resident or Hawai‘i financial institution as your trustee. The trustee can have the discretion to make distributions to you or for your benefit, but you cannot have the unfettered right to demand whatever you want whenever you want it. You can also retain the right to give the trustee investment advice, and you can also have the right to veto distributions from the trust.

Perhaps the most important thing to understand about Hawai‘i APTs is that they do not shelter assets from claims of existing creditors. In other words, you cannot incur a debt (for example, by way of a car accident or a bad business deal) and then create a Hawai‘i APT to shield you from liability on that debt. On the other hand, the ideal time to create a Hawai‘i APT is before you start a new business or launch a practice in a field such as medicine, law, or architecture, where legal claims against you are an ongoing risk.

For more information about Scott Makuakane and his law firm, Est8Planning Counsel, LLLC, visit www.est8planning.com. Or tune into his weekly TV talk show, Est8Planning Essentials on KWHE (Oceanic channel 11) at 8:30 a.m. on Sunday evenings.

Two years ago, Hawai‘i joined Delaware, Nevada and 11 other states in validating self-settled spendthrift trusts. What this means is that you can now create a trust for yourself that will protect your assets from your own creditors. This is a huge departure from prior law, which expressly prohibited such trusts. For convenience, we will…
Uplifting Choices

For many people end-of-year tax planning is a regular part of their lives. Given the com-plications that our tax system can engender, it is no wonder that taxes often impact personal goals and desires, especially during the holiday season when families are focused on relationships and gift giving.

However, it is possible to use tax-favored strategies to make your holiday charitable giving go further. For example, if you are over age 70½, the federal government permits you to rollover up to $100,000 from your IRA to charity without increasing your taxable income or paying any additional tax. These tax-free rollover gifts could be $1,000, $10,000 or any amount up to $100,000 this year. The gift satisfies your required minimum distribution (RMD) for this year without adding any taxable income to your bottom line, and since most IRAs are funded with pretax dollars, such gifts are a smart way to give to charity.

IRA Rollover: Simple, Easy Gift

Consider this example. Grace was a registered nurse and a frequent charity volunteer. During her working years, Grace’s IRA had grown substantially. Since Grace’s income meets her needs, she decided to make a gift of $2,000 from her IRA. Grace called her custodian and requested a transfer of $2,000. It was easy for Grace to make her charitable gift and she liked the fact that she could help without increasing her taxes.

Major IRA Gift: Smart Giving

Perhaps you are considering your tax planning goals and would like to make a major gift to charity. Like many individuals, your IRA may be the largest asset in your estate. Your CPA may be looking for ways to save taxes. By making an IRA charitable rollover gift of up to $100,000, you can reach your goal of helping charity in a significant way and reducing taxable income by using an asset that may otherwise be taxed at high ordinary tax rates.

Future IRA Gift Options: Helping Your Family and a Charity You Support

While you have the opportunity to give through your IRA now, there are other options available for making future gifts from your individual retirement account to charity:

Bequest of IRA: One option is to designate a charity as the beneficiary of your IRA. This permits you to continue to take withdrawals from your IRA during life and then leave the remaining value of your IRA to support a worthy program that is important to you.

Testamentary IRA Gift Annuity: Another option is to make a future gift of your IRA to charity while providing life income to your heirs. Your family will receive fixed payments based on your age at rates that can be as high as 9.5%.

Testamentary IRA Unitrust: An IRA could also be transferred to a special “Give It Twice” trust that usually provides income to children for a period of up to 20 years. After that time, the trust may pass to charity, creating a wonderful way for you to make a charitable gift.

This holiday season if you would like to discuss charitable giving options available to you, please contact Jeffrey Sisemoore, JD, Director of Planned Giving and Major Gifts at the National Kidney Foundation of Hawai‘i at 589-5976 or visit www.kidneyhi.org.

For many people end-of-year tax planning is a regular part of their lives. Given the com-plications that our tax system can engender, it is no wonder that taxes often impact personal goals and desires, especially during the holiday season when families are focused on relationships and gift giving. However, it is possible to use tax-favored…
Stay Uplifted Amid Economic Downturns

Investors are being forced to cope with what many perceive as unprecedented circumstances in the economic and political environment. At the same time that the U.S. economic recovery appears to be slowing, Standard & Poor downgrades the U.S. credit rating on debt issued by the U.S. Treasury. Confidence that government policymakers can do anything significant to help improve the environment is low.

These and other concerns are contributing to a sense of unease for many investors. How should these major shifts in global politics and financing affect your personal portfolio strategy?

Here are three realities to give you an appropriate perspective on the challenges that lie ahead:

1] The downgrade may be justified, but might have been premature.

Standard & Poor’s shifted the nation’s credit rating from AAA to AA+. Part of their rationale appeared to center around concerns that a dysfunctional political environment will prevent budget issues from being resolved in an effective manner. However, history is filled with examples of how American politicians have forged deals to resolve crises. It may not be fair to discount the potential that policymakers will come to agreement not just on budget issues, but other legislation designed to give the economy a boost.

2] Good news is often hidden.

In periods like these when troubling news leads the headlines, investors are often surprised when markets perform well. This is due to the fact that some market observers are looking beyond the headlines to see other trends that are favorable. The same is true in today’s environment. Corporate profits remain strong and companies in the U.S. and elsewhere generally have solid balance sheets. Emerging markets are growing robustly and will likely help spur ongoing economic activity in other parts of the world, including the U.S. prices for gasoline have moderated in recent weeks, boosting consumer purchasing power. Even in difficult times, seeds of future prosperity are planted.

3] Stocks may offer more attractive value than bonds.

Many individuals have been pulling money out of the stock market and investing in bonds (or bond funds). Yet with interest rates on U.S. Treasury securities near their historic lows there appears to be an limited upside. Worse yet, bonds paying extremely low interest rates can be risky for investors. If interest rates begin to rise, bondholders could be in for a negative surprise. That’s because bond prices decline when interest rates rise. Stock values, meanwhile, remain well below the peak they reached in the fall of 2007 before the dramatic, 50 percent downturn occurred. At that time, the S&P 500 Index topped out at 1,565. Today the S&P 500 is 20 percent to 25 percent below that all-time peak. This indicates that upside potential remains over the long run, though the market will likely continue to suffer through ups and downs along the way.

Investors are being forced to cope with what many perceive as unprecedented circumstances in the economic and political environment. At the same time that the U.S. economic recovery appears to be slowing, Standard & Poor downgrades the U.S. credit rating on debt issued by the U.S. Treasury. Confidence that government policymakers can do anything significant…
Charity Scams Target Seniors Heavily During the Holiday’s

Donating money to charity is one of the most selfless things a person can do. Unfortunately, criminals can easily prey on these selfless acts, using a person’s desire to help the less fortunate for their own  personal gain.

Seniors should be especially mindful of fraud schemes during the holidays. The FBI notes that seniors are most likely to have a nest egg and an exceptional credit rating, making them very attractive to criminals.

If you plan to donate money this holiday season, the Better Business Bureau (BBB) offers the following advice:

Be cautious when giving online. Be cautious about online giving, especially in response to spam messages and emails that claim to link to a relief organization.

When in doubt, check it out. When an unfamiliar organization asks you for a donation, don’t give without gathering details about the charity, the nature of its programs and its use of funds.

Check out a charity’s claims. Despite what an organization claims, charities have fundraising and administrative costs. Even a credit card donation will involve, at a minimum, a processing fee. If a charity claims that 100 percent of collected funds will be assisting, check it out.

Think before you give. If you are solicited at home or on the street, take a minute or two to “think.” Ask for the charity’s name and address, and get full identification from the solicitor and review it carefully. Ask to see written information on the charity’s programs and finances.

Giving later might be better. Never feel pressured to give on the spot. Legitimate charities will welcome your money tomorrow. If the solicitor pressures you with intimidation or harassing phone calls, don’t hesitate to file a complaint with BBB.

Watch out for cases of mistaken identity. With hundreds of registered charities in Hawai‘i alone, it’s not surprising that some charity names sound alike. Be careful that the one soliciting you is the one you have in mind.

Watch out for charity fraud. Legitimate charities do not demand donations. They willingly provide written information about their programs, finances or how donations are used; and they never insist you provide your credit card number, bank account number or any other personal information.

Donating money to charity is one of the most selfless things a person can do. Unfortunately, criminals can easily prey on these selfless acts, using a person’s desire to help the less fortunate for their own  personal gain. Seniors should be especially mindful of fraud schemes during the holidays. The FBI notes that seniors are…
Phone Scam Comebacks

Telemarketing scams have in some cases become more profitable than drug trafficking. Scammers have made millions of dollars by perpetrating over-the-phone schemes.

Scammers use technology to disguise their locations, telling victims they are calling from federal or state agencies and providing phone numbers with local and United States area codes. The con artists hold out the promise of a sweepstakes, lottery or other winnings but ask for taxes and other fees up front.

Fraudulent telemarketers use five basic techniques:

Scarcity: The senior has been identified as the grand prize winner, but if the senior doesn’t accept the prize immediately (and pay that “handling charge”) the runner-up will get the prize instead.

Hype: The telemarketer screams and hollers about how excited he is that the senior has won.

Authority: The telemarketer passes the phone to his “boss,” so his target will know the offer is “legitimate.”

Reciprocity: The telemarketer explains that she won’t receive her commission unless the senior accepts the prize and pays the handling fee. When the senior protests that he doesn’t have enough money to pay the fee, the scammer asks how much he can afford, and says she’ll accept that smaller amount, just because she’s so happy the senior has won the prize.

Phantom Fixation: The prize is too good to pass up, and the targeted senior becomes fixated on it.

Con artists will change from one persuasion tactic to the next, if necessary. Hawai‘i’s Better Business Bureau (BBB) offers a few tips to help seniors deal with prize telemarketers.

Tip #1: Never give personal information, such as bank account or social security numbers, to anyone over the phone, unless you initiated the call and know you’ve reached the right agency.

Comeback: “I don’t give out personal information over the phone. I’ll contact the company directly.”

Tip #2: Don’t believe it if the caller tells you to send money to cover the “handling charge” or to pay taxes.

Comeback: “I shouldn’t have to pay for something that’s free.”

Tip #3: “Limited time offers” shouldn’t require you to make a decision on the spot.

Comeback: “I’ll think about it and call you back. What’s your number?”

Tip #4: Be suspicious of anyone who tells you not to discuss the offer with someone else.

Comeback: “I’ll discuss it with my family and friends and get back to you.”

Tip #5: If you don’t understand all the verbal details, ask for it in writing.

Comeback: “I can’t make a decision until I receive written information.”

Practice these comebacks with your friends and family. Also, tell telemarketers to take your name off their call list. If the telemarketers don’t, they’re breaking the law. Sign up for the National Do Not Call Registry at www.donotcall.gov to stop telemarketers from calling.

Telemarketing scams have in some cases become more profitable than drug trafficking. Scammers have made millions of dollars by perpetrating over-the-phone schemes. Scammers use technology to disguise their locations, telling victims they are calling from federal or state agencies and providing phone numbers with local and United States area codes. The con artists hold out…
Uplifting Choices

A Gift of Remembrance

Have you ever owned something that became a prized possession? One of our donor’s fathers, a retired truck driver named John, purchased a new Lincoln Town Car years ago. For John, the Town Car was a special vehicle, a possession he delighted in maintaining as well as driving. For his daughter, Jodi, a kidney transplant recipient, it came to be a special car, too. Jodi suffered from a disease that damaged her kidneys. John drove Jodi to her doctor’s office and dialysis facilities for 15 years. That Town Car ended up being the place where father and daughter bonded.

Jodi had to say goodbye to her father a few years ago when he passed away at the age of 80. The Town Car became a symbol of her relationship with her father—one she was reluctant to give up until the engine finally failed.

Since the Town Car was literally the vehicle that her father used to support her during her illness, she decided to help other kidney patients by donating it to the National Kidney Foundation’s “Kidney Cars” program in his memory.

If you have a vehicle that you’d like to gift to the National Kidney Foundation, it accepts running and non-running cars.

The mission of the National Kidney Foundation of Hawai‘i is to prevent kidney and urinary tract diseases. It also improves the health and well-being of families affected by these diseases, and increases the availability of all organs and tissue for transplantation in Hawai‘i.

The mission of the National Kidney Foundation of Hawai‘i is to prevent kidney and urinary tract diseases. It also improves the health and well-being of families affected by these diseases, and increases the availability of all organs and tissue for transplantation in Hawai‘i.

A Gift of Love

Who in your life needs a gift?

A charitable gift, such as a gift annuity, can honor a loved one and secure his or her future.

You can fund a gift annuity with National Kidney Foundation of Hawai‘i that will provide a lifetime of payments to your loved one no matter how long he or she lives. The payments are fixed and will never change no matter how the stock market, real estate market, or any other aspect of the economy performs. The payments continue for life.

After a lifetime of payments, the gift annuity will be used for our mission in Hawai‘i as a legacy to you and to your loved one.

To learn more about charitable giving, and discover the potential tax benefits, please contact:

Jeffrey Sisemoore, JD, Director of Planned Giving and Major Gifts, National Kidney Foundation of Hawai‘i 589-5976, www.kidneyhi.org.

A Gift of Remembrance Have you ever owned something that became a prized possession? One of our donor’s fathers, a retired truck driver named John, purchased a new Lincoln Town Car years ago. For John, the Town Car was a special vehicle, a possession he delighted in maintaining as well as driving. For his daughter,…
The Future of Estate Tax

You have spent a lifetime of earning, saving and investing — and paying income and capital gains taxes all the way along. So you may wonder why our government feels entitled to tax the value of everything that’s left when you die. The sad fact is, however, that the IRS and the State of Hawai‘i are going to want a piece of your estate.

In fairness to our government, the estate tax law currently provides sizable exclusions from the estate tax. Hawai‘i allows the first $3.5 million of your estate to pass tax free, and the U.S. is a bit more “generous.” The Federal exclusion is $5 million for 2011, and it will be adjusted for inflation (presumably upward) in 2012, so that it will be some number in excess of $5 million. Ok, since many of us don’t own house multi-million homes, you may think you’re safe … but read on.

What the exclusions mean is that if a Hawai‘i resident dies in 2011 or 2012 with an estate valued at no more than $3.5 million, there will be no Federal or Hawai‘i estate tax. If the estate is worth between $3.5 million and $5 million, there will be Hawai‘i estate tax, but no Federal estate tax. Once the estate exceeds $5 million, both Hawai‘i and the IRS will take a bite out of the estate.

The Hawai‘i tax is charged at effective rates that begin at 9.6% for estates that exceed $3.5 million, and they range up to 16% for estates worth in excess of $10,040,000. The Federal rate is currently a flat 35%.

But then a funny thing happens in 2013. The Hawai‘i rules are currently set to stay the same, but the Federal rules are scheduled to change radically. In 2013, the Federal exclusion will drop from $5 million to $1 million, and the tax rate will soar from 35% to 55%. RED ALERT! A $5 million exclusion means most of us are safe from Federal estate tax, but a $1 million exclusion means that most of us who own a house and have a retirement plan and some life insurance need to be concerned about what will be left for our loved ones after the tax man takes his piece.

In the midst of all of this, the winds of legislative change are swirling. Among other changes, the Hawai‘i legislature is considering whether the Hawai‘i exclusion should match the Federal exclusion (whatever it happens to be at the time), and Congress is considering whether to set the exclusion at $3.5 million (at least until the next round of changes).

At this point, the only thing we can be sure of is that we can’t be sure of what the rules are going to be in two years. This makes planning difficult, but not impossible. The uncertainty highlights the fact that we have to stay on top of our estate plans and make sure that they stay current with changes in the law so our loved ones don’t end up paying tax that could have been avoided.

If you have not updated your estate plan within the past year, it is time for you to consult your estate planning advisors to make sure your plan will work as intended. Even if your plan is current as of now, beware that imminent changes to the law may make it obsolete in the very near future.

You have spent a lifetime of earning, saving and investing — and paying income and capital gains taxes all the way along. So you may wonder why our government feels entitled to tax the value of everything that’s left when you die. The sad fact is, however, that the IRS and the State of Hawai‘i…
What is Fair in Coins & Collectibles?
So, what’s your money worth? Well, after 40 years of participating in coin & collectibles conventions, I’ve learned that the answer lies with whom you ask.

Recently, buyers have offered a few hundred dollars for exceptional items worth $10,000. What happens when buyers are unaware of the rarity and value of an item? And, what if sellers are willing to take any offer they can get? In either event, I believe that it’s prudent to price and compare, seller beware.

If you are a seller, below are a few tips of the trade:

If the buying-selling environment intimidates you, bring someone with you who’s quick with writing and calculating.

Bring your calculator, pen, paper and device with Internet access.

Do not give the air or attitude of complete trust or that you don’t care!

Before you walk in, make a list of what you intend to sell. If you’re selling precious metals or gemstones, note the karat or fineness of each piece and make it obvious to the buyer.

If you don’t know the karat of your piece, then write down what karat the buyer says it is.

When your item is placed on the scale, have your pen ready and actually look at what the scale says (don’t be shy) and write it down. (On the scale, ask to see the gram weight).

Before the buyer does an acid test, ask how they can tell what karat your piece is before they start. Write down what color the cap is on each acid tube they use for your piece. Keep it for future reference.

For the current price of gold, visit the Web site called, KITCO and click onto “Live Market Quotes.” If you don’t have Internet access, ask the buyer to find out what the price of gold or silver is at that moment and write it down. If the buyer is unwilling to get that information for you, be very suspicious because the price of gold will determine how much he/she will offer you.

If you have done all these, then you will be ready to figure out if what you are offered is fair.

How to Calculate What’s Fair

Step 1: Take the weight in grams and divide it by 31.1. That will give you the actual Troy ounce (the weight of precious metals) of the piece.

Step 2: Figure out the amount of pure gold or silver. Times the Troy ounce amount by the karat or fineness. To find the karat value, divide the actual karat by 24 (for example, 18 karat divided by 24=0.75).

Step 3: Multiply the amount of pure gold by the current price of gold. That ending figure is the actual and true pure value of your piece of jewelry.

Example: If your piece is 33 grams, 14 karats (14 divided by 24=0.583) and gold is at $1,800 per ounce, the calculation would be: 33 divided by 31.1=1.061 X .583 X $1,800= $1,113.41 in pure value.
So, what’s your money worth? Well, after 40 years of participating in coin & collectibles conventions, I’ve learned that the answer lies with whom you ask. Recently, buyers have offered a few hundred dollars for exceptional items worth $10,000. What happens when buyers are unaware of the rarity and value of an item? And, what…
How to Invest Amid Downgrades, Downturns & Slowdowns
In this economic and political environment, investors are being forced to cope with unprecedented circumstances. At the same time that our economic recovery appears to be slowing, the S&P downgrades the U.S. credit rating for the first time. Confidence that government policymakers can do anything significant to help improve the environment is low.

Here are two realities to give you an appropriate perspective on the challenges that lie ahead:

The economy is being tested, but a repeat of 2008 is not inevitable.

Recent memory can have a significant impact on investor behavior. The fall 2008 financial crisis that pushed the global economy to the brink (and contributed to a 50 percent-plus drop in the value of the S&P 500 stock index) remains etched in most of our memories. Now, as European governments (Greece, Ireland and Spain to name a few) try to manage their debt, fears grow that the U.S. may face a similar situation soon. But it is not a foregone conclusion that we’re headed for the same result as three years ago. Circumstances are different today. For instance, many of the economic problems in the last downturn were related to the housing market bubble and excessive consumer debt. Today, housing prices are dramatically lower and consumers have begun to wind down their debt. There are other challenges facing the economy today, but a “double-dip” recession in the U.S. is far from certain.

2. Market gyrations should not overtake your investment strategy.

Are you a long-term investor? Most everybody should be, at least with a portion of your portfolio. Even if you are retired or close to it, you may need to invest some of your money in stocks to help meet increasing income needs over the course of what could be a long retirement. If you are uneasy with your current asset mix, review your holdings to determine if there is a more appropriate investment for your circumstances. Keep your portfolio well diversified. Avoid putting too much of your money into a single asset or asset class. This will limit the risk of a dramatic change in its price.

Yes, there’s a lot of unnerving financial news out there, but don’t let today’s headlines overwhelm your long-term investment decisions.

For more information, please contact Michael W. 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.
In this economic and political environment, investors are being forced to cope with unprecedented circumstances. At the same time that our economic recovery appears to be slowing, the S&P downgrades the U.S. credit rating for the first time. Confidence that government policymakers can do anything significant to help improve the environment is low. Here are…
Knock-Knock. Whoʻs There? Scam Artist—Thatʻs Who!

Wouldn’t it be so easy if you knew right away who was going to take advantage of you? Sadly this is not the case, and con artists have perfected the art of scamming for generations.

We can protect our friends and family by knowing our consumer rights. If someone comes knocking on your door to sell you a product or service; here are some easy-to-remember tips to help “knock out” scams in your neighborhood:

Don’t let the door-to-door sales person rush you into making a decision; ask for their contact and business information and let them know that you will check out their business with Hawai‘i’s Better Business Bureau (BBB).

Check if the business representative has all the necessary licensing that is required for the job or service performed. And, verify the license info and person with the Department of Commerce and Consumer Affairs (DCCA).

Get everything in writing; especially if they are offering you any special discounts, rebates, warranties or services outside of the standard contract or invoice.

A consumer purchasing a product at their home, may take advantage of the 3-day cooling off period for a refund following a sale if a cancellation notice is sent in writing within three (3) business days. The law does NOT apply if a buyer only calls to initiate the contract with the seller. Contact your BBB for more information about door-to-door sales practices or Federal Trade Commission’s (FTC) 3-day cooling off rule.

For more information about topics affecting marketplace trust, visit www.bbb.org.

Wouldn’t it be so easy if you knew right away who was going to take advantage of you? Sadly this is not the case, and con artists have perfected the art of scamming for generations. We can protect our friends and family by knowing our consumer rights. If someone comes knocking on your door to…
Women & Retirement: Myth vs. Reality

Are you dreaming of a leisurely retirement enjoying a second cup of morning coffee, or is a sunrise round of golf more your speed? Either way, know the facts so you can guide your retirement dreams to reality.

Historically the road to retirement hasn’t been smooth for women. In fact, the Social Security Administration (SSA) reports that 17 percent of all elderly, single women live in poverty. By recognizing the following myths for what they are, you can take control of your financial future.

Myth #1 — Social Security will take care of me in retirement.

The reality is that Social Security income probably won’t be enough. At the start of 2011, the average monthly retirement benefit reported was $1,177. Plus, women’s benefits were almost a third lower than men’s. Not only do women earn less than men, they also take more time away from work than men (U.S. Department of Labor). Add the uncertain future of Social Security to these statistics, and you can see why it’s important to plan for additional income sources.

A benefits estimator is available online at the Social Security Administration’s Web site at www.ssa.gov. Use it to get an estimate of future benefits depending on when you plan to retire.

Myth #2 — I won’t need nearly as much to live on when I retire.

The assumption sounds reasonable when you consider the costs associated with raising children and commuting to work each day. On the other hand, if you want to spend your leisure time traveling, it will come with a cost. It’s probably safe to assume that you’ll have higher health care costs — and potentially long-term care costs — in your later years, as well.

As a rule of thumb, you’ll need 60 to 80 percent of your current income in retirement (adjusted for inflation) to maintain your current lifestyle. Of course, it depends on how you plan to spend your time once you’ve retired.

Myth #3 — My 401(k) contributions will fund my retirement without my involvement.

It’s true that a 401(k) is a smart way to save for retirement with pre-tax dollars. Since many employers offer a matching feature, you may have an opportunity for instant return on your invested dollars.

The good news is that many women are contributing to their employer-sponsored plans. SSA data suggests that in 2008, 51 percent of women employed full-time participated in their plan through work.

However, you shouldn’t sit back and let the plan manage itself. Instead, taking an active role in your investment selection can maximize benefits. If you have several years until retirement, choosing too conservative of investments may cause you to fall short. On the other hand, if retirement is approaching, you may need to move aggressive investments to the more conservative side. Remember to review your choices regularly to make sure your investment selection is still in line with your goals.

If these decisions seem daunting, you don’t have to make them alone. Establish a relationship with professionals who can help you at critical times. Face your unique financial challenges with reality and eager anticipation of your retirement dream.

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

Are you dreaming of a leisurely retirement enjoying a second cup of morning coffee, or is a sunrise round of golf more your speed? Either way, know the facts so you can guide your retirement dreams to reality. Historically the road to retirement hasn’t been smooth for women. In fact, the Social Security Administration (SSA)…