Category: Wisdoms

Starting Your Estate Planning Journey

The first steps in your estate planning journey are learning 1) how to stay in control of your stuff while you are able to be in control and 2) how to make sure your wishes are carried out when incapacity or the grim reaper catch up with you. Sorry to rub it in, but there is a 100% probability that at least one of these things is going to happen to you and a 70% probability that both of them will.

Your estate plan should reflect your choices about such things as the kind of healthcare you will receive throughout your life, as well as who will enjoy your stuff when you are done with it. The only way to make effective choices about these things is to learn what your choices are.

Choices, Changes & Flexibility

This is a lifelong challenge, because your choices will change as your circumstances change. Your health is going to change — so will your assets, your comfort with your list of designated decision-makers and the laws that affect your estate plan. As things change, you will need to stay on top of the choices you can make in order to be confident that your wishes will be followed at every phase of your life — and beyond.

The Sooner the Better

Let’s say you are thinking about going on an adventure. Where do you want to go? How do you want to get there? Are there any better destinations you might want to consider? Is there a better means of getting you there than the one you originally chose?

The only way to know the answers to these questions is to do some research, talk with people who have taken similar trips and better yet, talk with folks who have helped lots of people take all kinds of journeys. It’s kind of like asking for directions.

While I have never regretted asking for directions, I have regretted waiting too long to do so. The sooner you learn about your estate planning options, the sooner you can implement ways to head off problems that are headed your way, even though you don’t know exactly what they are or when they will arrive.

SCOTT MAKUAKANE, Counselor at Law
Focusing exclusively on estate planning and trust law.
808-587-8227 | maku@est8planning.com
est8planning.com

The first steps in your estate planning journey are learning 1) how to stay in control of your stuff while you are able to be in control and 2) how to make sure your wishes are carried out when incapacity or the grim reaper catch up with you. Sorry to rub it in, but there…
Out-of-Pocket Healthcare Costs

The number of infants born in the US jumped significantly after World War II and continued to increase through the mid-1960s. Social scientists believe it was the result of the thousands of WWII veterans returning home to a booming economy and GI Bill benefits that provided access to home ownership, encouraging them to marry and start families. These infants born between 1946 and 1964 are known as baby boomers.

The oldest boomers are well past age 65 and those born at the end of the range will be there soon. According to the most recent US census, the Medicare population is expected to double, along with the number of people drawing Social Security benefits and qualifying for Medicare insurance. Healthcare costs may also increase for approximately 63 million existing Medicare beneficiaries and those “aging in,” as they experience the aging process and health issues that are likely to develop.

Little has been written about how unprepared boomers are as they find themselves living longer and working past age 65. Unlike the prior generation, boomers must sometimes navigate the post-65 Medicare enrollment process and deal with episodes of illness that can strike unexpectedly. Many boomers are also unprepared for the cost of healthcare premiums and out-of-pocket costs for certain procedures, prescription drugs and non-covered medical expenses.

In 2023, the standard Medicare Part B premium is $164.90 per month. Unless another entity pays the premium, Medicare beneficiaries must pay as long as they have Medicare Part B. Some Medicare beneficiaries pick up a Medicare Advantage, prescription drug or Medigap plan (Medicare Supplemental Insurance) at an additional ongoing cost. According to Fidelity Investments, the average 65-year-old couple retiring today can expect to pay $275,000 in out-of-pocket health expenses in their lifetimes. At a minimum, boomers need to ask their financial advisors how they will cover these costs in retirement and plan ahead. Boomers need to acknowledge that with longevity comes the need to set aside funds to cover out-of-pocket healthcare costs to stay on track for a healthy and happy retirement.

GET2INSURANCE.COM FAMILY OFFICE
1003 Bishop St., Ste. 2700, Honolulu, HI 96813
800-226-3660 | martha@get2insurance.com
Get2insurance.com

The number of infants born in the US jumped significantly after World War II and continued to increase through the mid-1960s. Social scientists believe it was the result of the thousands of WWII veterans returning home to a booming economy and GI Bill benefits that provided access to home ownership, encouraging them to marry and…
Tips for Transitioning Into Retirement

Retirement marks the end of a chapter in your career and the start of a new lifestyle. This unique transition can bring a myriad of emotions, most commonly, excitement and apprehension. If you’re pondering retiring in the next year or so, here are five tips to help you transition smoothly.

1) Know the transition could take weeks — or even months. You likely spent decades forming a routine around your work schedule. Establishing your new normal of volunteer work, an encore career or helping family will take time. If you are married, remember that your retired status may affect your spouse’s routine, too. Talk openly about how you’re feeling during the transition to keep your spouse in the loop.

2) Communicate your retirement plans with family members. Your parents, kids or other family members will likely be interested in how you intend to spend your retirement days. Will you be visiting the grandkids more often? Will you continue to host family get-togethers? Are you planning to move or purchase a retirement home? As you share your plans, don’t forget to discuss your financial picture. The benefits of open communication are three-fold:

• It reassures your kids that you’re financially prepared;

• allows you to introduce or remind your family of your estate and legacy plans;

• and establishes a safe space for both sides to discuss potentially challenging financial topics.

3) Maintain healthy habits. Staying diligent with the activities that help you feel your best is important as you shift into retirement. Prioritize eating healthy, sleeping well, staying fit and maintaining friendships in your new routine.

4) Evaluate your finances. Prior to retirement, you likely outlined how you will manage your cash flow. (If not, today is the day to put a plan in place!) As you enter retirement, review your expenses to ensure they’re aligned with your plan. It’s common to revise your spending and activities after experiencing the first few weeks away from your primary job, so it’s okay if you need to adjust how much you withdraw from your accounts each month. If you want to increase your spending, calculate what that means for your later retirement years, as you don’t want your savings to come up short. Consult a financial advisor for guidance on how to make your money last while living the lifestyle you desire.

5) Reset your attitude. Retirement is not the ultimate finish line. Experiencing a lot of emotions is common, but try to focus on what you’re excited about in this next chapter. And remember, you’re not alone. Talk to friends, family and professionals in your life for support along the way.

MICHAEL W. K. YEE, CFP,® CFS,® CLTC, CRPC®
1585 Kapiolani Blvd., Ste. 1100, Honolulu, HI 96814
808-952-1240 | michael.w.yee@ampf.com
ameripriseadvisors.com/michael.w.yee
Michael W. K. Yee, CFP®, CFS®, CLTC, CRPC ®, is a Private Wealth Advisor, Certified Financial Planner ™ practitioner, with Ameriprise Financial Services, LLC. in Honolulu, HI. He specializes in fee-based financial planning and asset management strategies and has been in practice for 38 years. Investment advisory products and services are made available through Ameriprise Financial Services, LLC, a registered investment adviser. Investment products are not insured by the FDIC, NCUA or any federal agency, are not deposits or obligations of, or guaranteed by any financial institution, and involve investment risks including possible loss of principal and fluctuation in value. Ameriprise Financial Services, LLC. Member FINRA and SIPC.© 2023 Ameriprise Financial, Inc. All rights reserved.

Retirement marks the end of a chapter in your career and the start of a new lifestyle. This unique transition can bring a myriad of emotions, most commonly, excitement and apprehension. If you’re pondering retiring in the next year or so, here are five tips to help you transition smoothly.
Grief & Bereavement — Part IV

All grief starts as anticipatory grief. Dr. Daniel Miller defines the term “anticipatory grief” as the “process of grieving that starts prior to a loved one passing away.”

Certainly, acute anticipatory grief comes into one’s consciousness upon the diagnosis of a terminal illness of oneself or of a loved one. A more chronic and less intense grief starts much earlier in life, when we realize at a young age that we and our loved ones will eventually die. This realization leads to a flood of overwhelming emotions that leave us breathless for a moment — anticipatory grief. But this anticipatory grief allows the family to prepare for the inevitable loss of a loved one.

Grief starts much earlier than a diagnosis of a terminal illness and inches, sometimes barely noticeably, throughout each person’s lifetime. And, of course, each person experiences grief differently.

Our understanding and skill in the estate planning process intersects with the client’s fear of death and anticipatory grief. In no other area of the law is it more essential that estate planning attorneys understand their role as counselors. In order to assist the client in making meaningful and well thought-out decisions with respect to their estate plan, attorneys must continually refine their counseling skills.

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

All grief starts as anticipatory grief. Dr. Daniel Miller defines the term “anticipatory grief” as the “process of grieving that starts prior to a loved one passing away.”
Beware of Romance Scams

Data from the Federal Trade Commission show that more consumers than ever report falling prey to romance scamming, also called “catphishing.” The total reported lost over the past five years has now reached $1.3 billion.

How Do They Do It?

Scammers create fake profiles on dating sites, apps and social media platforms in order to offer relationships and companionship to unsuspecting seniors. They may mention a common friend and/or the same interests or hobbies as you. They say they are lonely and seek companionship. Conversations will be brief and frequent.

Once they feel they have good rapport with you, they will mention financial hardships or they will say they want to travel from afar to meet you, but don’t have the means to do so. They may even say they had been recently scammed online. They will not ask for assistance directly, but will wait for you to offer it.

They will be reluctant at first, but will finally accept your assistance. They will instruct their target to wire money to a bank account, or via Western Union or an online payment service like PayPal. They may also ask for a cashier’s check. One very big red flag is if they ask for gift cards or prepaid credit cards.

The amount they ask for is usually small at first, but soon they will make up some excuse for needing more funds. They will resist meeting in person or even video chatting. They may agree to a phone call, but it will be very brief and rare.

They will continue their scam until the money runs out or until their mark says they are going to inform a family member or friend about the relationship. But by then it may be too late.

Red Flags

• Their profile seems too good to be true.
• They contact you frequently and progress the relationship quickly.
• They make professions of love far too early.
• They live very far away.
• They can’t visit, call, video call or send many pictures.
• They ask for money.
• They require specific payment methods.

Prevention Tips
• Remember that not everything you see online is true.
• Talk about your online relationship with a family member or trusted friend.
• Never give out personal or financial information to someone you have never met in person (email and home addresses, telephone numbers, account numbers and information).
• Ask them to set up a video call, but be very wary of the link they send you. It might redirect you to a site where malware and/or spyware will infect your devices.
• Never send money to someone you haven’t met in person.

If you feel you are a victim of a romance scam, contact your local law enforcement agency immediately. Provide them with all the information you have about the scammer, including financial records showing your payments to him or her.

Do not feel ashamed! Anyone can be affected by a romance scam, but sadly, scammers often target the elderly, who may be lonely or struggling to find emotional connection.

Contact me with questions about online security.
Christopher Duque | aikea808@gmail.com

Data from the Federal Trade Commission show that more consumers than ever report falling prey to romance scamming, also called “catphishing.” The total reported lost over the past five years has now reached $1.3 billion. How Do They Do It?
Leaving a Legacy of Aloha

Estate planning involves protecting what is important and then passing it on to our loved ones and future generations. Many concepts central to Hawaiian culture are applicable to estate planning. Starting with the concept of ‘ohana (an inclusive notion of family), all the way through lokahi (unity — especially appropriate at the passing of a loved one), estate planning and the culture of our islands can interweave to form a rich tapestry of aloha.

Ha‘aha‘a describes an attitude of humility, which promotes family harmony at stressful times. Stress may arise in dealing with illness and death, and it may arise in dealing with the distribution of assets. It takes humility for family members to form closer bonds at these times.

Sometimes, dealing with issues surrounding the disposition of a loved one’s remains, much less the disposition of assets, requires family members to talk out differences and come to consensus regarding what is the right, or pono, thing to do, as well as respecting the wishes of the deceased and the living. It is not uncommon for different family members to have different views of what a deceased person’s wishes were in various contexts. This may result in disagreements that can be both heated and destructive.

Ho‘oponopono is an option at times of family disagreement. It is a delicate process that enables family members to express their views and come to understanding of alternative perspectives. Although ho‘oponopono may be employed after the fact in resolving disputes, it can also be used while the senior family member is still alive to head off disputes and instill unity in the family. A successful ho‘oponopono requires the sensitive leadership of a moderator who is not involved in the dispute and who can make sure that all perspectives are expressed and validated.

Finally, the concept of mālama, or caring for and perpetuating one’s legacy, infuses and motivates Hawaiian-style estate planning. This extends from caring for one’s family to caring for one’s community through charitable giving.

Remembering our root values helps us to leave a legacy of aloha.

SCOTT MAKUAKANE, Counselor at Law
Focusing exclusively on estate planning and trust law.
www.est8planning.com
808-587-8227 | maku@est8planning.com

Estate planning involves protecting what is important and then passing it on to our loved ones and future generations. Many concepts central to Hawaiian culture are applicable to estate planning. Starting with the concept of ‘ohana, all the way through lokahi, estate planning and the culture of our islands can interweave to form a rich…
Money Management for Couples

Life partners need to be on the same page about money.

We all know couples who fight about money. You may even be in a relationship where finances are a source of tension. It’s no mystery why these kinds of conflicts are so common — money fuels our ability to take care of ourselves and our dependents. Managing it requires discipline and a plan, but often, couples don’t see eye-to-eye on what that means. When long-term committed partners share their finances, but not the same values and habits regarding money, friction often ensues. Fortunately, as with most things, clear and open communication can help. Here are four question to facilitate an honest and productive conversation with your spouse or partner about money.

1) How are expenses managed?

If you are soon to be married or living together, you need to determine how your money will be combined (joint checking and savings accounts or separate accounts) and who will be responsible for each household expense. If you’ve been together for some time, your primary focus is to make sure that you’re living within your means and that there is transparency about all money matters. To the extent you take on debt or make large purchases, it needs to be an amount both parties are comfortable with.

2) What are today’s financial priorities?

These can change from time to time, but it’s important for couples to frequently discuss what is important to them. For example, young couples may want to determine if they should set money aside for a down payment on a house. Some may want to prioritize spending on vacations. Later in life, couples need to think about how they plan to spend their time (and money) in retirement. These issues should be discussed frequently.

3) What are your long-term goals?

These tend to vary based on your age and are likely to change, to some extent, over the course of your lives. As a young couple, putting money aside for higher education (your own or your children’s) may be one of your priorities. Even though retirement may be a long way off, the sooner you begin saving for that goal, the better. Those who are older may be primarily focused on retirement and the disposition of their estate. Sitting down with a financial advisor can be beneficial regardless of your age. An advisor will gather input from both parties and craft a plan to help guide your long-term financial decision-making.

4) Is proper paperwork in place?

For couples who plan to get married, there might be reasons to consider a pre-nuptial agreement. It spells out how assets are to be divided in case of divorce. Most importantly, it limits costs related to litigation should divorce occur, as the parties agreed in advance on how assets will be split. For older couples, making sure estate documents are in place is important. The issues are trickier in cases of blended families. In both cases, seeking solid legal guidance is important.

Bottom Line

When it comes to money, communication is key, so talking about it regularly is important. For couples, limiting financial surprises , such as long-standing debt or large purchases, can go a long way to building a healthy, team-oriented approach to budgeting and managing money.

MICHAEL W. K. YEE, CFP,® CFS,® CLTC, CRPC®
1585 Kapiolani Blvd., Ste. 1100, Honolulu, HI 96814
808-952-1240 | michael.w.yee@ampf.com
www.ameripriseadvisors.com/michael.w.yee
Michael W. K. Yee, CFP®, CFS®, CLTC, CRPC ®, is a Private Wealth Advisor, Certified Financial Planner ™ practitioner, with Ameriprise Financial Services, LLC. in Honolulu, HI. He specializes in fee-based financial planning and asset management strategies and has been in practice for 38 years.

Investment advisory products and services are made available through Ameriprise Financial Services, LLC, a registered investment adviser.

Investment products are not insured by the FDIC, NCUA or any federal agency, are not deposits or obligations of, or guaranteed by any financial institution, and involve investment risks including possible loss of principal and fluctuation in value.

Ameriprise Financial Services, LLC. Member FINRA and SIPC.
© 2022 Ameriprise Financial, Inc. All rights reserved.

We all know couples who fight about money. You may even be in a relationship where finances are a source of tension. It’s no mystery why these kinds of conflicts are so common — money fuels our ability to take care of ourselves and our dependents. Managing it requires discipline and a plan, but often,…
Grief & Bereavement — Part III

Facing one’s mortality is the unspoken uneasiness that rests just below the surface of the conversation with an estate planning attorney.

Estate planning attorneys are well-versed in the law of estate planning. But as they focus heavily on probate avoidance and tax minimization, they may overlook the emotional, human side of estate planning. Therefore, the best estate planning attorneys are counselors of law with the emphasis on counselor more than law.

While clients express their needs in avoiding probate and minimizing tax, estate planning attorneys must remember that underlying each and every client’s need is a deeper foundational need — a relational one — wanting to ensure that they do not burden their survivors with complex legal, administrative and financial matters. Clients want to make sure that whatever they own in material wealth smoothly passes onto the survivors and that the survivors can make good use of these assets to enhance their lives.

Clients must simply remember that after they pass, life doesn’t stop for their loved ones. So by leaving affairs in order — including financial, legal and tax issues — undue stress will be eliminated for your loved ones, who can then focus on your life, memory and legacy as they grieve.

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

Facing one’s mortality is the unspoken uneasiness that rests just below the surface of the conversation with an estate planning attorney. Estate planning attorneys are well-versed in the law of estate planning. But as they focus heavily on probate avoidance and tax minimization, they may overlook the emotional, human side of estate planning. Therefore, the…
Wise Charitable Giving

Charities depend on gifts from people like us to do their good works. That’s why they are not shy about asking us for money. Here are some ideas about maximizing your charitable gifts.

 Do your homework. The good works that charities do often overlap, and some charities operate more efficiently than others. Websites like charitynavigator.org and charitywatch.org can help you rate and compare established charities to find out how much of your gift will go to actual charitable work versus the charity’s administrative and fundraising overhead. Of course, it costs money to run a charity, and it also costs money to raise money. However, if these expenses exceed
25 percent of a charity’s revenue, you should consider alternatives.

 Don’t sell an appreciated asset to make a cash gift. If you own Apple stock that you bought for $10 per share, don’t sell it now at $175 per share to raise the cash to make a charitable gift. You will get an income tax deduction for your gift, but you will also be liable for capital gains tax on the difference between the $175 sale price of the stock and the $10 that you spent to buy it. You will have less after-tax cash to give the charity, and your deduction will be limited to the amount of your cash gift Instead, give the stock to the charity. This way, you will make a bigger gift and get a bigger deduction.Your deduction will be the full fair market value of the gifted stock. {Play}

 Consider making gifts from your retirement plans. If you give retirement plan assets to your loved ones after you die, they will have to pay income tax on those gifts. So name charities as beneficiaries of your retirement plans and give your non-taxable assets to individuals. If you have reached the age when you must take required minimum distributions (RMDs) from your retirement plan, you can direct up to $100,000 of your annual RMD to go to charity. You will not get a deduction, but you will not have to pay income tax on the gifted portion of your RMD. This works out better for you than a deduction.

SCOTT MAKUAKANE, Counselor at Law
Focusing exclusively on estate planning and trust law.
est8planning.com
808-587-8227 | maku@est8planning.com

Charities depend on gifts from people like us to do their good works. That’s why they are not shy about asking us for money. Here are some ideas about maximizing your charitable gifts.
‘Spoil’ Your Grandchildren Wisely

Many grandparents spend money on their grandkids, whether by chipping in on big expenses like tuition bills and travel expenses, or covering smaller costs like meals and holiday gifts. The inclination to be generous is understandable and many seniors say it brings them joy to support (or even occasionally spoil) their grandchildren. But lavishing them with gifts shouldn’t come at the expense of your or grandparents own financial security. If you’re seeking to find the balance between supporting your grandchildren and ensuring your own finances stay in healthy shape, here are four tips to keep it all in check:

1. Know what you can afford. No matter how much you enjoy splurging on your grandkids, your financial security should remain your first priority. There are many unknowns in retirement, including your longevity, the fluctuation of markets and the impact of inflation on purchasing power (a factor that’s particularly pronounced at the moment, with inflation rates at a 40-year high). Spend and gift within your means to maintain your own financial health in the future.

2. Determine if you’re giving or loaning. If you’re giving a gift, understand current federal tax rules, which are based on the calendar year. In 2022, you can give up to $16,000 to each family member before the federal gift tax is applied. If you are married, both you and your spouse may gift $16,000 (for a total of $32,000). And make certain the recipient knows it’s a gift for their own tax purposes, and so there is no uncertainty about whether or not they need to pay you back. If you are loaning money to a grandchild, be very specific about the terms and repayment, and consider having a written document that both parties sign and date. This can help safeguard your financial situation and ensure both of you are on the same page — now and in the future.

3. Talk about it. Many people tend to shy away from discussions about money and finances with their family. If you would like to help support your grandchildren or save for their future goals like college or a down payment on a home, be sure to communicate this with their parents. This can help your adult children do a better job with their own financial planning. For example, if the parents of your grandchild know how much you are expecting to contribute to their child’s education, they may be able to decrease the amount allocated to a 529 Plan and invest more toward other goals, such as their own retirement.

4. Establish boundaries. Even if you want to help your grandchildren financially, depending on their situation, it may not be appropriate to do so, or to repeatedly provide support. Everyone appreciates help, but if your grandchild needs to learn financial independence, there can be value in letting them live within their own means. Keep in mind the smart — and sometimes tough — financial lessons you learned as you made your own way as a young adult, and the pride that came with successfully overcoming challenges.

If you want to provide financial support to a family member, but haven’t incorporated it into your overall financial plan, consider consulting a financial professional. He or she can help you evaluate your financial needs and goals and create a strategy. A clear and realistic understanding of your own financial picture can help you identify how much you can comfortably give and stay on track with your own goals.

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

Michael W. K. Yee, CFP®, CFS®, CLTC, CRPC®, is a Private Wealth Advisor, Certified Financial Planner ™ practitioner with Ameriprise Financial Services, LLC, in Honolulu. He specializes in fee-based financial planning and asset management strategies and has been in practice for 38 years.

Many grandparents spend money on their grandkids, whether by chipping in on big expenses like tuition bills and travel expenses, or covering smaller costs like meals and holiday gifts. The inclination to be generous is understandable and many seniors say it brings them joy to support (or even occasionally spoil) their grandchildren. But lavishing them…
Grief and Bereavement — Part II

Continuing from my last article, I believe that clients really want the estate planning attorney to help them meet their needs so that they can reduce their fear, anxiety and anticipatory grief in light of their knowledge of their inevitable death.

These needs include the desire 1) for the client to grow, develop and enjoy the most meaningful life possible; 2) not to burden friends and family; 3) to establish and build strong family/friend relationships, and to know these relationships will persevere after death; 4) to make the transition after death as easy as possible; and 5) to ensure that loved ones dependent on the client during their lifetime have security, sustenance and shelter.

Avoiding probate and minimizing taxes are not ends in themselves, but doing these things helps the client minimize any burden placed on survivors and allows for more available resources for the surviving loved ones’ care. When we shift our perspective away from lineal matters, such as probate and taxes, and focus on the natural, often non-lineal, human emotions underlying the needs of each client when deciding to make an estate plan, we realize that we, as estate planning attorneys, must develop an additional skill set above and beyond technical tax and probate law, and utilize “the softer skills of counseling.”

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

Continuing from my last article, I believe that clients really want the estate planning attorney to help them meet their needs so that they can reduce their fear, anxiety and anticipatory grief in light of their knowledge of their inevitable death.
How to Reduce Your Investment Risk

During times of market volatility like we’ve seen since the start of 2022, it’s natural to feel a bit skittish about the stock market. It’s a potent reminder that there are risks to stock ownership. Individual stocks are not guaranteed to grow and may lose value. The good news is that the stock market has historically delivered a higher rate of return than other forms of investment in the same timeframe. With this in mind, there are strategies you can deploy to help insulate your portfolio from the natural up-and-down swings of the market, while staying invested for the long term.

■ Buy and hold. There will always be day-today fluctuations in the stock market. Plunging stocks can cause panic selling. Rising stocks can inspire over {Play}ly optimistic purchasing. A buy-and-hold investment strategy takes a long-term view to investing. It discourages buying or selling stocks in response to market dips and surges. Over time, portfolios
governed by this strategy tend to deliver more robust long-term results than ones guided by emotional decisions.

■ Asset allocation. This strategy involves holding investments across different asset classes to meet your investment objectives. Asset classes include stocks, bonds, cash and alternatives. Each asset class has a different risk profile and upside potential. How much you assign to each asset class will depend on individual circumstances such as your time horizon, tolerance for risk, need for liquidity, tax situation and your financial goals. Investors with a longer time horizon usually can tolerate more risk, so will hold a larger percentage of stocks within their portfolio. Investors with a shorter time horizon may hold more bonds or similar instruments that offer greater security, with lower yields.

■ Portfolio diversification. It is another strategy designed to help you spread risk across your portfolio. It involves selecting a variety of investments within each asset class to help minimize risk. For example, by putting your “growth stock” money into several companies that meet growth criteria, you are protected in the event one of those companies fails.

■ Dollar-cost averaging. This investment strategy takes a disciplined approach to purchasing investments. The idea is to purchase more shares of stocks, bonds and/or mutual funds when prices are low and purchase fewer shares when prices are high. The principal here is to be systematic in your purchasing. Dollar-cost averaging over time usually
results in lower average cost of shares in your portfolio, creating greater opportunity for profit as share values rise.

■ Find an ally for smart investing. Talk with your financial advisor to learn how to implement these and other investment strategies to help grow your investment portfolio. As with all investments, past performance does not guarantee future results. No investment strategy is guaranteed to be profitable or help you avoid losses. Common sense and a balanced approach tend to win the day.

MICHAEL W. K. YEE, CFP,® CFS,® CLTC, CRPC®
1585 Kapiolani Blvd., Ste. 1100, Honolulu, HI 96814
808-952-1240 | michael.w.yee@ampf.com
ameripriseadvisors.com/michael.w.yee
Michael W. K. Yee, CFP®, CFS®, CLTC, CRPC®, is a Private Wealth Advisor, Certified Financial Planner™ practitioner with Ameriprise Financial Services, LLC in Honolulu, HI. He specializes in fee-based financial planning and asset management strategies and has been in practice for 38 years.

During times of market volatility like we’ve seen since the start of 2022, it’s natural to feel a bit skittish about the stock market. It’s a potent reminder that there are risks to stock ownership. Individual stocks are not guaranteed to grow and may lose value. The good news is that the stock market has…

Category: Wisdoms

Michael W. K. Yee, CFP®, CFS®, CLTC, CRPC®, is a Private Wealth Advisor, Certified Financial Planner ™ practitioner with Ameriprise Financial Services, LLC, in Honolulu. He specializes in fee-based financial planning and asset management strategies and has been in practice for 38 years.