Tag: Michael W. K. Yee

  • Adjusting Your Money Mindset

    Money is a powerful influence on our lifestyle, emotions and behaviors. If you’re serious about improving your financial life, examine your money mindset

    Acknowledge your personal history. If you grew up in poverty, you may have an underlying sense of scarcity–never having “enough.” If you were accustomed to abundance, you may not know how to manage money wisely. Such patterns may prevent you from earning what you’re worth, saving adequately, spending responsibly or being more philanthropic.

    Evaluate your emotional response to money. Is your mood tied to your assets? Does your bank account define you? When money occupies the driver’s seat, anxious thoughts can prevent you from making reasonable choices.

    Stop playing these money mind-games.

    • I’ll be happy when I make more money. Happiness comes from within. It is important to enjoy the successes you’re experiencing today as well as working on future goals.
    • Money is the only thing that matters. Money is an important means to an end. Worshipping money at the expense of people, nature, art and ideas may lead to loneliness and disappointment.
    • Money is meaningless. This harmful idea feeds reckless spending, de-motivate your work life, and stress those who depend on your productivity. Money should be treated with respect and not frittered away.

    Let go of the past. Stop beating yourself up for your financial mistakes. Reframe regrets as lessons and opportunities to grow. People recover from a failed business, job loss, stock tumble, or tax trouble. Keeping an open mind and focus on what you can do now.

    Curtail the time spent thinking about money. Dwelling on dollars and cents or fantasizing about winning the lottery doesn’t get you any closer to your goals. Step back; switch gears and identify\ tried and true actions to help you reach your goals. Daydream for short bursts of time; then get back to the business of living.

    Enlist a financial ally. A skilled financial advisor will be very familiar with mental, emotional and behavioral landmines you want to avoid on the road to a solid financial future. With tools to plan, save, and invest, within your timeframe and budget, you can live without financial stress, now and In the future. Look to your advisor for guidance and encouragement to sharpen your mental game and develop a new money mindset.

     

    Michael W. K. Yee, CFP
    1585 Kapiolani Blvd., Suite 1100, Honolulu
    808-952-1222 ext. 1240 | michael.w.yee@ampf.com
    Michael W K Yee, CFP®, CFS®, CRPC®, is a Financial Advisor CERTIFIED FINANCIAL PLANNER practitioner™ with Ameriprise Financial Services, Inc. in Honolulu, HI. He specializes in fee-based financial planning and asset management strategies and has been in practice for 26 years.
    Ameriprise Financial, Inc. and its affiliates do not offer tax or legal advice. Consumers should consult with their tax advisor or attorney regarding their specific situation.
    Brokerage, investment and financial advisory services are made available through Ameriprise Financial Services, Inc. Member FINRA and SIPC.
    © 2014 Ameriprise Financial, Inc. All rights reserved. File # 975765

    Money is a powerful influence on our lifestyle, emotions and behaviors. If you’re serious about improving your financial life, examine your money mindset Acknowledge your personal history. If you grew up in poverty, you may have an underlying sense of scarcity–never having “enough.” If you were accustomed to abundance, you may not know how to…

  • Retiring Into Your Dream Job

    Americans in general have strong work ethic, so a life of extended leisure doesn’t appeal to everyone. With the average U.S. life expectancy estimated at 80.1 years, there’s no reason why you can’t pursue meaningful work in retirement especially if your health is good and your mind is sharp. The desire for activity and income are other important reasons you may decide to return to the workforce and stay well beyond age 65.

    Retirees today can consider a number of opportunities, such as turning special expertise into a consulting gig, taking a part-time job, starting a small business or volunteering for non-profit work. Let’s take a closer look.

    Become a consultant. Many retired professionals turn their past into thriving consulting businesses, often providing services to their former employers.

    Others blog about their fields of expertise. Speaking engagements, seminars and webinars are additional ways you can share your knowledge, which can bring income and provide you with the professional and in-tellectual stimulation your former work life provided.

    Get a part-time job. If your former field offers part-time opportunities, you may be the lucky ones to land a less-than-full time job with betterthan- average compensation.

    Some seniors go back to school to get another degree, training or certification that will qualify them for a challenging part-time job in a field of interest. Or, decide to take a low stress, entry-level job simply to remain active — bagging groceries, working a cash register or becoming a barista to stay busy while lining your pockets with a little extra cash.

    Start your own small business. Merchandising and auction sites such as eBay and Etsy are where people turned their hobbies of collecting or crafting into thriving businesses.

    In your former work life, you may not have had as much time to devote your hobby as you would have liked. Now you can pursue selling your collectibles or handmade treasures and enjoy the rewards of a small business.

    Volunteer. Many retirees take advantage of their open calendars to ramp up volunteering for organizations they support.

    While giving your services freely to your favorite nonprofit won’t pad your pocketbook, it can be extremely rewarding and meaningful. Whether you choose to help your favorite church, hospital, professional organization or animal shelter, volunteering your time can enrich your life and benefit your community in important ways.

    It’s up to you to create a rewarding retirement.

    If you choose to continue working for a paycheck, your financial advisor can help you examine how additional income will impact your overall retirement finances.

    Remember, the point of a work commitment in retirement is not to replicate your former 40-plus hour workweek. Ideally, your retirement career is about staying active and engaged in ways that keep you young.

    Whether or not you pursue a new line of work in retirement, be sure to leave room for activities and interactions that will make your golden years as rewarding as they can be.

    Michael W. K. Yee, CFP
    1585 Kapiolani Blvd., Suite 1100, Honolulu
    808-952-1222 ext. 1240 | michael.w.yee@ampf.com

    Michael W K Yee, CFP®, CFS®, CRPC®, is a Financial Advisor CERTIFIED FINANCIAL PLANNER practitioner™ with Ameriprise Financial Services, Inc. in Honolulu, HI. He specializes in fee-based financial planning and asset management strategies and has been in practice for 26 years.
    Ameriprise Financial, Inc. and its affiliates do not offer tax or legal advice. Consumers should consult with their tax advisor or attorney regarding their specific situation.
    Brokerage, investment and financial advisory services are made available through Ameriprise Financial Services, Inc. Member FINRA and SIPC.
    © 2014 Ameriprise Financial, Inc. All rights reserved. File # 823751

    Americans in general have strong work ethic, so a life of extended leisure doesn’t appeal to everyone. With the average U.S. life expectancy estimated at 80.1 years, there’s no reason why you can’t pursue meaningful work in retirement especially if your health is good and your mind is sharp. The desire for activity and income…

  • Financial: Time for a Retirement Dress Rehearsal

    Two emotions are likely to strike those who are nearing retirement — excitement and fear. Leaving the world of alarm clocks and cubicles is liberating, but feelings of apprehension about entering a new life stage can easily creep in. The responsibility of pursuing your passions and filling each week in a satisfying way can be a challenge. Then, top that off with the ever-present concern about long-term financial security in retirement.

    Feeling excitement and fear is ok, but what if life after work isn’t everything you envisioned it to be?

    Try A Practice Run

    If you’re nearing retirement, you’ve likely taken steps to prepare financially for the future. But there’s one important thing you might not have considered adding to your pre-retirement checklist — a practice run. How you choose to spend your time (and in many cases, your money) is not always an easy decision. As we age, our interests, hobbies and relationships change. What you may consider your “ideal” retirement when you’re 55 may not fit when you’re 65. This evolution can make it hard to plan accurately for retirement.

    To the extent you’ve made a financial commitment to a certain lifestyle, changing your mind in 10 or 15 years could throw a wrench in your long-term financial plan.

    For example, consider an individual who has lived his entire life in New York, but retires to Florida where taxes and cost-of-living are generally lower. Deciding after several years to relocate back to New York to be near family — where cost of living and tax rates differ — can mean the dollars he’s saved will have to be re-allocated and his savings may not go as far as he’d planned.

    The idea of practicing retirement may also mean leaving the 40-hour work week for something that’s more part-time. Some people may want to take a part-time role with their current employer, or work as a consultant. This also can offer important financial benefits that help preserve their nest egg.

    Financial Rehearsal

    Practice can also be beneficial in another way — simulating how to manage your expenses in retirement. The idea that your cash flow no longer comes from a reliable paycheck, but from other sources like Social Security and personal savings can come as a shock … even to those who are well-prepared for this change.

    One idea to accomplish this is to run two accounts for a certain period of time. Through one account, manage all of your household and lifestyle expenses that you expect during retirement. This includes the costs for necessities such as food, clothing, shelter, utilities, taxes and insurance as well as “nice-to-have” items like dining out, traveling, etc.

    Through the second account, manage all of your expenses that are expected to end in retirement like principal and interest on a mortgage payment (if your home will be paid off), car payments (although car payments can certainly happen again in retirement), college costs for your kids and contributions to retirement plans.

    Perfecting Life In Retirement

    A little practice can go a long way toward easing emotional and financial concerns when it comes to making the jump into retirement. A retirement trial run may not answer all of your questions — and it doesn’t necessarily include the unexpected events that can often throw retirement off track — but doing it for six months or so can be very beneficial in determining whether your retirement budget is realistic. Consider working with a financial advisor who can help you reach your retirement dreams.

     

    Michael W. K. Yee, CFP
    1585 Kapiolani Blvd., Suite 1100, Honolulu
    808-952-1222 ext. 1240 | michael.w.yee@ampf.com

    Michael W K Yee, CFP®, CFS®, CRPC®, is a Financial Advisor CERTIFIED FINANCIAL PLANNER practitioner™ with Ameriprise Financial Services, Inc. in Honolulu, HI. He specializes in fee-based financial planning and asset management strategies and has been in practice for 26 years. Brokerage, investment and financial advisory services are made available through Ameriprise Financial Services, Inc. Member FINRA and SIPC. © 2014 Ameriprise Financial, Inc. All rights reserved. File # 783860

    Two emotions are likely to strike those who are nearing retirement — excitement and fear. Leaving the world of alarm clocks and cubicles is liberating, but feelings of apprehension about entering a new life stage can easily creep in. The responsibility of pursuing your passions and filling each week in a satisfying way can be…

  • What Does Gender Have to Do With Retirement?

    When it comes to planning for retirement, women feel less prepared than men. That’s according to the New Retirement Mindscape® 2013 City Pulse index survey, commissioned by Ameriprise Financial. Only 38 percent of women surveyed say that they feel on track for retirement (or the remainder of retirement) compared to 46 percent of men.

    Women’s lack of confidence in the realm of retirement readiness may be tied in part to planning. Seventy-five percent of men surveyed reported that they’ve done at least some preparation for retirement, compared to 70 percent of women. And over half of men (55 percent) say they’ve contributed to a 401(k) plan, while only 47 percent of women claim they’ve done the same.

    What accounts for the gender divide? It may have to with the fact that women often face three unique financial hurdles on the road to retirement, including:

    1. Women often take time away from work to be caregivers. While caregiving is often the best option for a family’s situation, the reality is that spending time out of the workforce — whether to raise children or to provide care for a family member — can have a negative impact on one’s earning potential. Women (and men) who anticipate pausing their careers at some point in time to focus on other priorities should consider setting aside extra money at other times when they’re able to do so, in order to offset the loss of income.
    2. On average women live longer than men. This results in the need for additional retirement funds and increased health and long-term care costs. Yet, only 15 percent of women surveyed in the New Retirement Mindscape survey say that they’ve estimated the amount of money they’ll need to pay for healthcare during retirement, compared to 21 percent of men. It’s critical to create a plan for how you’re going to handle healthcare expenses.
    3. Women tend to be more conservative with investments. This may not be all bad, but defining and taking the appropriate amount of risk with your investment portfolio may be beneficial. Although, it’s important to have a balanced approach in your investments.

    Gender aside, baby boomers are feeling unprepared for retirement. With fewer years left to build up a nest egg, it’s important to focus on what you can control. Here are five steps you can take to feel more prepared for retirement:

    1. Think about what you want retirement to look like. Do you want to travel? Relocate? Spend more time with your grandkids? When you have a clear vision of retirement, it’s easier to determine what it will take to get there.
    2. Take advantage of employer-sponsored retirement plans. Make sure you’re maxing out your 401(k) contributions if you’re able. If you’re selfemployed, take the time to establish your own retirement plan.
    3. Consider purchasing long-term care insurance.
    4. Break down your expenses into two categories — essential and lifestyle. Determine if there’s anything you could forego on the lifestyle side.
    5. Focus on saving more, especially while you’re still working.

    Planning for retirement is complex and it’s not the same for everyone. Each person’s situation is unique. The key is to outline your goals for retirement, and then determining a path to get there. Consider meeting with a financial advisor who can help you with this.

     

    Michael W. K. Yee at (808) 952-1222 ext. 1240

    Michael W K Yee, CFP®, CFS®, CRPC®, is a Financial Advisor and CERTIFIED FINANCIAL PLANNER practitioner™ with Ameriprise Financial Services, Inc. in Honolulu, HI. He specializes in fee-based financial planning and asset management strategies and has been in practice for 25 years. To contact him, michael.w.yee@ampf.com, 808.952.1222 ext 1240, 1585 Kapiolani Blvd., Suite 1100 Honolulu, Hawai‘i 96814.
    Advisor is licensed/registered to do business with U.S. residents only in the states of Honolulu, Hawai‘i.
    1 The Money Across Generations IISM study was commissioned by Ameriprise Financial, Inc. and conducted by telephone by GfK in December 2011 among 1,006 affluent baby boomers (those with $100,000 or more in investable assets); 300 parents of baby boomers; and 300 children of baby boomers at least 18 years old. The margin of error is +/- three percentage points for the affluent boomers segment and +/- six percentage points for the parents and children of boomers segments.
    2 United States Department of Labor, Wage and Hour Division, Family and Medical Leave Act http://www.dol.gov/whd/fmla/
    Ameriprise Financial and its representatives do not provide tax or legal advice. Consult with your tax advisor or attorney regarding specific tax issues.
    Brokerage, investment and financial advisory services are made available through Ameriprise Financial Services, Inc. Member FINRA and SIPC.
    ©2012 Ameriprise Financial, Inc. All rights reserved.

    When it comes to planning for retirement, women feel less prepared than men. That’s according to the New Retirement Mindscape® 2013 City Pulse index survey, commissioned by Ameriprise Financial. Only 38 percent of women surveyed say that they feel on track for retirement (or the remainder of retirement) compared to 46 percent of men. Women’s…

  • Home Equity Into Retirement Income

    The long-struggling housing market is finally showing signs of recovery, giving many homeowners more equity in their properties. This is prompting more pre-retirees to consider if, and how, home equity can be turned into a source of cash to help fund their retirement.

    Home equity represents one of the biggest assets for many Americans. However, there are risks in assuming that your home’s equity will be a guaranteed source of income in retirement. For starters, home equity, like any investment, is subject to the fluctuations of the market and may have tax consequences. Also, you will always need a place to live, so you can’t assume that the full value of a home is at your disposal. Remember that the primary function of your home is to provide a roof over your head, and using equity to fund retirement requires careful planning. Here are three primary options:

    • Home Equity Lines of Credit (HELOC): A HELOCS (second mortgage) is a reasonable option for an employed individual, but it may be less practical for someone in retirement. HELOCs need to be repaid, and using the proceeds from a home equity loan to help fund retirement often means taking on interest costs in order to generate that income. It’s important to note that an individual puts a lien on their home by taking a HELOC, and risks losing it should he or she fail to repay under the terms of the loan.
    • Reverse Mortgage: A popular alternative is a reverse mortgage. This allows a homeowner to tap into the home equity while still occupying it. A reverse mortgage provides payment to homeowners for the bulk of the value of their homes via a lump sum, a line of credit or periodic payments. In essence, this is a loan to the homeowner paid back when the house is sold at some future date. However, interest accrues throughout the duration of the loan and upfront fees apply, so it can be expensive.

    A standard reverse mortgage, also called a Home Equity Conversion Mortgage, charges a 2 percent mortgage insurance premium on the full value of the home. The government now offers a lower cost “Saver” loan with a mortgage insurance premium of just 0.01 percent of the home’s value, but applying a higher interest rate. Over time, the combination of fees and interest charges can significantly deplete the value of the home’s equity.

    Reverse mortgage applicants must be at least 62 years old. The older a retiree is, the more he or she can receive from the home’s equity. Understanding the complicated terms of a reverse mortgage before signing on the dotted line is crucial.

    Selling & Downsizing: The other way to tap a home’s equity is to sell it. Many retirees are ready to “downsize” or to buy or rent a smaller residence. If the market is right, they can sell their existing home, buy a new place and have equity leftover to add to their retirement nest egg.

     

    Michael W. K. Yee at (808) 952-1222 ext. 1240

    Michael W K Yee, CFP®, CFS®, CRPC®, is a Financial Advisor and CERTIFIED FINANCIAL PLANNER practitioner™ with Ameriprise Financial Services, Inc. in Honolulu, HI. He specializes in fee-based financial planning and asset management strategies and has been in practice for 25 years. To contact him, michael.w.yee@ampf.com, 808.952.1222 ext 1240, 1585 Kapiolani Blvd., Suite 1100 Honolulu, Hawai‘i 96814.
    Advisor is licensed/registered to do business with U.S. residents only in the states of Honolulu, Hawai‘i.
    1 The Money Across Generations IISM study was commissioned by Ameriprise Financial, Inc. and conducted by telephone by GfK in December 2011 among 1,006 affluent baby boomers (those with $100,000 or more in investable assets); 300 parents of baby boomers; and 300 children of baby boomers at least 18 years old. The margin of error is +/- three percentage points for the affluent boomers segment and +/- six percentage points for the parents and children of boomers segments.
    2 United States Department of Labor, Wage and Hour Division, Family and Medical Leave Act http://www.dol.gov/whd/fmla/
    Ameriprise Financial and its representatives do not provide tax or legal advice. Consult with your tax advisor or attorney regarding specific tax issues.
    Brokerage, investment and financial advisory services are made available through Ameriprise Financial Services, Inc. Member FINRA and SIPC.
    ©2012 Ameriprise Financial, Inc. All rights reserved.

    The long-struggling housing market is finally showing signs of recovery, giving many homeowners more equity in their properties. This is prompting more pre-retirees to consider if, and how, home equity can be turned into a source of cash to help fund their retirement. Home equity represents one of the biggest assets for many Americans. However,…

  • Do I Need Long-Term Care Insurance?

    If you never experience chronic illness or an accident resulting in extended care, you won’t need long-term care insurance (LTCI). But, if either were to happen to you today, a nursing home in Hawai‘I could cost you $100,000 – $120,000/year and could last up to 3 years. People age 65 and older with Alzheimer’s survive an average of 4 to 8 years after diagnosis. If you have to use money you were earmarking to retire on to pay for care in a facility or at home, where does it leave your family’s financial future? If you don’t have money or run out of money, you will be dependent on children to be your caregivers or plan on an extended stay at a Medicaid eligible care home not of your own choice. Either way, it’s not pretty picture. On the other hand, LTCI transfers the cost of paid care providers from yourself to an insurance company for a fraction of the actual cost and it offers you choices.

    What are my chances of needing some form of LTCI?

    The chances of needing LTCI are high. The Department of Health estimates 7 in 10 people will need some form of LTCI. If it happens to you, odds don’t matter.

    What is the current cost of LTCI in Hawai‘i? What is the projection in 10 – 20 years?

    The current cost of a nursing home stay in Hawai‘i is approximately $100,000 – $120,000 per year. Assuming a 5% annual rise in the cost of care, the cost in 10 years would be $162,800 – $195,500 per year. In 20 years the cost would be $265,300 – $318,400 per year.

    Why are premiums expensive? Can you compare dollar for dollar versus cents on the dollar?

    Assuming an LTCI policy offered to Federal Employees, a 50 year old may be paying an LTCI annual premium of $3,000. For this money, the insurance company promises to pay up to $328,500 towards the cost of care. The choice is simple, $3,000/year to the insurance company or $328,500 out of pocket for the cost of care. If the insured paid premiums for 25 years, the combined cost over time would be $75,000. For this money, the insurance company’s 5% inflation rider would grow the promise to pay up to $1,112,400. Like health insurance, LTCI premiums are subject to increases in the future. However, my experience with LTCI premium increases over the past 25 years is that paying for LTCI is still pennies on the dollar compared to paying for care out-of-pocket.

    Is it realistic today for my kids to take care of me?

    For many, depending on the kids to be caretakers, is not realistic. Studies show that 59% of unpaid caregivers are currently employed, 70% are married, and 62% are women. Long-term caregiving is hard work; there are consequences physically, psychologically, economically and relationally.

    How do I keep my LTCI premiums affordable?

    Interestingly, it is possible to design a plan that is affordable to many people. Making LTCI affordable is made possible by considering plan type (traditional or hybrid), plan design and creative planning for premium funding.

    __________________________________

    Michael W. K. Yee at (808) 952-1222 ext. 1240

    Michael W K Yee, CFP®, CFS®, CRPC®, is a Financial Advisor and CERTIFIED FINANCIAL PLANNER practitioner™ with Ameriprise Financial Services, Inc. in Honolulu, HI. He specializes in fee-based financial planning and asset management strategies and has been in practice for 25 years. To contact him, michael.w.yee@ampf.com, 808.952.1222 ext 1240, 1585 Kapiolani Blvd., Suite 1100 Honolulu, Hawai‘i 96814.
    Advisor is licensed/registered to do business with U.S. residents only in the states of Honolulu, Hawai‘i.
    1 The Money Across Generations IISM study was commissioned by Ameriprise Financial, Inc. and conducted by telephone by GfK in December 2011 among 1,006 affluent baby boomers (those with $100,000 or more in investable assets); 300 parents of baby boomers; and 300 children of baby boomers at least 18 years old. The margin of error is +/- three percentage points for the affluent boomers segment and +/- six percentage points for the parents and children of boomers segments.
    2 United States Department of Labor, Wage and Hour Division, Family and Medical Leave Act http://www.dol.gov/whd/fmla/
    Ameriprise Financial and its representatives do not provide tax or legal advice. Consult with your tax advisor or attorney regarding specific tax issues.
    Brokerage, investment and financial advisory services are made available through Ameriprise Financial Services, Inc. Member FINRA and SIPC.
    ©2012 Ameriprise Financial, Inc. All rights reserved.

    If you never experience chronic illness or an accident resulting in extended care, you won’t need long-term care insurance (LTCI). But, if either were to happen to you today, a nursing home in Hawai‘I could cost you $100,000 – $120,000/year and could last up to 3 years. People age 65 and older with Alzheimer’s survive…

  • How Much Money Do I Need?

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

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

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

    Calculate Your Retirement Expenses

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

    Essential Expenses

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

    Lifestyle Expenses

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

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

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

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

     

    Michael W. K. Yee at (808) 952-1222 ext. 1240

    Michael W K Yee, CFP®, CFS®, CRPC®, is a Financial Advisor and CERTIFIED FINANCIAL PLANNER practitioner™ with Ameriprise Financial Services, Inc. in Honolulu, HI. He specializes in fee-based financial planning and asset management strategies and has been in practice for 25 years. To contact him, michael.w.yee@ampf.com, 808.952.1222 ext 1240, 1585 Kapiolani Blvd., Suite 1100 Honolulu, Hawai‘i 96814.
    Advisor is licensed/registered to do business with U.S. residents only in the states of Honolulu, Hawai‘i.
    1 The Money Across Generations IISM study was commissioned by Ameriprise Financial, Inc. and conducted by telephone by GfK in December 2011 among 1,006 affluent baby boomers (those with $100,000 or more in investable assets); 300 parents of baby boomers; and 300 children of baby boomers at least 18 years old. The margin of error is +/- three percentage points for the affluent boomers segment and +/- six percentage points for the parents and children of boomers segments.
    2 United States Department of Labor, Wage and Hour Division, Family and Medical Leave Act http://www.dol.gov/whd/fmla/
    Ameriprise Financial and its representatives do not provide tax or legal advice. Consult with your tax advisor or attorney regarding specific tax issues.
    Brokerage, investment and financial advisory services are made available through Ameriprise Financial Services, Inc. Member FINRA and SIPC.
    ©2012 Ameriprise Financial, Inc. All rights reserved.

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

  • Caring for Aging Parents: Don’t Wing It

    As the parents of boomers age, more family members are managing eldercare responsibilities. Healthcare and finances aren’t easy topics for many families to broach. In fact, research from the Money Across Generations IISM study shows that 36 percent of boomers’ parents feel that talking about healthcare with family will likely or very likely create tension or spark an argument.1

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

    To get started:

    • Talk about finances now. While it may be uncomfortable to discuss finances, it’s essential that you’re familiar with your parents finances. This includes medical, disability and long-term care insurance policies. Use this information—along with your own funds—to choose healthcare options.
    • Create a contact list. Ask your parents to compile a list of account numbers, computer login names and passwords, plus the names, addresses and phone numbers of the professionals they work with. Also, ask about the location of important financial and legal documents and lockbox keys.
    • Identify current healthcare costs and needs. Learn about your parents medical and pharmaceutical expenses and identify any cost savings. For example, change from a name brand to a generic prescription or, instead of filling prescriptions at your pharmacy, order a long-term supply from a mail-order provider.
    • Build a support network. Talk with family members, neighbors and industry professionals to see who can help you care for your parents and in what capacity and at what cost.
    • Anticipate future lifestyle changes. Even if they aren’t yet needed, explore the costs of in-home, senior apartment, assisted living and memory care housing and services, as well as the costs of having a parent live with you. Consider the pros and cons of each option.
    • Become familiar with assistance programs. Your parents may qualify for government programs, supplements or services. For information, visit www.Govbenefits.gov. Also, contact your local Area Agency on Aging for information about elder programs and services.
    • Keep your retirement goals in mind. Continue to manage your budget and save for your future. Be mindful that exiting and re-entering the workforce even temporarily may affect your earning power and employer-sponsored retirement plan.
    • Know your rights at work. The Federal Family and Medical Leave Act of 1993 (FMLA) allows covered employees up to 12 weeks of unpaid leave to provide care for a family member with a serious health condition.2 If you’re caring for a parent, inform your Human Resources department about your situation to take advantage of this legal protection, if relevant, and create a workable plan within your company’s policies.

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

    Michael W. K. Yee at (808) 952-1222 ext. 1240

    Michael W K Yee, CFP®, CFS®, CRPC®, is a Financial Advisor and CERTIFIED FINANCIAL PLANNER practitioner™ with Ameriprise Financial Services, Inc. in Honolulu, HI. He specializes in fee-based financial planning and asset management strategies and has been in practice for 25 years. To contact him, michael.w.yee@ampf.com, 808.952.1222 ext 1240, 1585 Kapiolani Blvd., Suite 1100 Honolulu, Hawai‘i 96814.
    Advisor is licensed/registered to do business with U.S. residents only in the states of Honolulu, Hawai‘i.
    1 The Money Across Generations IISM study was commissioned by Ameriprise Financial, Inc. and conducted by telephone by GfK in December 2011 among 1,006 affluent baby boomers (those with $100,000 or more in investable assets); 300 parents of baby boomers; and 300 children of baby boomers at least 18 years old. The margin of error is +/- three percentage points for the affluent boomers segment and +/- six percentage points for the parents and children of boomers segments.
    2 United States Department of Labor, Wage and Hour Division, Family and Medical Leave Act http://www.dol.gov/whd/fmla/
    Ameriprise Financial and its representatives do not provide tax or legal advice. Consult with your tax advisor or attorney regarding specific tax issues.
    Brokerage, investment and financial advisory services are made available through Ameriprise Financial Services, Inc. Member FINRA and SIPC.
    ©2012 Ameriprise Financial, Inc. All rights reserved.

    As the parents of boomers age, more family members are managing eldercare responsibilities. Healthcare and finances aren’t easy topics for many families to broach. In fact, research from the Money Across Generations IISM study shows that 36 percent of boomers’ parents feel that talking about healthcare with family will likely or very likely create tension…

  • Financial: Selecting Your Financial Advisor

    Speaking from experience, the relationship between financial advisors and their clients is incredibly important. Whether you rely on your advisor to help with retirement planning, saving for college, or meeting other goals, this individual will help determine how you approach some of life’s biggest financial decisions. Here are a few things to keep in mind when choosing an advisor.

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

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

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

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

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

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

    • Envisioning your future — what’s next for you?
    • Where do you see yourself living?
    • What lifestyle goals are important to you?
    • Providing for your children’s education?
    • How do you envision your retirement?
    • Do you want help to reduce the effect of taxes on your assets?

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

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

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

    • Your needs, goals and values.
    • Current assets and liabilities.
    • Investment portfolio recommendations.
    • Retirement plan.
    • Insurance audit and needs analysis.
    • Estate planning analysis.
    • Product recommendations and action items.

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

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

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

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

    1 The Money Across Generations IISM study was commissioned by Ameriprise Financial, Inc. and conducted by telephone by GfK in December 2011 among 1,006 affluent baby boomers (those with $100,000 or more in investable assets); 300 parents of baby boomers; and 300 children of baby boomers at least 18 years old. The margin of error is +/- three percentage points for the affluent boomers segment and +/- six percentage points for the parents and children of boomers segments.

    Ameriprise Financial and its representatives do not provide tax or legal advice. Consult with your tax advisor or attorney regarding specific tax issues.

    Brokerage, investment and financial advisory services are made available through Ameriprise Financial Services, Inc. Member FINRA and SIPC. Some products and services may not be available in all jurisdictions or to all clients. ©2012 Ameriprise Financial,Inc. All rights reserved. File # 143286

    Speaking from experience, the relationship between financial advisors and their clients is incredibly important. Whether you rely on your advisor to help with retirement planning, saving for college, or meeting other goals, this individual will help determine how you approach some of life’s biggest financial decisions. Here are a few things to keep in mind…

  • 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…

  • 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…

  • Now & Then: A Way of Harmony

    The Surfers Tahiti - Generations Magazine - August - September 2012In 1957, brothers Al and Clayton Naluai attended Glendale Junior College in California where they befriended two other Native Hawaiians, Bernie Ching and Pat Sylva. They started to compile Hawaiian tunes together for the choir director and came up with a signature harmonizing style. They did concerts up and down the West Coast. While singing in a backyard luau, a friend tape recorded them for fun. One thing led to another and they were discovered by Hi Fi Records. The group was named “The Surfers,” and they cut their first album, “The Surfers on the Rocks.” It became a local best seller.

    The quartet embarked on a sensational career that took them through the next 26 years!

    At age 43, Clayton learned that his father was diagnosed with Alzheimer. Up to that point, his life had been defined by show biz, but it was time to do something else. In 1980, he left the business and turned his focus toward family.

    Over the years Clayton had studied Shin Shin Toitsu Aikido under the late Master Koichi Tohei. The master taught the principles of unifying mind and body and its application to daily life.

    Clayton Aikido - Generations Magazine - August - September 2012Fifty years later, Clayton is a 6th Dan Black Belt and a founder of Lokahi Ki Society, where he serves as its senior advisor. He has dedicated his life to creating programs for people to experience the power they naturally have through unification of mind and body.

    Clayton is particularly passionate about keeping seniors active. So, I asked Clayton is it ever too late for a senior to consider training through Shin Shin Toitsu Aikido’s mind and body unification? He replied, “It’s never too late.”

    I have been attending Clayton’s classes for the past two years. The exercises have greatly improved my physical flexibility, balance, strength and fluidity. It helps me stay in a calm and focused state of mind. Practicing the same state of mind outside of the dojo I can now deal with life’s challenges one at a time — more calmly, more clearly, more focused. Most importantly, it has improved my outlook on life, diet, exercise and hope for mankind. I’ve dropped 25 pounds, lowered my blood pressure and put off my diabetes.

    You may also experience many benefits through practicing, studying and experiencing this form of Aikido. For more info, contact Lokahi Ki Society:

    phone(s): 808-372-7724, 489-5255, 258-6814
    email: lokahiki@me.com
    www.lokahiki.com/Lokahi_Ki_Society/Welcome.html

    In 1957, brothers Al and Clayton Naluai attended Glendale Junior College in California where they befriended two other Native Hawaiians, Bernie Ching and Pat Sylva. They started to compile Hawaiian tunes together for the choir director and came up with a signature harmonizing style. They did concerts up and down the West Coast. While singing in…