When the Rubber Hits the Road: Steps to Take When you Find that you are Behind on your Retirement Savings

Contributed by: Sandra Adams, CFP®

So here you are.  You find yourself happily on cruise control — you seem to be making more money every year, you have the house and cars you always wanted, the kids are now in college and you take the family vacations you want when you want to take them.  And then — bam — traffic comes to a stop.  What?  How can this be?  How can we already be in our mid-50’s?  How can retirement be so close? How is it possible that we haven’t saved more towards our own retirement by now?  What do we do to make it to our goal on time?

If this sounds anything like you, you are not alone.  We find that many clients come to us looking for assistance with their retirement late in the game. They may not have balanced their multiple financial goals as evenly as they should or could have and they find themselves behind in their retirement goals as they approach their retirement years. 

The good news is that it is possible to get yourself back on track by taking few action steps:

1. Make sure you have a strong savings/emergency reserve fund. At a minimum, this is 3 - 6 months’ worth of living expenses.

2. Make sure all unnecessary and high interest rate debt is paid off; if this has accumulated, it is likely a result of no emergency reserve fund.

3. Attempt to maximize your contributions to your employer retirement plans (start by making sure you are meeting any company match, and increase your contributions over time to meet the maximum contribution as cash flow allows; ramping up contributions is more crucial if your time frame towards retirement is shorter). *See here for our blog on 2018 retirement plan contribution limits.

4. If you are able to save beyond your maximum employer retirement plan contributions, consider savings in either a ROTH IRA (if you are eligible under the current income limitations) or in an after-tax investment account to create diversification in your retirement investment portfolio. What we mean here is that we want to have different tax buckets to draw from in retirement — we don’t want every dollar you access for income in retirement to be taxable in the same way.

5. And lastly, partner with a financial planner to keep yourself and your retirement savings plan on track until retirement. Having an accountability and decision making partner to help you determine where best to save, when and how to save more, when you might realistically be able to retire and how much you might be able to spend is crucial to a successful retirement.

It is easy to cruise through life and forget how quickly time is passing us by.  Before we know it, important life milestones are creeping up on us before we are prepared for them.  With the help of a financial planner, you can get yourself back on track and ready to meet the goals you’ve always dreamed of.  If we can be of help to you or anyone you know who might be in this situation, give us a call.  We are always happy to help!

Sandra Adams, CFP® is a Partner and Financial Planner at Center for Financial Planning, Inc.® Sandy specializes in Elder Care Financial Planning and is a frequent speaker on related topics. In addition to her frequent contributions to Money Centered, she is regularly quoted in national media publications such as The Wall Street Journal, Research Magazine and Journal of Financial Planning.

---

Any opinions are those of Sandra Adams and not necessarily those of RJFS or Raymond James. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. There is no assurance any of the trends mentioned will continue or forecasts will occur. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Roth IRA owners must be 591⁄2 or older and have held the IRA for five years before tax-free withdrawals are permitted. Like Traditional IRAs, contribution limits apply to Roth IRAs. In addition, with a Roth IRA, your allowable contribution may be reduced or eliminated if your annual income exceeds certain limits. Contributions to a Roth IRA are never tax deductible, but if certain conditions are met, distributions will be completely income tax free. Diversification and asset allocation do not ensure a profit or protect against a loss. You should discuss any tax or legal matters with the appropriate professional. Raymond James is not affiliated with any of the companies listed above. Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNERTM and federally registered CFP (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.

Why Retirement Planning is Like Climbing Mount Everest

Contributed by: Nick Defenthaler, CFP®

Mount Everest.  One of the most beautiful, natural wonders in the world.  With an elevation of just over 29,000 feet, it is the highest mountain above sea level on the planet. As you would expect, climbing Mount Everest is an incredibly difficult and dangerous feat. Sadly, over 375 people have lost their lives making the trek. One thing that might surprise you is that the vast majority who have died on the mountain, did not pass away while climbing to the top. Believe it or not, it’s actually the climb down, or descent, that has caused the greatest amount of fatalities.

Case in point, Eric Arnold was a multiple Mount Everest climber who sadly died in 2016 on one of his climbs. Before he passed, he was interviewed by a local media outlet and was quoted as saying “two-thirds of the accidents happen on the way down. If you get euphoric and think ‘I have reached my goal,’ the most dangerous part is still ahead of you.”  Eric’s quote really struck me and I couldn’t help but think of the parallels his words had with retirement planning and how we, as advisers, help serve clients.  Let me explain.   

Most of us will work 40+ years, save diligently, and hopefully invest wisely with the guidance of a trusted professional with the goal of retiring and happily living out the ‘golden years.'  It can be an exhilarating feeling – getting towards the end of your career, knowing that you’ve accumulated sufficient assets to achieve the goals you’ve set forth for you and your family. However, we can’t forget that the climb is only half way done. We have to continue working together and develop a quality plan to help you on your climb down the mountain as well! When do I take Social Security? Which pension option should I elect? How do I navigate Medicare? Which accounts do I draw from to get me the money I need to live on in the most tax-efficient manner? Even though you’ve reached the peak of the mountain – aka retirement, we have to recognize that the work is far from over. There are still monumental financial decisions that need to be made during the years you aren’t working that most of us simply can’t afford to get wrong. 

As with those who climb Mount Everest, many financial plans that are in good shape when entering retirement can easily be derailed on the descent or when funds start to be withdrawn from your portfolio – aka the “decumulation” phase of retirement planning. A quality financial and investment strategy doesn’t end upon retirement – this is the time when proper planning becomes even more critical.  Email me if I can help you on the climb – both on the way up and on the way down the mountain.  Learn more about our process here.

Nick Defenthaler, CFP® is a CERTIFIED FINANCIAL PLANNER™ at Center for Financial Planning, Inc.® Nick works closely with Center clients and is also the Director of The Center’s Financial Planning Department. He is also a frequent contributor to the firm’s blogs and educational webinars.

---

Any opinions are those of Nick Defenthaler, and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice. Any information provided has been prepared from sources believed to be reliable, but is not guaranteed by Raymond James Financial Services and is not a complete summary or statement of all available data necessary for making an investment decision. Any information provided is for informational purposes only and does not constitute a recommendation. Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website's users and/or members. Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNERTM and CFP® in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.

Is there a loss when a municipal bond purchased at a premium matures at par value?

Contributed by: Center Investment Department

Investors often erroneously believe that they will lose money when purchasing a bond at a premium and allow it to mature at a lower par value.  In order to understand why this is not the case we should step back and explain some bond basics.

Coupon and Par Value explained

Bonds pay interest to you, the investor. A coupon is simply the amount of money that you receive at each interest payment (typically every six months). Par value, or the issuer’s price of a bond, is typically $1000. If a bond has a 5% coupon, then you receive 5% of $1000 every year; or $25 every 6 months.  The price you pay is often expressed as a percent of par value.  So if it is selling at $103 you are paying 103% of the par value, or $1,030. (1,000*1.03).

Why would you pay a premium?

When you buy a municipal bond at a premium price (or more than the $1,000 par value), you may be doing so because you are getting a higher coupon rate.  For example, let’s say the going market interest rate for a par value bond you are looking at is 3%.  If you found a bond that is paying a coupon of 4% with the same maturity you may think, “Jackpot!”  However, in order to buy this bond you are going to have to pay more than the $1,000 par value for the 3% bond. To better understand this we use the measure of yield to maturity (the rate at which the sum of all future cash flows from the bond is equal to the current price of the bond).  Ultimately, the yield to maturity should be very similar between the two bonds, you will just get more current income from the premium bond as it has a higher coupon, but you pay a higher price to get it.  Unfortunately, you don’t get to write off this “loss” when the bond matures and only pays you back the $1,000 par value.  The premium of this bond is amortized down each year and is being returned to you in the form of the higher coupon rate.  See the example below.

Once the bond finally matures, you have amortized out all of the premium over the life of owning the bond and your cost basis would ultimately be the par value now.  Fortunately, you don’t have to worry about calculating this yourself.  IRS guidelines require your custodian to calculate and report this on your yearly 1099 Form.

The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Tim Wyman and not necessarily those of Raymond James. Bond prices and yields are subject to change based upon market conditions and availability. If bonds are sold prior to maturity, you may receive more or less than your initial investment. There is an inverse relationship between interest rate movements and fixed income prices. Generally, when interest rates rise, fixed income prices fall and when interest rates fall, fixed income prices rise. Investments mentioned may not be suitable for all investors. Investing involves risk and investors may incur a profit or a loss. Please include if clients are able to click on the link: Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website's users and/or members.

Sustainable Investments and Your Portfolio

Contributed by: Laurie Renchik, CFP®, MBA

Planning for a sustainable retirement is one that will financially support you for a lifetime. The financial planning process is dynamic as life unfolds and is subject to new information and changing circumstances along the way. 

One of the changes I see happening today is that a growing number of retirement savers are thinking more seriously about how a sustainable investment strategy fits into their overall investment plan. 

In tandem, the sustainable investment landscape is also evolving and growing.  Once a niche market, sustainable investing is becoming mainstream moving from a limited universe of investments focused on screening objectionable exposures to a range of solutions to achieve sustainable outcomes.  In fact, US investments focused on sustainable objectives grew 135% in the four year period from 2012 through 2016.**  With this volume of growth comes opportunity.  Demographic shifts, government policies and corporate views on environmental and social risk are the primary forces driving growth and change today.

For example, sustainable investing today includes Exclusionary Screens, ESG factors and Impact Targets.  Exclusionary screens avoid exposure to companies who operate in controversial sectors such as fossil fuels, tobacco or weapons.  ESG Factors invest in companies whose practices rank highly by Environmental, Social, and Governance (ESG) performance standards.  Impact Targets invest in companies whose products and solutions target measurable social or environmental impact.

If your goal is to create a sustainable retirement and in tandem allocate a portion of your investments to supporting a sustainable global future we can help. 

Our top priority is to create the best plan coupled with the best investment portfolio for you.  If that means taking sustainable investment preferences into consideration we have the resources and solutions available to build on traditional portfolio analytics to understand your current exposures and relevant sustainability factors.  We can set targets to improve the sustainability of your portfolio based on your personal objectives and measure performance data over time.

Contact us today to learn more!  Sustainable investing can drive positive social or environmental impact alongside financial results, allowing investors to accomplish more with their money.  Opportunity awaits.

Laurie Renchik, CFP®, MBA is a Partner and Senior Financial Planner at Center for Financial Planning, Inc.® In addition to working with women who are in the midst of a transition (career change, receiving an inheritance, losing a life partner, divorce or remarriage), Laurie works with clients who are planning for retirement. Laurie is a member of the Leadership Oakland Alumni Association and is a frequent contributor to Money Centered.

---

**Year over year growth in sustainable assets in the U.S. 2012 to 2016. Source: Global Sustainable Investment Alliance. Views expressed are not necessarily those of Raymond James Financial Services and are subject to change without notice. Information contained herein was received from sources believed to be reliable, but accuracy is not guaranteed. Information provided is general in nature, and is not a complete statement of all information necessary for making an investment decision. Past performance is not indicative of future results. There is no assurance these trends will continue or that forecasts mentioned will occur.  Investing always involves risk and you may incur a profit or loss. No investment strategy can guarantee success.

Webinar in Review Blog: Staying Safe with Best Practices

Contributed by: James Brown

In today’s technology environment, information is just a click away. Sadly, bad guys looking for your information are just a click away also. Good security practices can protect you from becoming prey while you are on the Web.

The Center for Financial Planning, Inc.® offers some best practices on how to protect your accounts and your information.

Basic Security Hygiene: (Minute 1:15)

• Prevention

• Updates

• Firewalls

• Safe Browsing

Mobile\Wireless Security: (Minute 6:50)

• Limit your transactions

• Make sure the network is the right network

• ·Turn off what you are not using

Passwords: (Minute 11:10)

• Bad Practices

• Good Practices

Final Solution: (Minute 25:00)

• Your Backup Plan

• Backup best Practices

James Brown is an IT Manager at Center for Financial Planning, Inc.®

Can You Have a Purposeful Retirement?

Contributed by: Sandra Adams, CFP®

It is quite often we find ourselves as financial planners delivering the good news to clients that their financial plans are on solid footing and their retirement goals are on track, only to hear from the client that they still don’t feel that they are “ready” to retire.  These clients, while financially prepared, express that they don’t feel they have put enough planning into the practical side of retirement – what will we do every day that will give our lives meaning, purpose and joy?

A book I found recently gives guidance for clients struggling to design the next phase of their lives. Hyrum Smith, the author of Purposeful Retirement: How to Bring Happiness and Meaning to Your Retirement, provides tips, tools, and stories based on his journey through this very process.  In his words, “The rest of your life can be the best of your life” if you have the right attitude, embrace this stage, and bring enthusiasm to the process.  He finds that folks entering this phase are in one of two camps – those who can’t wait and those who will need to be dragged into it kicking and screaming.  It is important to identify which camp you are in and check your attitude at the door.

Takeaways from “Purposeful Retirement”:

• Being proactive is the key to transitioning well into retirement. If you simply let yourself drift into retirement, you can become lost without the purpose or structure that your work life provided.

• Take charge of planning your next phase by defining your mission, your purpose and core values which will help direct how you spend your time in retirement.

• The book offers options for how to take your purpose and translate it into action on a weekly and daily basis.

• Fear or losing your identity or role is a key fear for many entering retirements. For those folks, asking, “How will I make a difference?” will help fill that gap.

• For many, retirement is not a solo endeavor (we do it with our spouse). The book offers lessons on how to retire well as a couple and make adjustments that may need to be discussed and made to make retirement successful for both of you.

• Just because you are entering into the last phase of your life doesn’t mean you are dead yet! This can be your most successful, joyful, fulfilling phase of your life – if you are intentional and embrace it with enthusiasm.

Financially planning for your retirement is just the first step in the process.  Emotionally and psychologically planning for the last phase of your life may be the more challenging part for some – especially if you don’t want to coast to the end.  “Purposeful Retirement” may be a good place to start, and/or or have a conversation with your financial planner about other ways to help you plan your NEXT best phase of life.  We are always here to help!

Sandra Adams, CFP® is a Partner and Financial Planner at Center for Financial Planning, Inc.® Sandy specializes in Elder Care Financial Planning and is a frequent speaker on related topics. In addition to her frequent contributions to Money Centered, she is regularly quoted in national media publications such as The Wall Street Journal, Research Magazine and Journal of Financial Planning.

Under the Hood: Investment Allocation for 529 Savings Plans

Contributed by: Matthew E. Chope, CFP®

As many parents and grandparents know, 529 plans can be a wonderful strategy for families to help build college tuition savings for their children.  Not only do the plans benefit students, but they also carry advantages for the account creators or donors. The student can potentially enjoy tax-deferred growth with federally tax-free distributions if used for qualified educational expenses. Advantages to the donor include complete control of the account, high contribution limits, and no age restrictions or income limitations to inhibit investing.  It’s no surprise that 529 savings plans have become popular savings vehicles.

Have you ever wondered how 529 college savings plans are invested to meet time-sensitive tuition expenses? 

Age-based investment funds make this challenge easily manageable.  The graph below shows the glide path of equity allocations for 529 savings plans at various ages of the beneficiary from 2010 to 2013.

• Generally, 80% of the portfolio is invested in equities at age 0 and reduces to 10% by the time the beneficiary is enrolled in college.

• Since 2010, plan investment managers have become more conservative in the beginning (age 0) and end (age 19) stages of plans.

• Investment managers have become 6-7% more equity aggressive during ages 5-15 to meet tuition goals.

To meet tuition needs within 18 years, the graph reveals that investment managers are becoming more aggressive during the middle of a student’s investment time horizon, but they are also growing more cautious about preserving money closer to the end of the student’s investment time frame.  Interestingly, the graph also reveals that investment managers still rely on bonds as one of the safest places to preserve money (90% of the portfolio by age 19), despite the negative reputation bonds have received in our current rising rate environment. 

The glide path is designed to allow for an outcome with minimal surprises to all investors, no matter the economic environment when it’s time for college.  Some cycles will end on a poor note with markets crashing, while in other times markets will be soaring as students begin to tap the funds.  Ultimately, the guide path is designed to gradually reduce investors’ risk and exposure to market disruptions in the final years of saving, when investors are closest to needing the money they’ve worked so hard to save.  

Investors should carefully consider the investment objectives, risks, charges and expenses associated with 529 plans before investing. This and other information about 529 plans is available in the issuer's official statement and should be read carefully before investing. Investors should consult a tax advisor about any state tax consequences of an investment in a 529 plan.

As with other investments, there are generally fees and expenses associated with participation in a 529 plan. There is also a risk that these plans may lose money or not perform well enough to cover college costs as anticipated. Most states offer their own 529 programs, which may provide advantages and benefits exclusively for their residents. The tax implications can vary significantly from state to state.

Matthew E. Chope, CFP ® is a Partner and Financial Planner at Center for Financial Planning, Inc.® Matt has been quoted in various investment professional newspapers and magazines. He is active in the community and his profession and helps local corporations and nonprofits in the areas of strategic planning and money and business management decisions.

---

The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of the author and are not necessarily those of Raymond James.

Fun Money Lessons over Summer Vacation

Contributed by: Robert Ingram

Now that summer is officially here and the kids are out of school, a lot of our attention may be on cookouts, camping, days at the beach, or fun on the water.  Yet, summer vacation can also provide great opportunities for teaching children and grandchildren lessons about money and good financial habits that can grow with them.  

Here are some ideas to get the kids learning about money while enjoying the summer fun:

Make It a Game

Playing games is certainly a fun way for kids (and many adults) to entertain themselves during the summer months. It can also help develop counting and math skills and introduces many money management concepts around earning, spending and saving.  There are so many kinds of games in all different formats.

• Technology is a big part of our daily lives. Children are growing up immersed in the world of smartphones, tablets and computers. The good news is that kids allotted time on those can be spent doing online games focused on building money skills. For example, the website practicalmoneyskills.com offers games for different age groups:

  • Peter Pig’s Money Counter for younger elementary school children

  • Sports-themed Financial Football and Financial Soccer for ages 11 and above

• In the wide universe of smartphone apps, there are thousands of games available. By searching your app store under educational categories, financial, or money games, you can find some hidden gems. A couple of examples recognized by Parents Choice Awards and financial literacy organizations include:

  • Marble Math and Savings Spree for elementary school age children

  • Farm Blitz for pre-teens to young adults

• Although these might seem “low tech,” you can’t forget about the old-fashioned family board games. These include classics like Monopoly, Monopoly Jr, Pay Day, and the Game of Life, or other unique games like Allowance or Acquire. Board games introduce kids of all ages to different financial choices from managing income and spending to making investment decisions. And who doesn’t love a good family game night once in a while?!

Getting the Kids Involved in Decision-Making

• The piggy bank has always been a great way to introduce younger children to the lesson of saving and seeing how small regular contributions can really add up. Finding one that lets kids see what’s inside, helps them understand their progress along the way and keeps them interested. To delve even further, some piggy banks have different slots where kids are able to save their pennies for different purposes. The Money Savvy Pig, for example, has four sections that allow kids to set aside amounts for saving, spending, donating, and investing.

• Family vacation or outings this summer? Get the kids involved in the planning. What activities might you do? What treats or souvenirs could they want? Set some budget guidelines for these categories and have them help you prioritize and decide how you’ll spend the money. Do the kids want to expand the budget? This can be an opportunity for them to set goals of saving some of their allowance, summer job income, or even spare change to use toward those extra budget items.

• Back-to-school shopping can be another great learning opportunity, especially for pre-teens and the teenagers. Rather than scrambling in late August only to see the stack of credit card bills in September, help the kids put together a shopping plan they can own. Work with them on setting up a reasonable budget and making their lists. They can start prioritizing their “needs” vs. “wants” and then figuring out how they can best use their budget. This also gives kids the chance to learn to compare brands, research the best deals, and even find special discounts.

Ideas for the Summer Reading List

For kids that plan to spend some time on their summer break kicking back with a good book, they can add a few titles to their reading list.  There are a ton of great books out there on the subject of money and personal finance. 

A few come to mind that are relatively easy reads and have valuable insights for students and adults alike: 

• “Learn to Earn” by famed mutual fund manager Peter Lynch is aimed particularly at young adults, providing concepts in the basics of investing, the stock market, and business in general. One of Peter Lynch’s investing principles over the years has been “buy what you know,” meaning that many investment ideas can begin with products, services, and brands you know and use. Kids may be able to apply this to things in their own everyday life today such as:

  • What is the latest game they enjoy or what app are they and all of their friends using?

  • They can begin to learn about the companies behind them.

• Two other titles, “The Wealthy Barber” by David Chilton and “The Millionaire Next Door” by Thomas Stanley and William Danko, have also been around for over 20 years now and are still just as relevant today. Both of these books have several lessons about developing simple habits in spending, saving, managing debt and investing. Common themes in each book are:

  • Achieving financial confidence and independence is a process done over time.

  • The concept of wealthy may not fit the image we often have in our head.

Robert Ingram is a Financial Planner at Center for Financial Planning, Inc.®

---

Views expressed are not necessarily those of Raymond James Financial Services and are subject to change without notice. Information contained herein was received from sources believed to be reliable, but accuracy is not guaranteed. Information provided is general in nature. The website link included and apps mentioned are provided for information purposes only.  Raymond James is not affiliated with and does not endorse, authorize or sponsor any third-party web site, app or their respective sponsors.  Raymond James is not responsible for the content of any web site, app, or the collection or use of information regarding any web site's users and/or members. Raymond James Financial Services, Inc. is not affiliated with the above independent organizations.

5 Estate Planning Action Steps to Stay in Control of Your Future

Contributed by: Sandra Adams, CFP®

I recently attended a 2-day training in Elder Mediation.  Coming from a world in which we work with our clients on a regular basis to make sure estate planning documents are in place and up-to-date, I was alarmed to learn that less than 45% of the U.S. adult population has an active will or durable powers of attorney in place (2017 Caring.com Study). Unfortunately, when these documents are not in place, and the adult (at any age) becomes unable to make decisions for themselves, the court must appoint someone...and families aren’t always in agreement.

According to a 2013 AARP report, there was an estimated 1.5 million older adults with court-appointed guardians; record keeping in many constituencies is not accurate nor complete.  A guardian is appointed to make medical and care decisions for someone who is unable to make decisions for themselves; a conservator is appointed to make financial decisions and handle financial affairs for someone who is unable to handle those duties on their own behalf.  And if the family disagrees about who should be appointed to any/either of these roles, they can voluntarily seek mediation to resolve their differences or the court may order mediation.  In many cases, a family member is ultimately appointed to these roles, but in some cases a third party is appointed to serve in these roles as ordered by the court, leaving the fate of the older adult in the hands of someone who doesn’t know them or their wishes well.

Doing the work now to get documents and plans in place can save you and your family unnecessary stress and anxiety in the future, and can help to make sure that the wishes you have for yourself and your future are carried out even if you are no longer the director of those decisions. 

What action steps can you take now to make sure you maintain ultimate control over what happens to you if/when you can no longer make decisions for yourself?

To ensure that you have the ability to name who you wish to make decisions for you when it is time, I recommend taking the following steps:

1. Make sure you have up-to-date estate planning documents and review them often.  The most important documents to have in place during your lifetime are Durable Powers of Attorney — General/Financial AND Health Care (also known as a Patient Advocate Designation).  Additionally, you may want/need to have a Revocable Living Trust and a Will.

2. Consider drafting your Durable Power of Attorney documents as “Immediate” rather than “Springing”.  Immediate Powers of Attorney allow your advocate to act on your behalf immediately or at any time that you need them to, while a Springing Power of Attorney generally requires two doctors to declare you incompetent to make your own decisions before your advocate can act on your behalf.

3. Be clear and specific about your wishes for your future medical care, personal care and handling of your financial affairs.  Put things in writing and communicate your wishes to your family members and/or key people in your life.  Consider a family meeting to discuss your future wishes and ensure that everyone is on the same page.

4. Plan ahead.  It is never possible to plan for every contingency, but if you are able to plan for things that might happen (chronic health issues, incapacity, etc.), you and your finances can have a better chance of surviving.  Document your plans and communicate them to those that may be in charge of handling your affairs in the future if/when you cannot.

5. Put a team in place before it becomes necessary.  Make sure your financial planner, CPA, Attorney, any healthcare professionals and your family know your plan and your wishes and know one another so that they can carry out your plan when you might not be able to give clear directions.

If you or your family have questions or would like guidance on how to get these plans in place, please do not hesitate to reach out.  We are always here to help!

Sandra Adams, CFP® is a Partner and Financial Planner at Center for Financial Planning, Inc.® Sandy specializes in Elder Care Financial Planning and is a frequent speaker on related topics. In addition to her frequent contributions to Money Centered, she is regularly quoted in national media publications such as The Wall Street Journal, Research Magazine and Journal of Financial Planning.

---

The information contained in this blog does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Sandra Adams and not necessarily those of Raymond James. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.

WEBINAR IN REVIEW: SAFE, or Success After Financial Exploitation

Contributed by: Emily Moore

SAFE is a program created by Dr. Peter Lichtenberg, Ph.D., which is being run by LaToya Hall, MSW, of Wayne State University’s Institute of Gerontology.  SAFE was developed to educate seniors on how to protect themselves from fraud and scams, AND how to pick up the pieces after financial exploitation.

During our recent webinar with LaToya, we learned the basics about financial exploitation targeted to seniors: 

1. What to look for.

2. How to protect yourself and your loved ones.

3. What you can do if you have ever been a victim.

The main goals of SAFE:

1. Free education offered to seniors through presentations.

2. Helping seniors take control of their financial health through an educational four-part financial series.

3. Provide one-on-one services to older adults who have been a victim of scams, helping them to get back on their feet.

Key points to take away from the webinar are some common scams and what criminals specifically look for in targeting older adults. 

Criminals look for seniors because they tend to be more vulnerable. They look for people who are typically lonely and socially isolated. They’re also looking for people who have a regular income (such as receiving Social Security), and older adults who are typically more trusting and polite.

Many of the common scams are successful because they represent organizations considered to be legitimate:  Social Security, Medicare and the IRS. A lot of these are done over the phone or by e-mail. It’s important to remember never to give any information over the phone to an incoming caller or respond to an e-mail requesting your personal information.

Another phone scam is called spoofing, where a person calls the senior but looks like they are calling from another number deemed safe (caller ID might identify them as person’s doctor, bank, etc.), so always make sure to double check on a statement. The safest most effective thing to do is to hang up and call the number you have in your records.

These are only a few of the many scams and tactics LaToya goes over in the “Success after Financial Exploitation (SAFE)” Webinar. To learn more and get information along with the free SAFE services listed above, contact LaToya Hall, SAFE Program Coordinator, at L.hall@wayne.edu or 313-664-2608.

Emily Moore is a Client Service Administrator at Center for Financial Planning, Inc.®

---

Raymond James is not affiliated with and does not endorse the opinions or services of SAFE, LaToya Hall, or Dr. Peter Lichtenberg.