New Legislation is Hoping to Help Caregivers

Contributed by: Sandra Adams, CFP®

Being a caregiver for a family member presents real-world challenges from an emotional and financial perspective.  The National Alliance for Caregiving reports that there are over 40 million Americans acting as family caregivers providing over 37 billion hours of unpaid assistance to loved ones.  As I wrote in a previous blog “Family Caregiving — The REAL Long Term Costs”, family caregiving can take a toll on caregivers’ health and future retirement goals if the right plans and tools are not utilized.

Recent legislation is attempting to help the millions of Americans serving as caregivers:

RAISE Family Caregivers Act

In early 2018 the president signed into law the Recognize, Assist, Include, Support and Engage Family Caregivers Act.  The act directs the Department of Health and Human Services to create an advisory council charged with making recommendations on the strategy to support family caregivers.  The strategy, which must be developed within 18 months, will address financial and workplace issues, respite care and other ways to support caregivers.

Employer Tax Credit for Paid Family Medical Leave

A little publicized addition in the recent Tax Cuts and Jobs Act of 2017 that took effect on January 1st, 2018, was the Employer Tax Cut Credit for Paid Family Medical Leave Time.  Under the Family & Medical Leave Act (FMLA), employers must provide certain employees with the option for up to 12 weeks of unpaid, job-protected leave per year (and must maintain group health benefits during the leave).  To incentivize employers to further support FMLA, the recent Tax Act provides employers with a business credit equal to 12.5% of wages paid to employees during leave (as long as the employee is paid at least 50% of their normal wages) and the credit phases in as much as 25% of wages if the employer provides 100% of continuing wages (up to the 12 week maximum).

Employers and the government are recognizing the deep impact of family caregiving on the financial futures of caregivers and are beginning to offer some support.  How significant the results of these recent legislative changes will be remains to be seen.  We will continue to keep you updated.  In the meantime, if you are a caregiver and need additional resources, information, or need assistance in designing strategies for yourself or for your loved one, please give us a call.  We are always happy to help!

The information provided does not purport to be a complete description of the developments referred to in this material, it has been obtained from sources deemed to be reliable but its accuracy and completeness cannot be guaranteed. Neither Raymond James Financial Services nor any Raymond James Financial Advisor renders advice on tax issues, these matters should be discussed with the appropriate professional.

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.

Webinar in Review: Carepartners Passage Through Dementia

Contributed by: Sandra Adams, CFP®

More and more of our clients and families are being impacted by dementia.  What is it and how does it impact those diagnosed and those who are caring for them?

Dementia is a general term for a decline in mental ability severe enough to interfere with daily life. While it is believed there are over 50 different types of dementia, Alzheimer’s disease is the most prevalent type, with more than 5 million people currently living with this specific type.  1 in 9 seniors has Alzheimer’s disease, but half don’t know it.  There are currently medications available to slow the progression of dementia, but there is no cure.

Most individuals with dementia are being cared for by family caregivers.  Having knowledge about the signs and progression of different types of dementia can be extremely helpful to both the person with the disease and the caregiver.  Planning ahead to make sure that the appropriate legal and care plans are in place in advance can relieve a tremendous amount of stress from everyone involved.

Realizing that the person with dementia is still the same person, just with a disease, is essential.

Dr. Paula Duren shared with us the 5 Foundational Care Concepts for Caregivers of individuals with dementia:

1. Everyone has basic human needs

2. You are the one with the healthy brain

3. Be a good detective

4. They may not remember your words but they will remember your spirit/energy

5. Know that every behavior is an effort to communicate

Dr. Duren of Universal Dementia Caregivers also teaches care strategies for caregivers about how to work effectively with those they are caring for.  She also works with caregivers to care for themselves.  After all, if caregivers are not healthy and strong, they cannot care for their loved ones with dementia fully. 

Listen to the replay of our webinar “Carepartners Passage Through Dementia” for additional tips and information AND watch for information about our May workshop for caregivers being facilitated by Dr. Duren.

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.

This information has been obtained from sources deemed to be reliable but its accuracy and completeness cannot be guaranteed. Raymond James is not affiliated with Dr. Paula Duren.

How Do You Want to Be Remembered?

Contributed by: Sandra Adams, CFP®

On a recent flight, I took the opportunity to browse the movie selection and found a film I had never heard before, but that peaked my interest.  “The Last Word” with Shirley MacLaine, while not the greatest movie from the view of a film critic, was on point with some lessons about how we live our lives and how we want to be remembered once we are gone.  Having been touched with a handful of recent deaths in my personal and professional life, this touched a nerve with me.

The movie “The Last Word” tells the story of a woman facing the end of her life.  As someone who has always felt the need for control and brutal honesty, she finds herself wanting to craft her own obituary.  Realizing that the keys to any great obituary are: the person is deeply loved by their families (she is divorced with a non-existent relationship with her only daughter), the person is respected by co-workers (she realizes she alienated many of the people she worked with by the way she treated them in her working life), and the person has somehow touched an unexpected person in a profound way (something she has never done).  With her time running out, she sets out to find a way to “fix” what has gone wrong in the past and make her life worthy of a great obituary.  On her journey to improve her life in the memory of others, she reminds us to make a difference in people’s lives, to make every day count, and to take risks.  After all, she says, “When you fail, you learn.  When you fail, you live.”

Many of us are so busy doing the day-to-day things that we need to do that we never really consider what we are doing with our lives or what impact we want to have on others during the course of our lives.  Working with clients on their path to, through and after retirement, we have conversations about making sure that financial goals are tied to things that make their life most fulfilling and meaningful — it’s not just about the money.  As my partner Matt Chope, CFP© likes to say, “We try to help clients make the most out of the one life they have to live.” 

When you look back on your life, what do you want to be remembered for?  What impact do you want to have on the world?  On others?  Are you being intentional about living that life?  If not, start now.  And work with your financial planner to make sure those life goals are incorporated into your overall plan.

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.

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Any opinions are those of Sandra Adams and not necessarily those of Raymond James.

Why it’s Time to Start Asking More Questions

Contributed by: Sandra Adams, CFP®

I recently took a week-long family trip with my husband and son (a senior in high school).  This was a rare occasion for the three of us to spend some time together and communicate — away from the TVs, devices and to actually get my son out of his room and away from his Xbox. Getting information out of teenagers — especially boys — about what is going on in their lives is like “getting blood out of a turnip” as they say. 

As with many of our family members, friends and co-workers that we may have difficulty communicating with, rather than become frustrated that we are not getting the information we are looking for, or find that we are “stuck” trying to help or plan for someone that is not helping in the process, we took a different path on our trip.  We decided that I would try to open the door by asking some open ended questions...and then try being quiet.  We just listened and gave space.  It took several days into our trip for our son to start opening up, but once he started, the results were amazing — he talked to us about things that he had never spoken about, asked our advice about some things that were going on at school, and began taking part in “adult” conversations right before our eyes.

Such conversations can and need to take place in many circumstances in our lives.  Whether it be our aging parents that we are beginning to assist, and we aren’t sure of their future desires for their own aging futures; our children as they transition into adulthood; or conversations with ourselves as we determine our next steps in life (transitioning into retirement, transitioning into a new career, figuring out what life looks like after divorce or the death of a spouse).  All of these conversations start with asking the right questions...and then listening...to others or ourselves.  Spending time on this process is important and does not happen overnight, but the results can be life changing.

Start the New Year by committing to start asking questions of those people you want to communicate more clearly with, or about those situations you want to move forward on.  If you are not sure what questions you need to be asking or how to start this process, please feel free to reach out for our 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.

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Any opinions are those of Sandra Adams, CFP®, and not necessarily those of Raymond James.

Sandy’s Spring Teaching at Schoolcraft College

Contributed by: Sandra Adams, CFP®

I am excited to let you know that for a second semester am going to be teaching courses for Schoolcraft College as part of the Continuing Education and Professional Development Program.  As always, the opportunity to share my knowledge and passion in the areas of financial planning and gerontology is exciting for me. 

The classes I will be teaching again, in April are:

Serving as a Financial Fiduciary: 
April 2nd, 2018, from 6-9pm

Being responsible for someone else’s finances can be a huge weight to carry. Learn what it means to serve in the role of a financial fiduciary — persons required to always act in the best financial interest of those they are serving.  Learn where to find guidance and resources, avoid scams, and how to establish sound, long-term planning.

Long Life Planning:
Mondays for three weeks starting April 9th, 2018, from 6-8pm

Go beyond traditional retirement planning and tackle topics such as long-term care planning, difficult conversations with family, aging, and end-of-life planning.  Discuss resources, downsizing, housing and care options, legal and financial guidance and more.  Plan now for your later long life.

If you or someone you know might be interested in attending one of these or other courses offered by the Schoolcraft Continuing Education and Professional Development program, find more information here:  www.schoolcraft.edu/cepd

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.

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Raymond James is not affiliated with Schoolcraft College. 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.

Tax Reform Series: Changes to Medical Deductions

Contributed by: Sandra Adams, CFP®

The Tax Cuts and Jobs Act (TCJA) is now officially law. We at The Center have written a series of blogs addressing some of the most notable changes resulting from this new legislation. Our goal is to be a resource to help you understand these changes and interpret how they may affect your own financial and tax planning efforts.

With most of the focus on new tax rates after tax reform was recently given the green light, it is easy to forget that some of the biggest changes don’t have anything to do with tax rate — they are about deductions.  In 2018, the standard deductions will increase, (reference MT’s blog on changes to standard deductions) and many limitations will be put in place for those who typically itemize deductions (historically only about 30% of Americans according to available IRS data).  Here we will focus on Changes to Medical Deductions and provide general information on how they work.

One of the more controversial a proposed limitations on itemized deductions during the tax reform debates was the potential repeal of medical expense deductions.  According to the IRS, nearly three-quarters of tax filers who have claimed the medical expense deduction are age 50 or older and live with chronic conditions or illnesses, and seventy percent of filers who claimed this deduction have incomes below $75,000.  The final tax bill DID NOT eliminate the medical expense deduction; in fact, the deduction was temporarily expanded.  Under the final Tax Cuts and Jobs Act, the 10% of AGI threshold for medical deductions is reduced to just 7.5% of AGI both retroactively for the 2017 tax year and for the 2018 tax year (the threshold will return back to the 10% of AGI threshold for tax year 2019 and beyond).

How do Medical and Dental Expense Itemized Deductions Work?

For 2017 and 2018 tax years, any amount of Medical and Dental Expenses (see IRS Publication 502 for a list of items that qualify for the medical/dental expense deduction) above an individual’s 7.5% of AGI “floor” are deductible.  For example, if your AGI is $40,000 and your medical expenses were $5,000 (assuming you itemized), you could claim $2,000 as a deduction [$5,000 in expenses less the floor (7.5% x $40,000 = $3,000)].  Note that you are not allowed to deduct expenses that were paid with pretax dollars or reimbursed by an insurance company.

Your ability to use itemized deductions versus the standard deduction in future years will likely depend not only on the amount of medical expenses you have to deduct, but those expenses in combination with other possible deductions that will have significant changes in 2018 and beyond.  For changes to additional itemized deductions, please see our additional posts to get more information, and please consult your professional planning team, including your financial planner and your tax advisor, as you develop for forward looking tax strategy.

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.

Check out our other Tax Reform articles:

Changes to Federal Income Tax Brackets

Changes to Standard Deduction, Personal Exemption, Misc. Deductions, and the Child Credit

Changes to Investments and the Financial Market

Changes to State and Local Tax Deduction

Changes to Mortgage Interest Deduction (including Home Equity Loans and LOC Implications)

Changes to Estate Tax Planning in 2018 and Beyond

Changes to Charitable Giving and Deductions

Changes to Business & Corporate Tax, and Pass-Through Entities

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This information has been obtained from sources deemed to be reliable but its accuracy and completeness cannot be guaranteed. Neither Raymond James Financial Services nor any Raymond James Financial Advisor renders advice on tax issues, these matters should be discussed with the appropriate professional.

Is it Time to Re-Imagine Your Retirement?

Contributed by: Sandra Adams, CFP®

You are sitting with your financial planner discussing the cash flow projections for your upcoming retirement at the beginning of 2019.  You seem to have everything in place — you and your spouse are maximizing your retirement contributions at work and you are able to save additional funds into an HSA, as well as into individual IRAs and a sizable amount into your after tax investment account.  You have already been trying to live on one of your salaries — simulating what you expect to spend in retirement — and things are running smoothly.  Your estate planning is up-to-date and you have recently been approved for Long Term Care Insurance.  All of the technical aspects of your upcoming retirement seem to be in place.  There is nothing more to do except work your final year and get ready to “hang up the spurs”.  Right?

It just so happens that there might be a little bit more to preparing for retirement that the “technical” side of the planning. The transition you are about to embark on is one that will take some planning from a personal standpoint.  You won’t just wake up the first day of your retirement and know what to do.  In fact, many clients feel somewhat lost at first. 

We recommend intentionally giving some thought, or re-imagining, what you want your retirement to look like:

• Give some real time and attention developing a “Bliss List,” or list of goals, dreams and desires that you would like to achieve in your retirement years will get you started. Once you have your list, you may need to build out some specifics: when, how much time, how much money, other resources and people that need to be involved.

• Some of the things on your list may require you to start NOW to put in some practice, lay some groundwork, or make some connections so that you can hit the ground running when retirement day arrives. (i.e. hobbies, volunteer work, a new charitable business venture).

• Coordinate your list with your spouse to make sure your list is feasible (from a time and money standpoint) and that it works for both of you. You want to make sure you have room for both your individual goals and your joint goals to make things work for your dream retirement.

The transition into retirement can be a bumpy one if you haven’t planned well both on the technical side AND on the personal side. The Center planners are trained to help you with both sides of this planning, and have the tools and resources available to assist you. If you are approaching retirement and find that you need assistance with either the technical or the personal side of retirement (or both), don’t hesitate to give us a call.  We are 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.

Nine Represent Center at Raymond James Conference

The Center proudly led two separate Top Advisor Sessions at the recent Raymond James National Conference.  Matt Chope and Tim Wyman (pictured left) led a discussion about growing your business.  Dan Boyce and Melissa Joy presented "Finding, Developing, & Implementing Junior Partners."  Over 100 peers attended each session.  

With the destination of Orlando, Florida, nine team members flew south to attend the National Conference May 21st through the 25th.  The four-day event welcomed over 3,400 participants from across the nation.  The conference fosters both professional and personal development through a variety of learning sessions which are presented by both peer advisors and specialized industry experts.  

A powerful benefit of attending conferences like this is the opportunity to hear ideas from others.  Center team members get to know people over the years and learn what new ideas and innovations are working for peers.

One area of growth highlighted at this year’s national conference was technology. Raymond James and the Center for Financial Planning are making major investments in cutting edge technology that will work to the advantage of both the advising teams and Center clients.

Members of our Center team in attendance included:  Sandy Adams, Dan Boyce, Matt Chope, Marilyn Gunther, Jen Hackmann, Melissa Joy, Laurie Renchik, Tim Wyman and Troy Wyman.

3 Center Planners Recognized by Hour Detroit Magazine

Center team members Sandra Adams CFP®, Matthew Chope CFP® and Timothy Wyman CFP®, JD received recognition by Five Star Professional in the June 2012 issue of Hour Detroit magazine.  They were named to the 2012 Five Star Wealth Managers list, a select group of wealth managers in the Detroit area.  Congratulations – Sandy, Matt, and Tim.

Sandy Adams Quoted in Wall Street Journal

A Written Plan Can Help Your Portfolio
Foundations and other big investors have investment-policy statements. Some pros say you should, too.

May 30, 2012
By Thomas Coyle

Write it down.

That's the message increasing numbers of investors and advisers are hearing. And when they actually follow through, they reap the rewards.  

For all kinds of investors, creating a written investment-policy statement—and sticking to it—can be a good way to produce steadier returns in volatile times. It instills discipline. It can clarify strategies. For investors with advisers, it can define what both parties expect from the relationship right from the start.

Sandra Adams is a lead financial planner with the Center for Financial Planning in Southfield, Mich., a firm with more than $700 million under management. In the four or five years since that firm's advisers started using investment-policy statements, she and her colleagues have noticed that it can help the children of clients who have become incapacitated understand that their parents' assets are being managed with their best long-term interests in mind.

Many times, the children have had no previous contact with the firm, Ms. Adams says, so seeing the statement "can bring families up to speed on how we're working for their parents in a way that creates a lot of trust."

Click here for the entire article