November 2, 2018
Not long ago, I was invited to speak—virtually—to an audience that you wouldn’t normally think of when you think about aging: young professionals. And yet this group, just beginning the arc of their careers, turns out to be incredibly thoughtful and curious about what awaits them at the end of their careers, as well as how they can plan now for supporting their aging parents. We shouldn’t be surprised: Millennial caregivers now make up 25% of unpaid family caregivers—or about 10 million nationwide. But those employing and managing Millennials in the workplace may be startled by just how deeply their young charges are already thinking about planning ahead. And their questions, below, may offer as much insight as my answers. Read More.....
August 16, 2018
By Kimberly Lankford, Contributing Editor |
“Most people need to start taking these required minimum distributions after they turn age 70½—and the stakes are high. If you don’t take out the required amount by the deadline, you could get hit with a penalty worth up to 50% of the amount you should have withdrawn…” Read More...
INVESTOR'S BUSINESS DAILY
By: LAWRENCE CARREL
Have you ever looked at your finances and wondered if you're doing the right things to get you to retirement or other financial goals? If the feeling persists, it's probably time to run your plan by a qualified financial advisor.
But which one? There are many financial advisors and types of advisors both near and far. To find the right one you need to insist on the right qualifications and ask the right questions.
Investor's Business Daily spoke with experts in the industry to hear what they think are the most important things a potential client should do before choosing a financial advisor:
1) Get a referral. Almost all experts recommend getting referrals from friends, family and respected professionals. Ask people at a similar level of income and assets to make sure the advisor can handle your situation.
Make your money work for you. Money market accounts, certificates of deposit and savings bonds are all ways to save money. When deciding which savings vehicle to use to save for retirement, it is important to balance the amount of risk ie amount of potential returns (or loses) with the need for the access to the cash as well as financial sustainability. Clearly outlining your financial goals is important. A Certified Financial Planner (CFP) is an excellent source of information to engage this process. CFP can provide (1) expertise, (2) objectivity and (3) timely choices.
I know, I know, there are a lot of you out there saying, "I got this. I do not need to consult with a professional." I understand, it's your money and you have things under control. However, there is a benefit to employing professionals who have additional expertise. I am sure that you see value in going to a professional that knows more about how to heal your body, a doctor. Or you go to the barber shop or the hair dressers to get your hair cut because if you didn't we would all have crazy hairs. Going to a financial professional is simply consulting with a a person who has financial expertise.
There is also something to be said for objectivity. You are emotionally involved with your finances, your CFP is not. They may be able to clearly see an alternative that is so simply that it will make you slap your forehead and say, "why didn't I think of that, it is so simple and makes so much sense."
Sometimes there are circumstances that may require financial changes or the creation of legal documents or purchase of an insurance policy in order to protect you or your family from unintended consequences. A good CFP will take the time to listen to you and explain the risks and benefits of taking or not taking specific actions.
(3) Timely choices
Outlining your financial goals is important to do and the earlier you start the better. When you find the right CFP who cares about you reaching your financial (and life) goals they can be a great informational resource and can outline timely choices to help reach your goals.
For example, someone who is about to retire from their career and they mention in conversation, "I have been saving a good bit of money and I am planning to consult a CFP once I retire." Oh my, they have got it all backwards. They need to consult a CFP before they retire. As soon as feasibly possible would be ideal. All of their circumstances should be examined and then the alternatives or choices can be outlined of when is makes healthy and financial sense to retire. Maybe they can retire earlier then expected, for example tomorrow:). Or maybe they need to wait until after the first of the year so they can make adjustments to their retirement vehicles and save a ton of taxes. If someone waits until after they retire to examine the circumstances surrounding their retirement sometimes the choices are limited.
More Americans are living longer. What happens when an aging parent can no longer care for themselves? Oftentimes, if arrangements have not already been made, their children step in and take responsibility for them. Here are some interesting facts from AARP:
Attorney: It is important to remember if you are going to begin to take on the responsibility be sure you consult with an attorney to establish decision making authority so you are able to make the care decisions.
Certified Financial Planner: You should also consider consulting with a certified financial planner to establish a good working picture of your parents financial status and available funds for payment of care.
Daily Money Manager: Another professional to consider is a Daily Money Manager. They can take care of your parent's day-to-day financial concerns are provide a report of bills paid, financial events (keep track of important papers and renewals vital of insurance policies) as well as provide a second set of eyes on bank accounts to catch unnecessary fees and prevent identity theft.
Every family is different and the needs for caring for an aging parent are ever changing.
The key is to be proactive and be knowledgeable about your options.
Page Maintained by: Jennifer Shulman
Jennifer is committed to helping her clients as well as other folks improve their daily financial circumstances by providing simple financial solutions.