MESSENGER POST MEDIA

RETIREMENT
&

2020
ESTATE
PLANNING

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stepping in
WHAT TO DO WHEN YOUR PARENTS
NEED HELP WITH FINANCES
BY DAN RAFTER | MORE CONTENT NOW

When your elderly parents get lost on the

way to the local supermarket, you start
worrying about whether they should be
driving.
When they can no longer mow their grass or
shovel their sidewalks, you wonder if they
need to move out of their home.
But how do you know when your parents
should no longer be handling their own
finances?
That, financial experts agree, is a complicated
subject. “I’ve been doing estate planning for
25 years now, so I see this situation a lot, and,
unfortunately, there is no black-and-white
answer,” said Rial Moulton, an attorney,
certified financial planner and co-founder of
Spokane, Washington-based Retirement &
Tax Planning Specialists.
Recognizing the signs
Adult children need to pay particular might need you to step in and help manage their finances, Young said.
attention to their parents’ general mental Another clue might be the parent who explains to you the same financial issue several
state as they age. times in one conversation. Your mother might tell you three times in 10 minutes that she
Are they easily confused? Do they forget forgot to put a stamp on the envelope containing her credit card bill. If she continually
to turn off the stove? Do they struggle to forgets that she told you this, there may be other financial matters that are slipping her
remember recent conversations? mind.
If you see that your elderly parents are Some parents, though, are private. Others are proud. They won’t mention any financial
struggling with routine tasks, it might be mistakes they are making. In such cases, adult children have to look for other signs of
time to offer your help with the finances. dementia or forgetfulness. Parents who are getting lost on quick walks are probably
Doing so might avoid serious money struggling with remembering to pay their bills on time, too.
problems in the future. A soft approach
“This doesn’t happen overnight. Diminished Recognizing that a parent needs help with finances is one thing. Approaching your
capacity comes on over time,” said Ty Young, mother or father with this news is another. Young recommends breaking the news as
president and chief executive officer of an offer of help. This is preferable to barging into your parents’ home and demanding
Atlanta-based financial advisory firm Ty J. access to their finances.
Young Inc. “You might say, ‘I noticed that you wrote four checks for the same Visa bill last month.
Your mother might mention that she When we showed you this, you had forgotten that you’d done it. Can I be of some help
accidentally paid her Visa bill three times to you with your finances?’ The best way to approach this is as a method of help from
this month. someone they trust,” Young said.
Maybe your father, instead of writing a check Moulton recommends talking about this topic long before it becomes an issue.
to his local church once a week, wrote a “The best way to handle this is to set up an estate plan when the parents are still mentally
check to it once a day last month. competent,” Moulton said. “This makes for a much easier transition if they do need help
These are telltale signs that your parents one day.”
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remember your savings?

WHY YOU SHOULD MAKE THEM WORK FOR YOU
A generation ago, Americans were savers. When the
Greatest Generation and Boomers needed to make a
major purchase or wanted to take a trip, they put money
aside. And then they saved some more. Putting money
aside each week or month was an ingrained habit,
perhaps as an outgrowth of people living through the
Depression and World War II.
But today, half of Americans do not automatically put
money into their savings accounts with each paycheck.
This is a routine that creates incremental gains every
few weeks.
According to a recent PurePoint Financial survey almost
half of Americans today don’t quite get the concept of
saving for the short term. People are putting money into
their employer-matched 401(k) plans for retirement,
but they’re not setting savings goals for the next one
to five years.
• More than half of Americans let money sit in a checking account without
That’s a mistake, says Pierre P. Habis, president of transferring it to a savings account, where they can be earning interest.
PurePoint.
How much money are people losing by not earning interest in a high-yield
“People don’t realize that not saving actually costs them savings account? The numbers are startling.
money,” Habis says. “They’re leaving money on the table
by not doing one simple thing: Maximizing their money According to some number-crunching by NerdWallet by CNBC, if you put
by moving it from a checking account or traditional $10,000 in your checking account, at the end of three years, you’ll have that
savings account to a high-yield savings account.” same $10,000. A traditional, low-yield savings account will give you about
three extra dollars. But a high-yield savings account will give you $10,475.
Somehow Americans’ money mindset shifted, and the Now you’re talking about some real money, and it only goes up from there.
instant gratification that comes with purchasing what Leave that $10,000 in the account for five years, and you’ll have $10,805. And
we want, when we want it, has erased the concept of that’s at an interest rate of 1.55 percent. Non-traditional banks like PurePoint
saving for a purchase. offer higher yields, reaching more than 2 percent. That’s a good chunk of
Millennials in particular are frequently derailed change.
from their short-term savings goals by impulse. The “A good first step is to check your APY, which according to our research more
PurePoint survey found that compared to the Boomer than half of Americans don’t know,” Habis says. “If you’re not earning at least
generation, millennials are three times more likely to one percent, you’re doing yourself a disservice.”
have their short-term savings derailed by an impulse
trip or vacation because their friends were going; and Put that money in a CD, and you’ll earn even more. Now, your money is
equally three times more likely to buy something on working for you, not against you, like debt, inflation and credit card interest
impulse because of an online or social media ad. rates.
Other findings include: The solution? The old-fashioned notion of saving for a rainy day has been
streamlined by ultra-modern financial technology. Online financial institutions
• 65 percent of Americans do not know they’re missing like PurePoint, which is a hybrid digital bank with brick-and-mortar financial
out on free money by not having a savings account, and centers, are offering more competitive interest rates for high-yield savings
don’t understand how interest rates can impact their and CD accounts than traditional banks, nearing the 2 percent mark. It’s an
savings. alternative to investing that you can trust with a knowable, controlled return
• 4 in 10 Americans believe their checking account and over the short or long-term. It’s almost like investing in the stock market, but
savings account have the same interest rates. with a controlled and knowable return.
• One-third of Americans prefer debt and instant For more information about how you can make your money work for you, visit
gratification purchases to saving. PurePoint at www.purepoint.com and try their rate comparison tool. [BPT]
 RETIREMENT & ESTATE PLANNING 2020 • PAGE 5

financial planning month

TAKE THE FEAR OUR OF YOUR FINANCES
There is no better time to face your financial fears
and make actionable changes to get yourself on
track when it comes to managing your money than
today. While nearly half of Americans (47 percent)
find the prospect of financial planning scary, it
doesn’t have to be.
If you find yourself constantly postponing a review
of your finances and feel your current money
situation is more out of order than ever, turns out
you are not alone. In fact, according to a new survey
by Marcus by Goldman Sachs®, the overwhelming
majority of Americans (82 percent) wish they felt
more in control of their finances.
By following a simple checklist and exploring
options that fit your specific circumstances, you
can be well on your way to making the most out
of your money and achieving financial well-being.
1. Get out of credit card debt. First and foremost,
be conscious of any revolving credit card debt you
are currently carrying, and the fees, variable rates
and payment terms that may be draining your bank
account. A debt consolidation loan allows you to
combine your debts into one consistent, easy-to-
manage monthly statement. Debt Consolidation
Loans are available with no-fees and fixed-rates
out what deductions you might no longer be able to claim. By getting out
through Marcus by Goldman Sachs®.
in front of tax season early, you can be ready for the impacts it may have
2. Conduct an assessment of your service and be able to file earlier, which could lead to receiving any refund earlier
providers. Take a look at your monthly expenses as well.
and see if there are ways you can lower them by
4. Maximize your 401(k). If your company matches employee contributions
switching to different providers or calling your
to a 401(k) account, it’s a good idea to take advantage of this and make
current provider to re-examine your rates. Whether
sure you are doing everything you can to build up your 401(k). Consider
it is your car insurance or your cable and internet
making changes that could put you in a better place with a nest egg ready
bill, a quick search online and a call to lower your
for retirement, like increasing your contributions by 1 percent a year.
rates could limit your monthly expenses.
5. Check your APY. Lastly, make sure you are saving (and growing) your
You should also consider easy-to-use personal
money strategically by checking the annual percentage yield (APY) on
finance apps, like Clarity Money, that allow you to
your savings account. Make your money work for you by exploring savings
track your finances at your fingertips and make it
account options with higher returns, rather than storing your money in
easier for you to spend, borrow and save. Clarity
accounts with interest rates near zero. High-yield online savings accounts,
Money can even suggest subscriptions you could
like those offered by Marcus by Goldman Sachs, can provide high rates so
cancel and help you set up savings for specific
you can start making money instead of storing it.
goals, so you could be more in control of your
finances. Take the time to explore reasonable options that address your specific
needs and put you back in control of your financial future.
3. Get ready for tax season. With changes to the
tax law, you should take the time to prepare for For information on approachable solutions to your financial management,
next year’s taxes by analyzing potential benefits head to Marcus.com. Financial Planning Survey conducted by Marcus by
you may be able to take advantage of and figuring Goldman Sachs in July 2018 among 1,053 Americans. [BPT]
RETIREMENT & ESTATE PLANNING 2020 • PAGE 6

TIPS FOR THOSE FACING

UN-RETIREMENT
BY CAROLYN SPERRY | MORE CONTENT NOW

If you retired — for good, you thought — and now you need to go
back to work, you’re not alone.
Whether you need the income, you miss the structure of a daily
routine or you are unhappy without opportunities to socialize
through work, working long past the age you’d pictured is perfectly
normal and “a growing phenomenon,” said John Tarnoff, reinvention
career coach and author of “Boomer Reinvention: How to Create Your
Dream Career Over 50.”
In fact, traditional retirement is becoming a bit of an outdated
concept, he says. Retirement at age 65 is out of reach for a growing
number of people, partly due to a societal switch from pensions to
defined contributions.
“Now it is up to you and me to invest wisely,” he said, and not
everyone is able to do so. In addition, people are living longer and,
for a variety of reasons, have less financial security than in previous
decades.
So, what’s a good plan for a mature worker contemplating his or her
next moves?
“Do some reflective work,” Tarnoff said. Think about:
• What you can offer businesses. Consider working on a consultant
basis rather than trying to be hired as an employee.
• What you love about work, and what you don’t love. What are your
favorite parts of your workday? What are your least favorite?
• Assess your skills. What are you being praised for at work, and what
are you being criticized for?
• Who are the people you love to work with?
• What brings you a sense of meaning, purpose or satisfaction?
• Is there a certain type of expertise you want to drill down on, or
new things you want to learn?
Once you have assessed your skills, use your existing network to
create opportunities for yourself.
“Stop chasing job openings,” Tarnoff said, “and start chasing
relationships.”
Think about what you can bring to a team or organization. Whoever
you are reporting to, think about what they need and approach a
business as you would a client, to let them know what you can do for
them. Propose a role and explain what you can do. If one company
says no, try another one.
For more information and a free guide, visit johntarnoff.com.

MESSENGER POST MEDIA advertising supplement

73 buffalo street • canandaigua ny 14424
585.394.0770 • www.MPNnow.com
RETIREMENT & ESTATE PLANNING 2020 • PAGE 7
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RETIREMENT & ESTATE PLANNING 2020 • PAGE 8

money
habits
THAT CAN
HELP YOU FIND
TRUE WEALTH
When did money get so complicated?
From spending and charity to saving and
investing, it’s hard to know exactly what
to do with your finances. Cut through the Save it. There are three main reasons to taxed today and in the future can help
confusion and consider five smart ways save: emergencies, spending and investing. you make wise decisions. It’s safe to say
you can use your money to your advantage Start with an emergency fund. Prior to the most people want to pay as little taxes as
today. Great Recession, most people saved three possible, and your decisions today will help
month’s worth of expenses. Today, with you do that. Balance taxable investments
Bruce Helmer, award winning financial
continued economic instability, six months like CDs, money market accounts and
services advisor, author and radio host,
is a wiser choice. Life is unpredictable, and bonds with tax-deferred investments like
believes in a straightforward, values-based
you never know when injury or job loss 401(k)s and traditional IRAs. Do not forget
approach to managing wealth. “Money itself
will affect your income. How much of your about the importance of tax-advantaged
doesn’t matter; it’s the people and things
income should you save? A good goal is at investments like Roth IRAs and life
you love that provide real wealth in life.
least 10 percent. Remember, saving and insurance too. Balancing these three types
Using your time and money to support what
investing are different. Saving puts money of taxable investments is important to a
you value is the foundation of a rewarding
in a secure place readily available to you long-term financial strategy.
financial plan.”
— making it a liquid asset. Investing puts Give it away. At face value, giving money
Helmer co-founded Wealth Enhancement money away, allowing it to grow for future away may sound a little crazy, but sharing
Group and recently wrote the book use. your wealth can be a rewarding part of a
“Real Wealth: How to Make Smart Money
Invest it. Investing is a key part of growing financial plan. Whether it be to a nonprofit,
Choices for What Matters Most to You.” He
your finances and securing your future. a faith community or to your own children,
recommends five smart things to do with
Smart investors make it a habit to pay sharing money either during your lifetime
your money:
themselves first, meaning each payday or upon death is gratifying and can have
Spend it. Everyone spends money, but they designate a specific amount of money many economic benefits.
the key is to make thoughtful choices and to investment accounts. Remember, a long- Charitable donations done now are tax
determine necessities versus luxuries. Based term investment plan with consistency and deductable this year, but other types of
on your personal values, necessities will stability will overcome market swings. Start giving provide benefits in the future. For
vary, so it’s important to take a realistic look investing as soon as you can — time is a example, donating money in a will can
at your priorities. Then you can determine great ally. The first step is to identify your possibly lower the estate tax liability to
what you need now and what can wait for individual goals and how much time you your heirs. Because tax laws are complex,
the future. Remember to avoid consumer have to achieve them. Then talk with a it’s important to work with a professional
debt and only spend what you currently trusted financial advisor about expected who can guide you in the right direction.
have for day-to-day expenses. If you can’t rate of return and risk levels of different
pay off a credit card each month, don’t investments and diversity your portfolio. Helmer uses these five areas in his own
use it. Not only are you paying high rates financial plan and you can help secure your
Manage your tax burden. Taxes are an financial future by doing so also. For more
of interest, but you’re forfeiting the return
often overlooked part of financial planning. expert money tips and to buy Helmer’s book,
you could be earning on those dollars if they
But knowing how your money will be visit www.BruceHelmer.com. [BPT]
were invested.
 RETIREMENT & ESTATE PLANNING 2020 • PAGE 9

live below your means

COMFORTABLY
MORE CONTENT NOW

Financial experts often recommend living on at least 15

percent less than the amount you earn. We asked several
for their best tips on how to live below your means
without feeling like you’re missing out.
• Be your money’s boss. Assigning a job for every dollar
can be empowering. The popular 50/30/20 budget
recommended by consumer advocate Sen. Elizabeth
Warren, D-Mass., divides money into the categories of
needs, wants, and savings and debt repayment. “Make
financial choices for the month in the quiet of your
own head, or with your partner, in advance — not in
the moment. That way you can feel great about your
spending,” says Charlie Bolognino, a certified financial
planner in Plymouth, Minnesota.
• Save off the top. Divert money from each paycheck
before you’re tempted by it. Once you start, it becomes
painless to save through 401(k) paycheck deductions significant financial freedom. Earmark the second paycheck for maxing out
at work, or automatic monthly transfers to a savings retirement savings, investing or paying off debt. It also provides flexibility for
or investment account. “Start small and add a percent life events like an unexpected job loss or having one parent stay home with
or two every time your income goes up,” says Leon young children for a time.
LaBrecque, CEO of LJPR Financial Advisors in Troy, • Cut meaningless expenses. Are you eating out too frequently, subscribing
Michigan. to boring cable channels or paying for unused memberships? Eliminating
• Pay yourself. When you finish paying off something, costs you don’t care about frees up money for things you truly enjoy. Try this:
whether a smartphone, car or college education, Write down what you value in life. Then look closely at your last few financial
continue making the same monthly payments you’re statements. Do your purchases match your values?
accustomed to — but stash the money in an interest- • Drive used. Do you really need that brand-new car that loses 20 percent of
bearing savings account and let it accumulate. its value as you drive it off the lot and comes with a $500 monthly payment?
• Live off one income. Arranging your household Purchasing a previously owned car, and paying cash, means you skip the
costs so just one person’s pay covers the bills provides stress of an auto loan on top of other expenses of car ownership.

Are you overpaying for investment advice?

Investment management can cost as little as
0.25 percent of a portfolio’s value each year.
Yet many people still pay 1 percent, or even
more, for financial advice.
Whether they’re getting a good deal depends
on what they get in exchange. Spoiler alert:
Many should be getting a lot more, or paying
a lot less.
Financial advice can encompass a lot of
different services, which fall primarily into two
camps:
FREEPIK.COM
• Investment management, which includes
picking the right mix of stocks, bonds
and cash.
• Financial planning, which can include
everything from budgeting advice to
estate planning.
Comprehensive financial planners have
traditionally supplied both investment
management and planning services, often
charging a percentage of the clients’ assets
that they manage. A recent survey of nearly
RETIREMENT & ESTATE PLANNING 2020 • PAGE 10

1,000 financial planners by Inside Information, a trade

publication, found that the bigger the portfolio, the lower
the percentage clients paid. The median annual charge was
1 percent for portfolios of $1 million or less, sliding to 0.5
percent for portfolios of $5 million to $10 million. The survey
focused on independent advisors who typically charge fees,
rather than brokers or insurance agents who are often paid
by commissions.
Bob Veres, the Inside Information publisher who conducted
the survey and who has tracked the financial planning
industry for decades, says any advisor who “merely” provides
a well-allocated portfolio and periodic statements is
overcharging at anything more than 0.5 percent.
Most advisors handling portfolios worth less than $1 million
charge between 1 percent and 2 percent of assets under
management, Veres found. That may be a reasonable
amount, if clients are getting plenty of financial planning
services. But some charge more than 2 percent, and a handful
charge in excess of 4 percent. It’s hard to imagine what might
justify those costs.
Advice fees are in addition to whatever the clients pay for the
underlying investments, and those costs can vary enormously
as well. Costs matter, because they erode how much money
a client can accumulate over time. [MORE CONTENT NOW]
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