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Transcript of 2013 Fall Moneymatters
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7/29/2019 2013 Fall Moneymatters
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moneymattersFALL 2013
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welcomeDear Client,Wehopeyouvebeenenjoyingsummerwithamilyandriendsandarereadyorall!Summer was busy here at Eikenberry Retirement Planning. With a Summer BBQ at the Canal
LakeLodgeorclients,tovariousworkshopsornewandcurrentclients,toatriptoGreat
American Ballpark in the middle o August.
Were excited about the events we have coming up during the ourth quarter:
A Social Security workshop in late October and our Annual Christmas dinner in December
For the al l issue o the Money Matters Newsletter, weve explored some topics that we think maybe o interest to our clients. In particular, we examine in-depth the issue o longevity risk, or the
danger o outliving retirement assets, that many Americans ace in an environment o volatile
markets, rising healthcare costs, and longer liespans. While we believe that this new economic
landscapemaydrasticallychangethenatureoretirementormanyAmericans,wesharea
number o strategies that may help take some o the uncertainty away rom retirement planning.
In this issue well be covering:
Americas Retirement Crisis: Strategies to Help Avoid Outliving Your Assets 3
A Guide to Basic Estate Planning Documents 10
Facebook Security: Protecting Yoursel on Facebook 11
Five Ways to Raise Money or Your Favorite Charity 13
Getting A Good Night's Sleep 14
Wesincerelyhopethatyoundthisnewsletterinteresting,inormative,andeducational.
Were constantly seeking out new ways to educate our clients about important issues and provide
them with insight into the economic events behind market movements. We are always interested
in hearing your eedback about our newsletter. I you have any ideas youd like to share with us
or have questions youd like answered in one o our issues, please let us know. I you have any
amilyorriendswhowouldenjoyreceivingtheirowncopy,pleasegiveustheirinormation,
and we will be happy to add them to our growing list o subscribers.
Asalways,itisanhonorandaprivilegetoserveyou.OnbehaloallousatEikenberry
Retirement Planning, thank you and best wishes or this all season.
Warm Regards,
John Eikenberry & Nick Boeckman
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America is acing a serious retirement crisis: Many Americans are
not condent that they will be able to enjoy a comortable retirement
andmanyretireesacelongevityrisk,orthedangerooutliving
theirliesavings.Te2008-2009economicdownturndrastically
changed the nancial landscape and caused proound shis in the
way that many Americans view their retirement. Despite being the
largest,wealthiest,andmostinuentialgenerationoAmericans
baby boomers are acing one o the most serious retirement challenges
in history. A combination o declining income, increased longevity, and
highcostsmeansthatanincreasingnumberoAmericansmayace
the possibility o outliving their assets.
One economic study estimates that approximately 46 percent o
Americans die with less than $10,000 in assets, many o them
lacking even home equity and relying largely on Social Security
benets to meet their expenses. 1 Most shockingly, many o
the households surveyed in the study entered retirement in
goodnancialhealth;actorssuchasunexpectedhealth
expenses, market losses, and increased liestyle expenses
combined to erode their nancial security.
Tepurposeothisreportistoexploreacritica
issue acing American retirees today and highlight
some strategies that may help you avoid outliving
your assets.
AMERICASRETIREMENT CRISIS
FACING THREATS TO RETIREMENT PROSPERIT
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nest egg needs to be to ensure a comortable retirement.
Unortunately, accurately estimating these expenses can
bechallenging,andretireeswhodependtoomuchonoptimisticestimatesotheirutureexpensesmaynd
themselves acing a shortall. Many retirement expense
calculatorscondentlypredictthatretireeswillspend
asmuchas20percentlessinretirementthantheydo
currently. However, changes in spending do not always
happen the way people expect.
A2008studyoundthat,onaverage,mostretireesdid
not signicantly reduce their expenses aer retirement.
Retireeshavingamediantotalnetwortho$104,000
were able to reduce their expenses by the greatest amount,
13.8percent;however,thoseinthewealthiestquartile
(havingamediannetworthoapprox.$1million)
actuallyincreasedtheirpost-retirementspendingby
7 percent.4 While its possible to reduce retirement expenses
by adapting your liestyle to your circumstances,
itsalwaysbestwhenthosechangescomeby
choice, not by lack o options.
Healthcare costs are one o the major contributors
to increased living expenses aer retirement. Te
rapid increase in medical costs over recent years
have caused considerable angst to retirees since,as people age, their healthcare expenses tend to
rise. More than one-hal (54 percent) o respondents
toa2012HealthCondencesurveyreported
thataccesstohealthinsurancewasextremely
important to making a decision to retire and 53
percentorespondentsplannedtoworklonger
than they would like to continue receiving health
insurance through work. 5
UNDERSTANDING THE PROBLEM
THE EFFECTS OF THE FINANCIAL CRISIS
Te economic downturn drastically changed the nancial
circumstances o many. According to a study presented
at the 2013 Financial Security Summit, Americans aged
75 and older lost one-third o their nancial assets and
one-sixthotheirtotalnetworthduringtheperiodo
2007-2010. 2 While household balance sheets have somewhat
recovered in the years since, retirees and pre-retirees have
much less time to make up lost ground. Evidence in the
study also suggested that older retirees are struggling to
make ends meet.
Although most Americans have been able to sharply pay
down credit card debt since 2007, credit card debt among
elderlyretireeshasactuallyrisen.From2007to2010,
an AARP study ound that the percentage o Americans75 and older with credit card debt rose rom 18.8 percent
to21.7percent,whiletherateellineveryotherage
group. 3 Tis means that more than one-h o elderly
Americans may be relying on credit cards to cover everyday
expenses. Living so close to the nancial edge can have
devastating consequences; seniors who nd themselves
inthispositionmaynotbeabletowithstandnancial
shocks such as expensive medical treatments not covered
byMedicareorMedicaid,orotherunexpectedevents
such as the need to replace a car or a household appliance.
UNDERESTIMATING RETIREMENT
LIVING EXPENSES
Anaccurateestimateoyourpost-retirementliving
expenses is critical to credibly projecting how large your
Source: Michael Hurd and Susann Rohwedder. "The Retirement Consumption Puzzle."
Rand labor and population working paper, April 2008. Survey o 385 retirees, ages 50 to 70.
Mean total wealth, including housing.
EXPECTED VS. ACTUAL EXPENSE REDUCTION
MEAN TOTAL WEALTH QUARTILE
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American retirees have good reason to worry about rising
healthcarecostsduringretirement.Accordingtodata
collected by the Kaiser Family Foundation in the chart
below,inationincreasedbyapproximately3percent
eachyearduringtheperiodo1999to2012,eroding
purchasingpowerby39percent,cumulatively.During
thesameperiod,wagesincreasedbynearly50percent.
However, healthcare insurance premiums increased by
a staggering 172 percent, ar outstripping wage increases
overtime,meaningthatretireeslackinginhealthcare
coveragemaystruggletocovertherisingcostsotheir
medical care. 6
LIVING LONGER IN RETIREMENT
Lie expectancies or both men and women have steadily
increasedovertime.In1945,Americanmenlivedan
averageo62.9years,whileAmericanwomenlivedan
average o 68.4 years. By 2010, average lie expectancieshad increased to 75.4 and 80.0 years, respectively. 7
SinceAmericansarelivingconsiderablylongerthan
beore,mostcanexpecttospendlongerinretirement.
Actuarialstudiessuggestthata65-year-oldAmerican
woman has a 50 percent probability o living until age 86,
meaning that, i she retires at age 65, she will likely spend
21 years in retirement. A 65-year-old American man has
about a 50 percent probability o living to age 82, meaning
hewillspendapproximately17yearsinretirement.
According to the Social Security
Administration,oneouto
everyour65-year-oldswill
livepasttheageo90and
one out o 10 will live past the
ageo95.8Manyretirement
plans were not designed with
thepossibilityolivingmore
than two decades in retirement
in mind, and may not last the
investors lietime.
Longer liespans may also increase the eect that healthcare
costsmayhaveonlivingexpenses,andmanyretirees
acetheissueopayingorassistedlivingacilitiesor
retirement communities when independent living is no
longer possible.
STRATEGIES TO MITIGATE
LONGEVITY RISK
Teres no doubt that Americans are acing a retirement
crisis; now that weve covered some o the actors that are
contributing to this nationwide issue, lets discuss some
strategies that can help protect your retirement liestyle
and may help ensure that your assets last as long as you
need them to.
AVERAGE LIFE EXPECTANCY
IS INCREASING*
HEALTHCARE EXPENSES INCREASE FASTER THAN INFLATION & EARNINGS
*Source: Lie Tables For the U.S. Security Administration 1900-2010 - Actuarial Study No. 120
*Source: "Cumulative increases in health insurance premium
workers' contributions to premiums, ination, and workers' earnings, 1999-2012
Kaiser Family and Health Research and Educational Trust (HRET), March 201
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CONSIDER DELAYING RETIREMENT
OR STARTING A SECOND CAREER
AnincreasingnumberoAmericansarepostponing
retirement. Many choose to extend their working lives or
a number o reasons, including allowing their investments
torecovervalue,increasingtheirretirementsavings,
taking advantage o health insurance coverage, or waiting
oraspousetoretire.Somesimplyarentreadytogive
upaulllingcareer.A2011Allianzsurveyoundthat
an increasing number o Americans were shiing their
expected retirement age as compared with a year earlier. 9
Some Americans who are ready to retire rom their primary
proessionchoosetotakeonparttimeworkorbegina
second career. While nancial considerations can make
parttimeworklookattractive,manyretireesenjoythe
camaraderie or want to stay active and productive while
still having plenty o time or amily, hobbies, or travel.
According to a recent survey by the MetLie Foundation,
as many as 8.4 million Americans between the ages o 44and 70 have already launched encore careers, or jobs that
combine income with passion or social impact. Among
those surveyed that were not already working a second
career, nearly hal are interested in nding meaningul
work.Onthewhole,thoseinencorecareersndtheir
workulllingandworthdoing.Morethan80percent
orespondentssaythattheygeteitheratremendous
amount or quite a bit o satisaction rom their careers. 10
An increasing body o research suggests that Americans
arereinventingretirementandviewingitmoreasa
phaseorejuvenationandrecreationthanasaperiod
o complete rest.
DELAY TAKING SOCIAL SECURITY BENEFITS
Oneothemostimportantdecisionsacingaretiring
workeriswhentostarttakingSocialSecuritybenets.
Whilethedependableincomecanrelievetheanxiety
olosingasteadypaycheck,therearesomevaluable
arguments in avor o delaying benets. Normal Retirement
Age (also known as ull retirement age or NRA) is when
youre eligible to receive your ull Social Security benets.
It used to be 65 or everyone, but current laws mean that
or those born aer 1938, normal retirement age is some
point between 65 and 67.
While the right age to start taking benets depends on a
retireesindividualcircumstances,ingeneral,delaying
benets is usually a better choice or most people or the
ollowing reasons:
DelayingSocialSecuritymeansyougetincreased
benetseachyear,reducingyourriskofrunning
outofmoneylaterinlife. I you start taking benets
aer your NRA at age 70, you will typically get a credit.
Forexample,iyouwerebornin1944yourNRAis
66. However, i you decide to take your benets at age
68, waiting the extra two years you could get a credit
o 8 percent per year. Tat would mean your monthly
CLARIFY YOUR
RETIREMENT NEEDS:
1. Do you know how much income you will
need each month during retirement?
2. What sources o guaranteed income doyou already have?
3. How much do you already have savedor retirement?
4. How long could you aord to live inretirement i your investments grow 4percent annually? 5 percent? 6 percent?
5. Have you discussed your concerns witha fnancial proessional?
6 MONEY MATTERS FALL 2013
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benet check will be 16 percent higher than what you
would have received at age 66. Tis will give you more
stable income even i you spend through other retirement
savings.Althoughitisimportanttokeepinmind
thereisnoguaranteethatsocialsecurityincomewill
be available in the uture. Tis is just a basic example,
anditsimportanttoworkwithaproessionalwho
understands your personal nancial circumstances beore
makingdecisionsaboutwhentotakeSocialSecurity.
Eachfuturecostoflivingadjustment(COLA)may
bebigger.SocialSecuritybenetsincreaseeach
yeartokeepupwithination.YourCOLAtypically
couldincreasebyapercentageothecurrentpayout
eachyear,meaningthatdelayingyourbeneits
maygiveeachadjustmentahigherdollarvalue.
Social Security benet strategies can get complex. Beore
making any decisions, be sure to consult with a tax planner
or other nancial proessional who can help you make the
right decision or your needs. Please eel ree to contact
usiyouwouldlikeassistancewithdeterminingwhat
is best or your situation.
FIGHT THE EFFECTS OF INFLATION
Ination is insidious and can eat away at the purchasing power
oyourmoneyovertime.Retireesaredisproportionately
aected by the eects o rising prices because they are paying
higherpricesorood,housing,andotherexpenseswhile
oen living on a xed income. Medical bills are also typicallyhigherinretirementduetoincreasedhealthneedsand
higher insurance premiums. Even relatively low ination can
signicantly impact a retirees purchasing power over time.
Te hypothetical example below shows that $50,000 would
beworthjustover$30,000in25years,evenassuming
This is a hypothetical example calculated using assumed rates o ination o 2%, 3%, and 4% to illustrate the ee
ination on purchasing power over time. The U.S. long-term average annual ination rate is 3.22% according to th
Bureau o Labor Statistics. Actual ination may be more or less and will vary. This example does not include the ee
taxes, ees, or potential portolio growth and should only be used or illustrative purpos
YEARS AFTER RETIREMENT START DATE
FALL 2013 MONEY MATTERS 7
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averylowinationrateo2percent.Historically,the
averageannualinationrateintheU.S.hasbeen3.22
percent, though it jumped as high as 18 percent in 1918
andellintonegativedigitsduringseveralperiodsin
the last century. 11
Having a portolio thats positioned to help ght ination
is critical. raditionally, as workers have neared retirement
age,theyhavegraduallyreducedtheirexposureto
riskandavoredmoreconservativeinvestmentsthat
prioritize income and wealth preservation over growth.
However,atoo-conservativeinvestmentstrategycan
be as dangerous as a too-aggressive one since it exposes
yourportoliotothecorrosiveeectsoinationand
maylimityourretirementassetsabilitytogrowover
time,thusincreasingtheriskthatyoulloutliveyour
assets.Awell-diversiedportoliothatincludesan
appropriate mix o stocks, bonds, and other investmenttypesaccordingtoyourpersonalneedsandgoalsmay
help you seek the growth you need in a way that lets you
sleep better at night. 12 Diversication helps you spread
riskthroughoutyourportolio,soinvestmentsthatdo
poorly may be balanced by others that do relatively better.
However, please note that diversication cannot ensure
a prot or protect against a loss.
Beore making any investment decisions, its important
tounderstandhowactorssuchasyourownpersonal
nancial circumstances, risk tolerance, and time horizon
aectyourchoices.Anancialproessionalcanwork
with you to develop an investing strategy thats right or
your needs, goals, and nancial situation.
PLAN FOR RISING HEALTHCARE COSTS
Longer lie spans, rising medical costs, declining medical
coverage, and unding shortalls or Medicare and Medicaid
mean retirees ace a serious challenge in managing their
healthcare costs in retirement. According to a Fidelity report,
a 65-year-old couple retiring in 2013 will need an estimated
$220,000 in savings just to cover healthcare costs during
their retirement. Some estimates put healthcare ination at6 percent a year, and i uture trends continue, healthcare
will be retirees second-largest expense aer housing. 13
Inordertounderstandandplanoryourhealthcare
expenses in retirement, consider the ollowing strategies:
Earmarkaportionoyourretirementsavings
specically or healthcare expenses. ake advantage
o tax-avored vehicles such as Health Savings Accounts.
Understandyourhealthinsuranceoptionsaer
retirement.Whilemostretiringworkerswill
losetheiremployer-sponsoredcoverage,some
rmsstilloerretirementhealthcarecoverage.
Understand how Medicare ts into your health coverage.
Beasmarthealthcareshopper.Whenvisitinga
healthcareprovider,bepreparedwithinormation
about existing conditions and any symptoms you are
experiencing;askquestionsaboutadiagnosisand
prescribed medications to be sure you understand all
alternatives and outcomes; know what youre paying
or so that you ully understand your out-o-pocket
costs or any treatment plans.
CONCLUSIONS & NEXT STEPS
Teaverage65yearoldcanexpecttolive20yearsor
moreinretirement,soitiscriticaltopreparesoyou
can maintain a comortable retirement liestyle. Living
a long lie has its considerable benets, but it can create
uncertainty and stress around how much money retirees
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These are the views o Platinum Advisor Strategies, LLC, and not necessarily
those o the named representative, Broker dealer or Investment Advisor,
and should not be construed as investment advice. Neither the named
representative nor the named Broker dealer or Investment Advisor gives
tax or legal advice. All inormation is believed to be rom reliable sources;
however, we make no representation as to its completeness or accuracy.
Please consult your fnancial advisor or urther inormation.
1Reclaiming the Future. Allianz Survey. 2010-2011. Accessed August 7,
2013. https://www.allianzlie.com/about/news_and_events/news_releases.
aspx?articleID=56
2 Allianz Lie Insurance Company o America (Allianz) conducted a
nationwide survey o 3,257 American adults, aged 44-75. The online
survey was conduc ted in May 2010. A 2011 smaller-scale survey revisited
key survey questions to determine how respondents surveyed in 2010
eel about key retirement issues one year later
3 A crisis or the very old: They're outliving their assets. Accessed August
11, 2013. http://www.jsonline.com/news/opinion/a-crisis-or-the-very-old-
theyre-outliving-their-assets-b9957225z1-216189001.html
A crisis or the very old: They're outliving their assets. Accessed August11, 2013. http://www.jsonline.com/news/opinion/a-crisis-or-the-very-old-
theyre-outliving-their-assets-b9957225z1-216189001.html
4 A crisis or the very old: They're outliving their assets. Accessed August
11, 2013. http://www.jsonline.com/news/opinion/a-crisis-or-the-very-old-
theyre-outliving-their-assets-b9957225z1-216189001.html
5 The Retirement Re-Set Study. SunAmerica/Harris Interactive Poll
2011-2012. Accessed August 10, 2013. https://www.sunamerica.com/
TridionData.do?Page_ID=355474
6 "The Retirement Consumption Puzzle." Rand Labor and Population
working paper, April 2008. Accessed August 12, 2013. http://www.nber.
org/papers/w13929.pd?new_window=1
7 Views on Health Coverage and Retirement: Findings rom the 2012Health Confdence Survey. Employee Beneft Research Institute.
Accessed August 11, 2013. http://www.ebri.org/publications/notes/index.
cm?a=notesDisp&content_id=5157
8 "Cumulative Increases in Health Insurance Premiums, Workers' Constributions
to Premiums, Ination, and Workers' Earnings, 1999-2011." Kaiser Family
and Health Research and Educational Trust (HRET), September 2011).
Accessed August 11, 2013. http://k.org/health-costs/slide/cumulative-
increases-in-health-insurance-premiums-workers-contributions-to-
premiums-ination-and-workers-earnings-1999-2012/
9 "Reclaiming the Future Study: One Year Later." Allianz Lie Insurance
Company o North America. 2011
10 Lie Tables or the U.S. Social Security Administration 1900-2010 - Actuarial
Study no. 120. Accessed August 13, 2013. http://www.socialsecurity.gov/oact/NOTES/pd_studies/study120.pd
11 Social Security Administration Lie Expectancy Calculator. Accessed
August 12, 2013. http://www.ssa.gov/planners/lieexpectancy.htm
12 Encore Career Survey. MetLie Foundation/Civic Ventures. Accessed
August 12, 2013. https://www.metlie.com/assets/cao/oundation/
Encore_Survey.pd
13 Historical Ination Rates. Accessed August 13, 2013. http://www.
usinationcalculator.com/ination/historical-ination-rates/
Footnotes, disclosures, and sources:
Opinions, estimates, orecasts and statements o fnancial market trends
that are based on current market conditions constitute our judgment an d
are subject to change without notice.
This material is or inormation purposes only and is not intended as an
oer or solicitation with respect to the purchase or sale o any security.
Investing involves risk including the potential loss o principal. No
investment strategy can guarantee a proft or protect against loss in
periods o declining values.
Fixed income investments are subject to various risks including changes in
interest rates, credit quality, ination risk, market valuations, prepayments,
corporate events, tax ramifcations and other actors.
Opinions expressed are not intended as investment advice or to predictuture perormance.
Past perormance does not guarantee uture results.
Consult your fnancial proessional beore making any investment decision.
Opinions expressed are subject to change without notice and are not
intended as investment advice or to predict uture per ormance.
All inormation is believed to be rom re liable sources; however, we make
no representation as to its complete ness or accuracy. Please consult your
fnancial advisor or urther inormation.
willneedtolivecomortablyortherestotheirlives.
Out o ear o nancial ruin, many retirees unnecessarily
adoptrugalliestylesthatcausethemtomissouton
thebestpartsoretirement.Othersmiscalculatethe
truecostoretirementandoverspend,depletingtheir
savings too soon.
Manyretireeshavebeentaughttheruleothumbthat
retirement assets can be made to last 30 years i investors
withdraw 4 to 4.5 percent o the original value each year.
Unortunately, this old adage was developed in the 1990s,
and that withdrawal rate may not work when ination-
adjusted interest rates are close to zero or long periods
o time. So, i you cant saely withdraw at least 4 percent
ayearromyourportolio,whatcanyoudo?Tereare
anumberoalternativeapproachesthataretirement
specialist can explore with you that may help ensure that
your money lasts as long as you do.
Teissueswevepresentedinthisreportarecomplex,
anditscriticaltomaketherightdecisionsbeoreand
during retirement. While every investors circumstances
are dierent and there are no guarantees o success, we
aim to help our clients take some o the uncertainty out
oretirementplanningandworkwiththemtodevelop
a suitable nancial strategy or their unique retirement
circumstances.
FALL 2013 MONEY MATTERS 9
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Makingprovisionsoryourowndeclineandeventual
passingisataskyoumayndunpleasantandwishto
avoid. While this is understandable, such avoidance can
cause a great deal o pain and conusion or your heirs.
With that in mind, here is a guide to the basic documents
most people should have prepared. I your estate is large,
or you wish to limit your bequests in various ways, you
may also want to set up a living trust. In that event, you
willdenitelywanttoconsultanattorney.Notethat
dierentstatesmaycombinesomeothesedocuments
intooneormorcallthembydierentnames,butthe
essential concepts are the same:
1TH E WI LL .hisdocumenttellsyourheirshowyouwantyourpropertydistributedaeryour death. It not only names your heirs , but tells what
should happen in the event your heirs predecease you.
It appoints an executor to carry out your wishes. It may
also contain burial or cremation instructions. Each state
has its own will orm, designed to correspond to its laws.
Witnesses are required, and any evidence o tampering
caninvalidatethewillorcallitintoquestion.Even
somethingasinnocuousasaremovedstaplecanbea
problem. I you have any doubt at all about your ability
to prepare this document, have an attorney do it or you.
2TH E LIVI NG WI LL .Tisisnotawillpersebutadocumentthattellslovedoneswhatyouwantdoneintheeventthatyouarenolongerableto
make decisions or yoursel. ypically you can speciy
thatyouwantalleortsmadetosustainyourliein
all circumstances, that you want extraordinary eorts
made only i there is a chance o a ull recovery, or that
you want no extraordinary measures taken to prolong
yourlie.Tisdocumentcansaveyouramilyagreat
deal o hassle and heartache in the event that you suer
an irreversible decline.
3T H E P O W E R O F A T T O R N E Y F O RHEALTH CARE. Tisdocumentappointsanagent to make health care decisions or you in the event
that you are incapable o making them or yoursel. Tis
personmightdecideonnursinghomecareorhome
healthcareormightexecuteadonotresuscitate
orderintheeventthatheartailureisimminent.It
isthereoreimportantthatyouchoosesomeoneyou
trust completely.
4T H E P O W E R O F A T T O R N E YFOR FINANCES.hisdocumentallowsyouragenttoaccessyourbankaccountsinorderto
payyourbills.Youcanlimitorexpandhisorher
powers to allow your agent to make investments, moveaccounts,andmakegis.Onceagain,theagenthas
considerablepower,soyoumusttrustthepersonyou
choose.(Insomestates,aDurableGeneralPowero
Attorneyisusedtocoverthissameground.Besure
you consult an attorney i you are unclear about what
powers you are granting.)
Notethatintheeventyoudonothavethelattertwo
documents,yourheirsmightbeorcedtoobtaina
courtorderhavingyoudeclaredincompetent.Tisis
an extraordinary burden you can spare your loved onesby making your wishes clear in advance.
Some institutions may refuse to accept powers of attorney,
which can limit their useulness. Legislative eforts are
underway to remedy this situation.
OTHER USEFUL DOCUMENTS:
Te transer on death orm. Tis al lows you to avoid
having assets go through probate by instructing a bank
or other nancial institution to transer assets to your
heirsuponyourdeath,accordingtotheormulayouspeciy.Itistypicallyavailableorstocks,bonds,and
bank accounts, but some states also allow a transer on
death or real estate and vehicles.
Bydoingalittlesimpleplanning,youcanmakesure
your wishes are carried out aer your death and your
lovedonesburdensareeased.Anattorneycangive
you urther inormation that is specic to your state.
Basic EstatE PlanningDocumEnts
A Guide to
* SII (or ICA) does not provide tax or legal advice10 MONEY MATTERS FALL 2013
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Many believe that they are secure
when browsing or using Facebook.
However,whatyoudon'tknow
canhurtyou.Basicsecurityis
essentialwhenusingFacebook,
and knowing what to look or, how
tosetupyoursecuritysettings,and
howtomakesureyouareassecureas
possible can help you to saely use Facebook.
Basic Facebook Security
OnthetoprightoyourmainFacebookscreen,where
you can post and see your activity eed, you will see a gear
symbol. Click on that and a drop-down menu appears.
I you click on account settings, two sections at the top
le in the menu will be visible. Te rst is indicated by agears logo which states "General." Te second is "Security,"
indicated with a badge or shield logo.
Security Settings
Many security measures are not put into place until you
purposeullygoinandsetthemuporactivatethem.
Checkthesesettingsandmakesureyouareassecure
as possible.
Security Questions - Security questions are not set
up when you rst sign up or Facebook. Setting upyour security questions not only helps you i you get
locked out o your account, but helps to protect you
rom raudulent logins. When you view your security
settings, i you see a message next to the area or the
security question setup that says, "Setting a security
questionwillhelpusidentiyyou,"youdon'thave
onesetupyet.Clickthe"Edit"buttontotheright
othismessagetosetupyoursecurityquestion.
Secure Browsing - Tis section should say "Secure
browsing is currently enabled." Usually this is already
enabled,butyou'llwanttomakesurethatitis.
Login Notifcations - You need to know when someone
logsintoyouraccount.Tissettingisextremely
important because the sooner you know that someone
hasloggedintoyouraccount,thesooneryoucan
address the situation. However, this setting is usually
set to "Disabled." Be sure to click the "Edit" button to
the right in this section and change it to "Enabled."
Login Approvals - Normally, you log in to Facebook
rom one or two browsers. Facebook is able to detect theplaces rom which you log in requently and the login
approvals setting can minimize the chance that someone
else can log in. Login approvals allow you to set up a
security code that must be entered in order or access
to be gained when logging on rom an unrecognized
device.Tisissetto"notrequired"automatically,
butsettingoneupisagoodidea.Useadierent
password than the one you use to log in to Facebook.
ProtectingYoursel
on Facebook
acebooksecurity:
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Code Generator -Tisisalwayssetto"Enabled."
Itismoreormobileusethananythingelse.
App Passwords - Iyouhaveloginapprovals
setup,certainFacebookappsthatcannotreceive
securitycodesmaylockyouout.oavoidthis
problem,youcansetuppasswordsorappswith
crucialinormationlikeSkype,Xbox,andsoon.
Trusted Contacts - I you ever have trouble accessing
your Facebook account, your trusted riends, or those
in your trusted contacts, can securely help you. Tis is
completely optional, and you should be absolutely sure
the person or people listed here are trustworthy. I you
have any doubt at all as to whether riends or contacts
are trustworthy, it is best to leave this setting as is.
Recognized Devices - Devices rom which you log
inoen,suchasyourphone,willshowuphere.
Youwillnotbenotiedoanyloginsromthese
devices.Iyouwanttobenotiedoalllogins
romalldevices,nomatterwhat,incaseyoulose
yourphoneordeviceoryouarehacked,simply
click"Edit"then"Remove"bythedeviceslisted.
Active Sessions -Alwaysclickonthisromtime
totimetoseewhatitshows.Tiswilltellyouthe
dates, locations, and devices where you have logins.
I you don't recognize a device or location, click "End
Activity" to the right.
Privacy
Whilenotdirectlyasecuritymatter,settingupyourprivacy settings is very important. Tese settings, when
properly set up, can help protect you rom being exposed
to those you don't want to see your activity or inormation.
Privacy Settings
Te privacy settings are indicated by a padlock icon below
the Security Settings icon. Te ollowing items are part
o your privacy settings:
Who Can See My Stu? - Tis area shows you who
can see various things. You can decide who you wish
toshareyourinormationandactivitywithhere.
Who Can See Your Future Posts? - You can set this
to public, riends, only me, lists you have o riends, or
custom. Anything you post rom the time you change your
settings onward will only be seen by those you speciy.
Review All Posts and Things You're Tagged
In -Tisallowsyoutoreviewyouractivitylog
anddeletewhatyoudon'twanttobeshown.
Limit the Audience or Posts You've Shared with
Friends o Friends or Public? -Tissection,which
is indicated with a question, asks i you want to limit
your past posts so others can't search through them.
Who Can Look Me Up? - Tese sections let you decide
whocanndyoubysearchingoryouwithyour
inormation, like your email address or phone number.
Who Can Look You Up Using the Email Address or
Phone Number You Provided? -Youcanchoose
everyone, riends o riends, or riends or this setting.
Whoever you choose, those people can search or you
using your inormation. It is usually set to "everyone"
immediately.Youwillhavetosetittoanother
setting i you want to minimize who can nd you.
Do You Want Other Search Engines to Link to Your
Timeline? - Tis is a simple setting that requires you
to select "yes" or "no." It is automatically set to "yes."
I you don't want your inormation to be ound via
search engines, set this to no.
You do have much control over what is seen and shared
on Facebook. However, you should always keep in mind
that Facebook is, by nature, a public venue and it is always
possibleorpeopletondinormationaboutyouthat
you might believe is private. You should not assume any
right to privacy, not because that right doesn't exist, but
merelybecauseyouneverknowwhatcanbeseen.Be
sure to set up all privacy options available in such a way
that you are as protected as possible.
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Garage sales are another classic way to make money or
charity,andtheycontinuetobepopularbecausethey
provide you with an easy way to get rid o unwanted items
at the same time as raising cash or a good cause. Books,
clothing, jewelry, urniture, and toys are particularly easy
tosellatgaragesales,andiyouspreadyoursaleover
two days you can start to reduce the prices i you nd it
hard to shi certain items.
Charitygoltournamentscanhelpyoutoraisealoto
money, but in order to arrange all the necessary donations
andplayers,itisagoodideatoormacommitteewith
otherpeoplewhowanttohelpyourchosencause.You
may nd that local businesses are interested in donating
appropriatetournamentprizesinexchangeortheir
name being clearly displayed on your adverts and signs.
Meanwhile, you can also get some general advice rom
mostgolcourseswithgoodreputations,astheywill
probablybeusedtohelpingwiththeorganizationocharity events and will know what works well. Usually,
charity gol tournaments involve around eighteen groups
oourgolers,eachstartingondierentholessothat
thetournamenttakeslesstime.Asaresult,acharity
tournamentnecessitateshiringawholegolcourse,
soyouwillneedtochargeanentryeethatmorethan
coversthecostsoorganizingyourevent.Inaddition,
youcanraisesomeextraundsbyorganizingarafe
and by selling snacks.
Firstly, nd a good place to hold your auction, picking a
time and date that is l ikely to attract plenty o bidders. Next,
decide exactly what you want to auction. One o the most
popularauctioningstylesinvolvesaccumulatingsmall
but attractive items rom supporters o the charity, but i
you want to be a bit more adventurous you can choose to
hold an auction o promises that is based around people
bidding or the time or skills o particular people. I you
can nd lots o volunteers, you can auction things such
aspianolessons,gardeningskills,anddogwalking.Inadditiontoholdingtheauctionatagoodtime,make
surethatyoupublicizeyoureventaroundyourtown.
For example, display yers in local stores and hand them
out on the street.
Bake sales provide an extremely productive and un way
to raise money or charity. I you get together with a ew
other people who support your avorite charity, you can
make huge numbers o dierent types o cookies, mufns,
and rosted cupcakes. Baked goods are surprisingly cheap
to make when you buy your supplies in bulk, so you stand
to make a large prot. Another particularly good reason
to choose a bake sale is that the success o the event does
not actually depend on people supporting your particular
charity. While some people who buy your cakes will dosobecausetheyseeyouareworkingtosupportagood
cause,otherswilljustwantatastysnack.Inorderto
hold a successul bake sale, ollow the advice given above
regarding auctions. In other words, make sure you hand
out yers, put up posters, and sell your goods in a busy
area that many people will pass through.
Charity dog washes are an excellent way to collect unds, and
they are especially perect i you happen to be supporting
anorganizationthattriestopreventanimalcrueltyor
rehome unwanted pets. Speak to the representatives o some
localveterinarypracticesandndoutwhichemployees
might want to participate in your event, as some o them
may be keen to provide additional grooming services and
(orexample)dentalchecks.Ontheday,provideplenty
o snacks, drinks, and pet supplies (such as collars, leads,
and treats), and then donate the proceeds o these sales to
your charity as well.
ORGANIZE A GOLF TOURNAMENT:
HOLD A CHARITY AUCTION:
SELL DELICIOUS TREATS AT A BAKE SALE:
ORGANIZE A DOG WASHING EVENT:
HOLD A GARAGE SALE:
5TO RAISE MONEY
FOR YOUR FAVORITE CHARITY
WAYS
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14 MONEY MATTERS FALL 2013
You've heard it said, "Tere aren't enough hours in the day."
Hyper-productivity at the cost o al l else is becoming an
epidemic, and the inevitable trade-o is that most people
aren't coming anywhere close to the 7 to 9 hours o sleep
recommended by sleep experts. Te consequences o sleep
deprivation range rom short-term, such as the inability to
make smart choices on a daily basis, to serious long-termhealthriskssuchasheartproblems,diabetes,obesity,
and a shortened liespan. Fortunately, sleep deprivation
can oen be successully remedied by making the right
changes in your daily routine.
Keep a Regular Sleep Schedule.Settingregulartimesorgettingintobedandwaking
up in the morning is a good rst step to promoting sleep
welare.rynottoallintothehabitodisturbingthis
routineonweekends.Goingtobedearlyandgetting
upearlyhasbeendemonstratedtohavegreaterhealth
benets in the long run.
Take Short Naps.Te benets o a short siesta have been well documented
bysleepspecialists(thekeyhereisshort).akingjust
aewminutesoranaernoonsnoozecanbegreatly
helpul in combating sleep deprivation, and it becomes
easiertoallasleepquickerwithalittlebitopractice.
Ontheotherhand,longnaps(overhalanhour)can
bedetrimentalorchronicinsomniacs.entotwenty
minutes is an ideal length.
AvoidAlcoholandCaeinatedBeverages.While that nightcap might seem like a good way to take
theedgeoastressulday,alcoholinterereswiththe
REMsleepstageandcanleaveyoueelingevenmore
exhausted the next morning. Additionally, other diuretic
beverages such as cola and coee cause requent nighttime
trips to the bathroom.
Change Your Exercise Routine.Exercisehasmanybenets,andgettingagoodnight's
rest is one o them. However, sleep specialists recommend
avoiding exertion right beore bed because exercise causes
your body temperature to rise and prevents the release o
melatonin, a sleep-regulating hormone. Early morning
or aernoon is the ideal time or a trip to the gym.
Don't Watch Television Beore Bed.Watching stimulating V programs or playing computergames beore bed can hinder the natural production o
melatoninaswellascauserestlessdreamsthroughout
thenight.Instead,trywindingdownwithrelaxation
techniques such as deep breathing.
Create a Sleep-riendly Environment.Use heavy drapes, particularly in the summer when the
sun sets later and rises earlier. Closing the window every
night beore bed can be helpul in ltering out bothersome
noise. Adjusting the temperature in the bedroom might be
necessary to avoid waking up eeling too hot or too cold.Finding just the right comorter and pillow can make all
the dierence oen, waking up with a headache is an
indicator that you're using the wrong pillow.
Watch What You Eat.Eating too much beore bed, particularly high-at oods,
candetractromagoodnight'srest.Likewise,eating
toolittlecanbejustasmuchoadistraction.Small
amounts o ood and drink, such as a glass o milk or a
sandwich, can be helpul in osetting nighttime hunger.
Fish,bananas,andotheroodscontainingvitaminB6,an important ingredient in the production o serotonin,
are especially recommended.
Establishing just the right routine can take some time, as
old habits are difcult to break. But don't give up the
rewards o learning how to get a good night's sleep will
last a lietime.
GettingA
GoodNight's
Slee
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SecuritiesoeredthroughCenterStreetSecurities,Inc.(CSS),a
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