Few financial planning concepts are as misunderstood as trusts. What trusts are and whether you need one are two questions that often arise when talking with a financial advisor. Here are some fundamentals of trust planning: 

Are you thinking about re-entering the workforce in your 60s? Even after making a carefully considered decision to retire? 

The reality is that you are not alone. An increasing number of baby boomers are shifting gears and reversing their decision to retire.

Consider the following from a New York Times article that compiled survey data on changes in American’s attitudes toward retirement:

• More than 25 percent of retirees later resumed working
• 40 percent of workers over age 65 had previously retired
• The number of people over age 65 who are employed either full-time or part-time has climbed from 12.8 percent in 2000 to 18.8 percent in 2016

• 78% of American workers live paycheck to paycheck according to a 2017 report by employment website CareerBuilder.
• $6,741 is the average revolving credit card balance for U.S. households, according to a NerdWallet 2019 Survey.
• 42% of workers with adult children over 21 provide them with financial support and more than half are willing to sacrifice their own financial well-being to do so, according to a 2018 (PwC) PricewaterhouseCoopers survey.
  

It is very likely you have heard of the book, The Life Changing Magic of Tidying Up, or seen the recent Netflix series, Tidying Up. This popular system for organizing your house and office, the KonMari Method, was created by Marie Kondo.

What brings you joy?

Kondo and her writings have become incredibly popular both through her engaging personality, practicality of advice, and her simple but deep message.     

Many of you from Northeast Ohio area are familiar with “Brady’s Leap,” if only from the eponymous Ohio Turnpike service plaza at mile marker 197. For those of you who are not native to the area or simply need a refresher of this legend, gather round. 

Captain Samuel Brady

Captain Samuel Brady came from a notorious family of American Revolutionary soldiers and fought alongside George Washington with his father and brother. Throughout the Revolution, the Bradys fought in every major battle. By 1778, the Bradys were deployed to man the frontier, then located in Central Pennsylvania as most of the country anywhere West of that was occupied by Indians.

Since 1907, "Be Prepared” has been the motto for millions of Boy and Girl Scouts around

 the world. The expression represents the constant readiness and willingness in both mind and body to do the right thing at the right moment.

Have you had the talk yet?  No, not “that talk”.  To mix a metaphor, the birds and the bees are already out of the barn at this point!  No, this talk is about your financial plan. With the holidays approaching, you may want to consider using this time to enter this conversation. Below are some practical tips you can use to get the conversation started.

1. Don’t Make It Awkward

Appropriate communication of your financial picture is very much a part of a successful financial plan.  After all, it is likely that family members will be the recipients of your estate someday.  They may even be called upon to help manage your finances should the need arise.  It can be a little intimidating for someone thrust into that position without any prior knowledge. Remember to keep calm and have patience.  After all this involves money, family, and the future.  All the makings of a soap opera!  If it helps, have an outline or topic list prepared.

Thanksgiving is a time when families traditionally get together and celebrate the holiday.  While spending time with family often involves eating/drinking, and watching football (and the occasional nap if you’re lucky), it also may be a great time to discuss family finances at some point over the extended weekend together.  After all, how many times can you rave about those sweet potatoes? 

In talking with clients, we often hear the following questions; 

“My children (or I) had U.S. Savings Bonds that are missing. Is there any way of ever recovering the money?” 

“My parents’ affairs are a mess. How can I be sure I’ve found all of their assets?”

 “When I moved to Florida, I never chased several checks. Is it too late to try and get my old utility deposit refunds, etc.?”

“I have a stock certificate for a company that I can’t seem to find out anything about. Can you help?”

It’s tax time--don’t lose sight of your financial planning goals. It’s not too late to make your IRA contribution for 2014.  You can make 2014 IRA contributions until April 15, 2015. Be sure you are taking full advantage of the opportunity to save for retirement. 

Do you know how many buzzwords there are? Just the word “Buzzword” brings up over 6 million results on the Internet.  There is even a Buzzword of the Day.  Dictionary.com defines Buzzword as a word or phrase, often sounding authoritative or technical, that is a vogue term in a particular profession, field of study, popular culture, etc. 

Financial planning has become such a buzzword resulting in over 22 million Internet search results. The term, “Financial Planning” appears quite often in all types of media.  But, what is it?