Lessons From the 405

April 01, 2015

On a recent trip to Los Angeles, I was the passenger in a van that was traveling down the 405 late at night. Now if you are at all familiar with LA traffic then you probably can understand that most of the road construction the California DOT does in the LA area is done well…late at night.  On this particular occasion, they were doing work on the left shoulder, which is coincidentally next to the car pool lane—the lane in which we were traveling (at a pretty good pace, I might add).  Continue reading “Lessons From the 405”

The WWII Generation Has More to Pass On Than Just Assets

March 03, 2015

A new buzz word in the financial service industry is “holistic wealth management.” This is an approach to managing wealth that looks at all of the areas of someone’s finances – not only their investments but taxes, insurance and even legal needs. One of the areas I feel gets the least attention is an approach to passing on the legacy of wisdom from one generation to the next. Continue reading “The WWII Generation Has More to Pass On Than Just Assets”

Making the Most of Family Gatherings

January 20, 2015

Family gatherings are a great time to catch up on the latest happenings of family. I love seeing how much taller my nieces and nephews have grown. I especially love watching the new parents, with a look that is a combination of wonder and terror mixed with love as they look at their newborn babies. Continue reading “Making the Most of Family Gatherings”

Lessons From a Five-Hour Flight

January 14, 2015

On a recent flight from Charlotte to Los Angeles, I sat next to a gentleman who has had quite a rough year.  Without going into a lot of detail, he spoke with me about the recent passing of his father.  For many, the thought of losing a parent would be rather hard, but for my traveling companion, he spoke of his father’s passing as somewhat of a relief.  You see, his father began to suffer from cognitive impairment earlier in the year so much that he was eventually confined to a nursing home. His health deteriorated quite rapidly, and he was only in the nursing home for about three months when he passed. Continue reading “Lessons From a Five-Hour Flight”

Estate Planning After Your Will is Drafted

August 29, 2014

I talk with a lot of people who have absolutely nothing done in their estate planning efforts.No will, no medical directives, nothing. So, I spend a lot of time talking about what would make up the standard “Estate Planning 101” package that they could have an attorney draft.  The basic documents that nearly everyone should have in place are a will, powers of attorney for financial and medical decisions, and advance medical directives.  With these basic documents in place, most people could check “estate planning” off of their to do list.  But, to dig a layer deeper, what are some things that you can do after you’ve signed your basic documents, never to look at them again? Continue reading “Estate Planning After Your Will is Drafted”

Lessons From a Tragedy

August 28, 2014

If you’re like me, you were shocked and horrified when you found out about Robin Williams’ death. I can’t tell you how many interviews I listened to and movie clips I watched of him in the days after the horrible news. Buried in all that media coverage, I also saw this article pointing out that unlike so many other celebrities with untimely ends, at least Williams spared his family additional stress and grief by taking care of his estate planning with a revocable trust. Continue reading “Lessons From a Tragedy”

Do You Have An Advance Directive?

April 16, 2014

As a husband and father of four children, it is important to me to make sure my family is taken care of in the event of an emergency.  I have done a few things such as create an emergency fund, draft a will, and purchase life insurance, but there are a number of things I still have left to do.  One of the more important items I still have left on my to-do list is an advance health care directive. Continue reading “Do You Have An Advance Directive?”

Why I Max Out My Health Savings Account (And You Should Too)

February 19, 2014
Updated June 14, 2017

When I worked as a 401(k) enroller, my regional sales manager (who happened to be my step-dad) used to demonstrate the tax advantages of the 401(k) by ripping a dollar bill into two pieces to show the effect of taxes on income. He would then go on to say that trying to save for retirement with after-tax money was the equivalent of saving only a portion of every dollar we earned and by putting that money in the 401(k), we got the benefit of the whole dollar instead.

Not only did this grab my attention—unless they are a magician you rarely expect someone to voluntarily rip dollar bills in half—but it drove home the idea that tax-deferred saving was better than saving after taxes.  There was only one problem: that money would eventually get ripped, figuratively speaking, when it was withdrawn in retirement. Continue reading “Why I Max Out My Health Savings Account (And You Should Too)”

Charitable Intentions With Potentially Uncharitable Results

October 29, 2013

My husband was ecstatic last weekend as the winning bidder of four Ravens tickets at a silent auction. The silent auction was part of a fundraiser for my friend’s niece, Melissa, who has been suffering from a rare illness that left her paralyzed from the waist down. Her story captured the attention of the local newspaper, then went viral when she was the featured recipient of Chive Charities for Hope for a Home. When I made the check out to pay for the Ravens tickets, I was told to make it payable for $350 to Melissa, but my check was miniscule compared to the over $388k raised altogether.  I was so happy that Melissa’s fundraiser had been such an amazing success, but I was also concerned about the consequences these donations might have on her since I was writing the check directly to her.  Continue reading “Charitable Intentions With Potentially Uncharitable Results”

Your Last Wish

September 24, 2013

Do you have a last wish?  I hadn’t given it much thought until last weekend, when I sadly had to attend a memorial of a friend who died unexpectedly at the early age of 48. Tom left behind a wife, a grown son, and his childhood best friend John, who he’d stayed close with for over 40 years of their lives.  Continue reading “Your Last Wish”

A Simple Estate Planning Checklist For a Challenging Topic

June 17, 2013

What does your current estate plan look like?  If you said you don’t have an estate plan, you’re probably wrong because the state you live in actually has a plan for your estate if you die without a will, trust, or other crucial documents.  If your line of thinking is “what estate…I’m overwhelmed by debt” or “I’m single with no kids” or “I’m young and just getting started in my career,” understand that everyone has an estate and needs an estate plan to make sure your individual, family, and financial goals are met once you die. Continue reading “A Simple Estate Planning Checklist For a Challenging Topic”

Five Step Check List for Your Estate Plan

October 08, 2012

What did Heath Ledger and former Supreme Court Justice Warren Burger have in common?  Their career choices couldn’t have been more different but in their estate planning, they made similar mistakes — ones that could have been easily avoided.  Heath Ledger made the mistake of not updating his will when his daughter was born and even though Warren Burger was a Supreme Court Justice, well versed in the law, he made the mistake of doing it himself and ended up leaving out some key provisions.  In both cases, the family paid the price.  If a Supreme Court Justice can make a mistake, anyone can. Continue reading “Five Step Check List for Your Estate Plan”

What We Can Learn From “The Will: Family Secrets Revealed”

October 05, 2012

Sometimes my job is really fun!!!  Today is one of those days.  I had the opportunity to check out a TV show before it airs.  That made me feel a little bit like a celebrity.  Here’s the story.  There’s a show on Investigation Discovery called The Will: Family Secrets Revealed and I had never seen the show before.  Because of our blog here, someone from the channel contacted us to let us know that Season 3 is starting soon and graciously allowed one of us to preview a few episodes.  Luckily for me, I was the one who got to do this.  I think I have a new favorite show and I’ll be DVR’ing the series now!  Continue reading “What We Can Learn From “The Will: Family Secrets Revealed””

Three Common Estate Planning Mistakes That You Can Easily Avoid

October 01, 2012

When I made a mistake once on my taxes, I got a notice from the IRS in the mail asking me to pay what I actually owed and a little extra for interest and penalties.  This was certainly not a pleasant experience, but all it really cost me was money and my pride. However, when you make a mistake in estate planning and don’t catch it, you may not know it until it is too late.  The very people you were trying to take care of may end up muttering your name under their breath in frustration because they have some problems on their hands. Continue reading “Three Common Estate Planning Mistakes That You Can Easily Avoid”

Why Naming a Successor Trustee Is So Important

July 18, 2012

Last week I shared with you the story of Joe who, as a named healthcare power of attorney for his aunt and uncle, found himself in the difficult position of having to make healthcare decisions for both of them under less than hospitable circumstances.  As though that were not enough, Joe was also named the successor trustee for his aunt and uncle’s trust, which meant that at the same time he was making difficult healthcare decisions, he would also have to make important financial decisions.  Now, at first glance you might think it makes sense to name the same person in both capacities.  After all, one of the decisions Joe had to make was whether his aunt and uncle should receive care in their home or in a facility, and that would certainly depend on what they could afford.  But there are a number of reasons why it may have been better to name someone else as the successor trustee. Continue reading “Why Naming a Successor Trustee Is So Important”

Why I Changed My Mind About Whole Life Insurance

July 12, 2012
Updated June 14, 2017

Like most financial planners who don’t sell whole life insurance, I’ve always seen whole life insurance policies as great big rip-offs sold by sleazy life insurance agents. But my opinion changed a bit after a recent conversation I had with a Helpline caller. While I still think most people are better off buying term insurance, I’ve come to the conclusion that whole life insurance can be a better deal for some people. Continue reading “Why I Changed My Mind About Whole Life Insurance”

Choosing the Right Healthcare Power of Attorney

July 11, 2012

Choosing a person to make healthcare decisions for you when you are physically and/or mentally unable to make them for yourself is difficult, but it’s a choice that should be made with great care and diligence.  This person may be required to make decisions not only about the type of treatment you receive but also about which hospital you go to, where and what type of custodial care you receive, and when it may be time for hospice care.  You may be inclined to simply name a spouse or a child, but as my friend Joe found out, this might put them in a very difficult position.  Here is Joe’s story (and just for the record, all names have been changed to protect the privacy of those involved): Continue reading “Choosing the Right Healthcare Power of Attorney”

One of the Biggest Challenges Facing Financial Planners

February 01, 2012

One of the biggest challenges I face in my line of work is deciding when to explain things in more detailed technical terms and when to explain them in more understandable  “practical” terms.  For example, when discussing the income limits for traditional and Roth IRA contributions, most financial professionals will tell you the limits are based on your adjusted gross income (AGI) when technically they are based on your modified adjusted gross income (MAGI).  In many cases, such as this one, the difference between the practical and the technical may be so small that it’s just easier to speak in practical terms. The problem is that if you don’t know the technical stuff, it’s easy to make a financial mistake. Continue reading “One of the Biggest Challenges Facing Financial Planners”

When Should I Consider Having a Trust?

January 11, 2012

At Financial Finesse, we are often asked this very basic question.  It seems simple enough.  A trust, by its purest definition, is a form of ownership.  You can own assets in your name alone, you can own assets with someone else (e.g. jointly), you can own assets by contract (e.g. a life insurance policy), or you can own assets in a trust.  There are several benefits to having assets held in trust.  For example, when you have a trust, you can control who receives trust assets, when they receive these assets, and what these assets may be used for.  Consider the following example:

When I was a child, my father was killed in a car accident.  Prior to his death, he provided instructions in his will that basically said if anything ever happened to him, money should be set aside in a trust until each of my two brothers and I turned 18, after which the money would be used to pay for college. Continue reading “When Should I Consider Having a Trust?”

I’m Thankful for…Estate Planning?

November 23, 2011

During Thanksgiving, many households (including mine) have a tradition of having each person at the table tell everyone what they are thankful for.  It’s in the spirit of this tradition that I’d like to share with you why I’m thankful for estate planning. Continue reading “I’m Thankful for…Estate Planning?”