Discovering The Mature Lifestyle Written financial plan key to cutting stress at retirement Page 5
Finance
February 19, 2015
February Issue
Edina attorney, financial planner offer money tips to seniors Assess financial situation early to make adjustments to saving, spending BY SUE WEBBER CONTRIBUTING WRITER
If
you’re afraid of running out of money in retirement, you’re not alone. But according to Tom Gartner of ISC Financial Advisors in Edina, taking your assets, liabilities and cash flow and “doing the math” might turn out to be reassuring. “Many people who think they are going to be penniless will be okay and can be free to spend some money without guilt,” Gartner said. “Even if you’re not pinching pennies, it’s still better to figure it out early rather than later. The sooner you identify where you’re at, the sooner you can make whatever adjustments are needed. It helps to have clarity. You can make better purchasing and Tom Gartner spending decisions.” He has observed that Midwesterners tend to have “really good saving habits.” Finding out that it’s OK to spend some of the savings usually comes as a relief to them, Gartner said. One of the biggest mistakes some seniors make is taking Social Security too early. “You don’t need to wait until you’re 70, but there’s a big reduction in benefits when you take it early,” Gartner said. “You get 7-8 percent more each year that you wait.” For the last five years, Gartner has put together a monthly newsletter for his customers and finds that they appreciate the financial tidbits and information he puts together. “When you follow the financial news, it’s like
drinking from a fire hose,” Gartner said. “You need someone to distill it.” Gartner is a strong proponent of getting an estate plan in order. “It’s so common to overlook that and so important to get it in order,” Gartner said. “It’s a polite thing to do for your kids.” Attorney Joel Mullen agrees that everyone needs an es-
tate plan. Mullen and his business partner, attorney Matthew Guttman, are the principals at Mullen & Guttman, a nineyear-old Edina law firm that specializes in estate planning. One of the most common mistakes many people make is not planning ahead, Mullen said. “Everybody needs an estate plan,” Mullen said. “Not everyone needs a will or a trust.” He tries to achieve certain goals in working with clients, Mullen said: • Avoiding probate • Protecting assets • Reducing or eliminating estate taxes “We have the same goals, regardless of the assets,” Mullen said. “We try to educate people in a simple manner and help them to understand the goals and the tools available: what they need to do and how to do it.” One of the firm’s tools in getting the word out about what’s needed is to sponsor between four and eight free seminars a month, offered at a variety of locations throughout the Twin Cities. The 60-90-minute sessions draw 20 or more people each time, Mullen said. “We definitely get questions about the difference between a will and a trust, or what happens when a loved one dies without a will,” said Kathleen Fedor, client relations director at the law firm. Other questions concern how Minnesota’s estate tax impacts legacies, she said. “There’s a lot of focus on protecting assets,” said Fedor, who termed the seminars “really educational, very informative” and said they cover the gamut, from basic to more sophisticated concerns. “It’s really important information for every Minnesotan to have,” Fedor said. After the firm was formed in 2006, the lawyers began conducting cabin trust seminars. They also feature two client appreciation gatherings each year, Fedor said. “We take care of our clients,” Fedor said. “We want them to call us.”