Financial Fitness
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estate planning
Ryan Schlehuber • Daily News features editor • scoop@staffordgroup.com • (616) 548-8279
WHAT IS A CREDIT SCORE?
A
credit score is a numerical rating that represents an individual’s credit worthiness. Credit scores range from 300 to 850 where the higher the score, the more credit a person may qualify for. A good credit score may also qualify you for the best mortgage and consumer loan rates, zero percent credit cards, and may also lower your auto insurance premiums. Likewise, a low score could inhibit you from obtaining loans, make you subject to higher insurance premiums and could even prevent you from being hired. The most commonly used credit score is the FICO score, which is based solely on information from your credit report. A credit report is a compilation of one’s perBy Amy Homich sonal data, credit history, Chemical Bank detailed account information and credit inquiries. These reports are maintained by the three credit agencies: Equifax, Experian, and Transunion. Your FICO credit score is calculated using: • 10 percent New Credit: How many credit card and loan accounts you’ve opened recently; this could indicate financial trouble • 15 percent Length of Credit History: How long you’ve had credit available and have been making timely payments • 10 percent Types of Credit: Having a mix of accounts, including installment loans, home loans, and retail and credit cards may improve your score • 35 percent Payment History: Late payments hurt your score, but a long track record of timely payments helps • 30 percent Amount Owed: The proportion of money owed compared to how much credit you have available Under Federal law, you are entitled to
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Saturday, January 23, 2016
The Daily News
ASHES TO ASHES Religious, emotional and financial implications of cremation
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hen making end of life plans for a loved one or pre-planning funeral arrangements, many decisions come into play. One such decision is deciding to be cremated, an option that continues to trend upward. Mike Verdun has been in the funeral business for 20 years, operating Verdun Family Funeral Home in Belding. Within that time, Verdun has seen cremation increase within his clientele from approximately 10 to 12 percent to more than 50 precent of families opting for cremation. This trend holds true nationally, as well. According to www. nationalcremation.com, figures show cremation has increased from 3.6 percent of Americans selecting cremation in 1960 to 48.2 percent in 2015. The families Verdun has assisted have given multiple reasons for selecting cremation for their loved one. “Several reasons for cremation include scheduling convenience for services to be held at a later date, the ability to delay a decision on By Stacie Smith Daily News features writer where the final burial will take place due to family mobility and in some cases, lower funeral and burial costs,” Verdun said. Verdun worked with Kristina Richmond and her parents with planning Richmond’s sister’s final arrangements. They agreed that cremation was the most fitting option for their sister and daughter. See Cremation, Page 13
Daily News/Ryan Schlehuber
See Credit Score, Page 14
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For more information or to begin building a relationship with your local Chemical Bank Lender, visit ChemicalBankMI.com or call (800) 867-9757.
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FINANCIAL FITNESS
Daily News • Saturday, January 23, 2016
Make your later years ‘golden’ by planning ahead
Cremation Continued from Page 12 “Well, Lori never liked attention on her and wouldn’t have wanted people looking at her,” said Richmond, a Belding resident. “We chose cremation because it was what she would have wanted.” The convenience of being able to plan memorial services at a later date or delay deciding on a final resting place may encourage a family to choose cremation, but some families also include their religious convictions when making a decision. Some religions previously prohibited cremation, but those restrictions have loosened to a degree over the years. “Most religions now are welcoming of the many cremation or burial options that are out there and are comfortable with cremation of the body taking place prior to the funeral service or conducting the services with the body present and then carrying out the cremation process after the services have been completed but prior to the remains being buried,” Verdun said. As with the other goods and services, many families make a decision based on the cost of cremation versus a traditional burial. Verdun states that costs vary widely based on the range of services families choose. For example, Verdun said there can be a 40 to 50 percent difference between two funerals with the same services offered but with one having the body present for all services and burial and one where the body has been cremated prior to services. For Richmond and her parents, cost was not a determining factor in electing cremation for their loved one. They considered what would have been their loved one’s wishes and how to help create a legacy. In fact, they chose to purchase small, artistic glass-blown urns from Artful Ashes to commemorate their loved one. “We used some ashes and had a glass weight made from Artful Ashes for each of us, including Zayd (the decedent’s son), so every time he sees it, he knows it’s part of his momma,” Richmond said. Planning final arrangements, whether in advance for oneself or for a loved one, is personal and should involve open communication among family and an appointment with a funeral director. Doing so can help prevent uncertainty during an emotional and stressful time following the death of a loved one.
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Daily News/Stacie Smith
A unique way to keep the ashes of a loved one is through a special set of wind chimes available through Woodstock Wind Chimes. This set was purchased through JohnsonFeuerstein Funeral Home of Belding.
clean individual apartments, groceries, utilities and so on. Even so, $5,000 is a daunting figure to many seniors trying to make ends meet on a fixed income. According to Slebodnik, planning ahead is your best bet toward making sure your senior years are pleasant ones. One such method is a long-term care insurance policy. “There are a lot of them out there,” Slebodnik said. “They’re wonderful. In most assisted living facilities, they will accept that long-term care insurance.” Though every policy is different, they all provide for funding for assisted living should it become necessary for the policy holder. The level of that care — the “cap” amount, as well as the duration payments will be made — differs depending on how good (and expensive) the insurance is. Most policies, however, are within reach of most seniors, according to Slebodnik. “Some have a cap of about $250,000 of assisted living care,” she explained. “Some last from six to eight years. They expect you to save up during that time to take over the expenses after that.” Slebodnik recommends talking to an insurance agent to get the best deal based on individual health and need profiles.
here’s an old saying that goes: “Getting old is not for the faint of heart.” That adage grows truer with each passing generation. Gone are the days when two or even three generations of family lived beneath a single farmhouse roof. Today’s seniors — living longer than any previous generation — often find themselves on their own when it comes to locating housing and adequate long-term health care in their “golden years.” The cost of residing at an assisted living facility has skyrocketed and those in the know say it’s likely to continue to climb in the future. Carmel Slebodnik, director of Lakeview Terrace Assisted Living, in Lakeview, says monthly residency starts out at a “low” By Mike Taylor of about $4,000. Daily News features writer “If you factor in any kind of (health) care, you’re looking at about $5,000,” Slebodnik said. “By the time people now nearing retirement age retire, that will be up around $6,000.” That figure does take into account nearly all expenses, however. At Lakeview Terrace, everything but personal telephone bills is covered, including housekeeping, laundry, the chemicals used to
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These mini-urns, displayed here at Marshall’s Funeral Home in Greenville, are just a sample of the variety of urns that are out there in today’s market for cremated remains.
“Meet with a funeral director and ask any and all of the questions you may have,” Verdun said. “A brief meeting can alleviate a lot of wonder and worry.”
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Securities and insurance products are offered through Cetera Investment Services LLC (doing insurance business in CA as CFGIS Insurance Agency), member FINRA/SIPC. Advisory services are offered through Cetera Investment Advisers LLC. Neither firm is affiliated with the financial institution where investment services are offered. Advisory services are only offered by Investment Adviser Representatives. Investments are: *Not FDIC/NCUSIF insured *May lose value *Not financial institution guaranteed *Not a deposit *Not insured by any federal government agency.
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FINANCIAL FITNESS
Daily News • Saturday, January 23, 2016
14
Steps involved with estate planning By Metro Creative
A
lthough inevitable, death is an emotional subject that’s difficult to discuss. While estate planning can make people uncomfortable, it is an essential part of securing assets for future generations and can make a death in the family easier for loved ones to handle. Estate planning is an umbrella term that refers to a host of things that must be done prior to a person’s death, including writing a will and even making funeral arrangements. Estate planning attempts to eliminate
financial uncertainties and maximize the value of an estate, and allows men and women to state their wishes with regard to long-term healthcare and guardianship for their children.
Getting started
Estate planning should begin early in a person’s life, especially for young parents. It’s easy to talk about saving for a home or retirement, but it’s not so simple to discuss who will care for your children should you die while they are still minors. Those who are not able to sort through these answers on their own should enlist the help of an attorney or a
financial adviser, both of whom can take some of the emotion out of the discussion and put it in more practical terms.
wills, many people prefer to seek the assistance of an attorney, who can make sure all necessary details are included in the will.
The will
Medical directives
A will is an important component of estate planning. Without clearly and legally spelling out your wishes, there is no guarantee that those wishes will be honored. It will be up to a state or province to make potentially life-altering decisions that can impact your surviving family members, and the only way to ensure your wishes will be carried out is to put them into a will. Although men and women can write their own
In addition to a will, estate planning includes your wishes if you become incapacitated or suffer from a serious medical condition that precludes you from making decisions about your care and finances. Spouses can be named to make important health decisions, but you may want to
indicate other information, such as life support measures or organ donation, as well. If you have strong opinions on treatment, medical directives and living wills are a necessity.
Funeral arrangements
Another aspect of estate planning concerns funeral arrangements. Many people prefer to make their own funeral and burial plans so that these heart-wrenching decisions do not fall on the shoulders of grieving family members.
Funeral planning may include choosing a burial plot, selecting a casket, indicating cremation, and paying for everything in advance so there is no financial burden on surviving family members. According to the funeral planning website Efuneral. com, the average cost of a funeral in the United States in 2012 was more than $8,500 for a burial service and $3,700 for a cremation. That’s a considerable expense that you may not want surviving family members to pay.
Tomorrow’s Retirement Adventure
Credit Score Continued from Page 12 a free copy of your credit report once a year from each of the three credit agencies. These reports can be helpful in rebuilding or maintaining good credit and also for detecting possible identity theft. You can request your free credit report online at AnnualCreditReport.com. However, your free credit report does not include your credit score. MyFICO. com gives you access to your credit report and credit score from one, two, or all three credit agencies for a monthly fee ranging from $19.95 to $29.95, with optional credit monitoring.
Other sites such as Credit. com, CreditKarma.com, and CreditSesame.com offer similar services and your credit score for a fee. It is important to know that bad credit takes time and there is no quick fix. Some important things you can do: Check your credit; set up payment reminders; reduce the amount of debt you owe. If you have additional questions in regards to your financial needs, please contact your local branch or visit us at www. ChemicalBankMI.com. Member FDIC. Chemical Bank is located in the following com-
munities: • Greenville (616) 754-4629 • Stanton (989) 831-5221 • Carson City (989) 584-3105 • Crystal (989) 235-4271 • Sheridan (989) 291-3293 • Edmore (989) 427-5121 • Lakeview (989) 352-7670 • Belding (616) 794-2100
Your life is full of adventure. Whether you imagine traveling around the world or relaxing with family and friends, we are here. While you focus on the adventure, let us focus on the right plan to get you there.
Amy Homich is a vice president/commerical lender for Chemical Bank of Greenville.
Trust Services 401k Rollovers
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Continued from Page 13 For veterans of the Armed Services, several funding programs also exist, not only for veterans, but for spouses of veterans, as well. Finally, there are Medicaid programs available for lower income seniors. Typically, however, there is a long waiting list for seniors hoping to take advantage of Medicaid reimbursement. And of course some seniors invest wisely during their working years and have enough money invested to pay for assisted living expenses. The main thing, however, according to Slebodnik, is to keep an eye to the future. “It’s important to have a plan in place,” Slebodnik said. “It makes it as easy as possible for family. It’s better to enter into a planned situation rather than an emergency situation.” Slebodnik added many residents-to-be drop by the facility months, or even years, before they actually plan to live there, just to get a feel for what life is like there. Lowell resident Sarah Sheldon, who retired from retail nearly 10 years ago, said she has been “shopping around” for an assisted living facility. “I don’t know if I will need to live in one,” she said. “But if I do I want it to be one I pick out myself.” That attitude and level of planning go a long way toward making for happy golden years, according to Slebodnik. “I get a lot of people coming in who say they’re not ready yet,” she said. “But they want to be prepared for when the time comes.” mtaylor@staffordgroup.com (616) 548-8273
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FINANCIAL FITNESS
Daily News • Saturday, January 23, 2016
‘When I die. .’ Funerals are becoming more personalized in today’s society any conversations personalizations is when we have taken place honor veterans.” about “when I die...,” Military honors, Christiansen with ideas of what a said, are something every vetperson would want at eran is entitled to. his or her funeral. “After 9/11, Congress Those ideas are now starting passed a law that, upon the to be the norm in today’s request of the family, that they funerals. will send out at least three Robert Christiansen, found- members of the branch of serer and president of vice that the deceased served Christiansen Cremation & in,” he said. Funeral Care of Greenville, says that the traditional NO TWO FUNERALS American funeral is changing. HAVE TO BE ALIKE “I think the biggest change Families can choose many has been that families are ways to honor their loved ones. sharing more about what they Personal touches in a funeral want, (and worrying less service offer the attendees a about) what the director says chance to feel closer to the to do,” he said. “As society’s deceased. views have changed, one of “Funerals are not for the the benefits of cremation is dead, they are for the living. It that you don’t have to have helps give the tools to go on everything planned and continue life,” out.” Christiansen said. For instance, peoSome examples of ple feel less presfuneral personalizasured to hold memotion that have rial services at a trabecome popular ditional venue, such over the years are the By Emilee Andrews as a church or a Daily News correspondent use of music and vidfuneral home. eos to pay tribute to Recently, Christiansen had the deceased, as well as to a particularly unique request display pictures during visita— the deceased wanted to tions and services. Funeral Director Andrew buy his funeral attendees a beer. As the funeral home Hurst of Hurst Funeral Home does not have a liquor license, in Greenville says that there it was decided they should are many wonderful personal have the visitation at the local touches on a funeral with American Legion. The day today’s technology. “We use a specialized softafter, the family had a formal ware program to create tribute and more traditional service. “What was important to the videos for families, taking deceased and what’s impor- existing family photos and vidtant to the family (play a role eos and creating a video that in funeral personalization),” can be played during visitation he said. “One of the biggest and/or for the memorial ser-
M
Courtesy photos
Personalized funerals are trending in today’s society. For example, one local funeral procession called for friends and family to gather at an American Legion where the deceased arranged to buy the “last round” for family and friends.
vice,” Hurst said. The most common examples of personalization in funerals are customized print materials, videos and music, Hurst said. But there are other examples of even greater personalization. “We had a large service here are the funeral home for Mrs. Pam Dodd, a longtime teacher at Baldwin Heights [Elementary],” he said. “We brought a popcorn machine from the high school here and had it in the lobby for people to enjoy.” Another example includes different ways to tell the story of the person’s life. Mike Verdun, manager of Verdun Family Funeral Home, says he encourages families to bring personal items into the funeral home for visitation and have them on display. “Sometimes personalizing
From worker’s compensation coverage to term life policies, our agents will shop some of the best providers in the industry ensure that your business and family are covered even if the worst happens. It will be our pleasure to serve you.
What many people don’t know is that you need not prepay when you prearrange. We’re happy to record your wishes and hold them on file at no charge.
Please call or email for details.
Daily News correspondent Emilee Andrews is a Greenville resident.
GV Estate Planning 5.125x10.5 Oct 2015.pdf 1 10/7/2015 11:33:56 AM
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the service can be a very simple thing that punctuates the service in a perfect way, such as… starting the service at a specific time of day to commemorate a certain thing the deceased did each day at that same time,” Verdun said. Funeral personalization can give grieving families a way to
GV Estate Planning 5.125x10.5 Oct 2015.pdf 1 10/7/2015 11:33:56 AM
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your goals, while also striving to preserve your family legacy and wealth. Personal and financial circumstances change throughout your lifetime. Review your Trust & Estate plans periodically Have you thought about these 5 questions? to reflect these changes. Our Trust & Estate planning team 1. If you died tomorrow, who would own and run your business? can help you update your plans. 2. When was your trust and/or will last updated? 3. Who is the trustee of your trust? 4. At what age will the beneficiaries of your trust receive their distributions? 114 North Lafayette St. ∞ Greenville ∞ 616.754.8888 5. Do you have a Medical Power of Attorney for health care? www.hungerfordnichols.com
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FINANCIAL FITNESS
Daily News • Saturday, January 23, 2016
16
‘Don’t sell on emotion’ Diversification is key to secure retirement
“The best laid schemes o’ Mice an’ Men, Gang aft agley.” It’s heavy on the Scottish brogue, but the message of Robert Burns’ 1785 poem, “To a Mouse,” still rings true today. Writer-director Woody Allen couched this eternal truth in more modern vernacular when he quipped, “If you want to make God laugh, tell him about your plans.” The message is this: If things can go wrong, they probably will. But when it comes to finances and retirement, you can, at the very least, increase your odds of living out your senior years in comfort, and maybe even in style. By Mike Taylor Planning and diversification are the keys to financial security, according to Steve Day of Daily News features writer Ameriprise Financial Services, Inc. in Greenville. Though there’s no “sure thing” when it comes to finances, Day says, there are several steps investors can take to make sure their hard-earned savings don’t wind up vanishing like morning dew on a summer’s day. “What they want to do is make sure they’re covered in all market conditions,” Day said. “(Investors) need to make sure their portfolio is very diversified so no matter what the market conditions are, they have somewhere they can go to get money without being hurt.” That money can be in fixed bonds or growth, the overarching goal being diversification. That said, there also must be a balance between security and return. With people living longer and longer, investment plans that might once have been expected to support a 10-year retirement must now do double duty, or even triple or more.
“People retire, but their lives go on,” Day said. “So their investments can’t be too conservative. At the same time, they can’t be too aggressive. This is true regardless of the amount of money being invested.” Lessons learned during the Wall Street crash of 2008, when markets dropped as much as 60 percent, are still fresh in the minds of most investors. Those who lost the most were those who sold when the market was down. This is always a mistake, Day cautioned. “The people who stayed the course have recovered their assets,” Day said. “You don’t want to sell on emotion. The people who lost were the people who sold.” Day added that, contrary to popular opinion, most investors care deeply about whether their clients’ portfolios wax or wane. With that in mind, he generally advises clients — particularly retirees living in part or whole on their investments — to avoid “pulling out” when the market is down, especially if their investments are not thoroughly diversified. If investments are handled professionally and with due consideration, however, even in tough times assets may be pulled from some areas without upsetting an investor’s entire apple cart. Not everyone is a Wall Street wizard, however. A good financial plan can be put together by a professional, but it should be someone the investor fully trusts. “That’s very important,” Day noted. “It’s like getting your car fixed, I tell people. I know nothing about a car engine, so I find a mechanic I can trust and take my car to him to do what needs doing. It’s the same with a financial advisor.” Doris Moore, a former Belding resident now living in Florida, is a success story that followed the sort of advice Day gives his clients. Now, 10 years into her retirement, she’s glad she did. “I managed to stick a little something away every month even in the hard times,” Moore said. “My husband made sure it was invested very conservatively, but in a lot of places. Between his pension and our Social Security, we’ve only had to draw on the interest, not the principal.” Sometimes, with a little planning, the best laid plans can result in a comfortable retirement. mtaylor@staffordgroup.com (616) 548-8273
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