Safe Money News: Volume 6 Issue 1

VOLUME 6, ISSUE 1 MARCH 2017

SAFETY PINS THE PERSONAL PENSION PLAN The old retirement model of past generations is gone.

Today’s retirement period can last 25, 30, 35 years or more. The new retirement model is all about longevity.

By Ray Ohlson, CLU, CRC

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PLAYING IT SAFE WHAT’S THIS “FAKE NEWS” ALL ABOUT? Fake news is thriving thanks to a super cheap distribution network - the internet. Much of it is benign, banal entertainment meant merely to sell ads. So how do you know what’s safe, what isn’t? Read on ...

By Steve Dinnen

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SAFE RETIREMENT WOULD YOU PREFER YOUR RETIREMENT INCOME TO BE STABLE OR TO FLUCTUATE?

THE PERSONAL PENSION PL AN

Wall Street is all about managing the amount of risk the retiree retains; insurance companies transfer away the risk of income loss from the retiree to the insurer while providing guaranteed lifetime income.

By Dr. Jack Marrion

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PERSONAL FINANCE

By Raymond J. Ohlson, CLU, CRC

TAX FRAUD AWARENESS: HOW TO PROTECT YOUR IDENTITY AND ASSET

Most people marvel at the lighthouse. A simple structure that has played such a big role in navigating the sea. The lighthouse was designed to emit a beacon of light as an aid for ships at sea or on inland waterways. Lighthouses have marked dangerous coastlines and provided safe entry into harbors. The Personal Pension Plan does much the same regarding retirement income. It helps avoid the dangerous financial reefs and the turmoil and destruction that can follow.

The IRS, taxpayers and tax preparers share a common enemy: identity thieves. We all have a part to play in the fight against tax-related identity theft. Your role starts by learning the mechanics and warning signs.

The old retirement model of past generations is gone.

Back then, along with the gold watch, the company could expect to only pay retirement benefits for 3-4 years. My, how things have changed. Today’s retirement period can last 25, 30, 35 years or more.

The new retirement model is all about longevity. That

By TMA, PC

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SAFE FOR LIFE LEADERSHIP

What makes a leader a leader? There are any number of traits that added together provide leadership qualities. Finding these attributes in a person who aspires for political office, can be difficult to determine...

By Norm Wilkens

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SAFETY PINS ... “The Personal Pension Plan” - Continued is why The Personal Pension Plan is very important in assuring that today’s retirees have an income guaranteed long after the gold watch has quit working.

Let’s be honest with ourselves, we probably didn’t prepare enough for retirement. We should have saved more money and prepared for longevity. Let’s take a closer look.

HOW TO OBTAIN MORE RETIREMENT INCOME

Is there anything we can do to obtain more retirement income? Our social security, our pensions, and 401Ks just won’t be enough. And, we can’t afford to take risks.

WHAT’S THE ANSWER? THE PERSONAL PENSION PLAN.

The Personal Pension Plan provides a stream of income for as long as your retirement journey takes ... and not only for you, but if you have a spouse ... he or she is afforded the same comfort.

That’s the beauty in developing your own Personal Pension Plan. It is not a one-size-fitsall model. It is all tailored to your needs and desires. There are no wrong decisions. Most importantly, the Personal Pension Plan is designed, funded, and implemented with fixed guaranteed products. No wishing and hoping, no gambles ... only guarantees.

LET’S TAKE IT STEP BY STEP:

1. What type of lifestyle do

you want to maintain during retirement?

2. What life income is available to support that lifestyle?

(Social Security, Pensions) 3. What amount of essential and discretionary income do you need?

4. What financial lifeboats are available to sustain your lifestyle should the unforeseen occur?

5. Finally ... how much do you need and when do you need it?

It appears that the majority of Americans are not very positive about the prospects of having a secured retirement. Even for those lucky enough to have pensions ... they know it is unlikely to be sufficient.

WE HAVE ALL BEEN OPERATING OFF THE SAME THREE-LEGGED STOOL CONCEPT THAT HAS BEEN USED FOR GENERATIONS.

1. Pensions: We used to think that this would be enough.

It turns out we need more.

A recent Towers Watson survey stated that at the end of 1998, 90 of the Fortune 100 companies had a defined benefit pension plan. Today, only 17 of those companies offer such a plan to new hires. Now, most Americans are doing it on their own through 401(k) s. The difference between the “defined contribution”

401(k) and the “Defined Benefit” pension is all in the guarantees ... or lack thereof. When it comes to 401(k)s, we just keep our fingers crossed and hope for good financial winds.

2. Social Security: For most Baby Boomers, and for those already retired,Social Security may make it through our lifetimes.

However, boomers will need every penny as we haven’t saved enough.

3. Personal Savings: This is the most important component in planning for a successful retirement. Again, for those retired, the job isn’t over. We still need to have the maintenance plan.

Well, there are many choices such as investments or real estate. For those who no longer have a stomach for risk, the choices are fewer.

Most advisors present Monte Carlo simulations that present different withdrawal scenarios based upon years of past stock market performances. These simulations show that based on different assumptions, you should be safe and not run out of money. Equities are, and will continue to be for many, an important part of their retirement plans. However many people are looking for safe money places.

The personal pension is an old idea that is making a big

SAFETY PINS ... “The Personal Pension Plan” - Continued comeback due to its simplicity.

It entails separating essential and discretionary income needs, determining the need for increased income in the future, and analyzing assets available for income today and the potential income they would provide. Then we need to determine... how much do you need and when do you need it?

Sounds simple, doesn’t it? That is why it is in such favor today.

timelines. How much does it take to fund the guaranteed income desired?

Many Americans are taking some at risk money and placing it in safe money places. Some have determined that they are at a place in life where they want zero investment risk and are willing to sacrifice the potential of great returns for the comfort and tranquility of guaranteed income for life that cannot be outlived. This all depends on needs and

When most Boomers or retirees are asked, “How long do they want this income to last?” They usually say “Forever”. When they ask the advisor, “Why are you using annuities to accomplish these goals?” The answer is the theme song for the James Bond 1971 film of the same name … “Diamonds are Forever”… and so are annuities.

The Personal Pension Plan is not a one size fits all plan.

Therefore, we will need to take some information, map out the amount of income you will need, determine when you will need it, and take into consideration any special needs or desires you have.

About the Author: Raymond J. Ohlson CLU, CRC, CEO & President of The Ohlson Group, Inc. and SMP International, LLC Mr. Ohlson entered the insurance business while completing his Bachelor of Science Degree at Ball State University. He quickly qualified for the Million Dollar Round Table (MDRT) of which he is a Life Member.

He also received his Chartered Life Underwriter (CLU) designation from the American College in Bryn Mawr, Pennsylvania.

Mr. Ohlson, a former life insurance company president, currently sits on college and hospital boards and is a published author. Raymond J. Ohlson can be reached at: Email: rohlson@ohlsongroup.com.

PLAYING IT SAFE

WHAT’S THIS “FAKE NEWS” ALL ABOUT?

By Steve Dinnen My daughter taught herself to read at four years of age and soon was devouring every piece of print in sight, including a grocery store magazine headline that struck her little brain as odd.

“Mommie,” she asked, standing in the checkout line eyeballing the tabloid, “did this man really drink 300 bottles of beer and explode?”

No, answered mom, they’re just trying to get you to buy the magazine. This supermarket

sway opinion.

Take a recent item in the “Boston Tribune.” It reported prior to the November election that Michelle Obama’s mother was due to collect a $160,000-per-year lifetime rag was using what we now call government pension for click-bait – offering up a juicy caring for the president’s two (well, sudsy) bit of completely daughters. There was not a bogus news in hopes we’d buy shred of truth to that story. It the damn thing to read more. supposedly was sourced from an FOI request but in fact came Thirty years on, the game from a spoof site as there is no remains the same and fake news gathering organization news is thriving. Thanks to known as the Boston Tribune. a super cheap distribution The Seattle Tribune and network - the internet - it now Baltimore Gazette are similar has a global reach. Much of it spoof sites (though the Seattle is benign, banal entertainment Tribune clearly warns readers meant merely to sell ads.

Some of it is malicious, seeking that they’re entering the world not so much to entertain but to of fiction). ( Page 4)

PLAYING IT SAFE ... “What’s This “Fake News” All About?” - Continued So how do you know what’s safe, what isn’t? Well, it can take some sleuthing when there are so many news channels vying for your attention. And it takes a little bit of skepticism on your part to not blindly accept a denunciation from a politician or business person about fake news when in fact the information is merely something he or she disagrees with.

Unfortunately, this fake label starts at the top – President Trump. I am not quibbling with his politics, but I can say, as a practicing journalist, that when he calls out CNN for staging fake news he is being a bit theatrical. CNN may be printing or broadcasting news he does not like. But neither they nor Fox, MSNBC nor any of the news outlets who show up for White House press briefings are in the habit of dreaming up news and presenting it as fact. They may occasionally err, but there are consequences (Rolling Stone sued over the 2014 University of Virginia rape story; Janet Cooke canned from

the Washington Post after she dreamed up a youthful heroin addict).

Look for news from people you’ve always used – your local paper or television channel. Be wary of new websites that pop up in your city. Don’t be lulled into submission by their heavy use of news you might see as non controversial. I spotted one story about a local woman who sold salsa at the farmers’ market suddenly landing a contract for her sauce with a national grocer. They didn’t say where she lived, or the market that launched her to fame.

The grocer they named was fictitious. All of this was meant to create an air of authenticity.

Do they name their reporters, give you a way to communicate with them, offer subscriptions?

Do they carry ads from local car dealers, grocers and merchants, who would be among the first to vett them? Do they carry local news, or daily stories on crime, schools or city hall that would indicate a full-time reporting

staff?

Television news can be vouched for in general since it’s extremely expensive to set up a network just to play games.

Long-known magazines such as Forbes and Bloomberg Business News are truthful. And while magazines, especially, may stray into fiction, they will label it such. And if they are giving an opinion, it’s just that an opinion. That doesn’t make it fake.

About the Author: Steve Dinnen Steve is a freelance writer specializing in financial and travel news. He received his Bachelors Degree from Drake University and his Master of Journalism from Oklahoma University.

Mr. Dinnen served as Sr. Business Reporter for the Des Moines Register, Business News Editor for the Indianapolis Star and served as Editor (freelance) for the Christian Science Monitor of its weekly personal finance column.

SAFE RETIREMENT

WOULD YOU PREFER YOUR RETIREMENT INCOME TO BE STABLE OR TO FLUCTUATE?

BY DR. JACK MARRION Would you prefer your retirement income to:

Wall Street financial writers try to frame retirement planning as creating a large • Be stable or to enough pile of investments fluctuate? to last through retirement.

• Never go down or is it This approach has merit okay if it can go up and if the retirement goal is to down? leave money to your heirs, but the typical main goal • Last as long as you in retirement planning is to live or is it okay if there’s a chance it will have enough income. Since Wall Street manufactures end before you do?

investments, their go-to solution to generating retirement income is to withdraw a percentage of your investments and hope it lasts.

The problem is there are no guarantees with this withdrawal approach, so the suggested withdrawal percentage keeps ( Page 6)

SAFE RETIREMENT - “Would you prefer your retirement income to be stable...” - Cont getting lower. For years, the suggested “safe” withdrawal rate was 5%.

This was generally reduced to 4% about two decades ago, but even at 4% the risk of running out of money early is as high as 32%*, so several advisors suggest that taking out 3% might be a better idea – or even limiting withdrawals to 2% from your investments each year would be prudent. The problem is most people saved for retirement with the expectation that the $500,000 they managed to put away would get them $25,000 a year and now they’re being told they should tighten their belt and settle for $10,000 in retirement income, to lessen the chance it becomes $0 down the road.

only does your income not go down but it increases.

However, the question that remains is how big of a gambler are you?

These are the reasons that millions of retirees own annuities.

This is not saying that a retiree should place all of The insurance world their money in annuities, approaches retirement in but it does mean one a different way. Wall Street should look at their is all about managing personal situation and the amount of risk the determine how much stable retiree retains; insurance income they desire and companies transfer away whether an annuity income the risk of income loss from choice might be prudent. the retiree to the insurer. * Finke, M. Pfau, W, & They do this through an Blanchett, D. 2013, “The 4 annuity in many different Percent Rule Is Not Safe in ways. Income choices from a Low-Yield World,” Journal an annuity produce stable of Financial Planning, 26, income that does not go 6: 46–55. down – even if the stock market or interest rates do – or can even automatically About the increase the income each Author: Dr. Jack Marrion year during retirement.

The retiree can choose Dr. Marrion’s research annuities where they have on senior decision making access to the cash value and the financial world have The odds that you won’t run of the account and at least been featured in hundreds of out of money – even when ensure that they (and any publications including: Business Week, Kiplinger, Smart Money, taking out 4% a year – are heirs) will get back all of and The Wall Street Journal. He still on your side. Based on what they put in. And these is the author of six books and a the computer simulations income choices guarantee frequent media guest. that Wall Streeters like to that the income will last as run, in most scenarios not long as the retiree does.

Visit www.SafeMoneyPlaces.com for more information about The Safe Money Choices available to you in today’s marketplace

PERSONAL FINANCE

Tax Fraud Awareness: How to Protect Your Identity and Assets

Understand How Tax Fraud Happens

tend to share too many details or bogus phishing emails that appear to come from the IRS or a bank. Once they obtain an unsuspecting taxpayer’s data, thieves may use it to file fraudulent federal and state income tax returns, claiming significant refunds.

Dishonest individuals may steal taxpayers’ personal and financial information from sources outside the IRS, such as social media accounts where people

Paperless e-filing facilitates these scams: Thieves submit returns electronically, based on falsified earnings, and receive refunds via mail or

TMA Small Business Accounting, P.C. The IRS, taxpayers and tax preparers share a common enemy: identity thieves. We all have a part to play in the fight against tax-related identity theft. Your role starts by learning the mechanics and warning signs. From there, taxpayers can take proactive steps to protect

their data online and at home.

( Page 8)

PERSONAL FINANCE ... “Tax Fraud Awareness: How to Protect Your Identity and Assesst” - Cont. direct deposit. Sure, the IRS maintains records of wages and other types of taxable income reported by employers, but they don’t usually match these records to the information submitted electronically before issuing refund checks. By the time the IRS notifies a victim that it’s received another tax return in his or her name, the thief is long gone and has already cashed the refund check.

In addition to refund fraud, thieves may use stolen personal information to access existing bank accounts and withdraw funds — or open new ones without the taxpayer’s knowledge. Criminals are becoming increasingly sophisticated and their ploys more complex, making identity theft harder to detect.

Recognize the Warning Signs Taxpayers are the first line of defense against these scams. The IRS lists the

following warning signs of tax-related identity theft:

return using your Social Security number.

Your electronic tax return is rejected. When the IRS rejects your tax return, it could mean that someone else has filed a fraudulent return using your Social Security number. Before jumping to conclusions, first check that the information entered on the tax return is correct. Were any numbers transposed? Did your college-age dependent claim a personal exemption on his or her tax return?

You receive tax forms from an unknown employer.

Watch out if you receive income information, such as a W-2 or 1099 form, from a company that you didn’t do work for in 2016.

Someone else may be using the phony forms to claim a fraudulent refund.

You’re asked to verify information on your tax return. The IRS holds suspicious tax returns and then sends letters to those taxpayers, asking them to verify certain information.

This is especially likely to happen if you claim the Earned Income tax credit or the Additional Child tax credit, both of which have been targeted in refund frauds in previous tax years. If you didn’t file the tax return in question, it could mean that someone else has filed a fraudulent

You receive a tax refund or transcript that you didn’t ask for. Identity thieves may test the validity of stolen personal information by sending paper refunds to your address, direct depositing refunds to your bank or requesting a transcript from the IRS. If these tests work, they may file a fraudulent return with your stolen data in the future.

You receive a mysterious prepaid debit card. Identity thieves sometimes use your name and address to create an account for a reloadable prepaid debit card that they later use to collect a fraudulent

Visit www.SafeMoneyPlaces.com for more information about The Safe Money Choices available to you in today’s marketplace

PERSONAL FINANCE ... “Tax Fraud Awareness: How to Protect Your Identity and Assesst” - Cont. amount of sensitive data that identity thieves If you suspect foul play, would love to get access contact your tax preparer to.… With 150 million immediately. He or she can households, someone help determine whether right now is clicking on an you’re a victim of taxemail link they shouldn’t, related identity theft and or skipping an important identify steps to remedy the computer security update, situation. leaving them vulnerable to hackers,” said IRS Take Preventive Commissioner John Measures Koskinen in a recent You may wonder how many statement about the Security Summit Group. taxpayers file electronic (See “IRS Creates Security vs. paper returns. “There are 150 million households Summit Group” above.) that file federal and state How can you actively tax returns involving safeguard your personal trillions of dollars…. More data online and at home? than 90% of these tax Here are four simple returns are prepared ways to thwart tax-related on a laptop, desktop or identity theft: even a smartphone — 1. Keep your computer whether they’re done by an individual or a tax secure. Simple, costpreparer. This is a massive effective security electronic refund.

measures add up. For example, use updated security software that offers firewalls, virus and malware protection and file encryption. Be stingy with personal information, giving it out only over encrypted websites with “https” in the web address.

Also back up computer files regularly and use strong passwords (with a combination of capital and lowercase letters, numbers and symbols).

2. Avoid phishing and malware scams. Be leery of emails you receive from unknown sources. Never open attachments unless you trust the sender and know what’s being sent.

Don’t install software

PERSONAL FINANCE ... “Tax Fraud Awareness: How to Protect Your Identity and Assesst” - Cont. from unfamiliar websites or disable pop-up blockers.

3. Protect personal information. Treat personal information like cash. Don’t carry around your Social Security card in your wallet or purse. Be careful what you share on social media — identity thieves can exploit information about new car or home purchases, past addresses, vacations and even your children and grandchildren. Keep old tax returns in a safe location and shred them before trashing.

4. Watch out for scammers who impersonate IRS agents. IRS impersonators typically demand payment and threaten to arrest victims who fail to ante up. The Federal Trade Commission recently issued an alert about

police raids on illegal telemarketing operations in India that led to the indictment of dozens of IRS impersonators.

Remember: The IRS will never call to demand immediate payment, nor will they call about taxes you owe without first mailing you a bill.

Another simple way to prevent someone from filing a fraudulent return is simply to file your return as soon as possible. The IRS begins processing tax returns on January 23. If you file a tax return before would-be fraudsters do, their refund claims are more likely to be rejected for filing under a duplicate Social Security number.

Join the Fight The deadline for filing your 2016 return is fast approaching. The IRS expects more than 70% of taxpayers to receive a refund for 2016, and it’s

on high alert for refund fraud and other tax-related identity theft schemes.

You can help the IRS in its efforts to fight tax fraud by watching for these warning signs and safeguarding your personal and financial information.

About TMA Small Business Accounting, P.C. The TMA Small Business Accounting, P.C. staff have been delivering professional services to small businesses in Central Indiana for over 20 years.

Having worked with hundreds of small business clients, we have significant expertise with a wide variety of service businesses in Indiana. We have especially strong experience and expertise in working with businesses in the healthcare (medical, dental, etc.) and foodservice (restaurants, caterers, etc.) industries.

Contact Info: (317) 571-8080 info@tmasba.com: tmasmallbusinessaccounting.com

CLICK HERE To Access Our Financial Dictionary

SAFE FOR LIFE

Leadership

By Norm Wilkens It has been a privilege to have lived in this great United States for almost eighty-two years. In that time, I have considered it an honor and duty to have voted consistently for local, state, and national offices seekers for over sixty-one years. More importantly, I have had a direct responsibility in electing a number of significant

office holders in campaigns for Mayors, Governors, Congressional Representatives, Senators, and Presidents. All of these men and women had one common denominator – LEADERSHIP! What makes a leader a leader?

There are any number of traits that added together provide

leadership qualities. Finding these attributes in a person who aspires for political office, can be difficult to determine – primarily because it is in the eyes of the beholder as to what makes an outstanding candidate. Certainly the person aspiring to a particular office gives some strong indications as to his or her achievements and qualifications. Even so, we often approach a voting machine with a lack of knowledge as to the reasons for our selections. Our votes are ( Page 12)

SAFE FOR LIFE ... “Leadership” - Continued often cast because it boils down to name recognition as to the person in whom we place our confidence.

Leadership is a privilege which brings responsibilities. Strong leaders set goals and objectives and follow through with them.

They listen, communicate well and lead by example. Selecting a team who work well together while being willing to take on challenges is vital.

There was one civic leader who embodied all these qualities and more. William H. Hudnut III, demonstrated leadership qualities. He served as Mayor of Indianapolis for four terms – sixteen years – from 1976 – 1992. Born October 17,1932, during the Depression, he had a distinguished record of achievement over more than eighty-four years. He was Mayor of the Capital City of Indiana; Senior Pastor at Second Presbyterian Church from 1964 – 1972. In 1973,

Hudnut answered the call to represent Indiana in the U.S. House of Representatives.

However, it was in the capacity of Minister-Mayor that his “Leadership Qualities” blossomed and bore fruit.

It has been stated that Bill Hudnut, “Built well and he cared about people.” If it were that simple, many people could have taken up the mantle of office and achieved success. No, I firmly believe that Mayor Bill brought so much more of his personal attributes to the office and embellished those which he inherited along the way. His vision transformed a city from a sleepy, stodgy, run-down entity into a vibrant, wide-awake and proud city. He has been called a “gutsy” Mayor. That means he took chances where few existed. However, Bill Hudnut was more than a risk taker. He was calculating in his choices, and weighed carefully the outcomes. He understood what

it meant to “stick his neck out” because he built a lifetime of achievements based on doing what others did not expect. The results speak for themselves.

He was famous for building a major-league stadium when Indianapolis didn’t have an NFL Team. He saved the Indiana Pacers NBA Basketball Team by enticing Herb and Melvin Simon to buy the franchise before it could be sold to a west coast city. He launched an effort to bring the Pan American Games to Indianapolis when other city mayors turned thumbs down because of a lack of time. The Games were a huge success because thousands of volunteers backed Hudnut’s challenge to make the Games a success. This single act brought recognition to Indy and sparked a resurgence in amateur and professional sports that is still being felt today. He believed in the city. More importantly, he believed in its people.

SAFE FOR LIFE ... “Leadership” - Continued Circle City Mall was another project that took roots and grew because he believed it was a needed element to preserve and build a vibrant downtown.

The movement of business to the outskirts of the city had badly tarnished the center of Indianapolis. Hudnut called Circle City “the crown jewel” of his effort to revitalize the center of Indy. He formed a coalition of top local companies and personalities to get the job done.

Hudnut was a man of humor.

What other Mayors would dress-up as a 6 foot 5 inch leprechaun and dance through a whole parade? How about riding a snow plow during the middle of a terrible snow storm helping to clean the streets? Or, practicing the famous “Hudnut Hook Shot” hitting a trashcan with regularity to emphasize cleaning the city? Here was a man who didn’t always take himself seriously.

His faith and experience as a minister paid dividends, as well. He knew how to motivate people and build consensus.

He genuinely listened to people and was compassionate in his responses to their needs. He sought citizens with diverse backgrounds and from different cultures and then strengthened the bonds between them to form a cohesive culture.

His love for the city, its people and his ability to listen to criticism and compromise when necessary brought Indianapolis out of a downward spiral and assured success where there had been little before. He was the first to admit that he had not accomplished success on his own. It took a teamwork philosophy, but there is always someone at the head of the parade – even in a green leprechaun suit to get the job done.

Bill Hudnut passed away on December 18, 2016. His vision,

leadership and heritage will continue to live on for many years to come.

About the Author: Norm Wilkens A nationally recognized speaker and writer, Norman Wilkens has traveled to forty-seven of the fifty states speaking on topics of marketing, advertising and public relations.

His most noteworthy subjects include: Healthcare Marketing; Multigenerational travel and Baby Boomers - their contribution to society and economics. He is presently serving as Midwestern Contributor to California’s AAA WESTWAYS Magazine.

Among Wilkens’ current activities are the Butler University Alumni Board of Directors; Butler’s Central Indiana Alumni Chapter Board; Chairman of the Board of Visitors for the new Communication College of Butler; Board of Directors of Ruth Lilly Educational Foundation; Salvation Army of Indiana Advisory Board and as an Elder at Second Presbyterian Church of Indiana.

Email: NormWilkens@aol.com