Safe Money News: Volume 4, Issue 3

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Volume 4, Issue 3

Lifetime Income

By Raymond J. Ohlson, CLU, CRC

Playing it Safe “To STEM or Not To STEM ... That Is The Question” We should encourage young people with the slightest leaning toward any STEM discipline to give those areas of study a close examination … their future looks pretty bright. By Steve Dinnen

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personal finance Monthly Deposit: $5,000 New Balance: $105,000

Read This Before Tossing Old Tax Records ... Now that you’ve completed your taxes for 2014, you are probably wondering what old records can be discarded. If you are like most taxpayers, you are afraid to throw away old records. By Thompson Myers & Associates Cont. Page 6

Safety Pins “Would You Throw $100,000 Down The Drain?”

Most of us work all of our lives trying to accumulate a nest egg to take care of our families and ourselves during our “Golden Years.” It’s a tough job! We encounter lots of distractions along the way: money we need to by our first homes, start businesses, put braces on our kids’ teeth, pay for college tuition – the list is endless and, for the most part, necessary. Most Americans take pride in creating a prosperous lifestyle for our families. We chase the American Dream attempting to create a more prosperous lifestyle for our children than we had when we were growing up. Then, we retire. Retirement should be a time to settle back and enjoy a new stage of life, but for many of us, leaving the daily grind of work will be one of the most difficult transitions we will ever make. Not going to work every day can be frightening, but realizing that you are going to live the rest of your life off your savings and Social Security can be even more intimidating! This period can be the most challenging and difficult of all.

Letting a life insurance policy lapse is just like letting $100,000 (or more!) wash down the drain. Why? Because many of you either don’t know about or consider a life settlement. By Leo LaGrotte

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Safe Retirement “General Durable Power of Attorney” In evaluating the do’s and don’ts of estate planning, business succession, assistance with aging parents and general family matters, this commonly overlooked and extremely valuable tool ... Continue Page 9 By David Barker J.D.

Safe For Life “Reflections”

“Wilkie” as Dad was called by his peers, was respected by all who knew him. When you have a man to emulate like my Dad, it becomes a challenge to live up to his example. Continue Page 11 By Norm Wilkens


Safety Pins ... “Lifetime Income“ - Continued But it doesn’t have to be. Here’s a way for you to reduce or eliminate any fear of about your financial future and develop your own lifetime income plan! Fear of your financial future rests in your not knowing the answers to several important questions. We ask ourselves, for example: • Where will the additional money come from over and above my Social Security benefit when I retire? • Will that income last for the rest of my life? • How can I be sure? • How do I avoid making a mistake when planning for my retirement income? These and several others are typical and valid questions most of us ask ourselves as we begin to think about our retirement years. You are not alone!

Prior to retirement, we earned money – we were in the “accumulation phase” of life. We worked, earned an income, and tried to keep as much of it as possible after paying our expenses. At some point, we began to think about how we could keep more of that earned income – the “preservation phase” of life. And finally, when we do retire, we have reached the “distribution phase” – that period of life when we must live on the money we have “accumulated” and “preserved.” Our retirement income, therefore, becomes more important than ever! We are no longer “accumulating” new money. Instead, at retirement, we become recipients of income. We become beneficiaries of retirement income. One of our income streams is Social Security. But from where does the rest of our income appear? It will come, of course, from our nest egg – the money we have preserved during our working years. Today, retirement is quite

different than it was for previous generations, and it will continue to change and become more difficult for future generations. Why? First of all, people are living much longer, so their money must last longer. They need a guarantee to keep them in the lifestyle to which they have become accustomed. Plus, we have to factor in inflation. Inflation at 4% (the past 20year average is 3.6%) can have a devastating effect on our spending dollars. It’s also important to understand that the health care inflation rate is more than double! These three factors alone require far more individual planning for retirement than just one generation ago. None of us can afford to make mistakes at retirement. It’s different than making a mistake at age 26, 36, 46, or even 56. At those ages, most of us can still recover – we can accumulate additional money. But, recovering from a financial miscue at age 66 or older is far more difficult today.


Safety Pins ... “Lifetime Income“ - Continued Today’s pre- and present retirees need to have a plan and not just a product. Retirees need solutions and assurances. They need the services of a trusted advisor who can provide those guarantees. Yes, you read that correctly – guarantees – regarding your retirement income! Every person – including me – at or nearing retirement should participate in a complete review with a trusted advisor – a Safe Money Places™ advisor.

Each Safe Money Places™ advisor is dedicated to helping each client (that’s YOU!) determine the best places to put your money so that it is safe and so that you can take advantage of all of the legal tax advantages that could save you thousands of dollars in your retirement income. Safe Money Places™ advisors constantly study, participate in training (continuing education), and stay on top of the latest products from all of the companies out there. Accordingly, they can Each of us needs to determine a retirement income amount that customize your retirement plan that will guarantee you an we believe will be necessary to income for life! live in the style to which we’ve become accustomed. In the Call, toll-free: 877-844process of doing this planning 0900 today, to locate a Safe with a trusted advisor, we need Money Places™ advisor in to be sure to adjust for rates your area. There’s no cost of inflation and the potential or obligation whatsoever, and increase in our life expectancy. you’ll sleep better every night Then, we should implement knowing you’ve got your own this new plan and monitor its professional advisor on your progress over the years – stay side! on top of the changes in the financial world and our own lives and the years roll by. All of this activity requires a dialogue – a conversation – with a financial professional.

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

To STEM Or NOT TO STEM – That Is The Question! By Steve Dinnen

Now that college has started

anew, do you know what your kid is studying? If it’s advertising, and graduation is right around the corner, when he or she lands a job in that field it will pay, on average, $ 36,638. “Not a bad wage,” you say, “and at least Junior has a job!” “But,” the experts say, “he or she could do better by cracking open a math book or two.” The Collegiate Employment Research Institute at Michigan State University says a way safer bet, wage-wise, for example, is Electrical

Engineering. For its survey of 2015 college graduates who earned a four-year degree, Electrical Engineering topped the list of earnings among those surveyed, with an average annual salary of $ 57,030 versus that advertising gig which came in dead last! Engineering, at least for someone with an undergraduate degree, appears to be the hot ticket these days. According to the MSU study, which drew its data from polling college recruiting offices, three of the five top wage earning slots went to people with engineering degrees. The other two went

to people in the tech industry: software design and computer programming. These survey results, along with other data, play into the hands of proponents of STEM education, short for Science, Technology, Engineering, and Mathematics. America is in short supply of people with these sheepskins, but efforts are underway to correct the problem. President Obama led the science-tied charge last Spring with TechHire, a federal government effort to encourage people to get into the tech field, especially areas ( Page 4)


Playing it Safe ... “To STEM Or NOT TO STEM – That Is The Question!” had to have a college degree – no sheepskin, no problem! “They’re a ticket into the middle class,” the President said of tech-related jobs where average salaries are considerably higher than they are for the average private sector job. A diploma is, however, a definite plus. The STEM Education Council, an advocacy group with members such as, the American Chemical Society and Microsoft Corporation, notes that graduates with a STEM-related degree make 10% more than those grads in other fields. Furthermore, the unemployment rate for STEM-related graduates is considerably lower than the rate for people with other degrees. The advocacy group estimates that by 2020, one million new vacancies will be open in the STEM fields. And when it comes to applying for work, the STEM field may be a bit less crowded, as roughly 3.6 grads will be applying for every non-STEM position compared to just 1.9 applicants for every STEM job. Certainly, many good opportunities outside of the

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STEM fields exist now and will continue to be available. Yes, the need for folks with talent to work in or manage banks or restaurants, sell cars and trucks, or even something as non-scientific as handling advertising for all of those enterprises will still be out there for Junior to consider, but the earning potential will also continue to trail. Therefore, we should encourage young people with the slightest leaning toward any STEM discipline to give those areas of study a close examination … their future looks pretty bright. And they will go a long way toward keeping our nation more competitive on a global scale. The STEM Coalition says that when they were tested for their skills in science, Americans scored 21st globally out of the 34 countries measured. Surely, we can do better than that. Average starting wage for 4-year college graduates with select degrees* • Electrical engineering; $57,030 • Computer engineering: $56,576 • Mechanical engineering:

$56,055 • Software design: $54,183 • Computer programming: $54,065 • Chemical engineering: $53,622 • Finance: $44,699 • Accounting: $44,525 • Nursing: $43,481 • Marketing: $41,481 • Humanities and Liberal Arts: $39,162 • All majors: $39,045 • Agricultural sciences: $38,584 • Social work: $36,639 • Advertising: $36,638 *Source: Collegiate Employment Research Institute Michigan State University 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. Email: paudel2001@msn.com.

Visit www.SafeMoneyPlaces.com for more information about The Safe Money Choices available to you in today’s marketplace ( Page 17 ) ( Page 7 )


PERSONAL FINANCE Read This Before Tossing Old Tax Records ... By Thompson Myers and Associates, PC

Now that you’ve completed your taxes for 2014, you are probably wondering what old records can be discarded. If you are like most taxpayers, you have records from years ago that you are afraid to throw away. To determine how to proceed, it is helpful to understand why the records needed to be kept in the first place. Generally, we keep “tax” records for two basic reasons: (1) in case the IRS or a state agency decides to question the information reported on our tax returns; and (2) to keep track of the tax basis of our capital assets so that the tax liability can be minimized when we actually dispose of the assets. With certain exceptions, the statute for assessing additional tax is three years from the return due date or the date the return was filed, whichever is later. However, the statute of limitations for many states is one year longer than the federal. In addition to lengthened state statutes clouding

the recordkeeping issue, the federal three-year assessment period is extended to six years if a taxpayer omits from gross income an amount that is more than 25% of the income reported on a tax return. And, of course, the statutes don’t begin running until a return has been filed. There is no limit on the assessment period where a taxpayer files a false or fraudulent return in order to evade tax. If an exception does not apply to you, for federal purposes, most of your tax records that are more than three years old can probably be discarded; add a year or so to that if you live in a state with a longer statute. For example: Sue filed her 2014 tax return before the due date of April 17, 2015. She will be able to dispose of most of her records safely after April 15, 2018. On the other hand, Don files his 2014 return on June 2, 2015. He needs to keep his records at least until June 2, 2018. In both cases, the taxpayers may opt to keep their records a ( Page 6)


personal finance ... “Read This Before Tossing Old Tax Records” year or two longer if their states have a statute of limitations longer than three years. Note: If a due date falls on a Saturday, Sunday or holiday, the due date becomes the next business day. The big problem! The problem with discarding records indiscriminately for a particular year once the statute of limitations has expired is that many taxpayers combine their normal tax records and the records needed to substantiate the basis of capital assets. They need to be separated, and the basis records should not be discarded before the statute expires for the year in which the asset is disposed. Thus, it makes more sense to keep those records separated by asset. The following are examples of records that fall into this category: • Stock acquisition data - If you own stock in a corporation, keep the purchase records for at least

four years after the year the stock is sold. This data will be needed in order to prove the amount of profit (or loss) you had on the sale. • Stock and mutual fund statements - Many taxpayers use the dividends that they receive from a stock or mutual fund to buy more shares of the same stock or fund. The reinvested amounts add to the basis in the property and reduce gains when the stock is finally sold. Keep statements at least four years after the final sale. • Tangible property purchase and improvement records - Keep records of home, investment, rental property or business property acquisitions AND related capital improvements for at least four years after the underlying property is sold. Have questions about whether

or not to retain certain records? Give this office a call first. It is better to be sure before discarding something that might be needed down the road.

About Thompson Myers & Associates, PC Accounting Firm Thompson Myers & Associates’ accounting and payroll 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 food service (restaurants, caterers, etc.) industries. Phone Number: (317) 571-8080 Email: info@thompsonmyers.com Website: https://www.thompsonmyers.com/


SAFETY PINS Would You Throw $100,000 Down The Drain? By Leo LaGrotte You may rely on yourself to

Letting a life insurance policy lapse is just like letting $100,000 (or more!) wash down the drain. Why? Because many of you either don’t know about or simply don’t consider the alternative of a life settlement.

a good option for everyone, but it’s something that merits investigation. It opens up a world of possibilities for liquidity in alternative investment options, or could help you with a bigger nest egg for retirement.

So, would you take $100,000 of your money and toss it down the storm drain? Without ceremony or pomp, just let it wash away? The answer is obviously no. You have too much common sense, to do something that crazy.

A life settlement is the sale of a person’s life insurance policy to a third-party investor. In a life settlement, the policy’s owner transfers the ownership of that policy in exchange for an immediate cash payment from the buyer. Candidates for life settlements are typically 70 or older, with a life insurance policy that has a “face value” (death benefit) of more than $100,000. That money can be allocated to better, more effective investments, or can be allocated to whatever the client may desire.

If the idea of throwing $100,000 of your money down the drain just isn’t fathomable, see if you are a good fit for a life settlement by using our qualification calculator.

make informed decisions that are directly impacting your finances—your life —and you have faith that you’ll make the right decisions.

Unfortunately, this happens every day. Many of you have life insurance policies that, due to varying circumstances, you no longer want or need. Perhaps they’re underperforming, or maybe the policy just isn’t serving the need that it used to. In any case, more often than not, you simply let the policy lapse.

A life settlement may not be

About the Author: Leo LaGrotte ... I would be happy to answer any questions you may have about this or any other life settlement topic. I can be reached at 888-849-0887 or llagrotte@lsa-llc.com

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Safe Retirement

General Durable Power of Attorney - By David J. Barker, ESQ. In evaluating the do’s and don’ts of estate planning, business succession, assistance with aging parents and general family matters, one commonly overlooked and extremely valuable tool is the General Durable Power of Attorney form. Most states have enacted and adopted statutory legislation that governs what may be included in a General Durable Power of Attorney. For example, the State of Indiana provides an exhaustive listing of what acts may be undertaken and

these acts may include: selling property (real and personal), making investments and making healthcare decisions. The General Durable Power of Attorney is often chosen as a way to plan for those times when you are incapacitated. Consequently, having a General Durable Power of Attorney with a specialized agent allows your affairs to be handled easily and inexpensively. Prior to when the General Durable Power of Attorney was created, the only way to handle the affairs of an

incapacitated person was to appoint a guardian; a process that frequently involves complex and costly court proceedings, as well as the often humiliating determination that the person was wholly incapable and in need of protection. Additionally, the Court proceedings would be of public record; therefore, allowing the world to know of this unfortunate time in a loved one’s life. The most important part of creating a General Durable Power of Attorney is choosing ( Page 9 )


Safe Retirement ... “General Durable Power of Attorney� - Continued an agent. The agent is the person you select to carry out the duties you have outlined in the General Durable Power of Attorney. The agent should be someone you trust to carry out your wishes, someone who will not take advantage of you when you are incapacitated, and someone who is willing to serve as your agent. The agent is usually a family member or a friend; however, you may choose anyone. Once you have signed a General Durable Power of Attorney, you should inform your physician, your family, your banker, your insurance agent and your financial/tax

advisor. You should also have multiple copies in case of your subsequent incapacitation. It is best to store such a valuable document in a personal safe or a safe-deposit box at your local bank branch. In addition to the above, it is extremely important to note that if you change your mind after creating the document you may amend, modify and/or revoke said General Durable Power of Attorney at any time.

About the Author: David J. Barker, J.D. ... David J. Barker obtained his Juris Doctorate Degree in 1989 from Valparaiso University School of Law after completing his undergraduate degree at Indiana University Bloomington with a double major in Biology and Chemistry. Mr. Barker has developed his legal practice in a variety of platforms ranging from partner in a prestigious Indianapolis firm to traveling the world as lead transaction attorney for Thomson multimedia and now managing his own firm located in the vibrant Carmel, Indiana Arts & Design District. Mr. Barker is a Fellow of the Indiana Bar Foundation and currently serves on the Board of Directors for the Indianapolis based Meals on Wheels.


Safe For Life

Reflections By Norm Wilkens The third Sunday in June is a day set aside to honor fathers. Too often, we miss the personal little things that make a person worthy and outstanding. My Dad had many of those qualities that are often overlooked, yet are long remembered. My Dad – Dr. Irvin W. Wilkens – passed away in his eightieth year in 1986. Pop was raised in an Indianapolis Southside German family – mother from Berlin and father from Hamburg. So, my Dad spoke high and low

German fluently. He often had to intercede between the two parents so they could really get their point across. He was very helpful when I took German in college in encouragement as well as pronunciation. He was an Algebra scholar at Manual High School and came within one question out of five of winning a major arithmetic contest lasting five hours. He was extremely helpful when I was taking Algebra in high school in tutoring me through some rough sessions. He

would wake me when he came home from making house calls at two a.m. and we would sit at the dining room table while he went over the day’s assignments until I was awake enough to understand the problems presented. When my Dad arrived at Indiana University after taking Pre-Med at Butler University in Indianapolis, he spent his first day on the Bloomington Campus walking through the laboratory and viewing the cadavers. He said he wanted to become acquainted with death even though he was dedicated to preventing it. Never having much money while in school, Dad always made do with what he had. As an example, Upon ( Page 11 )


Safe For Life ... “Reflections” - Continued graduation from IU a few years later, he had to back his Model T Ford up the hills in Brown County in reverse so that he could make the ceremony and back home again. He was always a determined man and money was never his motivation. Pop interned at Methodist Hospital in Indianapolis where he met and eventually married my mother who was in nurses training. They weren’t supposed to date, but I am certainly glad they did. There were literally hundreds of stories connected to his early days in practice. Needless to say, he enjoyed being a physician, and dedicated his life to his patients. As children, my sister and I realized we shared my father with his patients as did my mother. We were trained to answer the phone, when patients called at home, in a professional manner and to take notes should we be required to pass along important information. From early on, I realized my Dad would have made a great country doctor rather than one whose practice was more urban. Often, he would bring home vegetables and fruit as payment for house calls and office visits. Even though we understood our relationship with Pop often took a secondary stance, he was always there when needed. When it came time for me to

learn how to drive, the lessons were accomplished at early morning hours as a part of house calls. Even though the traffic was much less at that time, I am sure I still frightened him from time to time with too wide turns. Many times he took me fishing and taught me the patience and perseverance that are necessary when seeking the “lunkers.” Also, it gave me time to talk with him between catches. I have often remarked that the years of World War II saved his life because it put him on a regular schedule. He was home most often in the evenings for dinner and enjoyed many of the sporting activities on base that he never had time for as a civilian. He was an excellent tennis player and bowler and could shoot a wicked game of pocket billiards. I stopped trying to beat him at horseshoes because he would call his “ringers” whenever he wanted to beat me. Even so, he wasn’t good military material. He cared too much for the men he was charged with. He was often criticized for treating them as equals. One Colonel made his life a bit tough until the high ranking officer ended up in his care and my Dad kept him on bedpan for a couple of weeks until he begged for mercy. They became lifelong friends after that, and the Colonel never mentioned his treatment of the men in Dad’s charge again.

One of the stories concerning Dad’s military life was that he was given the responsibility of marching his fellow officers. He stated he could get them started okay, but stopping them was another challenge. As far as we know, they may be still parading around somewhere. And, there was the story of the Medical Division at Scott Field, Illinois, being required to parade for a visiting dignitary. These men had never marched for anyone. There they were “passing in review” not knowing the lay of the land in which they were asked to march. No one told them about sprinklers hidden in the line of march. They found them -right in front of the reviewing stand. The men ended up in a pile creating an embarrassing disaster for everyone concerned. During the war years, one of his fellow physicians still in civilian life encouraged him to give up his General Practice to take up Diabetes as a specialty when returning home. He took the suggestion and became one of very few doctors in Indy specializing in the practice at that time. He trained many of the doctors who today are highly regarded as specialists in this form of medicine. He was a pioneer in establishing the Diabetic Camp for Children and was successful in starting the Doctor’s Telephone Exchange in central Indiana. He served also as the President of the ( Page 15 )


Safe For Life ... “Reflections” - Continued Indianapolis Medical Society as well as State Treasurer for the Indiana State Medical Association for many years. Pop contributed many worthwhile articles to various medical publications and was recognized for his outstanding knowledge in the field. Dad was honored by Manual High School as an Outstanding Alumnus in 1976. I was pleased to attend one of the speeches Dad gave to a group of physicians while he was still practicing. In the message, he outlined what he believed would be the downfall of medicine in the years to come. In his words, he believed the doctor – patient relationship would become strained in future years and the bond he felt so important to curing those who were ill would become strained. Very few in the audience that day took him seriously. I often wonder what they would say today. When he passed away, I was given the task of going through many of his ledgers and helping to wrap-up any loose ends. There was page after page of house call charges for three to five dollars, and office visits that were written-off because the patients were unable to afford

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payments. Untold medications were prescribed and samples were given in cases, where again, the patient was not in a position to pay. One more honor was received several years after he died when Community Hospital in Indianapolis presented a plaque posthumously to my mother honoring his many years of outstanding dedicated service to the institution and for serving as a member of the Board of Directors for a number of years. A duplicate plaque is mounted in the hospital corridor. When you have a man to emulate like my Dad, it becomes a challenge to live up to his example. I know he would have liked me to be a doctor as he was, but that didn’t happen. Beneath and in spite of his many successes and accomplishments, was a kind, sincere, dedicated, honest individual who loved his family, had a strong faith in God and worked to make his community and its people better. “Wilkie” as Dad was called by his peers, was respected by all who knew him. An elderly woman patient stopped me once while I was doing some yard work at my Dad’s office. She bent over to ask if I was

related to the “doctor.” I said that I am, and her remark next summed up her feelings and those whom he served so well for over fifty years. She said very softly, “Well, you know… he’s my doctor.” There was a reverence in her tone and a personal feeling in the words that I will carry with me through all my years.

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

Visit www.SafeMoneyPlaces.com for more information about The Safe Money Choices available to you in today’s marketplace ( Page 17 ) ( Page 7 )


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