Safe Money News: Volume 5, Issue 4

VOLUME 5, ISSUE 4 DECEMBER 2016

SAFETY PINS LIFETIME INCOME Today, retirement is quite different than it was for previous generations and it will continue to change, becoming more difficult for future generations. Why? People are living longer, so the money must last longer.

By Ray Ohlson, CLU, CRC Continue Page 9

PLAYING IT SAFE SAFEGUARD YOUR DONATIONS Tis better to give than receive. Tis likewise better to give wisely, to a charity or non-profit organization that you believe will safeguard your donation as it works to end poverty or protect the environment.

By Steve Dinnen

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SAFE RETIREMENT SHRINKAGE Every savings vehicle has been affected by yield shrinkage, but some offer more protection than others. What options are better than others?

LIFE TIME INCOME

By Raymond J. Ohlson, CLU, CRC

Many Americans work all of their lives trying to accumulate the nest egg that will take care of them and their family during the golden years. It’s a tough job to save with all of the needs along the way… a home, braces for the kids, college tuition, cars, etc.

Retirement should be a time to settle back and enjoy a new stage in your life, but leaving the daily grind of work is often a difficult transition for recent retirees.

Not going to work every day can be frightening, but realizing you will be living off of your savings/social security can be even more intimidating. This transition could be challenging and difficult for all, but it doesn’t have to be. There’s a way to reduce or eliminate their fear of the future. This fear rests in not knowing the answers to several important questions: • Where will additional money come from in addition to social security when I retire?

By Dr. Jack Marrion

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PERSONAL FINANCE INGENIOUS SCAM TARGETS TAXPAYERS Crooks have tried all sorts of e-mails scams, but almost everyone has figured out that the IRS does not send out notices by e-mail. So crooks have changed their tactics. Now, there are reports of taxpayers receiving by mail (or email) fake notices requiring immediate payment to a P.O. Box.

By TMA, PC

Continue Page 7

SAFE FOR LIFE HOLIDAY MEMORIES

The Thanksgiving and Christmas Seasons in my household were always times of special occurrences.

Family gatherings, traditions in the majority of households, took on very special meanings among our relatives both in the city and country.

By Norm Wilkens

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SAFETY PINS ... “Lifetime Income” - Continued • Will that income last for the rest of my life?

• How can I be sure?

• Will my spouse be in financial danger if I pass away?

• How do I avoid making a mistake when planning my retirement income?

Today, retirement is quite different than it was for previous generations and it will continue to change, becoming more difficult for future generations.

Why? People are living longer, so the money must last longer.

Our clients want to stay in a lifestyle to which they have become accustomed. Plus, we must factor in inflation.

Inflation at 4% (the past 20 year average is 3.6%.) This can have a devastating effect on spending dollars. It’s also important to understand that the healthcare inflation rate is more than double. These factors alone require far more individual planning for retirement than just one generation ago.

None of us can afford to make mistakes in 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. But recovering from a financial miscue at age 66 or older is far more difficult today.

Today’s pre-retirees 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 a guarantee regarding their retirement income. Every person at or nearing retirement should participate in a complete review with their advisor.

Together with their advisor they can implement a plan and monitor its progress over the years.

As financial services professionals, we can help our clients determine the best places to put their money so that it’s safe, and so they can take advantage of all the legal tax advantages that could save thousands of dollars in retirement income. We can

customize retirement plans that will guarantee our clients an income for life. The questions are simple… How much do you need, and when do you need it?

Do you have a lifetime income plan that’s being monitored and maintained? If not, please give the Safe Money Agent Network a call, and we can find an agent to assist you with a customized retirement plan.

Call Safe Money Places Agent Network: 1-877-8440900, or visit http://www. safemoneyagentlocator.com/ to find an agent in your area.

About the Author:

Raymond J. Ohlson CLU, CRC, CEO & President of The Ohlson Group, Inc. & 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.

Email: rohlson@ohlsongroup.com.

PLAYING IT SAFE SAFEGUARD YOUR DONATIONS

By Steve Dinnen

Tis better to give than receive.

Tis likewise better to give wisely, to a charity or non-profit organization that you believe will safeguard your donation as it works to end hunger or poverty or protect animals and the planet.

A number of organizations look at the non-profit world to see who’s doing a good job of minding your money and spending it on relief efforts rather than executive salaries or fund raising. See the web references below for indexes that will summarize which large charities are doing the most with your money.

A nifty guide published in the Christian Science Monitor

shows that the nation’s largest charity, the YMCA, spends 87 percent of its expenses on programming.

Charitywatch give it a grade of A. The YWCA, however, spends just 36 percent of its money on programming, and Charitywatch hands it a D-F grade.

Sometimes a little investigating will help guide your decision.

Let’s look at Goodwill Industries. Nationally, it’s one of the largest and most respected and gets high marks for spending most of its money on programs and not so much on its executive salary. But what about local Goodwills?

Well, the Omaha World Herald just ran a series about the

$900,000 salary and bonus paid to the CEO of Goodwill of Omaha (he also got a country club membership). More than a dozen Goodwill of Omaha executives – including the CEO’s daughter – earned more than $100,000 yearly. (The CEO has since resigned and a management shakeup is underway).

The World Herald ferreted out much of its salary information from Form 990s. These are tax documents that most tax-exempt organizations must file every year with the IRS. They’re open for public inspection and you likely can look up a charity of your choosing from a database kept

by Propublica.org. ( Page 3)

PLAYING IT SAFE ... “Safeguard Your Donations” - Continued Two smart ways to give money are through your local United Way or community foundation.

Both of these organizations should be expected to vett the charitable groups that they are supporting.

Some of these community foundations tap into state or local income tax credit programs, so they can be especially appealing as a way to do good and help lower your tax bite beyond the regular deduction available for charitable donations.

I prefer to give locally, and usually to support something I enjoy. I attend the local symphony, for instance, so I give them some money every year. I ride a bicycle a lot, and we have a good trail system where I live, so I support local biking groups.

Some things have to be done on a bigger scale, however.

If you want to help save

elephants or gorillas, you have to go global. If you want to help provide medical care in war zones, then Doctors Without Borders deserves your check.

And of course, there’s always your local church. If you’re attending there on a regular basis you already will know how your money is going to be spent.

Here are web addresses for further study on charitable giving. www.csmonitor.com/Business/ Guide-to-Giving/America-sTop-50-charities-How-well-dothey-rate www.charitynavigator.org/ index.cfm?bay=content. view&cpid=628 https://projects. propublica.org/nonprofits/ organizations/420764469

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

Sh r i n k a g e

by Dr. Jack Marrion

I was only a kid when a 16 ounce pound of coffee suddenly became 15 ounces, then 14, then 13, but other groceries stayed the same size for quite a while. It wasn’t until the mid ‘90s that some ice cream makers very quietly reduced the size of their half gallon to 1.75 quarts, since reduced to 1.5 quarts. After the millennium recession we witnessed several makers of bagged foods (cereals, chips, pretzels and such) reduce the quantity of the contents without reducing the size of the bag or the cost. The biggest kick in the shorts was what happened to toilet paper. It was bad enough that the paper on a roll shrunk from 468.7 square feet to 352 square feet – a 25% reduction in product size with no reduction in product price – but the TP makers tried to tell us this was better because they were now offering “double rolls” which is a meaningless marketing claim (I filed a complaint with the Federal Trade Commission about this false advertising, unfortunately the response back was “seriously?”, so I don’t think the Feds will be intervening in the TP scandal anytime soon).

However, the Feds did intervene in what I was earning on my savings. Back in 2007 ( Page 5)

SAFE RETIREMENT - “Shrinkage” - Continued bank savings averaged 4.1%. As the Federal Reserve Board intervened the average CD rate rather quickly dropped to 2% by the end of 2008, it fell to 1% by the middle of 2009 and today the average oneyear CD rate is 0.3%. CD interest income has shrunk by over 90% in 5 years.

A fixed annuity can guarantee your income will increase in future years even if rates do not Every savings vehicle has been affected by yield shrinkage, but some offer more protection than others. Although current interest rates on fixed annuities have fallen just like other vehicles, fixed annuities guarantee that at least a minimum interest rate will always be earned, so money set aside to grow

will continue to grow.

contained three and three quarter quarts. I wouldn’t If the goal is income, fixed be surprised if the way they annuities offer a couple of eventually deal with the ways to receive an income high price of gas is to say that will never go down and a gallon contain 3 quarts – can even go up. One of and then brag about how these is through an income the price is finally under annuity that provides a $3 a “gallon”. However, in set income for a specific this steadily shrinking world number of years – or even there is one thing that won’t for life. Another option that get smaller and that is the is rapidly growing in use is guarantee on your fixed a lifetime withdrawal benefit annuity. that guarantees a minimum annual income and access About the to the cash value of the Author: Dr. annuity. You can even find Jack Marrion annuities where the income is guaranteed to increase Dr. Marrion’s research each year even if interest on senior decision making rates do not.

I don’t think the era of shrinkage is over. When I went to the paint store last month the sign on top said “paint $15/gallon” but the paint can said it

and the financial world have been featured in hundreds of publications including: Business Week, Kiplinger, Smart Money, and The Wall Street Journal. He is the author of six books and a frequent media guest.

PERSONAL FINANCE

Ingenious Scam Targets Taxpayers TMA Small Business Accounting, P.C.

Article Highlights: • Scammers Change Tactics • Fake IRS Mail Notices

• Have Your Tax Preparer Review Notice Crooks have tried all sorts of e-mails scams, but almost everyone has

figured out that the IRS does not send out notices by e-mail. So crooks have changed their tactics.

Now, there are reports of taxpayers receiving by mail (or email) fake notices requiring immediate payment to a P.O. Box. The P.O. Boxes are located in cities where the IRS has service centers, but of course are not IRS P.O. ( Page 7)

PERSONAL FINANCE ... “Ingenious Scam Targets Taxpayers” - Continued Box addresses.

over the issue, then the notice is probably from a scammer. Reports indicate the initial letters were numbered CP-2000.

These scammers have duplicated the look of official IRS mail notices, which to the untrained eye would lead one to believe a Don’t be a victim, have any notice was really from the notice you receive from the IRS. IRS, or any tax authority So be extremely cautious for that matter, reviewed of any notice you may have by this office before taking received from the IRS. action.

If a notice is demanding Below is a sample fake IRS immediate payment and CP-2000 supplied by Iowa there has not been any prior contact by the IRS State University.

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

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

SAFE FOR LIFE

Holiday Memories

By Norm Wilkens The Thanksgiving and Christmas Seasons in my household were always times of special occurrences. Family gatherings, traditions in the majority of households, took on very special meanings among our relatives both in the city and country.

The memories of these gatherings live on even though

those who were associated with those times have passed away many years ago.

As an urban family, we normally celebrated Thanksgiving on the Wednesday prior to the actual holiday on Thursday.

The reason for this advanced dinner arrangement primarily was concerned with my father, a practicing physician, who was

able to arrange his house calls to coincide with dinner plans that included his mother, father, sister and other members of his immediate family. These functions were always held at our home in Homecroft – just south of Indianapolis.

My mother prepared a large meal with all the trimmings – including all the traditional goodies of turkey, oyster dressing, cranberries, sweet potatoes, green bean casserole and pumpkin pie. My Dad always insisted on mince meat pie for his dessert. From my ( Page 9)

SAFE FOR LIFE ... “Holiday Memories” - Continued memory, he only took one slice of the pie, and didn’t follow-up with it in the remaining part of the holiday.

On Thanksgiving Day, we loaded the car and headed toward relatives homes in southern Indiana. My Mom was a country girl, and this part of the celebration was always held at one of her family members’ homes. These gatherings were traditionally large in nature with upwards of thirty plus adults and kids featuring food selections galore. There was always turkey, ham, chicken, wild game, a dozen or so salads and many, many desserts.

Some of those delicacies came straight out of cast-iron stoves that used corn cobs or charcoal for fire. How these delicious goodies came to the table with such humble beginnings always amazed me.

After emptying our plates

and letting our stomachs digest all the wonderful treats, the activities would begin.

Depending on the weather, the men would head to the cornfields to see if they could scare up a rabbit or two. The cousins would engage in a flag football game which would eventually end up in some form of roughshod tackle event. If the weather didn’t cooperate for an athletic endeavor, my uncles would play a cut-throat euchre game while the ladies retired to the kitchen to catch-up on family affairs. A major part of their discussion centered on drawing names for the Christmas gift giving. Because of family size, the amounts to be spent were always under ten dollars.

However, more was spent on our grandparents.

Christmas Eve followed suit with the celebration being held in the city. Once again, this holiday had many traditions.

There were the days of sorting and checking decorations that were always a scrambled mess; addressing Christmas cards; decorating the inside and outside of the home and purchasing gifts for the family. The expectation ran high throughout the month of December until it reached a fever pitch on the 24th. My Dad always made house calls into the evening until my sister and I could hardly stand the suspense. When we were smaller, we were sure that Santa Claus would pass us by if we weren’t close by the tree. Obviously, that didn’t happen, but adult family members always insisted that we eat something before Santa could appear. That only added to the thrill when we were allowed to finally enter the living room where the toys would mysteriously appear before our “wondrous eyes!”

SAFE FOR LIFE ... “Holiday Memories” - Continued On Christmas Day, we would trek south again for a day filled with households of people, food and gift giving. Keep in mind, these were the days before television, consequently we younger cousins had to amuse ourselves while awaiting for St. Nicholas to appear. He always seemed to come at about the same time, and his suit appeared as if he had spent a good portion of the year building the toys while wearing it. To this day, I can’t be sure which of the uncles took the key role of Santa’s helper in passing out the gifts. Each of the cousins received a two dollar gift from the grandparents. The adults were given five dollars. Then the various exchanges were made with everyone exclaiming, “How did you know that’s what

I wanted?” To me, the saddest time of year was immediately following the Christmas Season.

The expectations were over for the year. It would be months before the families would gather again. The cold weather would bluster and bury us in ice and snow, and the walks to school seemed much longer in the shorter days of daylight.

As I grow older, the memories remain, yet I long for the times when the families gathered for the holidays. That doesn’t happen as frequently any more.

Thanksgiving and Christmas are still celebrated, but with fewer and fewer people attending. I would relish a day filled with the joy and cheer of those long ago times. And, we wouldn’t turn on the television set!

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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