Safe Money News: Volume 5, Issue 1

Volume 5, Issue 1 PLAYING IT SAFE Safe Exercise There are plenty of safe, low-impact exercise and physical conditioning routines you can take up to maintain a healthy lifestyle.

By Steve Dinnen Continue Page 4

SAFE RETIREMENT Retirees: Save Your Money and Don’t Spend for These Things!

When saving for retirement, every little bit helps.

For those looking to retire, or are already retired, it’s important to understand the little ways you’re hurting yourself when trying to save and retain money for retirement.

By Leo LaGrotte

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PERSONAL FINANCE Household Help - Employee or Contractor?

Get A Retirement Savings Safety Net

By Raymond J. Ohlson, CLU, CRC

The past few years have been an unusual time

here in America. Many people lost a large portion of their retirement savings during the economic crash of 2008/2009. Many people took their money out at the bottom and simply didn’t put it back in. The result is that most people just did not save enough money and are now looking for a safety net – something that will protect them when they retire.

Some folks believe that the one “safety net” available to them is Social Security. Unfortunately, what was supposed to be a supplement for many retirees’ final years has now become the only thing keeping their

Frequently taxpayers will hire an individual or firm to provide services at their homes. YOu need to determine whether or not that individual is a household employee.

By Dr. Jack Marrion

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SAFETY PINS Safe Use of Language in Your Writing and Speaking I’ve spent most of my professional life as a communicator – English teacher, author, radio/TV announcer, editor, performing musician – I have become afflicted with that awful disease, “Former English Teacheritis” …it’s incurable, by the way!

By Al Stone

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SAFE FOR LIFE Public Service Endeavors

For most of my adult life, I have had an interest and enthusiasm for public service endeavors. This dedication has led to many wonderful associations.

By Norm Wilkens Continue Page 14

SAFETY PINS ... “Get A Retirement Savings Safety Net” - Continued heads above water. That’s not a safety net. Social Security was never meant to be a retiree’s only income. Take a quick look at these statistics: A 2014 “Retirement Confidence Survey” reports that 36% of respondents had less than $1,000 put away for retirement or other needs (my emphasis added)! Only one thousand dollars in savings! Incredible.

You may even have seen this report recently in most major newspapers. But, as bad as that 36% figure is – and it is bad – only 20% reported having a thousand dollars put away in 2009 and only 28% just a year ago! It’s not getting better; it’s

getting worse and rather quickly at that!

So what’s a person to do? It’s really pretty simple. People have to quit messing around – quit believing in the Tooth Fairy – and start looking at guarantees – products that guarantee them a lifetime, realistic, livable income.

Everyone deserves and simply must have a safety net.

Since you are reading this article, you probably have more than $1,000 put away, but chances are good that you just don’t have the potential retirement income that you’re hoping for. This month’s issue

of Safe Money News contains lots of valuable information on how to get to that Promised Land. But, you are not going to have that opportunity to roll the dice if you are within five to ten years of retirement. Folks, it’s time to take some of your money “off the table” and play it safe. Go for that real safety net.

I’d encourage you to consider the living benefits of FixedIndex Annuities. These lifetime income benefit riders are known by a variety of terms: Some companies call them “Guaranteed Income Withdrawal Benefits.” The bottom line is this: Unlike annuitization, this type of rider allows you to take a

SAFETY PINS ... “Get A Retirement Savings Safety Net” - Continued a lifetime income from the annuity without losing control of your retirement asset. You can stop and start at any time, and your account value can continue to grow. The lifetime income rider assures you that you will never run out of money or live too long. And you can get these payout’s either in the Single Life Income or, if you have a spouse at home, you can choose the Joint Life Income.

These products also have chronic illness, terminal illness, and confinement waivers that reduce or eliminate some of the most aggravating retirement fears: sickness and chronic and

critical illness. It’s odd that one of the simplest products on the market – an indexed annuity with living benefits – is often either misunderstood or just not on many retirees’ radar. The Lifetime Income Benefit Rider along with the Chronic Illness and Confinement Waivers could just be the one product decision that truly provides you with your retirement safety net.

Think about it, and then give your Safe Money Places Agent a call for an easy-to-understand illustration about how you can protect yourself and your spouse quickly, easily, and affordably!

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.

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

PLAYING IT SAFE

Safe Exercise

By Steve Dinnen

When I quit smoking some years back my appetite for food picked up and I started to pack on the pounds. So I took up jogging to get in better shape.

But that had its own problems; running can really beat up your body - your feet, your knees, your hips.

So I cast about for something a little safer, and came up with bicycling. Granted, it doesn’t deliver quite the same level of

cardiovascular workout that jogging affords. But it can still be a pretty decent workout, and it’s a decent way to see the countryside.

There are plenty of safe, lowimpact exercise and physical conditioning routines you can take up to maintain a healthy lifestyle. Take walking, for instance, the low-impact response to jogging. England’s Stroke Association figures a

daily 30-minute walk cuts your risk of a stroke by a quarter. It lowers your level of LDL (bad) cholesterol, while boosting HDL (good) cholesterol. It strengthens your heart, helps you lose weight and elevates your mood and energy level.

More and more communities are incorporating bike and walking paths into their development plans, so you have a way of getting around that doesn’t tangle with cars.

But if you live outside the Sun Belt you might be wary of setting out along any pathway on a snowy, freezing January ( Page 4)

PLAYING IT SAFE ... “Safe Exercise” - Continued day. That’s where shopping malls come in handy, as they welcome walkers, especially in the mornings. And gyms seem to be everywhere these days, so when a mall won’t do, there’s always a tread mill nearby. Gyms also offer a wintertime substitute for biking – a stationery bike.

A lot of gyms offer elliptical trainers, which more or less keep your whole body in motion as you constantly peddle while moving your arms back and forth on poles attached to those pedals.

Most ellipticals have a tension controller, so you can adjust the pedals and arms to offer more resistance for a more strenuous workout. And all the while, your feet never leave the pedal, so you’re not banging up your hips or knees.

But why stop there? Rowing machines, though not as

common, offer a great workout.

They’re sort of a sitting-down version of an elliptical, since they keep most of your body in continual motion. Likewise, they have tensioners that allow you to adjust the difficulty level of the exercise.

You’ll also find a lot of helpful resistance in water. And swimming offers a great way to exercise at a very low impact level, because of the bouyance effects of water.

And then there is yoga. I always thought of it as more of a mental and spiritual exercise. Granted, there are those components, but you can also find a yoga class that will provide quite a lot of physical exertion, as well. My daughter amps up her yoga instruction with a class in hot yoga. Here, they crank up the thermostat in the yoga room – maybe 100 degrees - so you sweat a lot

during a session. You shed not only some unneeded water weight but releasing toxins from your body, to boot.

Indoors or out, in a pool or drydocked at a rowing machine, you have opportunities aplenty to tone your muscles, improve your heart health, and safely stay fit.

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.

SAFE RETIREMENT

Retirees: Save Your Money and Don’t Spend for These Things!

By Leo LaGrotte When saving for retirement, every little bit helps. For those looking to retire, or are already retired, it’s important to understand the little ways you’re hurting yourself when trying to save and retain money. You have a fixed income, and that income usually doesn’t allow for much wiggle room

off your budget, unless you’ve prepared well.

With unexpected costs, like medical bills, it’s hard to imagine exactly what’s needed for the retirement you wish to plan for. This is why saving every little bit helps, and in order to do so, you should be aware of the certain things that as

a person in retirement or planning for it shouldn’t be buying or spending money on.

Supporting Your Capable Adult Children You always wish the best for your children and want to be able to support them in hard times, but if ( Page 6)

SAFE RETIREMENT - “Retirees: Save Your Money and Don’t Spend for These Things!” you’re supporting them long term then you might be hurting your retirement more than you think. If your adult children are fit and able to work and support themselves, then it’s important that you let them do so. That money you spend on supporting them cuts deep into your retirement funds.

Spending More Than You Need Splurging here and there is one thing, but if you’re spending more money on things that you could spend less on, you should consider how to reduce your costs. Senior discounts exist for a reason, and anywhere you go you should be looking for those myriad discounts.

Like we said before, every little bit helps. For those who may feel ashamed or uncomfortable admitting that they’re a senior, just remember that in doing so it costs you.

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Keeping an Oversized House In a lot of situations, seniors are living in spaces that are bigger than what’s necessary. While it may be hard to sell the house you’ve raised a family in, doing so can help reduce your monthly costs. The house might have once held an entire family, but if your children are all grown up and moved-out, it’s time to consider moving into a smaller space more suitable.

Maintaining Unwanted Assets Like your house, other assets might take up a bigger chunk of your possible retirement fund than you might think. Cars are a big asset, but also cost in maintenance. One asset that many seniors don’t realize they have that they can sell is an unwanted or unneeded insurance policy. For many seniors, maintaining the

policy and paying the premiums becomes a burden or unnecessary. If you’re in a similar scenario, consider selling your policy in a life settlement.

Life settlements are transactions in which a life insurance policy owner sells the policy to a second party buyer in exchange for a larger upfront sum of money than they would receive if they forfeited or surrendered the policy. This is a great way of largely increasing your funds without having to change your lifestyle.

If you’re interested in selling your life insurance policy through a life settlement, check out our Qualification Calculator to see if you qualify today!

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

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

PERSONAL FINANCE

Household Help - Employee or Contractor?

By TMA Small Business Accounting, P.C Article Highlights: • Household Employee Definition • Employee Control Factors • Self-employed or Employee • Withholding Requirements • Reporting Requirements Frequently taxpayers will hire an individual or firm to provide services at the taxpayer’s home. Because the IRS requires employers to withhold taxes for employees and issue them W-2s at the end of the year, the big question is

whether or not that individual is a household employee.

are primary factors that show control.

Whether a household worker is considered an employee depends a great deal on circumstances and the amount of control the person hiring has over the job and the hired person. Ordinarily, when someone has the last word about telling a worker what needs to be done and how the job should be done, then that worker is an employee.

Having a right to discharge the worker and supplying tools and the place to perform a job

Not all those hired to work in a taxpayer’s home are considered household employees. For example, an individual may hire a self-employed gardener who handles the yard work for a taxpayer and others in the taxpayer’s neighborhood.

The gardener supplies all tools and brings in other helpers needed to do the job. Under these circumstances, the gardener isn’t an employee and the person hiring him/her isn’t responsible for paying ( Page 8)

PERSONAL FINANCE ... “Household Help - Employee or Contractor?” - CONT. employment taxes. The same would apply to the pool guy or to contractors making repairs or improvements on the home.

Contrast the following example to the self-employed gardener described above: The Smith family hired Lynn to clean their home and care for their 3-year old daughter, Lori, while they are at work. Mrs. Smith gave Lynn instructions about the job to be done, explained how the various tasks should be done, and provided the tools and supplies; Mrs. Smith, rather than Lynn, had control over the job. Under these circumstances, Lynn is a household employee, and the Smiths are responsible for withholding and paying certain employment taxes for her and issuing her a W-2 for the year.

If an individual you hire is considered an employee, then you must withhold both Social Security and Medicare taxes from the household employee’s cash wages if they equal or exceed the $2,000 threshold for 2016.

Back to Table of Contents

The employer must match from his/her own funds the FICA amounts withheld from the employee’s wages. Wages paid to a household employee who is under age 18 at any time during the year are exempt from Social Security and Medicare taxes unless household work is the employee’s principal occupation.

Although the value of food, lodging, clothing or other noncash items given to household employees is generally treated as wages, it is not subject to FICA taxes.

However, cash given in place of these items is subject to such taxes.

A household employer doesn’t have to withhold income taxes on wages paid to a household employee, but if the employee requests such withholding, the employer can agree to it. If income taxes are to be withheld, the employer can have the employee complete Form W-4 and base the withholding amount upon the federal income tax and FICA withholding tables.

The wage amount subject to income tax withholding includes salary, vacation and holiday pay, bonuses, clothing and other noncash items, meals and lodging. However, meals are not taxable, and therefore they are not subject to income tax withholding if they are furnished for the employer’s convenience and on the employer’s premises. The same goes for lodging if one additional requirement applies— that the employee lives on the employer’s premises. In lieu of withholding the employee’s share of FICA taxes from the employee’s wages, some employers prefer to pay the employee’s share themselves.

In that case, the FICA taxes paid on behalf of the employee are treated as additional wages for income tax purposes.

A household employer who pays more than $1,000 in cash wages to household employees in any calendar quarter of either the current or the prior year is also liable for unemployment tax under the Federal Unemployment Tax Act (FUTA).”

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PERSONAL FINANCE ... “Household Help - Employee or Contractor?” - CONT. Although this may seem quite complicated, the IRS provides a single form (Schedule H) that generally allows a household employer to report and pay employment taxes on household employees’ wages as part of the employer’s Form 1040 filing. This includes Social Security, Medicare, and income tax withholdings and FUTA taxes.

If the employer runs a sole proprietorship with employees, the household employees’ Social Security and Medicare taxes and income tax withholding may be included as part of the individual’s business employee payroll reporting but are not deductible as a business expense.

Although the federal requirements can generally be handled on an individual’s 1040 tax return, there may also be state reporting requirements for your state that entail separate filings.

If the individual providing household services is determined to be an independent contractor, there is currently no requirement that the person who hired the contractor file an information return such as Form 1099MISC. This is so even if the services performed are eligible for a tax deduction or credit (such as for medical services or child care). The 1099-MISC is used only by businesses to report their payments of $600 or more to independent contractors. Most individuals who hire other individuals to provide services in or around their homes are not doing so as a business owner.

Please call this office if you need assistance with your household employee reporting requirements or need information related to the reporting requirements for your state.

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

SAFETY PINS

Safe Use of Language in Your Writing and Speaking

By Al Stone, King Media Services

My dad was a Colonel in the

US Army during the Battle of the Bulge … a rather impressive man, six feet three inches tall, 245 pounds, with an incredible, powerful voice – a voice that could make the hair on your neck stand up if he wanted your attention. One of his favorite expressions was, “Junior (yeah, I am Al Stone, Jr.), be sure to put your brain in gear before you put your mouth in motion.”

In other words, “think before you speak.” Good advice!

As someone who has spent most of my professional life as a communicator – English teacher, author, radio/TV announcer, editor, performing musician – I have become afflicted with that awful disease, “Former English Teacheritis” …it’s incurable, by the way!

I groan when I hear people say, “Me and her went to the

movies;” “I climbed off of the horse as fast as possible;” or “It don’t make no difference.” I begin to swoon when I hear an “offender” profess, “But they know what I’m tryin’ to say; what difference do it make?”

It makes an enormous “difference!” says Junior.

Now please, don’t tune out.

Give me a moment. I promise you this brief essay will not be a boring grammar lesson from your old 7th Grade textbook.

Rather, I want to share with you three simple practices you can perform every time you write (or even speak) anything! These practices will improve the effectiveness of your communications – written ( Page 10 )

SAFETY PINS ... “Safe Use of Language in Your Writing and Speaking” - Continued or verbal – in every situation, professional and personal. I might even boldly suggest that implementing these three practices will increase your bottom line … but if I say that (“increase your bottom line”), I am violating one of the practices!

Generally speaking, we have two types of language usage: formal and informal. Safe use of language in your business writing (and speaking) falls somewhere in between. You don’t have to be writing your college thesis, nor are you speaking or writing in some highly specialized, regional or professional dialect. However, you should be trying to communicate with brevity, clarity, and precision.

So, let’s take a look at these three simple practices.

BREVITY When Colonel Al Stone, Sr. served at the Pentagon at the

start of WW II, he worked for General Code, ironically, the head of the US Army Signal Corps! Dad told me about the first time he submitted a report to General Code on some important subject. “I worked hours on the report; I typed and retyped and retyped. I checked my spelling. I made sure every sentence was grammatically correct. I was impressed with myself. I walked into General Code’s office and handed him my 25-page report, standing at attention, awaiting his praise.

“But there was no praise.

General Code stood up, with my report in his hand, walked around his desk and handed it to me. He said, ‘Colonel. Go back to your desk and rewrite this report. Make sure it is no longer than two pages!’”

In this age of Twitter, Facebook, Email, Texting (especially texting!), and Emojis, people simply don’t have the patience to read long reports, letters, and

other documents. They’re busy.

You’re busy. So, every word counts.

To achieve brevity, here’s a simple formula: • Reduce paragraphs to sentences.

• Reduce sentences to clauses or phrases.

• Reduce clauses and phrases to single words.

Would you like an example?

Ok. Try this.

Dear Mrs. Smith, I want to thank you, sincerely, for allowing me to visit with you and your children recently to show you our fine line of personal care and household cleaning products. I really enjoyed our meeting, and I hope that you did too! Accordingly, as I mentioned to you at our meeting, I am going to prepare a personalized report showing you how you can actually

SAFETY PINS ... “Safe Use of Language in Your Writing and Speaking” - Continued purchase any of our sensational products – without any cost whatsoever – for you and your children to read and review, at your convenience of course.

Me and my associates here at ABC Home Products are really excited about working with you and your children so that you will be able to have any or all of our products that you want and need for as long as you want and need them! As you read and review our personalized report, please feel free to make notes of any questions or concerns that you might have.

I will give you a call in about a week to answer any and all of your questions and concerns.

Again, thank you for meeting with me. I look forward to speaking with you soon!

Pretty awful, right?

Repetitive, boring, uninspired, grammatically inaccurate – simply too long and awkward for anyone to read. So, let’s apply the three steps from above. I’ll

keep a little bit of the “sales sizzle” in the note, but I will cut out the garbage.

Dear Mrs. Smith, Just a quick note to thank you for meeting with me Tuesday morning to discuss our personal care and household cleaning products. Please check your email for my brief report that describes our New Customer Program through which you can obtain our products without any cost. I will call you within a week to answer any questions you may have.

Thanks again!

Obviously, you may have to include more information in your writing than this example; however, once you have written your first draft, take a close look. Are there paragraphs you can shrink to sentences; sentences that can become clauses or phrases; or clauses and phrases that could be just single words? Think “be brief!”

And you’ll be well on your way to more effective, safe writing.

Check out our next Safe Money News for Part II: Clarity!

About the Author: Al Stone

Al Stone - an announcer in the heyday of WNAP-FM, Indianapolis - began by providing musical identification packages (jingles) to advertisers all over the country. His classic radio voice, writing skills, musical abilities, and talents as a producer attracted business from across the US, Canada, and foreign countries.

SAFE FOR LIFE five and older with some form of disability could rise to 69.4 million from 34.7 million in 2000.

To meet the increasing demand, SAWs began with seven volunteers willing to plan, promote and build ramps.

Today, the present number of five hundred persons across the State of Indiana involved in SAWs is only the beginning of the growth picture presented by this dedicated organization.

Public Service Endeavors

By Norm Wilkens For most of my adult life, I have had an interest and enthusiasm for public service endeavors.

This dedication has led to many wonderful associations. In the majority of cases, I have tried to apply my skills to the needs of the organizations, but find that I have come away from public service with more personal rewards than my given effort.

My latest endeavor as a Board Member on SAWs (Servants At Work, Inc.) is a good case in point.

SAWs was formed by Rik Hagarty, Deacon and Elder of Second Presbyterian Church in Indianapolis, in 2003. He felt the need and desire to help those persons who were confined to their homes

because of a lack of ability to successfully transverse to and from the residence. In his words, “They were held prisoner in their own homes.”

His solution was to create an organization that would be charged with the responsibility building ramps to open the “prison doors.”

The need, as Rik and others saw it, was accelerating as life has been extended through medical advances. The aging process was leaving even more persons with mobility challenges than ever before. This has been complicated by veterans returning from war zones with significant physical injuries. By 2030, it is estimated that the number of people aged sixty-

In 2006, disability-associated health care expenditures were 26.7% for adults residing in the United States and totaled $397.8 billion. According to the 2010 Census, 3.3 million people fifteen and older use a wheelchair. Another ten million use a walking aid, such as a cane, crutches or walker. It is also estimated that about half of wheelchair users must use steps to enter or exit their homes. Given these statistics, it is easy to understand the needs that SAWs understood at its beginning and continues to address on a daily basis.

Because of the construction efficiencies achieved during the past thirteen years, it only takes a few hours for the men and women building the ramps across the state to plan and execute the process of “building freedom” for those confined to their homes. From 2003 through 2015, 800 ramps were built utilizing twenty-eight volunteer construction groups from across the State. And, as ( Page 12 )

SAFE FOR LIFE ... “Public Service Endeavors” - Continued the saying goes, “You haven’t seen anything yet.” The growth potential will continue as the needs increase in the coming years. Keep in mind, there are seventy-eight million “Baby Boomers” who are turning sixtyfive at the rate of ten thousand per day. That statistic alone will have a marked affect on the building of future ramps.

Speaking of the future, SAWs is now exploring ways of growing its potential on a national level. The local group has been approached

to expand its services in the Midwest as well as in numerous states across the nation. The foresight and monies necessary to make those moves are numerous. However, using the determination and skill exhibited in Indiana, it won’t be too long before SAWs should be in evidence from coast to coast.

For more information, contact SAWs at 8811 North Robbins Road, Indianapolis, IN 462681024 (317)844-7664 or www.

SAWsRamps.org.

CLICK HERE To Access Our Financial Dictionary

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

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