2013 Personal Finance

Personal Finance & RetiRement Living Š 2013 Morning Star Publications Inc.

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Morning Star Publications | 2013 Personal Finance & Retirement Living

morning star publications 2013

Personal Finance

And Retirement Living

Financial Independence........................ 4 Benefits of home ownership................... 5 Where there's a will................................ 6 Education is key to success.................. 8 Working from home tax break................ 9 Your priceless personal asset................ 9 Manor House community..................... 10 What happens to IRA after death?....... 12 Some missing out on refunds.............. 12 Itemize or standard deduction?........... 14 Ship ahead to avoid long lines............ 15 Senior women and retirement.............. 16 Ways to boost your self esteem........... 18 Home business opportunities.............. 19 ©2013 Morning Star Publications Inc.

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Morning Star Publications | 2013 Personal Finance & Retirement Living

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Financial Independence Work hard, plan and reach your dreams over time

By Bryant Richardson

This is the 13th edition of our annual Personal Finance and Retirement Living edition.

Articles from experts in financial planning are offered along with some timeless articles that we repeat each year be­cause of their importance in helping readers reach their financial and personal goals.

As I’ve stated every year, the advice in this Personal Finance and Retirement Living edition boils down to a few basic facts: • Everyone living in the United States has the ability to become financially independent.

• The path to financial independence requires a plan, some (written) goals and discipline.

• The following lifestyle choices play a vital role in helping you to achieve financial independence:

Education - The more you have the greater your earning potential.

“An education is the best investment of time and money you can make; it’s an investment that will reap untold rewards,” says Leanne Phillips-Lowe. She adds that 75 percent of all jobs now require education beyond the high school level.

Labor statistics also indicate that in addition to helping on the job, the more education a worker has the less likely he/she will be without a job.

Health - The better you take care of yourself through proper eating habits and exercise, the less you’ll have to pay out in medical expenses.

Dr. Anthony Policastro, who practices Pediatric Developmental Behavioral Health and Pediatrics at Nemours Pediatrics in Seaford, has long been an advocate of teaching the benefits of healthy lifestyles.

“The money you are now spending on unhealthy

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lifestyles will need to be used to pay for your medical care. If you spend your money on bad habits now, you will not have it for later,” he warns.

Dr. Policastro says smoking and overeating are particularly bad habits that can be avoided.

Smokers spend several dollars per week for cigarettes. At three dollars per day (half a pack) that is $1,095 per year. Over 40 years that comes out to $43,800. Smokers will also have to spend a lot more money on their health care.

We eat a lot of high calorie junk food. This food is a lot more expensive than healthy things such as fruits and vegetables. In years to come, we will pay the price with heart disease, diabetes and stroke. Diabetes is a particularly expensive disease to treat.

Spending - The simple, but hard to follow, rule for building financial independence is spend less than you earn and save the difference.

If you are already in debt over your ability to pay, start reducing that debt by paying off the smallest amount of debt first. When that is paid off, apply that amount to the second smallest debt and keep on until the debt becomes manageable, or better yet, eliminated.

This technique of attacking the debt problem could be called the reverse snowball effect, as you watch your debt gradually disappear.

Spirituality - Many find that the way to a fulfilled life is through service to others. Churches and volunteer organizations provide opportunities for service and self fulfillment.

We hope the information in this magazine inspires readers to work toward financial independence and to enjoy a better quality of life.

Find a plan that works for you, one that does not add stress to your life. Good health is a valuable asset, one that money can't buy.

Morning Star Publications | 2013 Personal Finance & Retirement Living

Benefits of home ownership are more apparent each April Every spring, as the weather warms and the days left before April 15 continue to dwindle away, Americans from coast to coast are vividly reminded of the tax benefits their home affords them. Without these very real tax benefits, the amount due Uncle Sam every 12 months would be substantially higher for most American taxpayers.

Despite its struggles in recent years, real estate continues to be one of the best long-term investments all throughout the “land of the free and the home of the brave.” Not even considering the appreciation that inevitably occurs over the years, other benefits to owning and maintaining your own home include tax advantages, long-term financial security and the sense of freedom and accomplishment that comes with having a piece of property to call your very own.

“It’s never really a pleasurable experience to sit down each year and compile your taxes, but I shudder to think how much more painful it would be if the federal government eliminated the mortgage interest deduction (MID),” says Bob McVey, 2013 president of the Sussex County Association of Realtors (SCAOR). “If getting together with your accountant every April doesn’t emphasize the tax benefits of home ownership in the United States, I don’t know what will.”

While the MID is one of the greatest benefits to home ownership in the United States, there has been talk in Washington in recent months of altering, or even eliminating, the long-time tax benefit. This has Realtors from coast to coast up in arms and unifying behind a common cause, including those with SCAOR. As the law currently stands, American homeowners who itemize their deductions can deduct the interest paid on their mortgage up to $1 million, plus up to $100,000 of home equity loans. But the MID costs the United States treasury approximately $100 billion a year in revenues, and politicians from both major parties are eyeing the deduction as a potential revenue source in the months and years ahead.

Members of the National Association of Realtors

will not let that happen, however, without a major fight.

“Any time there is a possible revenue source like what would be created by eliminating the Mortgage Interest Deduction, you’re going to have politicians conjuring up plans on how to go after that source,” says McVey. “But we, as Realtors, will fight that to our last breath because it’s no secret that the housing markets are major economic drivers in the United States.

“The more you mess with it, the more you mess with the economic well being of the country. In short, the MID needs to be left alone, not only for the short term, but for generations to come.”

With or without the MID, there is no questioning Continued to page 16

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Morning Star Publications | 2013 Personal Finance & Retirement Living

5

Where there’s a will, you’ll be okay

By Stephanie S. Reid, Esquire What do Abraham Lincoln, Pablo Picasso and Bob Marley all have in common?

Despite sizable personal assets, each died without having executed a valid will or otherwise arranging for the distribution of their vast estates upon death.

According to statistics, over one-half of the adults living in the United States do not have a will, which likely will result in the distribution of their estates according to the laws of intestacy – an emotionless, impersonal process by which the court allocates property following the mandates of a state statute.

Intestacy laws make no consideration for the true wishes of the deceased, do not account for the intent to distribute specific mementos to certain family members and make no mention of devises to charity.

Laurel Sta r

How can I avoid intestacy?

Avoiding intestacy is relatively simple and is achieved by following Delaware’s concise set of requirements for the execution of a will.

The first step is to determine how you would like your property distributed upon your death, including who should inherit your real estate, assets and personal property.

Many people choose to leave their entire estate to their spouse or distribute wealth equally among their children. However, with the exception of disinheriting your spouse, you are free to design your estate plan as you desire.

If you have specific pieces of personal property that you would like to bequeath to members of your family, such as jewelry, furniture or other heirlooms, make certain to clearly identify these items in your

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will, as well as the full name of the person to whom you intend to give the item. Your will can also include as much information as you’d like about your funeral arrangements, including the style of the ceremony, preference of church venue, hymns to be played and your burial, however you are not required to include this type of directive.

You must also choose a person to serve as your executor or executrix, who will be responsible for opening and administering your estate when necessary.

Once you have decided how you would like your property divided, it is time to meet with your estate planning attorney, who will draft the documents in accordance with your wishes and Delaware law. You must sign your will in the presence of two witnesses and you will receive a copy of the original to keep with your important documents.

What are my other estate planning options?

There exists a multitude of asset-protection estate planning tools available to help with your unique situation. Many people opt to place their property and assets in a trust for the benefit of named beneficiaries. This tool may provide special estate tax advantages for your heirs and allows for the avoidance of probate, which can be time-consuming and costly for surviving family members. A trust may be tailored to your particular needs, including trusts set up to benefit charities, family members with special needs or to minimize Medicaid asset liability.

Can I download a will online?

You may have seen advertisements in recent years touting the ease and convenience of a downloadable will form from a one-size-fits-all “legal” website. It is important to understand that wills available online do not take into account the specifics of Delaware law and may not comply with the creation, format or execution requirements in this jurisdiction. This could lead to disastrous consequences in the event your will is deemed invalid by the Register of Wills, resulting in the submission of your estate to the laws of intestacy. In sum, it is always more prudent to work with an experienced Delaware attorney when creating your will and estate plan.

Conclusion As the Court of Chancery explained in a recent case, “[t]he ability to discharge one’s property by will is a cherished right.” By carefully delineating your estate plan, you are protecting not only your hard-earned assets, but those of your loved ones and heirs. Avoid the costly mistake of allowing your estate to slip into the clutches of state intestacy laws and make an appointment with a knowledgeable and experienced attorney today.

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Morning Star Publications | 2013 Personal Finance & Retirement Living

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Benefits of a college education continue to add up through life

By Leanne Phillips-Lowe

Is a college education worth the effort?

That’s a question many students have asked — usually out of frustration when faced with research papers, final exams, and, ultimately, the cost of a college education.

That same question is debated on many levels and the answers aren’t always a yes or no. Sometimes it’s “Yes, if you do this…” or “No, look at {so-andso}, who makes so much money and doesn’t have a college degree!”

And, in today’s economy, we’ve all heard the stories about the college graduates who can’t find jobs or are forced to take a job paying minimum wage.

No doubt, you’ve heard many reasons pro and con and you may have a firm opinion on the topic.

But in case you haven’t decided whether you want to put forth the effort to earn an associate degree, a bachelor’s degree or higher, consider this information gleaned while searching online: College grads with a bachelor’s degree earn an average of 45 percent more than a high school graduate.

An associate degree (awarded by a community college) can give you the technical skills needed for so many of today’s high employment jobs. Understanding technology and the ability to comprehend its changes is now an asset when seeking employment.

Choose a useful degree — one with good employment prospects.

A college degree is not a guarantee, but it can make a difference in a field crowded with job applicants.

Not everyone is a “Bill Gates” — someone who made his fortune without a college degree.

A college degree will enable you to move up the ladder.

America’s future depends upon our young peoples’ capacities to think, investigate, and innovate … experiences which are part of the college experience.

Studies often note that college graduates have experience at performing under pressure and meet-

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ing deadlines, are goal-oriented, and generally more committed to their careers than high school graduates.

Other studies show that college graduates are happier, smoke less, exercise more — in general, live healthier lives.

And as one anonymous student wrote: “College is a choice. It is the beginning of a lifelong journey that will shape and determine future choices, decisions and purposes.”

There are numerous additional reasons why one should put forth the effort to earn a college degree.

(And some individuals can find more reasons not to attend!) But faced with the facts and figures — and even more research — it’s clear that earning a college degree greatly increases your potential for financial and personal success. An education is the best investment of time and money you can make; it’s an investment in you, an investment that will reap untold rewards in your future.

Morning Star Publications | 2013 Personal Finance & Retirement Living

Your priceless personal asset Every day everyone has 86,000 seconds of time to invest. What­ever of this you have failed to invest to good purpose is gone forever.

Invest your time so as to get from it the utmost in health, happiness and success. The clock is running! Make the most of today.

• To realize the value of ONE DAY, ask the lovers who are waiting to meet.

• To realize the value of ONE SECOND, ask a person who has survived an accident.

• To realize the value of ONE MILLISECOND, ask the person who has won the silver medal in the Olympics.

Treasure every moment. Time and life are precious, learn to live it to its fullest and you’ll never have to regret the things you didn’t do!

Personal Finance A R L nd

etirement

iving

If your business missed out on the opportunity to be a part of this Personal Fin­ance and Retirement Living section, don’t miss out next year. Call 629-9788 or email brichardson@mspublications.com

Working from home tax break

If you use part of your home for your business, you may qualify to deduct expenses for the business use of your home. Here are six facts from the IRS to help you determine if you qualify for the home office deduction.

Generally, in order to claim a deduction for a home office, you must use a part of your home exclusively and regularly for business purposes.

In addition, the part of your home that you use for business purposes must also be: • your principal place of business, or • a place where you meet with patients, clients or customers in the normal course of your business, or • a separate structure not attached to your home. Examples might include a studio, workshop, garage or barn. In this case, the structure does not have to be your principal place of business or a place where you meet patients, clients or customers.

You do not have to meet the exclusive use test if you use part of your home to store inventory or product samples. The exclusive use test also does not apply if you use part of your home as a daycare facility.

The home office deduction may include part of certain costs that you paid for having a home.

For example, a part of the rent or allowable mortgage interest, real estate taxes and utilities could qualify. The amount you can deduct usually depends on the percentage of the home used for business.

The deduction for some expenses is limited if your gross income from the business use of your home is less than your total business expenses.

If you are self-employed, use Form 8829, Expenses for Business Use of Your Home, to figure the amount you can deduct. Report your deduction on Schedule C, Profit or Loss From Business.

If you are an employee, you must meet additional rules to claim the deduction. For example, in addition to the above tests, your business use must also be for your employer’s convenience.

For more information, see Publication 587, Business Use of Your Home. It’s available at IRS.gov or by calling 800-TAX-FORM (800829-3676).

Morning Star Publications | 2013 Personal Finance & Retirement Living

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The Manor House in Seaford at twilight

Smart steps to secure your future

Manor House is a continuing care retirement community P

erhaps you’ve heard about Manor House, the ACTS Life Care Retirement Community in Seaford with beautiful, customizable residences, fine dining, and exciting clubs and leisure options – not to mention ACTS Life Care™ guaranteeing your future long-term care while protecting your nest egg.

With all these features, you may wonder whether you can afford the ACTS lifestyle.

The good news is there are substantial financial advantages to living in an ACTS community, which can make Manor House a smart way to secure your retirement years.

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Tax savings Most new residents of Manor House can take advantage of a one-time tax deduction of 37.62% on their entrance fee, and an annual deduction of 39.04% on their monthly fee for as long as they live at Manor House. This adds up to thousands of dollars in tax savings each year.

Lower long-term care costs Living in an ACTS community lets you avoid the ever-growing cost of long-term care.

For example, the average annual cost of a nursing home in Delaware is about $101,000, and the average length of stay is 2.5 years. That

Morning Star Publications | 2013 Personal Finance & Retirement Living

The dock provides a peaceful setting for Manor House residents.

means the average cost of a nursing home stay is $252,500 or $505,000 for a couple. And in ten years, based on current inflation rates, that is estimated to increase to $353,500 or $707,000 for a couple.

For active residents living at an ACTS community, however, their future long-term care is guaranteed and pre-paid with today’s dollars.

They will never pay another cent for care, no matter what kind they need or how long they need it.

Fixed monthly expenses Living in an ACTS community enables you to replace or reduce many monthly household expenses – such as utilities, property taxes, maintenance and meals – with one comprehensive and predictable monthly fee. You are also protected from major unplanned costs associated with home ownership, such as replacing a roof or furnace.

Added assurance As a not-for-profit 501(c)3 charitable organization, part of ACTS’ mission is to serve others.

One way we do this is through the Benevolence Fund, a subsidy that supports residents who experience financial hardship. The fund provides peace of mind for residents, who know they will never be asked to leave if they run out of money through no fault of their own.

“Our residents appreciate the way ACTS Life Care helps preserve their assets,” explains Peter Casale, a Life Care Consultant at Manor House. “ACTS Life Care contract guarantees their monthly expenses will never increase as a result of a change in their health. And they will never outlive their assets either. They have peace of mind knowing they are set for life.”

To learn more about the financial benefits of living at Manor House, or to arrange a tour, call 800-775-4593 or go to ACTSManorHouse.org.

Morning Star Publications | 2013 Personal Finance & Retirement Living

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What happens to your IRA upon your death?

By Michele Procino-Wells, Esquire As more “baby boomers” are retiring and rolling over large 401(k)s and other retirement plans to Individual Retirement Accounts (IRAs), proper tax and estate planning for IRAs have become increasingly important.

Upon your death, the beneficiary of your IRA can take the money out as fast as all of it right away or as slow as payments over the beneficiary’s life expectancy. If the beneficiary is taking the money out as slowly as possible, the amount she or he has to take out every year is known as the required minimum distribution (RMD).

Taking the money out as slowly as possible is known as “stretching out” the IRA. An IRA that is “stretched” allows the money inside

the IRA to continue to grow tax free for as long as possible. The longer money grows tax free the greater the amount received by the beneficiary. For example, let’s take a child age 45 (at the time of his parent’s death) who inherits a $200,000 IRA and withdraws only RMDs. If the IRA grows, from both income and principal appreciation, at the rate of 6% a year, then 30 years later when the child is age 75, the child will have taken over $400,000 in RMDs and still have almost $300,000 left in the IRA to use over his later years or pass down to his children (the original IRA owner’s grandchildren).

To sum it up, the original $200,000 inherited IRA became worth over $700,000 to that family. (And that doesn’t include the future value of the RMDs if they’re placed into an investment account).

If we assume the IRA will be worth over $200,000 when the owner passes, or will earn a higher rate of

Some Delawareans missing out on refunds With the April 15th tax deadline just weeks away, here’s some last minute tips for Delaware taxpayers from the Internal Revenue Service.

Four thousand Delawareans who failed to file an income tax return for 2009 are missing out on approximately $3.4 million in unclaimed refunds. To collect the money, they must file their 2009 returns with the IRS no later than April 15, 2013.

When a return is not filed, the law provides taxpayers with just a three-year window of opportunity for claiming a refund.

Half of those who could claim refunds would receive more than $561. IRS forms and publications are available on the IRS website, www.irs.gov.

Dozens of free IRS volunteer tax help sites are open in Delaware to assist taxpayers in preparing basic tax returns. The volunteer sites help prepare basic tax returns for older taxpayers, people with disabilities, non-English speaking individuals and other

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people who cannot afford professional assistance.

Tax volunteers can be found at convenient neighborhood sites – such as libraries, senior centers, or college campuses.

For the nearest volunteer site in your area visit www.irs.gov and type VITA in the search box or call 1-800-906-9887.

“IRS Free File allows taxpayers earning $57,000 or less to e-file their tax returns for free through the IRS website, http://www.irs.gov//freefile,” said IRS Delaware spokeswoman, Dianne Besunder.

“E-file is fast, it’s free and it’s safe. Last year in Delaware 367 thousand returns were e-filed,” she said.

For Delawareans who make more than $57,000 or who are comfortable preparing their own tax return, there is Free File Fillable Forms. It also must be accessed through http://www.irs.gov/freefile. There is no software assistance

Morning Star Publications | 2013 Personal Finance & Retirement Living

annual return, or will go to a younger beneficiary, that IRA may eventually be worth well over $1 million!

Your beneficiary may not know about the availability of the stretch and request immediate payment. Once the money comes out of the IRA it is taxable income.

If the money comes out all at once, it is likely to be taxed at a very high rate. Perhaps your beneficiary tells the broker to roll the IRA over into his own name.

This is the same as cashing in the IRA and then transferring the proceeds into his IRA. If your beneficiary isn’t 59 1/2 yet, he won’t be able to withdraw money out of his IRA to pay the tax without a big penalty. In order to receive the stretch-out, a beneficiary who is not the spouse of the decedent must title the account: “decedent IRA f/b/o beneficiary.”

Instead of leaving your IRA directly to your child, you can create a trust called an “IRA Inheritance Trust” to be the beneficiary of your IRA. Now, your child should not be able to blow the stretch-out. The trustee can then set up the account correctly.

While the IRA Inheritance Trust is designed to maximize the stretch-out, the beneficiary can take more money out if there is an emergency or just because they want to, especially if the beneficiary is his own trustee.

An IRA Inheritance Trust is designed to protect your beneficiary’s inheritance from creditors, divorce, disability, etc. and to make sure that the beneficiary gets the most tax free growth from the stretch-out.

In September 2005, the IRS issued a private letter ruling stating that an IRA Inheritance Trust qualifies for the stretch-out.

For anyone who has IRAs (including those owned by his or her spouse) and/or 401(k) or other retirement plans that total over $200,000 - an IRA Inheritance Trust® is virtually a “no brainer” decision. Simply stated, the income tax reduction and asset protection planning that this trust now provides may save hundreds of thousands of dollars or more for that IRA owner’s family.

About the author Michele Procino-Wells has practiced law in Delaware since 1995, concentrating in estate planning and administration, elder law, real estate and business transactions. She holds a B.A. from Penn State University, a law degree (J.D.) from Widener University School of Law and a graduate master of laws degree in taxation (LL.M) from Villanova University School of Law. Mrs. Procino-Wells’ firm, Procino Wells, LLC, includes two attorneys, a real estate coordinator, elder law coordinator, estate planning coordinator and other support staff.

Morning Star Publications | 2013 Personal Finance & Retirement Living

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Itemize or standard deduction?

When you file a tax return, you usually have a choice to make: whether to itemize deductions or take the standard deduction. You should compare both methods and use the one that gives you the greater tax benefit.

Figure your itemized deductions. Add up the cost of items you paid for during the year that you might be able to deduct. Expenses could include home mortgage interest, state income taxes or sales taxes (but not both), real estate and personal property taxes, and gifts to charities. They may also include large casualty or theft losses or large medical and dental expenses that insurance did not cover. Under reimbursed employee business expenses may also be deductible.

Know your standard deduction. If you do not itemize, your basic standard deduction amount depends on your filing status. For 2012, the basic amounts are: Single = $5,950 Married Filing Jointly = $11,900 Head of Household = $8,700 Married Filing Separately = $5,950 Qualifying Widow(er) = $11,900 File the right forms. To itemize your deductions, use Form 1040, and Schedule A, Itemized Deductions.

You can take the standard deduction on Forms 1040, 1040A or 1040EZ. Tax forms and publications are available on the IRS website at IRS.gov or call 800-829-3676 to order them by mail.

Withdrawals from retirement plans

Taking money out early from your retirement plan can cost you an extra 10 percent in taxes.

An early withdrawal normally means taking money from your plan, such as a 401(k), before you reach age 59½.

You must report the amount you withdrew from your retirement plan to the IRS. You may have to pay an additional 10 percent tax on your withdrawal.

The additional 10 percent tax normally does not apply to nontaxable withdrawals.

Nontaxable withdrawals include withdrawals of your cost in participating in the plan. Your cost includes contributions that you paid tax on before the plan.

For more on early distributions from retirement plans, see IRS Publication 575, Pension and Annuity Income.

Also, see IRS Publication 590, Individual Retirement Arrangements (IRAs). Both are available at IRS.gov or by calling 800-TAXFORM (800-829-3676).

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Morning Star Publications | 2013 Personal Finance & Retirement Living

Travel lightly Ship your luggage and avoid long lines

By Laura Rogers The UPS Store

You can avoid airport hassles and sidestep long lines at baggage claim. You can get everything you need shipped to your destination on time and intact.

Depending on what airline you choose, shipping your luggage may or may not be a cost savings measure. Some airlines, like Southwest for example, don’t charge a baggage fee.

Other airlines charge as much as $50 per bag with overage charges for every pound over 50 pounds.

For some travelers, shipping luggage isn’t a matter of savings; it’s a matter of necessity. Elderly passengers have enough trouble managing the stress of travel without adding the physical strain of luggage to the mix. In addition, those traveling with small children (and all the baggage that comes with them) save time and headaches by shipping car seats, strollers and other kid gear ahead of time. We’ll ship it, so you won’t have to carry it.

Naturally, you may be concerned about losing something. You can rest assured knowing that package tracking comes standard with all shipments. UPS also offer a wide range of guaranteed shipping options that often cost less than the United States Postal Service: UPS Next Day Air, UPS Ground, UPS 2nd Day Air and UPS 3 Day Select. Luggage, skis, golf clubs — we can ship almost anything. However, due to air shipment restrictions, we cannot ship hazardous materials, including: colognes/ perfumes, wet-cell batteries, aerosol sprays, lighter fluid, nail polish, fireworks, cigarette lighters or matches.

Here are some other tips for travelers • Put luggage in a box if possible. Doing this will help protect luggage as well as provide a suitable surface for the shipping label. It will also help avoid additional handling charges.

• Keep the tracking number and other ship-

ping information. Travelers can track their luggage via cell phone, PDA or other web-enabled wireless devices.

• Because of the duties and taxes associated with international shipments, The UPS Store does not recommend sending luggage internationally.

• Have The UPS Store print a label for you to have your luggage shipped back to your home. Just pack your return label in your bag, and when you’re ready to come home, place it over the old label and leave it with the front desk at your hotel. It’s that easy!

• Call the UPS Store at 629-8771 with the weight and dimensions of your luggage as well as the destination zip code and we can give you a shipping quote in one minute or less.

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Limit one coupon per customer. Not valid with other offers. Restrictions apply. Valid and redeemable only when presented at a participating location. The UPS Store centers are independently owned and operated. © 2013 The UPS Store, Inc.

Morning Star Publications | 2013 Personal Finance & Retirement Living

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What ways can senior women improve retirement outlook?

If you are a senior woman, you need to be diligent in managing your financial resources to enjoy a comfortable lifestyle in retirement. Fortunately, by planning ahead and making the right moves, you can help alleviate any inequalities that may exist between you and the men of the world.

What are some of these disparities? Here are a couple to consider: • Longer life expectancy - Both women and men are living longer these days. But you've still got the edge: A woman reaching age 65 can expect to live 19.8 years, while a 65-year-old man can anticipate 16.8 years, according to the U.S. Department of Health and Human Services. And more years of life mean more expenses.

• Lower earnings - The "wage gap" between men

Benefits of home ownership Continued from page 5

the impact an area’s housing market has on the economy. According to the National Association of Realtors, the sale of a home priced at $173,000 generates $58,529 in economic activity, including fees for real estate agents and title companies. But that figure also includes components like furniture, services like landscaping and countless other items.

New home sales contribute even more to the local economy, from the Delaware beaches all the way to the abundant farmland communities in western Sussex.

These contributions include construction materials and much-needed jobs for Sussex Countians.

The Sussex County Association of Realtors was chartered in 1949 and has steadily grown in size, scope and mission during its more than six decades in Sussex County. It is a professional trade association with goals of carrying out a program of education and advocacy for real estate in the county.

SCAOR is a resource for the public, as well as a recognized advocate for property rights and property owners in Sussex County. The association also monitors legislative issues on the local, state and national levels that may impact home ownership in the area.

To read more about issues related to Sussex County’s real estate industry, visit SCAOR’s website at www.scaor.com.

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and women has narrowed - but it hasn't disappeared.

Women who work full time still earn, on average, only about 77 cents for every dollar earned by men, according to the U.S. Census Bureau. And women drop out of the work force for an average of 12 years to care for young children or aging parents, according to the Older Women's League, a research and advocacy group. And this time away from the workforce results in more than $500,000 in lost wages.

Furthermore, there may be lifestyle issues that put greater financial pressure on senior women. For example, when it comes to giving money to their adult children, women may be more generous than men. Of course, that's hard to prove, but according to annual surveys conducted by the Higher Education Research Institute at the University of California at Los An-

It’s Your Choice.

Preplanning Here at Hannigan, Short, Disharoon Funeral Home we recommend that everyone preplan his or her own funeral.

Doing so can offer emotional and financial security for both you and your family. By preplanning a funeral you will get the kind of service you want and your family will be unburdened from making decisions at a stressful time.

Hannigan, Short, Disharoon has been your neighbor’s choice for many generations. Make us your choice, too.

700 West St., Laurel, DE 19956 302-875-3637 www.hsdfuneralhome.com

Morning Star Publications | 2013 Personal Finance & Retirement Living

geles, there has been one major, consistent disparity between the sexes over the past four decades: Approximately two-thirds of women say "helping others who are in difficulty" is an essential or very important life objective, compared to only half of the men. Thus, it seems plausible that retired women may be more committed to providing assistance to their grown children - which, of course, could lead to additional financial strains.

Taking all these factors together, it's clear that, as retirement approaches, you need to take action. Here are a few suggestions: • Take advantage of your retirement plan. Put in as much as you can possibly afford to your IRA and your 401(k) or other employer-sponsored plan. Every time you get a raise, try to increase the amount you contribute to your retirement plan.

• Know how much to expect from Social Security.

Contact Social Security (www.ssa.gov) to make sure your earnings records are right and to find out the size

of your benefits checks.

• Be aware of wills, trusts and beneficiary designations. If you are married, make sure you know what legal arrangements have been made for you to receive financial assets from your husband should you outlive him - which, statistically speaking, is likely.

• Get professional help. To identify and quantify your retirement planning goals, and to choose the mix of investments that can help you make progress toward those goals, you may well want to work with a financial professional.

• And here's one final tip: Stay informed. Whether you're single or married, divorced or widowed, know where you stand in regard to your savings, investments and retirement plans. Your financial future is in your hands - so get a good grip on it.

This article was written by Edward Jones for use by local Edward Jones Financial Advisors Melinda Tingle and John Rittenhouse.

Reduce stress and enjoy life more

NO TIME LIKE THE PRESENT

TO KEEP YOUR FUTURE

ON TRACK.

Too much stress can destroy a person’s health.

Following are suggestions to reduce stress: • Get to the office 15 minutes earlier. Take the rush out of your morning.

Lots of times, changes in life also affect your investments.

That’s why there’s never been a better time to schedule your free portfolio review. We’ll talk about the changes in your life, and help you decide whether it makes sense to revise your investments because of them.

• Throw away anything that doesn’t work right.

• Take breaks when working on a job that’s repetitive.

• Organize your desk before you leave each evening.

• Do not sit at your desk and wrestle with a difficult problem. Take a walk while you think.

• Tackle important jobs first.

• Set up standardized procedures for jobs that you and your staff handle every day.

A portfolio review will help ensure your investments are keeping pace with your goals. Call your local financial advisor today.

Melinda R Tingle, AAMS® Financial Advisor .

204 Laureltowne Front St & Delaware Avenue Laurel, DE 19956 302-875-0355

John F Rittenhouse Sr, AAMS®

www.edwardjones.com

Member SIPC

Financial Advisor .

559 N Hall St Seaford, DE 19973 302-629-6094

• Living your life with integrity and honesty is the only way to live.

Don’t let little problems become big obstacles.

Morning Star Publications | 2013 Personal Finance & Retirement Living

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Ways to boost your self esteem TOPS Club, Inc., the nonprofit weight-loss support organization, offers these ideas to improve self-esteem: • Stop comparing yourself to others. Trying to live up to or exceed someone else’s personal best is a losing game. As the saying goes, “How boring would it be if we were all the same?”

• Compliment yourself regularly, either by looking in the mirror and saying something you like about yourself or writing it in a journal. Many times, we’re quick to compliment others on their success but hesitate to do the same for ourselves.

• Exercise consistently, at least 30 minutes of exercise several times a week, to strengthen muscles and to burn calories. Improve your physical strength, and you may feel a sense of empowerment that can dramatically enhance your self-esteem.

• Focus on your accomplishments. Forgive yourself for mistakes and focus on the positive by celebrating your victories. Consider writing them down so you can review and reflect when you’re feeling down and need to renew your confidence.

• Make a list of your positive qualities. Are you generous? Kind? Write down at least 10 positive qualities about yourself and return to this list as often as needed to boost your morale.

• Find something special in each day. Even if it’s in a small way, do something pleasant and rewarding, like catching up on your favorite television show, taking a walk to the park, or indulging in a bubble bath.

Or treat yourself to something small that isn’t a food or beverage, like a manicure.

• Eat better. Pay attention to your food choices and nourish your body. Buy healthier foods and prepare well-balanced meals that will help give you energy and feel like your best self – not sluggish and overstuffed.

• Explore a passion. Whether it’s a side job, hobby, or as a volunteer, pursuing your passion in even a small way can lead to a sense of purpose and improve your overall happiness and quality of life.

To find a local TOPS chapter, visit www.tops.org or call 800-932-8677.

Dignity and Respect

For every stage of your life, you can count on Daisey Insurance to protect what’s important with quality insurance coverage you can trust.

Call us today. We’ll be happy to arrange a complimentary, no-obligation policy review and rate quote for you.

DAISEY INSURANCE INC.

8959 Fruitland Avenue - Bridgeville, DE 19933 302-337-9400 • Toll Free 1-888-DAISEY 1 Fax 302-337-9404 - harry.daiseyinsinc@comcast.net www.daiseyinsurance.com

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Watson-Yates Funeral Home

Providing our community with dedicated and caring service since 1895.

We understand that the passing of a loved one is the most emotionally demanding time in your life.

We will be there with compassion, to help lighten your burden.

Front & King Sts., Seaford, DE 19973

302-629-8561

www.watsonyatesfuneralhome.com

Morning Star Publications | 2013 Personal Finance & Retirement Living

Home business opportunities A

great way to make more money is to start a home business. Most people think it’s complex, but it’s actually quite simple. All you need is the proper amount of motivation and a detailed plan to get started.

Building a home business as a graphic designer, a pet groomer, or through a simple mail-order business selling books, tapes, videos or other products, not only offers more freedom and flexibility but can bring in an unlimited income. Here are some easy tips to help you get started: • Schedule time to work on your business. This is especially important if you are a parent. If you have flexible hours and minimal client contact, you may be able to work around your child’s naptimes and playdates.

You may also want to consider investing in professional child care, even if it’s just a few hours a day, so that you can give your work and your customers undivided attention.

• Find a mentor or mentors. Find someone who has done or is doing the kind of business you are interested in. His or her advice may prove invaluable. You may also want to look into consulting or continuing-education courses. Don’t forget to check online or page through the phone book to find local organizations that can connect you to people who are just like you.

• Do your homework. Beware of businesses that promise “fast money” with little effort.

Conduct a thorough investigation before investing your time and money in a home business venture, and contact your local chamber of commerce or Better Business Bureau to make sure the business is not a scam.

• Check a directory. Consider visiting a library or bookstore and looking for a directory that lists home businesses you can start and work at-home programs.

• Secure start-up capital. Pay off your high-interest credit cards to make you more financially attractive to prospective lenders.

Before you begin your business, you may want to save up for basic expenses like computers, office supplies, incorporation fees and child care, if necessary.

Keep complete records of all your income and expenses for income tax purposes.

• Do your homework. The more you research your business, the more likely you are to succeed.

Ask the reference librarian at your local library for resources on how to start a home-based business.

You can also look to your local chamber of commerce, the Small Business Administration (www.sba. gov) or the National Association for the SelfEmployed (www.nase.org) to get started.

Morning Star Publications | 2013 Personal Finance & Retirement Living

19

TM

ACTS LIFE CARE FREES YOU TO HAVE THE RETIREMENT YOU ALWAYS DREAMED OF.

Living in an ACTS Life Care retirement community gives you true peace of mind.

Which enables more joy of living. Your long-term care is prearranged and guaranteed. Your nest egg is protected from unexpected expenses. Relieved of those worries, you can enjoy all of life more fully. And at Heron Point there’s much to enjoy, indeed. Learn more. Be free to be carefree.

Contact us to schedule a community tour or request an info kit.

800-775-4593 | ACTSManorHouse.org 1001 Middleford Road, Seaford, DE

Happiness.

Just how you planned it.

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Morning Star Publications | 2013 Personal Finance & Retirement Living