PersFinance2014 reg by Morning Star Publications

Personal Finance & RetiRement Living

ÂŠ 2014 Morning Star Publications Inc.

Ensure a

PREDICTABLE CASH FLOW each and every month!

Live comfortably upon retirement with a Personal Pension Account! Turn your 401(k), IRA, or Certificate into a monthly distribution of principal plus interest. You’ll receive a FIXED, MONTHLY payment—ENSURING A GUARANTEED MONTHLY CASH FLOW. Best of all, you can get started with as little as $50,000 and no maximum deposit. For example: Minimum Deposit

Variable Rate

Monthly Distribution from SCFCU (for 60 months)

$50,000 1.03% APR*

$854.60

Benefits:

• No Service Charges • Can Add Beneficiaries to Receive Residual Balance • Recalculation Annually Upon Request • Withdraw Funds With No Penalty at End of 3 Year Term

CALL (302) 629-0100 CLICK www.sussexcfcu.com COME BY Your Local Branch in Lewes, Milford, Millsboro & Seaford *APR=Annual Percentage Rate; rates as of 01/13/14; subject to change. Variable rate based on 3 year treasury plus .25% adjusted quarterly. Penalty for early withdrawal. Credit Union membership required.

Federally Insured by NCUA

Guiding you to your financial future 2

Morning Star Publications | 2014 Personal Finance & Retirement Living

Personal Pension Account Your perfect option for retirement Are you the new face of retirement? Would you consider yourself a physically active, health conscious baby-boomer that’s ready to make retirement some of the best years of your life? Traditionally, more and more seniors are taking advantage of their ‘golden’ years by traveling, enjoying hobbies, fulfilling their bucket list and enjoying the finer things in life! At Sussex County FCU, we too believe that retirement should be filled with affording and enjoying the things in life that you have worked hard to attain! However, retirees often find themselves with limited access to the money they have invested. Fortunately, there is a NEW OPTION that allows you to ENJOY the money you saved for retirement while still earning dividends! Our commitment to retirees is to help you afford to live the lifestyle you choose, even on a limited income. With a Personal Pension Account (PPA), you’re able to turn a lump sum of money, such as from a 401K, IRA or Certificate, into a monthly annuity of principal plus interest. Best of all, you receive a FIXED, MONTHLY payment, thereby ENSURING a GUARANTEED MONTHLY CASH FLOW. A Personal Pension account (PPA) is an ideal option for a retiree on a fixed income. There are no services charges and you can pick the day of the month you want your funds deposited directly to your account. Plus, you can even select an amount to leave to your beneficiaries if you so choose. With as little as $50,000 and no maximum deposit, you can earn dividends while being confident that your funds are federally insured.

Q: How does the PPA work? A: For example, when you deposit the minimum of $50,000 with a 5 year distribution schedule at the current rate of 1.03%APR*, SCFCU will deposit a monthly payment of $854.60 directly to your checking account for the next 60 months. You may choose between a distribution schedule between 5 and 25 years. Q: Can I add beneficiaries to the PPA? A: Yes, unlike most annuities, you can add beneficiaries to this account; they’ll receive the residual balance in the event of death. Q: Are there any withdrawal penalties associated with the PPA? A: Regardless of the distribution schedule you select, once each 3 years, you will have an opportunity to withdraw your funds without penalty. Q: How are PPA distributions handled? A: Distributions will be made in equal installments to your checking account. At your request, one time per year we will recalculate your monthly distribution to accommodate interest rate changes. Recalculations will be done over the remaining months left in the original distribution schedule. RETIRE WITH PAY, every month with a PERSONAL PENSION ACCOUNT from Sussex County Federal Credit. For details, or a free consultation, click www.sussexcfcu.com, call 302-629-0100 or come by your local branch. *APR = Annual Percentage Rate, effective 1/13/14; rates subject to change. Membership eligibility required. Terms and conditions may apply. Federally Insured by NCUA.

Morning Star Publications | 2014 Personal Finance & Retirement Living

Financial Independence Work hard, plan and reach your dreams over time By Bryant Richardson This is the 14th 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. Nearly 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 has long been an advocate of teaching the benefits of healthy lifestyles. “The money you are now spending on unhealthy 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 items 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. Find a plan that works for you, one that does not add stress to your life. Good health and peace of mind are valuable assets. They are available to anyone who follows a plan for a quality life. We hope the information in this magazine inspires readers to work toward financial independence and to enjoy a better quality of life.

Morning Star Publications | 2014 Personal Finance & Retirement Living

Life changes. Your insurance agent can help you stay in step.

Let me youyou get get the the protection youyou need. Let help me help protection need. Whether you’ve had boughtaanew new Whether you’ve hada ababy baby and bought car, car, or now have onthe theroad, road, your or now haveaateenager teenager on your insurance should withyour yourlife.life. Call insurance shouldkeep keepup up with today for a free review to help you decide what Call today for afor free review to help you protection is right you. decide what protection is right for you.

Tony DeSanctis 302-629-8841

105 High Street Seaford, DE Tony DeSanctis adesanctis@allstate.com Agency Principal

AUTO • HOME • LIFE • RETIREMENT

Allstate Insurance Company 72042

629-8841

Morning Star Publications | 2014 Personal Finance & Retirement Living

Using trusts to protect your assets By Michele Procino-Wells, Esquire

There are many kinds of trusts that can be created, all of which have different uses. A Medicaid Asset Protection Trust (MAPT), as the name suggests, can be a useful tool when it comes to planning to protect assets from the costs of long-term care. After President Bush signed the Deficit Reduction Act of 2005, one of the effects was that the Medicaid qualification rules were altered. One of the biggest impacts of this leg-

islation was the extension of the “look-back period” from three to five years. The increase of this time period means that any gifts made by a Medicaid candidate in the five years prior to their application would result in a penalty. This penalty is expressed through a delay in qualification for Medicaid. On top of that, the penalty period does not begin to run until the applicant has otherwise spent down all their other assets so that the penalty is imposed at a time when the applicant has no other assets to use to pay. Medicaid Asset Protection Trusts are irrevocable trusts that receive “gifts” of assets from the person who creates it, known as the “grantor.” A MAPT can successfully supply its

How will you pay for long term care? WILL YOUR LIFE SAVINGS BE DEPLETED? The attorneys at PROCINO-WELLS & WOODLAND, llc can help you protect your nest egg. Call us at (302) 628-4140 to schedule a consultation. 225 High Street, Seaford, Delaware



www.seafordlaw.com

PLANNING TODAY TO PROTECT YOUR FAMILY’S TOMORROW.

Morning Star Publications | 2014 Personal Finance & Retirement Living

creator with a source of income for the remainder of their lifetime. However, because of the nature of the trust, the assets transferred to it become unavailable to the grantor, and therefore no longer countable assets for Medicaid purposes. There are certain features that are found within every Medicaid Asset Protection Trust. The first of which are trustees. The grantor of the trust can choose whomever they want to act as trustee, although it is typically a family member. The trustee carries the responsibility of managing the assets in the MAPT for the benefit of all the beneficiaries. Lifetime beneficiaries are also an aspect of all Medicaid Asset Protections Trusts. This kind of beneficiary can collect distributions of principal from the trustee throughout the lifetime of the grantor. Most times these beneficiaries are the children of the person that created the trust. Once the principal is in the hands of the beneficiary, they can manage it however they please. A strategy that is often used is bestowing the funds upon the grantor in order to pay for their care. Residuary beneficiaries, on the other hand, are those who will receive what remains in the MAPT upon the death of the grantor. The strength of Medicaid Asset Protection Trusts lies in using them before long-term care is needed. If five years pass before the grantor applies for Medicaid, the assets are no longer a countable resource. The assets are therefore saved from the devastating costs of long-term care and the applicant is not penalized. A MAPT can also be used in crisis Medicaid situations. When there is an immediate need to apply for Medicaid, approximately one-half of a person’s assets can be protected through gifting to a MAPT. Although a penalty is still incurred, with appropriate planning in place a cash flow can be provided during the penalty period. Anyone interested in legally and ethically sheltering their assets from the potentially devastating effects of paying for extended long-term care should consider use of a MAPT as part of their overall estate planning.

Where can you cut expenses? Everybody is looking to cut back these days and make their paychecks go a little bit further. Giving your overall spending and budgeting another look can also help. When was the last time you evaluated your purchases and determined if you really need all the extras, or if there were areas where you could cut back? Consider scaling down the luxuries. Here are some things that you can cut that will not affect your lifestyle. • Reassess phone plans. You may be able to ditch landlines if you have an adequate mobile phone plan, or vice versa. • Consider the price you are paying for a cup of coffee on your way to work in the morning. A cup prepared at home can cost as little as 10 cents if you use refillable K-cups. • Shopping store sales is very important. Changes in what you buy can also have a positive effect on your ability to save. • Buying a lot of foods that are on sale and incorporating them into your menu is one way to reduce spending. Shopping and cooking in bulk reduces impulse spending at stores and unnecessary trips to the supermarket. • Break bad habits that not only drain your pocketbook but add to the cost of health care later in life. Cutting out extraneous expenses can free up more money for paying down debt. Many financial experts say carrying high credit card balances, enjoying the extras or living beyond your means isn’t financially prudent. It may take some purse-tightening and getting used to living without all the extras today’s society has grown to depend upon, but it is possible for the everyday family to cut down on household spending and survive a faltering economy.

Morning Star Publications | 2014 Personal Finance & Retirement Living

Help your parents avoid ‘scams’ Here’s a disturbing statistic: One out of every five Americans over the age of 65 has been victimized by a financial scheme, according to the Investor Protection Trust, a nonprofit organization devoted to investor education. If your parents are in this age group, should you be concerned? And can you help them avoid being “scammed” so that they maintain control over their finances? The answer to the first question is “yes” — you should be concerned. Of course, as the numbers above show, most aging Americans are not being swindled, which suggests they can take care of themselves quite well. Still, it’s no secret that many fraud schemes target seniors because of their concentrated wealth and in many cases, trusting nature. And as much as you’d like to think otherwise, your parents could be susceptible to rip-off artists.

Fortunately, in regard to the second question above, you can indeed take steps to help prevent your parents from being fleeced. Here are a few suggestions: • Observe their behavior. If you live close to your parents, listen closely to any new friends, investment deals or sweepstakes they mention during your normal interactions. If you’re in a different city, try to stay abreast of your parents’ behavior by communicating with them frequently and by checking in with other family members or friends who have occasion to see your parents. • Urge them to watch out for suspicious e-mails. You’ve probably seen them — the e-mails offering to “reward” you with huge amounts of money if you will only contact such-and-such from a distant country and then put up a “small” sum to initiate

USAA teams up with UPS stores If you’re a customer of USAA you know it isn’t always easy to do your banking, since there are no brick and mortar locations for customers to visit. Even though USAA is known for their exceptional customer service and low rates, customers have had to adapt to non-conventional methods for check and cash deposits. As of 2013, USAA and The UPS Store have partnered with each other to make banking more convenient for customers nationwide. USAA Easy Deposit is available at select locations of The UPS Store, including the UPS Store in Seaford. Not only is this option incredibly convenient, it’s safe and secure! USAA Easy Deposit means you’ll only need your USAA debit card and your endorsed check or money order to make a secure deposit. You won’t need to provide personal information like your account number, PIN or even a deposit slip. Here’s how it works: • Give your endorsed check to the store clerk at The UPS Store, who will swipe your ATM card and scan your check or money order for you. • Confirm the deposit amount and the store clerk will submit your deposit to your account. • Your deposit receipt will be printed on the back of your check or money order, which will then be returned to you. • Your deposit will be reflected in your account immediately, although funds may not be available for immediate withdrawal. The UPS Store is proud to offer a more convenient banking experience to USAA customers. USAA is an extraordinary institution founded by military personnel for fellow service members and

their families. For more information on USAA deposits at UPS Stores, call USAA customer service at 877-406-8567 or The UPS Store in Seaford at 629-8771.

Morning Star Publications | 2014 Personal Finance & Retirement Living

some ill-defined transaction. You probably “spam” these without a moment’s thought — and you should urge your parents to do the same. Remind them that any offer that sounds “too good to be true” is, without question, neither “good” nor “true.” • Encourage them to further their financial education. Law enforcement agencies, health care professionals and reputable financial services providers all offer personal financial management programs designed specifically for seniors. Look for these types of programs in your area, encourage your parents to attend — and even consider going with them. • Become familiar with their financial situation. Having a serious discussion with your parents about their finances may not be easy — but it’s important. The more you know about their investments, retirement accounts and estate plans, the better prepared you’ll be to respond helpfully if they mention an action they’re considering taking that, to you, just doesn’t sound appropriate.

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 MILLI-SECOND, 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!

• Suggest professional help. If your parents are already working with a qualified financial professional, they’re probably less likely to be victimized by fraud than if they were managing their finances on their own. And it’s a good idea for you to know their financial advisor, and for him or her to know you, as you may well be involved in your parents’ legacy planning. But if your parents don’t already have a financial advisor, you may want to recommend one to them, particularly if it’s someone you already know and trust. It’s entirely possible that your parents won’t need any assistance in avoiding financial scams. But, just in case, be prepared to act on the above suggestions. Your intervention could help preserve your parent’s financial independence. This article was written by Edward Jones for use by your local Edward Jones Financial Advisor. www.edwardjones.com

Free Review

Do you have the right investments in place to help you meet your financial goals? At Edward Jones, our business is to help people find solutions for their long-term financial goals. If you would like a free review of your Retirement Portfolio or any of your other investments to see if they are appropriate for your long-term goals, please call or stop by today.

Morning Star Publications | 2014 Personal Finance & Retirement Living

CHEER Home Health Services helps others live safely at home CHEER Home Services has been a part of the Sussex County Community since 1971. Founded as a local private non-profit community based service provider, CHEER promotes healthy and active lifestyles for persons aged 55 + throughout the County. In fulfilling the mission CHEER provides a wide range of programs and services supporting senior citizens, caregivers and family members on a daily basis, 7 days a week, 365 day a year. CHEER provides meals at seven different senior activity centers, delivers homebound meals, provides transportation, provides health educational, recreational activities and a full service non-medically skilled home services program. CHEER’s home service program helps hundreds of Sussex County seniors to continue to be able to live safely in their own homes. CHEER home services staff cook meals, provide light housekeeping, companionship and provide personal care services for people right in their own homes. CHEER Home services programs are developed and administered under the direction of licensed nurses, and client care is provided by a trained staff of certified nursing assistants and home health aides. CHEER home services are assisting approximately 200 active clients at any given time. For many, CHEER’s home services staff has become part of an extended family caring for the needs of elderly friend and neighbors, while helping caregivers and assuring family members that their loved ones are being well attended. CHEER is a licensed and bonded home services provider. CHEER has a variety of contracts with the State of Delaware to help care for many of our most special citizens. CHEER also serves private clients to help them in their homes. CHEER’s Home Services team is headed up by a program director who is a registered nurse, with a bachelor of science degree in nursing and is certified as a care manager. CHEER’s Home Services program director brings 28 years of nursing/client care experi-

ence with an emphasis on geriatric care and insurance related medical issues and services. The program director is backed up by a dedicated staff of nurses, care coordinators, certified nursing assistants and home health aides who touch the lives of our clients daily in their homes. All CHEER home services staff participate in regular and on-going training programs to keep their skills honed to providing the best possible client care. Each one undergoes an extensive background review and orientation prior to meeting their first member of our CHEER client family. CHEER takes pride in providing whatever service a client needs; be it assistance with a bath, light housekeeping, companion care, respite care, meal preparation or light grocery shopping including picking up prescriptions from the pharmacy. When more than housekeeping is involved a registered nurse is scheduled to visit the client in their home to assess their needs and perform a complete nursing and needs assessment. This is followed by communication with the care coordinators regarding the client’s specific needs, special requests and preferred hours of service. This information is used to match a specific home

Personal Finance

And Retirement Living 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

Morning Star Publications | 2014 Personal Finance & Retirement Living

health aide to the client in efforts to assure that the match will be successful and that the client will have a positive experience with CHEER services. Our caregivers are not only about satisfactorily providing the duties on a care plan; our caregivers provide caring and compassion in a way that each of us would want for ourselves and our family members. Think about your own circumstances. Could you or a loved one use a little CHEER in your life? Maybe only a couple of hours once or twice a week is all that is needed to help insure a comfortable and orderly home. Maybe some help with meals, getting up in the morning or being tucked into bed at night gives you peace of mind knowing that someone you love is being cared for in a way that they need and that you would want. Maybe it’s just a little relief for you or family members from some of the on-going activities associated with being a caregiver. What could that little bit of CHEER actually mean in your life? This is what some of our CHEER Home Service client family think: “Phyllis has become more than just someone

The Leader in Home Health Care Services

who comes to clean my room and bathroom and do my laundry. She has become more than a companion. She has become my friend. I look forward to her coming every week; it gives me something to look forward to! I truly would be lost without her. I love her to death.” “While my Mom is, by nature, a sweet, funny and very social woman, she can be a challenge as a result of her dementia and hearing disability. Every one of her aides has done a really good job and we have been very pleased with all of them. We would like to recognize Desiree who is with my Mom every day, Monday through Friday; when Mom is difficult, we can count on her to display the same kind and compassionate attitude, day in and day out. She is able to get things done that the rest of us can’t. She truly cares for my Mom and my Mom loves her.” Each of us evaluates the things that are important to us in our lives. Quality of life is an individual determination. The value of a smile, a reassuring hand and a caring heart is priceless for many who have become part of CHEER’s Home Services family of caring.

Home Health Care Personal Care Nursing Oversight 7 Senior Activity Centers Community Center Housekeeping Companionship Medical Transportation Respite Care Meals On Wheels Grocery Mini-Mart

302-856-5187 CHEEREDE.COM Morning Star Publications | 2014 Personal Finance & Retirement Living

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-and-so}, 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.

Morning Star Publications | 2014 Personal Finance & Retirement Living

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 meeting 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.

Two accounting firms merge Lank, Johnson & Tull, CPAs of Seaford and Milford and Messick, Ruff & Company of Seaford have announced that they have joined together. The two accounting firms officially merged on Feb. 1, and will retain all of Messick, Ruff & Company’s personnel. Lank, Johnson & Tull has been operating continuously since 1975 and has recently experienced significant growth, largely in part due to the personal and professional successes of its loyal clientele. “Messick, Ruff & Company shares the same values that we do. This merger is a perfect match as both firms aren’t just located in the same town, but also offer services to very similar types of clients,” said Robert Lank Sr., senior partner. The combined firm will operate as Lank, Johnson & Tull, CPAs. Lank, Johnson & Tull, CPAs in Seaford also announces three new hires. Brandon Tull, staff auditor, is a graduate of the University of Delaware and a former radio personality. Aubrey Edwards, also a staff auditor, graduated from Wesley College and has five years experience in the tax accounting field. Rebecca Hilberg, the firm’s new receptionist, graduated from Delaware Tech and plans to continue her education in the field of accounting. For more information about the company, visit the website www.ljtcpa.com, or call 629-9543.

Reduce stress and enjoy life more 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. • 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. • Living your life with integrity and honesty is the only way to live. Don’t let little problems become big obstacles.

LANK, JOHNSON & TULL Certified Public Accountants

is happy to announce that we have merged with

ROBERT B. LANK • RICHARD L. TULL TERRENCE JOHNSON Accounting & Bookkeeping Tax Planning & Preparation Audit Services • Business Valuations New Business Advisors Quick Books Accounting Non-Profits Professional Services Esposito Building, P.O. Box 253 Milford - Harrington Hwy. Milford, Delaware 19963 302-422-3308 • Fax 302-422-4782 E-Mail: terry.johnson@ljtcpa.com

521 North Market St. Extended P.O. Box 418 Seaford, Delaware 19973 302-629-9543 • Fax 302-629-3501 E-Mail: rick.tull@ljtcpa.com

www.ljtcpa.com

Morning Star Publications | 2014 Personal Finance & Retirement Living

The CPA. Never Underestimate The Value.®

Decluttering will save you money Oftentimes our possessions take on a symbolic nature. The teddy bear your dad gave you the year you didn’t have a Valentine. The ticket stub you kept from the KISS concert live at Mandalay Bay. To attach a normative value to inanimate objects is human nature. Nonetheless your things can begin to crowd your life and affect you emotionally and physically. The Delaware Hospice’s Family Support Center hosted its monthly Lunch Bunch, Friday, March 7, where Dr. Judith Pierson, clinical psychologist, presented “De-Cluttering: Managing Your Things So They Don’t Manage You.” The visual of your ‘things’ ‘managing’ you may seem hyperbolic, but consider the areas of our lives we manage as adults. Our time. Well, the average American spends a year of their life looking for misplaced items. Also, according to the National Soap and Detergent Association, ridding clutter would eliminate 40 percent of housework in the average home. Our money. Misplaced billing statements force 25 percent of Americans to pay unnecessary late fees. If you have a storage unit, you’re contributing to the $154 billion storage facility industry. We waste time and money for these possessions - 80 percent of which we will never use, according to the National Association of Professional Organizers, and this can stem from many issues. Dr. Pierson states that in addition to sentiment, we may be afraid that throwing away something is wasteful and we’ll be able to find a use for the item in the future. We can also feel our things give us a sense of identity or they make us feel safe. Once people have dealt with the barriers that preclude them from getting rid of unnecessary possessions, they may be overwhelmed by the task itself. Pierson suggests starting small and with the areas that impact your life on a daily basis and sticking with one area until complete. She also notes that seeing immediate improvement is essential to keeping motivated. Setting aside time to de-clutter is also important, such as allowing 15 to 30 minutes every day or two hours twice a week. In addition to a consistent de-clutter routine, developing habits to prevent clutter is significant as well. Reduce the amount of things brought into the home, employ an organization system and place 14

things in the same place every day. Another strategy is to ask basic questions about the items you choose to keep. Decide which category the item fits into such as: mail, photos, clothing, books or souvenirs, and designate a location for each category. Pierson also references other strategies from “18 Five-Minute Decluttering Tips to Start Conquering Your Mess” by Leo Babauta, originally posted on ZenHabits.net. Tips include designating an “in-box” for all incoming papers, creating a filing system, learning to file quickly, selecting items for donation or eliminating clothes you don’t wear from your closet. All of these tips will help to de-clutter your life, increase your free time and lead to a more relaxed, positive lifestyle. De-Cluttering is a recap of Delaware Hospice’s March Lunch Bunch Lecture with Dr. Judy Pierson.

Dignity and Respect

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 | 2014 Personal Finance & Retirement Living

Make the power of time work for you Four key steps to building wealth Almost everyone understands the need to take control of their money, but many don’t understand some of the keys to building financial security. Here are four that will help you achieve your financial goals: • Pay Yourself First — Before anyone else gets a claim to your money, pay yourself by putting a set amount aside in a savings or investment account. A good objective is to save eight to 10 percent of your income. • The Power of Time — When it comes to achieving financial security, time

is the most important tool you have. Combined with two other important elements, rate of return and consistency, the power of time is a key to achieving financial security. • The Power of Compounding—Com pounding is one of the most important keys to wealth you will ever learn. With the power of compound interest at work for you, you’ll be amazed at how quickly a few hundred dollars becomes a thousand. • The Importance of Rate of Return—The impact of rate of return when combined with time is significant. If $1,000 was deposited for a child at 6 percent, the

Invest In

THE TIME VALUE OF MONEY Age Contribution

18 30 40

$600,000 —

At Age 65

% Gain

$54,746 $527,538 964% $40,768 $200,000 491% $29,120 $85,154 292%

$500,000 — $400,000 — $300,000 — $200,000 —

$100,000 — $0 —

Age 18

Age 30

Age 40

The chart compares the retirement funds accumulated at age 65 for a The chart compares the per retirement age 65 person working 40 hours week at funds $7 peraccumulated hour, saving 8at percent of for atheir person 40 hours per of week at just(pre-tax). $7 per hour, saving 8% pay working with an average return 8 percent

or their pay (pre-tax) with an average return of 8%. The earlier the savings discipline begins, the better the retirement fund.

amount at the end of 65 years would be $44,000. If deposited at 9 percent, the amount at the end of 65 years would be $270,000. The difference: $226,000.

While there are many other “fine points” of money management, these four keys will get you started on the path to financial success.

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Morning Star Publications | 2014 Personal Finance & Retirement Living

Michael Keller, DMD