MyNorth Estate & Financial Planning, 2015

2015

Estate & Financial Your Northern Michigan Guide to a Secure Retirement

The new retirement

Family cottage inheritance: legal considerations

5 must-have estate documents

Long-term care policy options evolve

(hint: ditch the TV remote!)

Planning

Think your trust is up to date?

Maybe not.

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Properly administered, a Family Trust safeguards your most valuable asset: FAMILY TRUST. It’s understandable why tightly knit families rely on Greenleaf Trust to keep things in good order from one generation to the next. With family office and personal trust divisions, a legal charter that ensures our independence in perpetuity, and the stability enabled by nearly $8B in assets, we capably accommodate all sides without taking them. Trust is in our name for a reason; for the good of your family, please allow us to earn yours.

125 park street, suite 495 traverse city, mi 49684 231.922.1428 greenleaftrust.com

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5 Core Documents of Estate Planning The essentials of preparedness.

Estate planning can seem like an inscrutable tangle of fina cial detail and complex family emotion. But it doesn’t have to be that way, says Chris Rogers, an attorney at Kuhn Rogers, PLC. By understanding the purpose and value of what he considers the fiv core documents of estate planning, you can make sense of and gain control over this important part of your financial and family life.

Pour-over Will: “I consider this to be an essential backup document to a traditional trust,” Rogers says. A key purpose of the pour-over will is to deal with assets that an individual has acquired after a trust was established or had, for whatever reason, failed to retitle into the trust. With a pour-over will in place, the asset would “pour over” into the trust upon the death of the individual. “Otherwise you are left dealing with laws of intestacy and inheritance governed by statute related to assets not in trust,” Rogers says.

Trust: As the workhorse of an estate plan, a trust keeps your assets out of probate at the time of your passing and keeps the terms of the disposition of your assets private—not aired in a publicly available court process. A trust also offers a convenient way to plan for incapacity. “People are living longer now and incapacity is more commonly an issue,” Rogers says. “If you become incapacitated, you have somebody already named to step in and take over your affairs.”

Durable Power of Attorney: This document allows an individual to name an agent to act on an individual’s behalf. “It’s a

grant of power to handle certain legal, financial, and real estate type matters,” Rogers explains. So, for example, a child could go to the bank and do business on behalf of a parent. “It’s especially effective upon incapacity because it may avoid going to probate court to be appointed to manage an individual’s assets or affairs,” Rogers says. Also important, know there are two kinds of Durable Power of Attorney: a “springing” DPOA, which only allows the named agent to act upon the principal’s incapacity and a DPOA that permits the agent to act immediately.

Designation of Patient Advocate Form: This document enables the individual to name patient advocates to make medical decisions if the individual is unable to do so. The document can contain medical directives upon which patient advocates can rely when making decisions. “We often recommend using the forms which are available through the hospital—the Designation of Patient Advocate form or the Five Wishes document,” Rogers says.

HIPAA Release Form: Based on privacy provisions that are part of the Health Insurance Portability and Accountability Act of 1996, the HIPAA Release Form clearly states the individuals with whom doctors are permitted to share a client’s medical information.

“Each plan is unique, but every person should have a plan,” says Rogers. Working with a trusted advisor can help ensure your desired plan is effective and complete.—Jeff Smith

Estate and Financial Planning

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You know where you want to go.

Let’s talk about how we can help you get there.

Your financial advisor should be someone who understands you and your family, your priorities, and what matters most to you. The Simonton-Hanosek-Mangum Team of Traverse City believes that kind of careful, consistent attention is the best way to help you stay on track for your goals now and over time.

Years ago, we committed to working with a select group of clients so we could provide a more thoughtful, proactive level of service. With that kind of focus, we hope clients will want to be with us for life — and make us their first contact whenever they’re faced with major decisions.

Having more than 140 years of collective experience, our team combines the responsiveness of a small firm with access to the vast global resources of one of the world’s largest financial services companies. We consider it a privilege to help you find a strategy that’s right for the life you envision.

Rick Simonton, CFP,® CIMA® Senior Vice President – Wealth Management Wealth Management Advisor Portfolio Manager

The Simonton-HanosekMangum Team 333 West Grandview Parkway, Suite 300 Traverse City, Michigan 49684 Supervisory Office 8425 Pulsar Place, Suite 200 Columbus, Ohio 43240 231.922.6825 877.296.3152 toll free 614.441.4187 fax richard_simonton@ml.com fa.ml.com/theshmteam

Call us today so we can talk about you and your family’s hopes, goals and dreams.

Life’s better when we’re connected® Merrill Lynch Wealth Management makes available products and services offered by Merrill Lynch, Pierce, Fenner & Smith Incorporated, a registered broker-dealer and Member SIPC, and other subsidiaries of Bank of America Corporation.

Investment products:

Are Not FDIC Insured

Are Not Bank Guaranteed

May Lose Value

The Bull Symbol, Life’s better when we’re connected and Merrill Lynch are trademarks of Bank of America Corporation. Certified Financial Planner Board of Standards Inc. owns the certification marks CFP® and CERTIFIED FINANCIAL PLANNERTM in the U.S. Investment Management Consultants Association (IMCA®) is the owner of the certification marks CIMA® and Certified Investment Management Analyst®. Use of CIMA® and Certified Investment Management Analyst® signifies that the user has successfully completed IMCA’s initial and ongoing credentialing requirements for investment management consultants.

ARYN97YW | AD-06-15-1167 | 470948PM-0515 | 06/2015 © 2015 Bank of America Corporation. All rights reserved.

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Good News for Cottage Inheritance There are two recent changes to the way property taxes are levied in Michigan, both of which give significant opportunities to owners of vacation or other residential property who wish to keep the property in the family.

The Michigan Legislature recently passed two bills designed to provide relief from the “uncapping” of residential property value in a limited number of transfers of ownership. The intent of these changes is to exempt from uncapping those transfers of ownership of residential property to younger members of the same family. Without these exemptions, children would often face an increase in property taxes of 3, 4 or even 5 times the amount paid by their parents prior to the parents’ death.

The first change to uncapping laws came in bill PA (2012) 497, which exempted transfers of ownership of property among qualifying family members so long as the use of the property didn’t change following the transfer. The qualifying individuals included the owner’s spouse, father or mother, father or mother of the spouse, son or daughter, including adopted children and son or daughter of the spouse. However, guidelines were soon issued to local tax assessors that required the transfer to take place while a parent was alive, and all transfers by inheritance (by will, intestate succession or by distribution from a trust) were said to be not covered by the exemption. Thus, it quickly became apparent PA 497 did not address the manner in which

Laws keep tax burden low for family members. many property owners transferred that property to their children.

The second change to the uncapping laws became effective on January 1, 2015 and is known as PA (2014) 310. It expanded the group of relatives who are eligible to benefit from PA 497, and allows property owners to leave residential property to eligible relatives in a trust or will without uncapping the property taxes on the death of the owner. Under the new law, the eligible relatives include the owner’s spouse, the owner’s or spouse’s mother, father, brother, sister, son, daughter, adopted son, adopted daughter, grandson or granddaughter. It also added a requirement that the property may not be used for any commercial purpose following the transfer. The new law now also exempts from uncapping a change of beneficiaries of a trust that owns Michigan property, so long as the new beneficiaries are in the same group of relatives.

There are some issues that still need additional clarific tion, such as what activities constitute “commercial use” of the property (does renting the property for a few weeks a year amount to “commercial use”?), and when does a transfer actually occur (on the parent’s death or on the distribution of the property from the estate?), but property owners now have an opportunity to transfer property to the next generation without worrying about a property tax increase that may make it impossible to keep the property in the family.—David S. Fry, PLC, david@cottagelaw.com

A bright future for your family

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hollyg@cfnmail.com horizonfinancialtc.com

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Securities and Advisory Services offered through Commonwealth Financial Network. Member FINRA, SIPC. A registered Investment Advisor.

Estate and Financial Planning

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3860 N. LONG LAKE ROAD, SUITE D • TRAVERSE CITY 231-929-7911 • WWW.GTRLC.ORG Friends throughout our region support the Grand Traverse Regional Land Conservancy because of a strong interest in our land, our water, our wildlife and our future. Many arrange planned gifts to ensure their vision and support can last well into the future.

Planning for a conservation legacy offers the satisfaction of supporting a vital cause, the excitement of knowing your gift will make a positive impact and – in many cases – substantial financial benefits to you and/or another beneficiary through tax advantages or life income.

“Planned giving allows me to view the gift as a living extension of my family and of our shared desire for future generations to have the opportunity to experience themselves as part of a larger, breathing world,” said GTRLC supporter Anne Warren.

We will work closely with your financial advisor to design a gift planning option that will meet your personal, financial and charitable goals, all while safeguarding the region’s most special places for future generations.

For more information, contact Anthony Rupard, Director of Development, at 231-929-7911, or arupard@gtrlc.org.

10691 E CARTER ROAD • TRAVERSE CITY (231) 947-6800 • WWW.SWOGGERANDBRUCE.COM

Estate Planning 101 For all of you estate-planning procrastinators out there, we offer the following back-to-school tips in “Estate Planning 101”: 1. Everyone over the age of 18 should have a Durable Power of Attorney, whereby you appoint whom you would like to be your agent for legal and financial matters in the event of your legal incapacity, and a Health Care Power of Attorney, whereby you appoint whom you would like to be your agent for medical decision-making in the event that you are no longer capable of expressing your own medical wishes; 2. Everyone over the age of 18 should have at least a “simple Will,” whereby you designate not only “who gets your things,” but also who will act as your Personal Representative in the event that your estate needs to be administered through the local probate court; 3. Some people should also have a Revocable Living Trust, which is a separate legal entity to own your assets, so that your 4

estate will not need to go through the probate process when you pass away. Your Trust can also plan for who will manage your trust assets in the event that you suffer from a legal incapacity during your lifetime; and 4. Depending on what types of assets you own, you can also arrange for the orderly transfer of your assets to certain people upon your death. For example, direct beneficiary designations may be appropriate for retirement accounts, while certain types of deeds may be effective to transfer your real estate interests upon your death.

Careful thought needs to be given as to how your estate should be distributed. You worked hard to earn and build your estate during your life. A little organization and effort on your part to initiate the estate planning process now can bring peace of mind knowing that what you worked so hard to build will be passed down to your family efficiently.

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Trusts, when properly drafted, can play an important role in keeping your wealth in your family for generations.

The Discussions To Have.

Investment management is only one facet of your financial life. Proper wealth stewardship takes a variety of different planning intentions into consideration.

Family dynamics are important, and with prudent financial and estate planning, your wealth can last and be protected for future generations.

• Trust Planning: Review how proper trust planning can protect family assets from creditors, divorcing spouses and estate taxation.

• Proper Beneficiary Designations: Examine the beneficiary designations of your financial assets to determine whether or not an adverse tax situation exists for your beneficiaries.

Retirement accounts and tax deferred accounts deserve special attention and drafting considerations.

• Asset Positioning: A review of asset structure from an ownership standpoint in order to take maximum tax advantages upon your passing.

• Fiduciary Appointments: Are your children ready, willing, and knowledgeable concerning the role of serving as a trustee and executor?

Do they fully understand this role and responsibility or could a corporate trustee provide a better solution?

• Team: Are you relying on a firm with broad capabilities that can address your family needs personally, professionally, and without delay when needed?

OM OLD MISSION INVESTMENT COMPANY OLD MISSION TRUST COMPANY 880 Munson Avenue, Suite B Traverse City, Michigan 49686 866-587-4100 www.omtrust.com

The Trust (ed) Company

Bringing everything together

The worlds of investment management, tax, estate planning, financial planning and trust administration all exist within one playing field. Bringing all critical elements of your estate together within one plan can be a difficult task. Are there operational efficiencies that can be leveraged? Are there tax planning opportunities that are missed, and how do beneficiaries settle and administer your estate without disrupting their own lives? Can you find one source for everything? We think so.

An examination of your estate planning documents and beneficiary designations are exceedingly important. All too often, account holders appoint beneficiaries without too much thought concerning the tax and estate implications as assets move from one generation to the next. Trusts, when properly drafted, can play an important role in keeping wealth in your family and protected against divorcing spouses and other financial issues.

An organization that has the capacity to serve as your counselor during your lifetime, while also being able to assist in the settlement and transitioning of your affairs is worth its weight in gold when that time finally comes. The ability to maintain family peace and harmony while not saddling family members with this responsibility can relieve the stress within everyone’s lives, including all the beneficiaries involved. It’s not an easy task, and frequently children are not equipped for this type of transition since it usually involves a complicated mix of tax, legal and investment decisions that must be made. A family member that is appointed as a trustee may believe that it’s an honor when, in fact, it is a responsibility that is rarely fully understood.

At Old Mission Investment and Trust, we firmly believe in a value proposition that involves your entire family. As a combined organization uniquely positioned as both an investment management firm and a private trust company, we serve as the center of our clients’ financial lives. Having a trusted counselor with a working relationship with you and your family allows consistency during a period of time when consistency is desired and valued. The management of investment portfolios, a review of unique tax situations, financial planning, and trust administration can all be done under one roof, finally.

Can you imagine having a relationship with a company that knows you, your spouse and your family at a time when ‘change’ was something your family didn’t need? We certainly can.

Estate and Financial Planning

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Investment experience you can trust

The Family Cottage Unites Your Family A cottage succession plan can keep the family together.

Investment & Trust Services 216 Cass Street, Traverse City (231) 943-2733 • ssbankmi.com

Perry Adams, Ryan Sterkenburg, Darlyn Moore, Gary Hicks Trust services provided through Reliance Trust Company.

6739 Courtland Dr., N.E., Suite 101, Rockford, MI 49341-7217 Phone (616) 874-1200 · Fax (616) 874-1201 david@cottagelaw.com · www.cottagelaw.com

Will & Trusts •• Probate & Trust Administration Will & Administration WillBusiness & Trusts Trusts Formation • Probate Probate & &• Trust Trust Administration Health Care Law Business Formation • Health Care Business Formation • Health Care Law Law Real Estate • Tax Planning Real Real Estate Estate •• Tax Tax Planning Planning EST AT E • BU S II N ES S •• P RO P ER TY E T E S P R ES ST TSA AU TC E C•• EB BSU U S IN NNE E •S SS SP L•AP PNR RNO OI N PE E RT TY Y S I O G S U C C E S S I O N • P L A N N I N G SUCCESSION • PLANNING

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Terry C. Rogers Terry Terry C. C. Rogers Rogers tcrogers@krlawtc.com tcrogers@krlawtc.com tcrogers@krlawtc.com

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Christopher G. Rogers Christopher G. Christopher G. Rogers Rogers cgrogers@krlawtc.com

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Modernize Your Trust

Review your trust to be sure it takes advantage of the latest changes in tax law.

Let’s say you had your trust updated in 2010 or not too long prior, and you are feeling good about being current, up to date, on that important part of your life.

Well, you may not be as well positioned as you might imagine, says wealth advisor Christopher Lamb, managing partner and trust officer at Old Mission Investment and Trust. Dramatic changes to inheritance law that became final in 2013 opened up some important possibilities, and trusts should be reviewed and, in many cases, modernized to take full advantage of the new rules, he says.

Protecting assets from taxes has long been a central purpose of trusts, and under prior tax law, it often made sense for a husband and a wife to each have separate trusts (commonly called A and B trust planning) to be able to shelter the most assets possible. But with the recent changes to estate tax laws, which allow an individual to bequeath up to $5.3 million ($10.6 million for a couple) without estate taxation, few people have the need to establish trusts solely for estate tax shelter purposes because their assets do not exceed that value.

Freed up from such tax considerations, couples can modernize their trust to eliminate one of the bigger inconveniences of traditional trusts: barriers to accessing money for the surviving spouse. “People don’t fully realize just how significant those barriers are, and it often comes as a shock,” Lamb says.

A trust is a legal entity that lives beyond the surviving spouse, that is, the spouse does not technically own those assets. Previously, that separation of ownership is what allowed estate tax benefits to exist using two trusts, but now also presents barriers to access. “So a surviving wife cannot access the money as if it’s her own. For example, she couldn’t give $100,000 to her favorite charity if she wanted to,” Lamb says.

For access to the principal within a trust, traditional trusts require the money be used for one of four purposes: health, education, maintenance and support. Traditional trusts also allow full access to income generated

by trust investments. Under the new tax rules, many couples are opting for a joint trust, which removes those limitations and gives the surviving spouse full access to the assets beyond the death of the first spouse.

Modern trusts can also take advantage of an important tax benefit. It’s called a “second basis step up,” and it works like this. Say a husband bought Ford stock at $2 a share and at the time of his death the stock is at $20. None of that increased value would be subject to capital gains tax, and any future capital gains tax would be calculated based on increases above the value at death, a new base value of $20. In a traditional dual trust plan, that would be all the basis adjustment allowed, up to the $20. But under the new rules, a joint trust would enable the asset to receive another step up in basis at the time of the second spouse’s death. So if the Ford stock increased to $30 a share by the time the second spouse passed, that increased capital gain would also be tax exempt and any future capital gains tax would be

calculated using that higher base value.

Modern day estate planning may be referred to as “basis planning,” too.

Lamb cautions that the single trust solution is not a fit for everybody, and that for some families traditional dual trust plans might still be the best solution. Separate trusts are commonly used in situations that include second marriages, ultimately preventing the surviving spouse from being able to cut the deceased spouse’s children out of the inheritance. A separate trust may also prevent the surviving spouse’s creditors from accessing the assets. And, of course, the rules that prevent unfettered access to assets may also prevent misdirection of the money, since a co-trustee or corporate trustee is many times a part of the management process.

Lamb’s overriding piece of advice: “Don’t accept a boilerplate trust. Customize your trust based on your family’s situation.”— Jeff Smith

Estate and Financial Planning

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Mardi Black Attorney & Counselor Martha L. Black, PLC 421 St. Joseph, Suite 202 Suttons Bay, MI 49682

231.271.3402

Over 20 Years Experience Wills • Powers of Attorney • Trusts General Estate Planning • Probate Real Property & Business Law Land-use • Zoning & Planning Environmental Law Local Governments • Non-profits & LLC’s

Scott & Huff, P.C.

John A. Scott, Diane Kuhn Huff, & Gregory R. Kish At Scott & Huff, P.C. we focus on trusts and estates, elder law, probate litigation, and real estate. John is a Fellow of the American College of Trust and Estate Counsel. Diane and Greg are Certified Elder Law Attorneys with the National Elder Law Foundation.

Each client presents a unique challenge. We bring tried and true techniques and creative drafting to help achieve each of our client’s goals. We believe in being forthright and practical. Our many years of experience provide a strong basis for advising clients on what works and what does not.

Scott & Huff, P.C.

812 S. Garfield Ave., Ste #7, Traverse City, MI Phone: 231-933-5322 • scotthuffpc.com 8

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Not Your Grandfather’s Retirement

Ditch the remote. Grab a kayak paddle. And so on.

“Seventy is the new 50”—people laugh when they say it, but the thing is, for many people, the saying is not just a joke that hints of denial. Millions of seniors are staying remarkably fit and active late in life, and their vision of retirement goes way beyond that sunset photo of a Carolina beach. We talk with financial advisor Brian Ursu, of Intentional Wealth Advisors, about what people are looking for in retirement now.

We’re hearing more and more about the “new retirement,” but how real is that desire among your clients?

Yes, well, the context of retirement, when I first became aware of it in grade school or junior high was something like a fin sh line. You work, work, work to get to retirement, and at that point it meant 100 percent leisure. If you golfed, you did that. If you gardened you did that. If you watched the Detroit Tigers, you did that.

That was my grandfather’s model. When he was 65, he was old. He gardened and watched the Tigers. Now I see people who are 65 who are really young. They kayak, they bike, they start businesses.

This is real, and I see it growing every year among my clients.

Are clients coming to you with a wellformed image of their retirement life, a well thought-out bucket list?

I find very few people have an articulated idea of what retirement will look like.

Some do, of course, but most do not. You’d be surprised at how often husbands and wives are carrying very different visions of retirement life, and it doesn’t emerge until we sit down to talk of it in my office. Like a husband might say, “We will be selling the house and moving to Florida.” And the wife will say, “We are? Since when?”

That’s why I have that conversation, to

really encourage people to think about it.

It’s not just about what you are retiring from, it’s about what are you retiring to.

What will get you excited to get out of bed in the morning?

Does this mean you are advising people to be a lot more cautious with spending down their savings if they intend to stay active for decades into retirement, really meter it out for the long haul?

Actually, no. This is an insight I have gained from being in this industry a long time. Twenty years ago I would have suggested being cautious and planning for a slow, steady drawdown. But now I encourage people to front load the spending, spend more early in retirement doing the things they really want to do. I have just seen so many people die soon after retirement. So I encourage people to have a hopeful vision, but take reality into account.

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Live Life Intentionally.

Whatever your situation or current priority in life, at Intentional Wealth Advisors you’ll find the intelligent, thoughtful and personal advice you need to build financial confidence and actively pursue your long-term financial goals. Our advisors begin by first getting to know you and helping you to clarify your priorities, current financial situation and even your worries. The two of you work together to craft a financial plan that addresses your goals, and tolerance for risk. Then our small but awardwinning team is set into motion for you, our client.

We encourage you to live life with intention and give your financial future the consideration it deserves. Call today to schedule a consultation.

4110 Copper Ridge Dr., Traverse City MI 49684 www.231.933.0846 | intentionaladvice.com Securities and Financial Planning offered through LPL Financial, a Registered Investment Advisor. Member FINRA/SIPC.

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Considerations for Long-Term Care New types of policies are available.

Contemplating long-term care for our spouses or ourselves is not something any of us likes to do, but assisted living and nursing care will be a reality for many. “It’s important to go back to a point that most people often overlook, which is that a typical stay in a nursing home is approximately three years,” says John Welch, a senior vice president and trust advisor with Greenleaf Trust in Traverse City.

The key questions to consider are relatively straightforward, but important to think about carefully, according to Welch. “Where and what type of facility do you want to be in? What is the cost? What happens if you run out of money? For a family with other living expenses, and potentially $100,000 of long-term care needs, it is a serious issue. We generally recommend if you have net worth below $2 million, you should look at some form of long-term care insurance coverage”. For individuals with greater assets, insurance can offer additional “peace of mind” benefits In Northern Michigan today, assisted living costs can range from $2,000 to $7,000 a month, and nursing care can range $7,000 to $10,000+ a month. “It’s easy to see you could deplete your wealth very rapidly,” Welch says. (When an individual’s assets are exhausted, Medicaid will generally pay, but not all facilities accept Medicaid patients.)

Insurance cost is, naturally, a universal concern, and Welch says there’s good reason to pay attention to the cost of long-term care because supply-and-demand forces are driving prices up. The nation’s 75 million Baby Boomers are growing old, and they are living longer, but not all will remain healthy, so there will be increasing demands on available services. Plus the cost of healthcare is rising faster than inflation. “Some years, we’ve seen significant premium increases, even in the range of 40 percent and 50 percent!” Welch says.

In recent years, the insurance industry has been expanding options for people looking for long-term care policies. “The choices are very diverse, but the basic benefit is typically a specific dollar-per-day of care,” Welch says. Possibilities include standalone long-term care policies, life insurance policies with long-term care riders, which if used would reduce the ultimate life insurance benefit, or incomeoriented annuities with long-term care riders.

“People should really start to look at this in their early 50s, which gives them an opportunity to lock in a lower rate while they are still healthy,” Welch says. “By the time you are in your mid-60s, it may be too expensive, or you may not be eligible for some policies.”

Advice? “I think the advice is, if long-term care is important to you as an individual, it’s best to think about it when you are healthy.”

Also, consider your family history and personal experience to get some idea of how likely it will be that a long-term benefit will be needed. Some individuals, for example, tend to pass suddenly; others tend to suffer more lingering illnesses. Welch uses dementia or Alzheimer’s as an example. “With improved healthcare, some patients are living with dementia in care facilities for 10 to 20 years,” he says. “Fortunately, we have great service providers in our area—it’s important to know we have those resources as we age.”—Jeff Smith Estate and Financial Planning

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Retirement and Responsibility

Financial planning and management looms large.

The continuing decline in company pension plans, and the concurrent rise in personal management of retirement accounts like 401Ks and IRAs has obviously shifted financial responsibility to the individual. Early in the trend, when people’s individual accounts didn’t have much value, that personal responsibility was perhaps taken lightly. But now many people have 401Ks with substantial assets, and people are feeling a tremendous responsibility to do the right thing with that resource, says Dennis Prout of Prout Financial Design, in Traverse City.

“I was talking with a client not long ago who explained that the company he worked for was switching plan managers. He had to pick new investments, and it all came down to checking a box,” Prout says. The client really had no idea what to do with what was a fairly substantial sum of money. “He wondered if he should reallocate his funds. He wondered how to plan for possibly needing income from the investments. He just felt an enormous responsibility.”

But Prout says it’s not only those with means who are feeling the responsibility of retirement settling over them. Others, he says, are feeling they are not prepared for retirement. “They feel they should

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be doing more, but also they have a life to live—that’s what I hear a lot,” he says. “And a certain number won’t even come in to see a financial advisor because they are too embarrassed to discuss their lack of preparedness.”

The weight of responsibility is amplified for the many people today who are single in their mid- to late life. Prout had a meeting recently with a single woman. “She admitted she doesn’t know about this stuff,” Prout says. “Those are difficult decisions to make on your own, and I see it more and more often these days.

Prout’s tips to people who are feeling the responsibility of retirement?

1. Have a conversation with an advisor. Discuss the big picture questions. What is important to you about money?

2. Discuss what you are hoping to accomplish. For couples, it’s important for each of you to say it out loud, make sure the expectations are on the same page.

3. Consider longevity. If your family tends to live long, consider a plan that invests for greater longevity.

4. Allocate some money for the shorter term, the money that will provide the income in the next 10 years—this would be the most conservative money. Looking further out, allocate money in 10-year increments, with investment strategies to suit.

5. Get your estate planning in order. Do you have a trust? Do you have a will? Are they up to date? Do you have a durable power of attorney?—Jeff Smith

MyNorth.com

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