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Wednesday, February 6, 2019 | Life Planning The Berkshire Eagle | BerkshireEagle.com 2

Life after business ANGELINA KICHUKOVA/UNSPLASH

BY A LLEN H ARRIS “Build It, Sell It, Profit – Taking Care of Business Today to Get Top Dollar When You Retire” was written for business owners who want to maximize the value of their company for the eventual once-in-alifetime event of transferring their business to a new owner, whether to a third party, a family member, or existing management. Business owners craved actionable information on how to maximize business value and sell their businesses. They came to understand the importance of a proper business valuation (we business owners tend to dramatically overestimate our value). And they learned that the business value had to be inputted into a personal financial plan to align that number with their intended life after business so as to determine if there would be enough money to satisfy their retirement needs, wants, and wishes. There are three legs to the stool that is a successful business sale -maximizing business value, personal financial planning, and the oft overlooked planning for life after business. Regarding what your life will look like after business, many say “I’ll figure it out”. However, according to The Exit Planning Institute (EPI), 76% of those who successfully sold their business experienced “profound regret” within one year. They didn’t figure it out. Business owners need to worry about life after business and take steps to change their outcome. Selling your businesses is like selling part of yourself. When you sell, you lose part of your identity. We’ve essentially grown up with customers, competitors, vendors, employees, partners, etc. This changes when you are no longer the owner. Answering the question, “what will I put on my business card after I sell?”, will help you come to

understand that the business is part of you, but not all of who you are. Part of this personal transition can be tied into a business plan, as you negotiate you post-exit role. The smaller the business, the more important the transition involvement period for the success of the deal. But what we are really talking about is ﬁguring out what you’re going to do after you are not needed regularly. What is going to be your role in your family or community? How will you spend your day after you’ve spent a lot of money traveling the world? Owners routinely discount the importance of the closing of one chapter of life and the opening of another. The steps of your personal exit plan should look something like:

no second chances. Succession planning is not just for those who intend to sell soon. You should have an emergency operation plan in place in case you suffer from death, divorce, disability, ﬁnancial distress, or partnership disagreement. If you are over sixty years old, I guarantee that your employees are wondering what will happen to them after you retire. If you want to reassure them and keep them from joining a competitor, you should have your exit plan in place now and you should let your people know you have one. And then answer the next logical question they’ll have for you, “What will you do after you retire?”

Disclosures: Allen Harris the author of Build It, Sell It, Profit – Taking Care of Business Today to Get Top Dollar When You Retire, is registered as an investment adviser representative, Certified Value Growth Advisor, and Certified Exit Planning Advisor for business owners with Berkshire Money Management (BMM), managing investments of more than $400 million . Allen’s forecasts and opinions are purely his own. None of the information presented here should be construed as an endorsement of BMM or a solicitation to become a client of BMM. Direct inquiries to Allen at AHarris@ BerkshireMM.com.

• Get a market-based Business Valuation with your value advisor or use the free tool available on BerkshireMM.com (owners are surprised to learn they are worth less than they think) • Create a Personal Financial Plan with your ﬁnancial advisor (to be sure you can afford your retirement needs, wants, and wishes) • Devise a Personal Action Plan (what will be on your business card once you sell?) Only one out of every ﬁve businesses listed for sale actually sells according to data by Biz Buy Sell. Only 30% of family businesses successfully transition to the second generation according to EPI (and then only 12% to the third generation, and the numbers diminish from there). There are lots of mistakes to be made by a business owner who thinks they can beat the odds. But we see many trying to because they don’t yet know the full concept readiness – business or personal. They don’t have experience to draw from, which is a concern because mistakes are expensive with

Bill Schmick

That’s why it’s called customer care. A family client of mine, led by an 82-year old widow and grandmother, gave me an opportunity to really reach out beyond just business. Over time, I grew to know the family and this lady rather well, and had come to appreciate our conversations. As her health had been failing, we’d naturally talked about her ﬁnancial situation and plans, but I also just checked in regularly—just to catch up. Over time, she became housebound with limited mobility, under 24-hour nursing care. One day, she mentioned that being cooped up all day wasn’t so bad, but she did miss playing her opera and classical music DVDs. Apparently her caregiver wasn’t a fan and she just couldn’t manage loading or pressing the buttons by herself, any longer. When I hung up the phone, I ordered ALEXA. Then I called her daughter, knowing that her husband (a computer guy) would be able to hook it up in his mother-law’s room. This would allow her to listen to whatever she wanted, whenever she wanted by voice command. She called me in tears to thank me. What could be better than that?

Berkshire Money Management, Inc. 161 Main Street, Dalton, MA 01226 (413) 997-2006 | (888) 232-6072 info@berkshiremm.com Historical performance is not indicative of future results. The investment return will ﬂuctuate with market conditions. Views regarding the economy, securities markets or other specialized areas, like all predictors of future events, cannot be guaranteed to be accurate and may result in economic loss to the investor. Investment in securities, including mutual funds, involves the risk of loss. Registration with the SEC should not be construed as an endorsement of Advisor’s investment skill or acumen. This information is intended to provide general information only and should not be construed as an offer of speciﬁcally tailored individualized advice.

Life Planning | Wednesday, February 6, 2019

What it costs to raise kids today

Many different factors impact the size of modern families today, and the rising cost of raising children may be the most inﬂuential of such factors. A generation ago, it was common to see families with four or more children. But things are a bit different today. Pew Social Trends indicates that parents now have 2.4 children on average, a number that has remained fairly stable for two decades. In addition, since 1976, the share of mothers at the end of their childbearing years who have one child has doubled, from 11 percent to 22 percent. While shrinking families may be based on many different factors, including postponing having children until later in life, the rising costs of raising kids may have something to do with it as well. The U.S. Department of Agricul-

ture says the cost of raising a child today has climbed to $233,610, which excludes the expenses of college. A 2011 article that appeared in the Canadian publication MoneySense estimated childrearing costs to be $12,824 per year, which adds up to $243,656 by the time a child reaches age 18. It's also well documented that more adult children are living with their parents for longer than kids used to stay with mom and dad. Pew Research has found that roughly one-third of women and half of men between the ages of 18 and 34 are still living at home, surpassing records set in the 1940s. This means expenditures on child-rearing may

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continue long after kids reach adulthood. As a result, it is easy to see how having multiple children can be a major source of financial stress for the average middle-income family. The financial planning resource NerdWallet estimates that the cost of raising a child today is higher than the DOA figures, coming in at

roughly $260,000 - and that is just for the basic essentials. Throw in tiered levels of care, including everything from more expensive choices for food and clothing, and extras for early childhood care, sports lessons, music instruction, and electronics/ gaming, and the cost can get as high as $745,634.

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Who the Berkshire community turns to when they need help with Estate Planning and Elder Law Matters. e-mail: lynn@lynnmorelli.com • Wills and Trusts • Probate Administration • Planning for Disabled Children • Health Care Proxies & Powers of Attorney • Medicare, Medicaid & Long-Term Care Issues Attorney Morelli works exclusively with each client, one on one.

Wednesday, February 6, 2019 | Life Planning

The first-time buyer’s guide to becoming a homeowner Realtor Lynn Arseneau offers up some advice on navigating your very first home purchase What kind of preparation should first-time buyers make before they start looking at houses?

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Lynn Arseneau: To be sure their credit score will be strong, I would suggest not making any large purchases on credit cards or borrowing money for a new car, etc. You don’t want to incur more debt. The goal is to reduce debt and keep your credit score healthy. Saving money for a deposit/down payment/closing costs is always good preparation. It’s also a good idea to talk to your lender, even if you’re several months or a year away from buying your home. Your lender can inform you of any mortgage products that may be a good ﬁt for you. There are also ﬁrst-time homebuyer classes from time to time that you may want to attend. The more preparation you do, the more favorable your outcome will be. If you’re planning to use a Realtor as a buyer’s agent, go ahead and

start interviewing. Buyer representation is a valuable tool, and choosing the buyer’s agent that’s right for you will make this journey less stressful and more fun! Keep a folder for all the information you receive so you can refer back to anything in a snap! Are there any common mistakes you see ﬁrst timers making? What's your advice for avoiding these issues? LA: I’ve had buyers charging up a credit card or taking out a loan for a vehicle: huge mistake, especially after they’ve received their pre-approval letter from the bank. That is a major issue, as it affects your ability to buy. What makes a good "starter home"? Are there any features inexperienced homeowners should look for or avoid? LA: That’s a hard one to answer. A “starter home” can be any home. It all depends on the buyer’s

needs, wants, and of course what they can pay. Let’s say it’s a buyer who has never bought before and is concerned about ﬁnances after they have bought their home. That buyer may want to buy below their maximum amount that they are pre-approved for. I’ve found that the buyer feels less overwhelmed and less stressed. This is a big deal! The process should be enjoyable so be sure to communicate well with your lender, buyer’s agent and attorney. Any words of wisdom for people who are feeling overwhelmed or apprehensive about becoming a homeowner? LA: So many things in life make us apprehensive and overwhelmed! This is no different. Ask questions! Never be afraid to ask questions! A buyer is not alone in this process. Guidance and advice will come from — to name a few — the buyer’s agent, lender, home inspector and attorney. Buying a home is one of the most important investments, if

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(413) 236-4837 660 Merrill Road Pittsfield, MA 01201

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Securities offered through LPL Financial, Member FINRA/SIPC. Insurance products offered through LPL Financial or its licensed affiliates.

The home-buying timeline BY LYNN ARSENEAU It’s so exciting to make the decision to buy your ﬁrst home! But- where to start? • Identify the area(s) you would like to live in. • Think about your wants, but more importantly, your needs. Make two lists. • Talk to your lender to determine how much you can afford to spend including down payment and estimated closing costs. Get a pre-approval letter. • Choose a buyer’s agent. Your buyer’s agent is invaluable and will guide you through the entire process. • Find your home! Now that you’ve found your home, here is what to expect (most of the time) • Offer accepted (maybe after some, or even lots of, negotiating). • Choose an attorney.

Lynn Arseneau, CBR, GRI, ABR, CRS, has been a Realtor for 33 years, and is afﬁliated with Signature Associates in Pittsﬁeld, Mass. For more information, visit LynnMovesYou.com or HomesInTheBerkshires.com.

• Inspections. Within the inspection period you may have a home inspection, sewer line inspection, radon inspection, lead paint inspection, and well water inspection just to name the most common. • Apply for your mortgage.

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• Second deposit will be due, if applicable. • Now you wait — the bank and the attorney are preparing. • Congratulations! You’ve received your mortgage commitment.

Life Planning | Wednesday, February 6, 2019

not the most important investment, you’ll ever make. It’s a wise decision to invest in your future. You’re doing a beneﬁcial thing for yourself and your family, not to mention your ﬁnancial portfolio. So here’s the sappy part: remember, you’re not just buying a building, you’re investing in your life. A home is a place to build relationships, make memories and live your life until it’s time you decide to sell… and that’s a whole different column!

• Your attorney will notify you of the time of day for your closing. • Final walk through. You have the opportunity to see the house within 24 hours of the closing. You’re making sure it looks as it did when you had your home inspection and that everything that should be there is there, and everything that should be out is out. • Closing. Everything comes together! Get your signing hand ready! • You get the keys and there you go!

• Appraisal will be ordered by your lender.

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Wednesday, February 6, 2019 | Life Planning

4 simple ways to save more for retirement

Saving for retirement is important, and it’s never too late or too early to start setting aside more money for your golden years.

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It's never too early to begin saving for retirement. While millions of people have no doubt heard or read those very words before, surveys indicate that few people are taking that lesson to heart. A 2018 survey from Bankrate. com found that 20 percent of Americans don't save any of their annual income. Things aren't necessarily rosier in Canada, where the ﬁnan-

cial institution CIBC reports that 32 percent of people nearing or on the cusp of retiring have nothing saved for retirement. Saving for retirement can seem impossible in households where every dollar counts. But the following are four simple ways to save more for retirement without making dramatic lifestyle changes.

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According to the WorldatWork 2018-2019 Salary Budget Survey: Top Level Results, salary budgets in the United States are projected to rise by an average of 3.2 percent in 2019, while those in Canada are expected to rise by 3 percent. Working professionals can save more for retirement by converting some or all their raises into retirement savings. Pre-tax retirement accounts allow working professionals to put aside money before taxes are paid, so weekly paychecks will not be greatly affected if you choose to increase the percentage of your income you deposit into such accounts. Do this each time you receive a raise and your retirement savings will grow considerably.

2. Put bonuses to work. Professionals who receive bonuses can speak to their employer and request that their retirement contribution rates be increased when bonuses are issued. Many 401(k) retirement plans allow workers to contribute as much as 80 percent of their paychecks. While that's not

sustainable for most people every pay period, increasing your contribution rate dramatically when your bonus is issued is a great way to save more for retirement. Contribution rates can then be returned to normal the following pay period.

Life Planning | Wednesday, February 6, 2019

1. Turn raises into retirement savings.

3. Downsize your home. Empty nesters nearing retirement age may beneﬁt by downsizing their homes. Doing so can reduce utility bills, property taxes and other expenses, and those savings can then be redirected into retirement accounts.

4. Reinvest tax returns. Working professionals accustomed to receiving tax returns can use that money to catch up on their retirement savings. Rather than spending tax returns or depositing them into traditional savings accounts, reinvest them into a retirement account. Speak with a financial planner to help you figure out how to accomplish this goal. Even if it requires opening a new account, the long-term benefits or reinvesting returns are substantial. METRO CREATIVE

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Investment Management

Wednesday, February 6, 2019 | Life Planning

Estate planning goals for 2019 BY PAULA K. A LMGREN, ESQ. January is a time to make changes, take action and look ahead to create an estate plan in 2019.

Resolve to have health care documents

If you are incapacitated or ill and cannot make your own health care decisions you need a Health Care Proxy in place naming an individual (called an agent) and alternate agents who can make health care decisions for you. The Health Care Proxy should include the telephone numbers of all of your agents. Under Massachusetts law, only one

If you are ill or incapacitated and unable to make your own ﬁnancial decisions, naming agents under your power of attorney allows those named to make ﬁnancial decisions on your behalf. Powers of attorney are generally “durable” meaning they last in the event you are incapacitated. The power of attorney can either be a present power or a springing power which comes into effect upon your direction or incapacity. A durable power of attorney avoids a conservatorship in the probate court.

sets”. Probate is a court process to re-title assets to your heirs. If you do not have a will then your assets pass according to an order determined by the Commonwealth. Probate requires that you provide a list of your assets and heirs and this private information is now public, it allows creditors to make a claim against your estate, costs money in filing and legal fees and causes delay. A revocable trust is an entity, and all non-IRA assets should be re-titled to the trust now. It operates under your own social security number so it does not change your tax status. A trust ensures that your assets go where you want them to go, allows your trustee to manage the trust assets for you if you are incapacitated or deceased for your named beneficiaries. A trust protects family assets, keeps your assets private by avoiding probate, and the trust saves your beneficiaries additional income and estate taxes.

Resolve to have a will and/ or revocable trust

Resolve to check your beneﬁciaries

agent may serve at a time. There are also HIPAA rules concerning patient privacy and this document allows those people you name to access your health care information. A Health Care Proxy avoids a guardianship of the person in the probate court.

Resolve to have a durable power of attorney in place

If you die and own assets in your individual name that do not name a beneﬁciary these are “probate as-

Many of your assets such as IRAs, life insurance and annuities pass to beneﬁciaries you have designated. Many people mistakenly believe

these beneficiaries are controlled by their wills and often never name a contingent beneficiary. In the case of an IRA, without a beneficiary, instead of the IRA passing to your beneficiaries over their life expectancies the entire IRA has to be paid out (and the tax paid) over a period of 5 years. It is important to request all of your current beneficiary designation in writing to determine if it complies with your current wishes. If a friend or family member needs some inspiration to make estate planning a 2019 resolution, share this article with them. Happy New Year! Paula K. Almgren, Esq. is a member of the Board of Directors of the Massachusetts Chapter of the National Academy of Elder Law Attorneys (MassNAELA) and its Public Policy Committee, Fairview Hospital Ethics Committee, Pittsfield Council on Aging, the Alzheimer’s Association and the Massachusetts and Berkshire Bar Associations. Paula is a graduate of Williams College and Albany Law School of Union University and is an accredited attorney with the Department of Veterans Affairs.

Nate Tomkiewicz

Being an advisor is about more than ﬁnance. A middle-aged senior citizen client recently purchased a new computer and with it came a

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new printer. The problem was that she couldn’t get it to work. She gave us a call and told us of

her troubles. Her main challenge was connecting her computer to her printer. Word that she was having technical difficulties, reaching my desk, so I gave her a call and offered to help. We scheduled a time to meet at her home to assess the problem. As it turns out, she had purchased a wireless printer that required a great deal more than simply plugging wires into the right places. She was intimidated by the process and frankly, so was I. It was the first time I had ever installed a printer, but I pride myself on my ability to problem-solve so I rolled up my sleeves. After about thirty minutes, the computer and printer were successfully connected. Installing printers isn’t in my job description, but helping clients is. That’s what being a financial advisor is all about, helping people and taking a real interest in their lives. When I can, I always go the extra mile to help clients with more than just their finances.

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Payment history

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What affects credit score? Credit is deﬁned as a customer obtaining services or products before payment with the trust that payment will be made in the future. Credit affords people purchasing power they would not have if they had to pay for something outright at the time of checkout. In addition,

credit enables men and women to ﬁnance expensive automobiles, buy homes or furnish those homes, contributing much to the foundation of a strong economy. A strong credit history and score is vital to personal ﬁnance. The steps people take concerning their

The ﬁnancial advisement resource Credit Karma says one of the most important factors affecting credit scoring is payment history. Having a long history of making payments on time is essential for a strong credit score. Missed payments and a reputation for paying late can drive ratings down. It can take some time to recover from late payments. Failure to recognize late or missed payments may result in bankruptcy or tax liens, which are a heavy black mark on credit.

Credit utilization rate Credit utilization refers to the amount of credit you have available, based on credit card limits, compared to the amount of credit you're actually using by way of the balances on credit cards, advises the credit tracking company Experian. Lenders prefer to see ratios of around 30

percent or less. To calculate credit utilization rate, divide your credit card balance by your credit limit. So if your balance is $600 and your limit is $1000, that's a utilization rate of 60 percent.

Number of accounts The number of open accounts you have affects your credit score. Scoring models often look back and consider how many accounts are open and if there are any outstanding balances.

Length of credit history The length of your credit history is another factor that affects your score, according to Investopedia. Credit scoring takes into account the age of your oldest account, if you've used that account recently, as well as the average age of all your accounts, including the newest. Closed accounts can stay on your credit report for up to 10 years, but when an account closes, this will affect your credit history average. Credit scoring rubrics will determine just how the ratio of new to old accounts and frequency of use will impact your score.

Life Planning | Wednesday, February 6, 2019

ﬁnances can greatly affect their credit. Identifying the behaviors that may be detrimental and those that are beneﬁcial can help customers reevaluate their habits and improve their creditworthiness in the eyes of lenders.

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Vice President

I really do know my customers. Last Thanksgiving, a client emailed me, asking to transfer funds to another account of hers—electronically. But we can’t do that by email. So, I let her know I’d need to call her. We verify some personal information, but she’s in some kind of train or subway station and it’s too loud. She says she’ll call me back. But something in her voice sounded “off” to me. So, when I hang up—I call her work number. And she’s there. It wasn’t her. I explain that someone has her information is trying to get into her accounts—walk her through who to call and what to do to protect herself, right now. And then, I wait to see if the other woman will call me back—as she said she would. She does. And caller ID not only shows my client’s cell phone number—but somehow, she gives me all the information needed to make an electronic transfer— and more. Enough in fact, that someone at a large financial firm could have easily, and legitimately, transferred her money. My client would have been devastated. But, because I knew her well enough to recognize her voice, it didn’t work. I was so relieved that I stopped this from ruining her holiday season.

Berkshire Money Management, Inc. 161 Main Street, Dalton, MA 01226 (413) 997-2006 | (888) 232-6072 info@berkshiremm.com Historical performance is not indicative of future results. The investment return will fluctuate with market conditions. Views regarding the economy, securities markets or other specialized areas, like all predictors of future events, cannot be guaranteed to be accurate and may result in economic loss to the investor. Investment in securities, including mutual funds, involves the risk of loss. Registration with the SEC should not be construed as an endorsement of Advisor’s investment skill or acumen. This information is intended to provide general information only and should not be construed as an offer of specifically tailored individualized advice.

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• ELDER LAW • ESTATE & TAX PLANNING • MEDICAID ELIGIBILITY • COMMUNITY BENEFITS

Scott C. Little

Wednesday, February 6, 2019 | Life Planning

It's Personal Investing, that is. We don't believe that one size fits all. At Renaissance Investment Group we help individuals, families, fiduciaries, and organizations create highly personalized financial strategies that reflect your priorities and your values, while customizing a portfolio that manages risk and maximizes returns.

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Simple ways to keep a realistic budget Budgets are a key part of a financial plan and can help people reach their goals. Budgets do not have to be difficult. With a few strategies, a realistic saving and spending plan can be made. Successful financial plans often

We maintain a fiduciary relationship to our clients, which means we are bound legally and ethically to put their interests above our own. Not all firms are held to this standard.

begin with the creation of a budget. A budget is an estimate of income and expenses in a given period of time. Budgets help with long-term

Zack Marcotte

Trust me, I do this every day. A client told me he had recently changed jobs and asked if I would roll over his 401(k)—into an

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existing Roth account. I asked if he knew whether his original 401(k) had been a traditional,

Trevor M. Forbes President and Chief Investment Officer

Christopher A. Silipigno Chief Operating Officer

or a Roth. Was he sure? He was a little gruff at my complicating something so simple. But I really encouraged him to call his 401(k) company and verify it, ﬁrst. Because I suspected it was most likely a traditional 401(k)—which would have rather large tax ramiﬁcations for him that he wasn’t considering. Wouldn’t you know it? He called me—on my day off—he was obviously grateful that I had stopped him and asked the right questions. It had indeed been a traditional 401(k) and I had just saved him a costly mistake. I came into work and opened a traditional IRA for him right then. It was worth an afternoon of vacation time to garner that

Call us at 413-445-2481 for your complimentary review of you or your client’s current ﬁnancial position & strategy.

kind of appreciation.

Berkshire Money Management, Inc. 161 Main Street, Dalton, MA 01226 (413) 997-2006 | (888) 232-6072 info@berkshiremm.com

www.rigllc.com | Lenox, MA

Historical performance is not indicative of future results. The investment return will ﬂuctuate with market conditions. Views regarding the economy, securities markets or other specialized areas, like all predictors of future events, cannot be guaranteed to be accurate and may result in economic loss to the investor. Investment in securities, including mutual funds, involves the risk of loss. Registration with the SEC should not be construed as an endorsement of Advisor’s investment skill or acumen. This information is intended to provide general information only and should not be construed as an offer of speciﬁcally tailored individualized advice.

List the necessities. Begin by calculating the costs associated with ﬁxed needs, including rent/mortgage, utilities, food, and any other bills you have to pay each month.

Add existing debt. Debt includes any routine payments being made to credit card companies, student loan lenders, car payments, or unpaid medical bills.

Conduct a spending analysis over several months. Budgets are easier with ﬁxed numbers, but unforeseen variables can affect spending every month. These can include the extras for clothing, entertainment and much more. Average the cost of these expenses throughout your analysis period so you can get some idea of how much to allocate for them.

Use software or apps to help.

Insurance policies everyone should have Insurance is something everyone needs but hopes to never use. Without insurance, already difﬁcult situations could be made much worse and cause ﬁnancial devastation. Certain types of insurance may not be necessary for everyone, but other types are almost universally necessary regardless of the policy holder's particular situation. The following are some examples of insurance policies everyone should have.

Health insurance Everyone needs health insurance. The out-of-pocket costs for routine medical examinations can be quite high, and testing, hospitalization or surgery can take quite a toll on a person's ﬁnances if he or she has no health insurance. In fact, a recent Harvard study noted that most people are statistically one serious illness away from bankruptcy. Shopping around for adequate coverage and the most affordable plans for one's situation is essential, as even minimal coverage is better than nothing when it comes to offsetting the rising costs of health care.

Life insurance Life insurance is something most people will never beneﬁt from personally, but it leaves a ﬁnancial legacy for the people they love, providing for those they leave behind. Parents or men and women who are the sole

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breadwinners in the household can rest easy knowing their life insurance will keep their loved ones ﬁnancially secure in the event of their death. According to the ﬁnancial resource Investopedia, individuals need to factor in mortgage or rent payments, loans, funeral expenses, child care, and taxes when calculating how much life insurance coverage they need. Experts suggest 10 times one's yearly income.

Disability insurance Many people do not believe they will become ill or injured. But the statistics speak otherwise. Data from the Social Security Administration show that three in 10 workers entering the workforce will become disabled before they reach retirement. Being off from work anywhere from a few weeks to a few months is enough to jeopardize one's ﬁnancial future. Shortand long-term disability policies provide partial and complete income replacement depending on the policy chosen.

Auto insurance People who drive are urged to have auto insurance to protect themselves in the event of an accident or theft. Auto insurance also helps protect against any litigation as the result of accidents when a passenger or other driver is injured.

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Automate saving. Immediately removing a set amount from your paychecks by having it directly deposited into a separate account can remove the temptation of spending too much from your ﬁnancial equation.

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There are plenty of resources available to help people calculate their budgets and get a picture of their ﬁnancial habits. Resources such as Mint, YNAB (You Need a Budget) and various accounting programs can produce spreadsheets, pie charts and bar graphs as you work to create a budget. Quitting a certain lifestyle cold turkey can be jarring. Gradually cut back on your spending if your analysis suggests that's the way to go.

Life Planning | Wednesday, February 6, 2019

goals like paying off a mortgage or sending a child to college as well as short-term goals like ﬁnancing a dream vacation. Not all budgets are alike, and when people hear the word "budget," they may get apprehensive. Budgeting may require making some concessions in regard to spending habits, but it doesn't have to put a complete damper on plans. In fact, with a budget in hand, people may be more free to spend because they will have a stronger grasp of their ﬁnancial situation. Making a realistic budget does not have to be a chore. Here is how to get started.

Wednesday, February 6, 2019 | Life Planning

Making the leap Switching careers later in life is all about knowing what you want BY K IMBERLY K IRCHNER Changing jobs is a daunting challenge at any age, but the process can be especially intimidating for those who’ve been out of the job-hunting game for a decade or more. Ad-

vances in technology have affected employers’ needs and the hiring process itself. Fortunately, resources abound to help older job seekers leverage their existing experience into new career opportunities. The ﬁrst step: sitting down for

some serious introspection. Charles Stephens, Coordinator of Career Planning and Placement at Berkshire Community College, stresses the importance of knowing your own priorities before making the leap into a new job. “If a job does not align with your personal values, you will find it harder to be successful,” he said. “Take time to reflect on what’s important to you.” One benefit of having spent an extended amount of time in the workforce is knowing from experi-

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ence what you do--and do not--want in a workplace when it comes to office culture, business size, working hours and other factors that affect your ability to be happy and productive from day to day. Take the time to go back over your work history and identify what you liked and disliked about each job. Were you happier with steady, predictable work, or did you get bored without frequent new challenges? Are you comfortable in a hyper-casual office, or do you prefer a more formal atmosphere? What’s your ideal balance of supervision and autonomy? How do you handle close collaboration? Are you actually productive when working from home? These are all valuable things to know about your professional self, regardless of what industry you’re coming from, and can ensure you’re getting the best possible start in your transition. Next, take inventory of your professional strengths and skills. Often, job seekers will underestimate the value of their previous work experience because it was outside their targeted field. “Job seekers also need to recognize transferrable skills. Most job seekers do not know their own worth in the job market,” said MassHire Berkshire Career Center Executive Director Melanie

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ance on things like interviews and resumes, but that goes double for people who’ve been away from the job market for an extended period of time. “The process for job searching in today’s market is mostly online,” Gelaznik said. “Gone are the days of stopping in at a business and requesting to ﬁll out an application.” Candidates who aren’t conﬁdent in the digital realm may need some help navigating the virtual job market. “Job seekers need to be prepared,” Gelaznik continued. “MassHire Berkshire Career Center offers a number of workshops to assist job seekers with resume writing, interviewing more effectively, mock interviewing and critique. We also have a weekly job club that offers different topics each week such as goal setting, selling yourself, and networking.” No matter how extensive a candidate’s work experience may be, updating basic job-searching skills is well worth the effort. Experienced candidates also need to understand that breaking into a new industry often means accepting a lower-level position than their previous job. It’s a hard truth for some to accept, especially after working for a decade or more to rise up the

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Life Planning | Wednesday, February 6, 2019

Gelaznik, via email. “MassHire Employment Specialists assist customers by using assessment tools such as My Next Move, and Transferable Occupational Relationship Quotient, better know as TORQ. TORQ can pull job openings from Job Quest based on the customers skill set.” General workplace skills like communication, time management and problem solving, sharpened by years of working experience, can absolutely increase a candidate’s marketability, no matter what industry they were developed in. Personal connections are also a valuable asset in the job-searching process. Stephens encourages job seekers to leverage their network, not only as a way to reach the right people, but also as a means of testing the waters in a new industry. Informational interviews are great, Stephens says, because someone already in the ﬁeld can offer both advice and an honest perspective on the ups and downs of the job. If possible, volunteering within an industry is also a great way to get a feel for the job and make useful connections. Job-seeking, particularly after leaving a successful career, is an exercise in humility. All candidates can beneﬁt from professional guid-

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ranks, but it’s a necessary part of launching a new career. Stephens frames it as a momentary setback

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Wednesday, February 6, 2019 | Life Planning

Advantages to working with a financial planner Investing is complicated, and many investors find working with certified financial planners is an effective way to secure their financial futures.

Investing requires some measure of risk. Risk understandably makes people nervous, especially in regard to their finances. Investing is an important component of securing your financial future, and the risk involved with investing should never prevent you from putting your money to work. Many people, including both novice and experienced investors, overcome their fears about investing and risk by working with certified financial planners, who can do a lot more than make suggestions.

Financial planners can make sense of complex products. Financial jargon can be hard to understand for those who do not work in ﬁnance. Financial planners simplify the complex array of products available to their clients, helping them understand each of their options as well as which of those options is best for them.

Financial planners do the legwork.

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Even seasoned investors with a ﬁrm grasp of ﬁnancial products and services may not have the time to stay up on all the latest investment options. Financial planners do so for a living. A good planner will inform his or clients of the latest products

available and then help clients decide if such products are right for them. That's a lot of work that busy professionals often do not have the time to do on their own.

Financial planners can expand your investment options. Financial planners sometimes have access to products that are not directly available to everyone. Some ﬁnancial product providers work exclusively through intermediaries (i.e., planners), so working with a ﬁnancial planner can give investors more options in regard to how to invest their money.

Financial planners are certified. Investors should only work with certified financial planners. Certification standards vary by country, but certified planners have been vetted by third party organizations and have met rigorous professional standards. In addition, to maintain their certification, certified planners are required to provide their clients with straightforward advice and put clients' needs ahead of their own. Those that don't could be held financially accountable for providing misinformation or bad advice to clients.

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Life Planning | Wednesday, February 6, 2019

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How dreams come true at Berkshire Money Management. Two of our clients, a husband and wife on the West Coast, are successful entrepreneurs raising three beautiful children. Their oldest child is a freshman in high school and an elite athlete, travelling the United States and Canada playing hockey. During a portfolio review at their kitchen table, they told me that their son’s dream is to play Division I hockey in college. They asked me, “How do we do this?”, and I told them to give me a week, but I think I can help. I did some research and made some calls. One family that I spoke with recommended a firm that specializes in connecting student-athletes with the right colleges. I called them and they were precisely what my clients were looking for. This firm would identify colleges, email the coaches, create a professionally edited video, prepare the student for the SAT, and have a personal coach for the entire recruiting journey. I then went and discussed this with our owner, Allen Harris, and told him that it would cost $3,000. Allen said Berkshire Money Management would pay the entire bill. I cannot think of any investment firm that would go to these efforts for their clients. Three days after meeting with my clients, I called them and told them that Berkshire Money Management was hiring this recruiting firm for their son. Talk about going the extra mile for my clients. I am helping this family with their most important asset, and helping their 14-year-old son pursue his dream.

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Wednesday, February 6, 2019 | Life Planning

GET OUT WHEN THE GETTING’S GOOD Want to sell your business within five years? This book is for you. Author Allen Harris - founder and owner of Berkshire Money Management - guides you toward a more profitable, smooth transfer of your business with actionable, sound advice. Get a complimentary copy or begin a confidential conversation about retiring by emailing him at AHarris@BerkshireMM.com.

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Historical performance is not indicative of future results. The investment return will ﬂuctuate with market conditions. Performance is not indicative of any speciﬁc investment or future results. Views regarding the economy, securities markets or other specialized areas, like all predictors of future events, cannot be guaranteed to be accurate and may result in economic loss to the investor. Investment in securities, including mutual funds, involves the risk of loss.