Jill Ciccarelli Rapps | Life in Naples Magazine | February 2017 

My father always said that your “golden years” are between ages 50-80. This is when you are in good health, have gained wisdom and hopefully have gathered enough assets to support your lifestyle. It is an exciting time in your life. If you plan well, you will finally have the time to do everything you’ve always wanted: exploring the world through travel, spending time with your family, or discovering a new favorite hobby.

In order to bring your retirement dreams to fruition, you need to create a financial strategy that will support your desired lifestyle. By preparing and executing a strategy that reflects your wishes, you will likely find the golden years of your retirement to be a liberating and enjoyable experience.

Determine Your Goals

In order to understand your income needs during retirement, it’s imperative to spend some time determining how you want your golden years to look. We take our clients through a special process of defining and clarifying what is most important to them by allowing them to brainstorm ideas on a blank canvas.

As an example, you may want to relocate another climate, or move closer to your family. Do you envision yourself travelling and exploring exotic places around the world? Or would you rather just relax – maybe rebuild a classic car or learn how to paint? Your retirement goals serve as the framework for your savings plan, and will be instrumental in helping you to go confidently in the direction of your dreams.

Start Early

The key to living to the fullest in your golden years is to start planning early. Understanding where you are today and where you want to be in your golden years; making necessary adjustments today can make all the difference tomorrow. When you are 3-5 years away from retirement, you should begin thinking about creative ways to create the income you will need and consider how best to reduce taxable income. As with everything that is worthwhile, this takes time. The more time you have to plan, the better!

Think Long Term

When you imagine your retirement, you likely think about the early years – when you are in good health and medical complications don’t impede on your livelihood. Though our health tends to decline as we age, you shouldn’t hesitate to make plans well into your later years. In fact, the number one area that retirees tend to underprepare for is health care costs. Setting retirement goals that extend well into your 80s and 90s can inspire you to continue leading an active, purpose-driven lifestyle – which, in turn, often leads to increased longevity and life satisfaction.

Partner with a Financial Expert

The best way to enhance your retirement experience is through a partnership with a financial expert. Given all the complex variables that exist in today’s retirement landscape – inflation, rising insurance and health care costs, changing tax laws, potential fluctuations in your future income, and family dynamics – the need for expert financial advice is greater than ever before.

Start with a Clean Slate

Retirement is the ideal time to re-evaluate your overall attitude towards money.  Consider how your money can serve as a tool for achieving your highest values in life. By retirement age, you have probably collected all the physical possessions you need, and you likely have plenty of free time to pursue new endeavors in your life. Based on that, you may find it to be advantageous to start thinking about money in terms of the experiences you can afford.

Whether you are saving for a grandchild’s college tuition or supporting a charitable cause that is close to your heart, a fundamental shift in how you view money can empower you to achieve these aspirations.

Through careful planning and consistent motivation, you will have a better opportunity to position yourself to meet all of your retirement goals. In the end, a solid financial plan and a winning team of financial professionals will serve as your GPS – guiding you towards happiness and personal fulfillment throughout your golden years.

Jill Ciccarelli Rapps | éBella Magazine | December 2016 

Sooner than later, you may find yourself in a position where you need to take care of your spouse, parents, grandparents, or another family member. Becoming a caregiver for your ailing family member is a major commitment that can be emotionally and mentally draining.

You can ease the stress of being a caregiver through preparation and balance. By practicing the four keys to effective caregiving, you empower yourself to handle your caregiver responsibilities in a way that meets both of your needs.

Understand Your Financial Resources

Financial preparedness is a vital aspect of caregiving. The cost of health care is astronomical and continues to rise at a steady rate. By failing to account for health care expenses, you may find yourself in a predicament where you and your loved ones can no longer maintain the lifestyle you all currently enjoy.

When you become the primary caregiver for your loved one, you need to develop a nuanced understanding of your family’s financial resources. Creating a detailed budget is the most effective way to fully evaluate your situation. Review your important financial documents – tax returns, estate planning documents,  bank statements, and insurance policies – and record monthly expenses.

You should discuss your budget with a financial advisor. Your advisor can help you consolidate and simplify financial information, recommend updates to your health care strategy and estate plan, and conduct a conversation about how your loved one would like to address health care decisions. By examining the “big picture” with your advisor, you position yourself to make financially prudent health care decisions.

Get Organized

As a caregiver, you will have to juggle a plethora of responsibilities – caring for your loved one’s basic needs, managing their medication and therapy schedules, and handling household chores. Getting organized is the key to proactively addressing your obligations and minimizing stress.

There are two simple ways to combat stress through organization. First, consider what you do best. Focus on these tasks and “give away the rest”. By hiring people to assist you, you can capitalize on your strengths and let the professionals handle tasks that you find to be difficult.

Secondly, create a system for tracking and documenting your loved one’s health-related information. Your organizational system should account for their day-to-day needs (medication, diet and exercise requirements, etc.), appointments, and health care expenses. As a result of keeping orderly records, you can facilitate open communication with medical professionals and your family.

Spend Quality Time Together

The caregiver-patient dynamic can strain your relationship with your family member – especially if your interactions are exclusively related to caregiving. To prevent this friction, make sure to schedule quality time together.

Each day, dedicate a few hours to enjoying each other’s company – watching TV, playing cards, or engaging in a lighthearted conversation. Spending quality time together will foster healthy communication and affection, and will help you to maintain and develop your relationship.

Take Care of Yourself

When you dedicate your time and energy to ensuring that your loved one’s needs are met, you may find it difficult to focus on your personal wellness. Many caregivers feel guilty when they think about themselves instead of paying attention to their ill family member. However, you should not allow guilt or other emotions to prevent you from satisfying your needs.

Your ability to effectively serve as a caregiver is compromised when you don’t take care of yourself. Make sure that you are eating right, exercising, and meeting your wellness needs. Take care of your own financial security and avoid making sacrifices that could negatively impact your future. Feel free to take a break occasionally.

If you feel overwhelmed, do not hesitate to ask for help. Capitalize on the resources that exist in our community – other family members, friends, community health care services or home care professionals. A little assistance can provide you with the stamina you need to continue providing exceptional care.

A financial planner can serve as a valuable asset for caregivers. Your advisor can guide you in developing an organized financial plan, empowering you to become an effective caregiver and achieve balance in your life.

By Steven Merkel, CFP^®, ChFC^® | Investopedia.com

While many of us like to think that we’re immortal, the old joke is that only two things in life are certain: death and taxes.

Not only is it essential for you to have a plan in place in the unlikely event of your death, but you must also implement your plan and make sure your loved ones understand your wishes. As Benjamin Franklin’s famous quote goes, “By failing to prepare, you are preparing to fail.”

If you’ve procrastinated on your estate plan, this article will help you move in the right direction.

1. Do a Physical Items Inventory

To start things out, go through the inside and outside of your home and make a list of all items worth $100 or more. Examples include the home itself, television sets, jewelry, collectibles, vehicles, guns, computers/laptops, lawn mower, power tools and so on.

2. Follow with a Non-Physical Items Inventory

Next, start adding up your non-physical assets. These include things you own on paper or other entitlements that are predicated on your death. Items listed here would include: brokerage accounts, 401k plans, IRA assets, bank accounts, life insurance policies, and ALL other existing insurance policies such as long-term care, homeowners, auto, disability, health and so on.

3. Assemble a Credit Cards & Debts List

Here you’ll make a separate list for open credit cards and other debts. This should include everything such as auto loans, existing mortgages, home equity lines of credit, open credit cards with and without balances, and any other debts you might owe. A good practice is to run a free credit report at least once a year. It will identify any credit cards you may have forgotten you have.

4. Make an Organization & Charitable Memberships List

If you belong to certain organizations such as the AARP, The American Legion, Veteran’s associations, AAA Auto Club, College Alumni, etc., you should make a list of these. Include any other charitable organizations that you proudly support or make donations to. In some cases, several of these organizations have accidental life insurance benefits (at no cost) on their members and your beneficiaries may be eligible. It’s also a good idea to let your beneficiaries know which charitable organizations are close to your heart.

5. Send a Copy of Your Assets List to Your Estate Administrator

When your lists are completed, you should date and sign them and make at least three copies. The original should be given to your estate administrator (we’ll talk about him or her later in the article). The second copy should be given to your spouse (if you’re married) and placed in a safe deposit box. Keep the last copy for yourself in a safe place.

6. Review IRA, 401(k) and Other Retirement Accounts

Accounts and policies in which you list beneficiary designations pass via “contract” to that person or entity listed at your death. No matter how you list these accounts/policies in your will or trust, it doesn’t matter because the beneficiary listing will take precedence. Review each of these accounts to make sure the beneficiaries are listed exactly as you like.

7. Update Your Life Insurance & Annuities

Life insurance and annuities will pass by contract as well, so it’s equally important that you ensure that your beneficiaries are listed correctly on each of these accounts.

8. Assign TOD Designations

TOD stands for transfer on death. Many accounts such as bank savings, CD accounts and individual brokerage accounts are unnecessarily probated every day. Probate is an avoidable court process through which assets are distributed per court instruction, which can be costly. Many of the accounts listed above can be set up with a transfer-on-death feature to avoid the probate process.

9. Select a Responsible Estate Administrator

Your estate administrator will be responsible for following the rules of your will in the event of your death. It is important that you select an individual who is responsible and in a good mental state to make decisions. Don’t immediately assume that your spouse is the best choice. Think about all qualified individuals and how emotions related to your death will affect this person’s decision-making ability.

10. Create a Will

Everyone over the age of 18 should have a will. It is the rulebook for distribution of your assets and it could prevent havoc among your heirs. Wills are fairly inexpensive estate planning documents to draft. Most attorneys can help you with this for less than $1,000. If that’s outside your budget, there are several good will-making software packages available online for home computer use. Make sure that you always sign and date your will, have two witnesses sign it and obtain a notarization on the final draft.

11. Review & Update Your Documents

Review your will for updates at least once every two years and after any major life-changing events (marriage, divorce, birth of child, and so on). Life is constantly changing and your inventory list is likely to change from year to year too.

12. Send Copies of Your Will to Your Estate Administrator

Once your will is finalized, signed, witnessed and notarized, you’ll want to make sure that your estate administrator gets a copy. You should also keep a copy in a safe-deposit box and in a safe place at home.

13. Visit a Financial Planner or an Estate Attorney

While you may think that you’ve covered all avenues, it’s always a good idea to have a full investment and insurance plan done at least once every five years.

As you get older, life throws new curveballs at you, such as figuring out whether you need long-term care insurance and protecting your estate from a large tax bill or lengthy court processes. Tips like having an emergency medical contact card in your purse or wallet are little things many people never think of that an expert can help you learn.

14. Initiate Important Estate-Plan Documents

Procrastination is the biggest enemy to estate planning. While none of us likes to think about dying, the fact of the matter is that improper or no planning can lead to family disputes, assets going into the wrong hands, long court litigations and huge amounts of dollars in federal tax.

At minimum, you should create a will, power of attorney, healthcare surrogate, and living will – and assign guardianship for your kids and pets. If you’re married, each spouse should create a separate will, with plans for the surviving spouse. Also make sure that all the concerned individuals have copies of these documents.

15. Simplify Your Finances

If you’ve changed jobs over the years, it’s quite likely that you have several different 401(k)-type retirement plans still open with past employers or maybe even several different IRA accounts. While this normally won’t create a big problem while you’re alive (except lots of additional paperwork and account management), you may want to consider consolidating these accounts into one individual IRA account to take advantage of better investment choices, lower costs, a larger selection of investments, more control and less paperwork/easier management when assets are consolidated.

16. Take Advantage of College Funding Accounts

The 529 plan is a unique tax-advantaged investment account for college savings. In addition, most universities do not consider 529 plans in the financial aid/scholarship calculation if a grandparent is listed as the custodian. The really nice feature is that growth and withdrawals from the account (if used for “qualified” education expenses) are tax-free. If you have grandchildren and the assets to do it, consider opening a plan for each grandchild.

The Bottom Line

Now you have the knowledge you need to get a good jump-start on reviewing your overall financial and estate picture; the rest is up to you. While you’re sitting around the house watching your favorite sports team or television show, pull out a tablet or laptop and start making your lists.

You’ll be surprised how much stuff you’ve accumulated over the years. You’ll also find that your inventory and debts lists will come in handy for other tasks such as homeowners insurance and getting a firm grip on your expenses.

Content was created by the author for a third-party website. Acknowledgement to Investopedia.com for the use of their article.

Jill Ciccarelli Rapps | Life in Naples Magazine | January 2017

Estate planning can be a difficult subject to discuss. Many people prefer to avoid broaching this topic, as it can be uncomfortable to think about your own mortality.

That being said, having an in-depth conversation about estate planning is the key to protecting your assets and providing a bright future for your family. By partnering with a financial advisor to plan your legacy, you can prevent common estate planning pitfalls and promote the financial well-being of your spouse, children and future generations.

The following tips will help you establish a plan that reflects your desires and vision for the future.

Create an Inventory of Assets

The first step in estate planning is creating a comprehensive inventory of your assets – including property, business holdings, savings, and annuities. In your inventory, be sure to include all of your account numbers, dated statements and an explanation of how each asset is owned. By doing so, you will find it much easy to keep your records up-to-date when your estate plan is executed.

With this foundation in place, you can develop a succession strategy in accordance with your wishes. To make this vision a reality, it is crucial to understand how the estate laws and taxes will impact your assets. A financial expert can help you navigate the red tape and capitalize on opportunities for tax relief.

Evaluate Life Insurance Coverage

Life insurance can be a critical component of your estate plan, especially if your family members rely on you for financial support. Life insurance provides you with the liquidity you need to protect your business holdings and make sure that your heirs are not forced to sell assets. Life insurance also serves as a great method for passing tax-free inheritance to your loved ones.

To take full advantage of life insurance benefits, you need to understand the types of coverage that are available. You should evaluate the differences between life insurance plans (i.e. term versus whole life coverage) and determine which policy will best fulfill your needs.

To effectively safeguard your assets, you should review all of your existing policies with your financial advisor every 2-3 years, or whenever you experience a major transition in your life. It is also crucial to make sure that your beneficiary designations are up-to-date.

Consider a Living Trust

A living trust can also play a key role in preserving your assets. Living trusts can help you to bypass probate, and reduce the costs and hassle associated with passing your inheritance to your family. Living trusts are especially advantageous if you have minor children, property in multiple states, or a large estate that will be subject to estate tax burdens (i.e. estates with assets totaling $5.45 million or more).

Draft a Will

Once you have a clear picture of your assets and a strategy for managing your inheritance, you will need to create a will. In your will, you designate the placement of your assets, name beneficiaries, and establish the executor of your estate. Your will serves as the cornerstone of your estate plan; in fact, your loved ones may receive little to no inheritance if you fail to draft a will.

While there are many online resources to help you draft a will, these templates may not cover all of your estate planning needs. The best approach for creating your will is to collaborate with an attorney and a financial advisor. A team of professionals can assist you in alleviating any complications you may experience when your will is executed.

Gather Official Documents

Once you have planned your estate, you will need to gather your official documents, including:

• Your will
• Powers of attorney and advanced medical directives
• Life insurance policies
• Inventory of assets (including bank statements, property titles and deeds, safety deposit boxes, stocks and savings bonds)
• Beneficiary forms for life insurance and retirement accounts
• Living trusts
• A list of important contacts (your attorney, financial planner, trustees and executor)

Once you complied your official documents, find a secure location to store your paperwork that is easily accessible to your family.

In order to preserve your legacy for future generations, you need a detailed estate plan that reflects your wishes. Whether you have $1 million in assets or an estate of $10 million or more, establishing a partnership with a financial advisor is the best decision you can make. Now is the time to organize your estate plan, facilitate a winning strategy and provide for your family’s future!

Jill Ciccarelli Rapps | Life in Naples Magazine | December 2016

Managing your money can be a headache, especially if you make financial decisions on the fly. A haphazard approach to overseeing your finances can damage your financial wellness, leading to unnecessary costs and wasteful spending.

As we transition into 2017, many of us are pursuing New Year’s resolutions. As you consider ways to improve your quality of life during the new year, we encourage you to follow these five easy steps for simplifying and organizing your financial life.

By doing so, you put yourself in a position where you can proactively control your money – empowering you to achieve financial success.

Set financial goals

Articulating your goals will help you to prioritize your spending. Identify the biggest financial undertaking you face – for instance, paying off your mortgage, purchasing a second home, saving for your dream vacation, putting your grandchildren through college or preparing for retirement – and write them down where you can visit them often.

Draw up a spending budget

Review all of your income and earnings statements, and understand how much revenue you will have for the month. Then, go through your expenditures and prioritize your future spending. Refer to your budget at least once per month to ensure that you adjust for unexpected income or expenses.

Once you develop a clear picture of your cash flow, you can create a budget that accurately reflects your lifestyle and empowers you to realize your goals.

Create a filing system

Maintaining files of your important documents is instrumental to organizing your life. The key to organization is finding a system that works for you. By doing so, you will find it much less cumbersome to keep up on your financial files.

For instance, many people prefer working with physical files and paper documents. If this is your preference, I recommend keeping a large basket on your desk for dropping receipts, statements and tax information. Twice a year, you should dedicate time to sorting through these documents. Often times, you will find that the paperwork you thought was important at the time can actually be shredded. After your biannual sorting session, you should retain all of your crucial information in categorized manila files.

Finally, dedicate a folder to housing your official documents – including your estate planning files, social security card, savings bonds and insurance policies. All of your files should be saved in a secure location, such as a safe at home, deposit box at the bank, or an online vault. These files should be easily accessible for you, your trustee and your family.

Consider using financial software

For those of you who are more technologically inclined, financial software can serve as a valuable resource for managing your money.

Many of these programs feature built-in templates to help you devise your monthly budgets. Some financial software will also provide you with detailed analytics about your spending habits, enhancing your ability to monitor and control expenses. There are even applications that will scan your receipts and important documents, creating digital archives for your financial information. If you choose to work with financial software, make sure to protect your information from unauthorized access by using encrypted software and creating strong passwords.

Your financial advisor can help you input and consolidate all your financial information in the program, further simplifying the process of managing your money.

Set up direct deposits and withdrawals

Arranging automatic deposits and withdrawals saves you time and effort while ensuring that your bills are paid on time. All regular income should be directly deposited into your bank account; most banks will allow you to split your deposits between different accounts, so you may allocate your deposits to various goals you have identified.

You should also set up any regular monthly expenses – rent, car payments and utilities – to be automatically withdrawn. Although you may prefer paper bills, setting up automatic payments will be helpful in the event that someone else needs to pay your bills (for instance, if you were to become incapacitated).

While these tips will guide you towards a simplified and organized financial life, you should also consider meeting with a financial planner. Financial planners may help you achieve your financial goals by designing your monthly budget, consolidating your key documents, and generating creative solutions to maximize your money.