Kim Ciccarelli Kantor, CFP^®, CAP^® | Naples Daily News |

March 2018

Throughout your lifetime, you worked hard to save for your golden years. As you climbed the ladder of success, you likely accumulated several sources of deferred income to sustain your desired retirement lifestyle.

The most common forms of retirement savings plans are IRAs and defined contribution plans – 401(k)s, 403(b)s, etc.

While these plans are designed for effective retirement savings, often times these assets are scattered across numerous custodians from multiple employers. It may seem tempting to consolidate all your accounts for the sake of convenience.

However, before you merge your retirement accounts, you should map out the full picture of your qualified plans to avoid negating any of your benefits. Simply merging all of these accounts might eliminate the potential for any efficiencies that could be achieved through proper planning for lifetime distributions and legacy considerations.

Flowcharts serve as an especially effective tool for mapping out your full financial picture – empowering you to simplify your financial life in a way that prevents costly fees and accentuates the potential for tax savings.

An organized, well-designed flowchart allows you to delve into the nuts and bolts of each specific IRA or retirement program.

Figure 1. A sample financial planning flowchart for a hypothetical client scenario (Click the image to view full size).

Two of the most critical areas of your retirement plan to address are:

Distributions (lifestyle considerations): Qualified plans require you to take certain distributions once you or your beneficiaries hit a certain age (e.g. RMDs at age 70 ½ and older). Failing to adhere to the particular regulations and timelines associated with each plan can result in costly penalties and fees.

These programs add an additional layer of consideration in comparison to other assets, due to the income tax consequences that result from distributions and the fact that ownership may not transfer during your lifetime. You can make the most of any tax-deferred opportunities by executing a well-thought-out financial plan.

Beneficiaries (legacy considerations): Ensuring you have up-to-date beneficiaries listed that reflect your wishes may be more complex than you think. The most effective means for protecting your IRA and other qualified assets for your heirs is to understand what your custodian agreement will and won’t allow for at the time of death, as well as maintaining a time-stamped, up-to-date beneficiary designation form in your files.

If your beneficiary forms are not in good order, you may forfeit control of where your assets will end up after your death. In contrast, accurate beneficiary forms enhance the potential for your IRAs and other retirement programs to provide steady income for your heirs in the event of your passing.

In comparison to 401(k)s and 403(b)s, IRAs provide you with more flexibility when distributing your assets to beneficiaries: a lump-sum payment, consolidation into a qualified trust, merging or segregating various IRAs, use of disclaimers to pass wealth to contingent beneficiaries, and so on.

While you have discretion in incorporating some of these various approaches during your lifetime, most of these arrangements need to be in place prior to your death – or within a pre-defined period after your death – in order to take effect.

Pensions and deferred compensation plans generally have more restrictive clauses and stipulations for beneficiaries, which can vary widely depending on the administrator of the plan.

Lastly, you should review your entire retirement savings plan every 2-3 years. By doing so, you can address any ambiguity you may feel about your plan and identify new opportunities.

By mapping out your full financial picture and regularly updating your plan to reflect current circumstances, you will be well-positioned to protect and optimize your assets throughout retirement and impart a lasting legacy to future generations.

Jill Ciccarelli Rapps | èBella Magazine | January 2018

As we ring in the New Year, many of us reflect on our long list of new or old intentions and goals for the upcoming year. What if you were to throw away that list and consider just one thing that would make you the happiest – something that will really give you a YES year!

What is stopping you from making 2018 your best year yet? As you’ve probably seen throughout your own life, even the best-laid plans are bound to encounter numerous roadblocks. In particular, we’ve observed three major trends that hinder a person’s ability to achieve their YES:

Fear. Fear is a natural human response that tends to arise when we feel that we don’t have control; that we may fail; that we may be letting others down by doing something for ourselves.

The Fix: Accept that these feelings you have are completely normal, but that your fear must never define you. Make a conscious effort to re-focus your thoughts towards the feelings of accomplishment and joy you will experience when you persevere to claim your YES.

Time. Time is perhaps our scarcest resource. Our inclination is to organize all of our time around the dreaded to-do list or schedule. While this approach is effective in managing many tasks, we often feel as though our highly structured lives result in major constraints on our freedom, on our ability to fully experience the limited time we have.

The Fix: Every week, set aside some “me” time to claim your YES. Don’t look at your watch or your to-do list, disconnect from your phone, and hone in on the commitment you made to yourself. Breathe. Relax. Then, with a renewed dedication to that one underlying goal for 2018, consider how you can best structure your time going forward to ensure that your YES will come to fruition.

Money. Your money is a means to an end; the end is your happiness and fulfillment. Saving money is an important virtue, but many of us feel reluctant to spend money: some feel the need to hoard their assets, others may feel averse to “wasting” money on extravagant experiences or luxury items.

The Fix: Whereas saving is the key to long-term financial wellness, spending may be the key to claiming your YES. When you synchronize your spending with your deepest aspirations, your money can begin to achieve a grander purpose – and the true power of your financial plan becomes evident!

So how do you overcome these obstacles to claim your YES? Let’s take a look at Linda.

How Linda Claimed her YES

Linda had a difficult year in 2017. After turning 72 in February, she lost her husband of 46 years, John, in March after a long battle with a rare heart condition.

Linda had always loved traveling throughout Europe and was especially fond of her annual two-week excursion to Italy with John. However, since he passed away, she hasn’t felt comfortable traveling alone. In addition, her only son and her three teenaged grandchildren live in California and rarely have the opportunity to visit Southwest Florida. Linda felt isolated.

At her annual financial review, Linda shared her predicament with her advisor, who shared a curious idea to overcome her loneliness:

“Have you ever considered taking your grandchildren one at a time on the trip of their lifetime?” the advisor asked. “What if, after each of your grandchildren graduates from high school, you let them select any destination in Europe they would like to travel? You will have quality time with them, instill your passion for travel, and give them new perspectives and unforgettable experiences that will be meaningful to them throughout their lifetimes.”

Linda was ecstatic about the idea at first and went home feeling invigorated about her possible future travels. However, throughout the next week, she began to worry about money. Could she really afford three separate vacations in five years? How would these travel excursions impact her grandchildren’s inheritance? Would she need to make significant sacrifices in order to make it happen?

Wait a minute! Linda thought. I can either give them my money when I die, or I can use my money with them while I live. I have a perfect opportunity to enjoy Europe again with three very special travel partners. I can do it – I will do it!

That positive self-talk – overcoming the obstacles – was the turning point for Linda. In summer 2018, Linda will be traversing the mountains of Switzerland with her eldest grandson, and she is eager to explore new territory in 2019 as she and her granddaughter plan their trip to Czechia.
 

With Linda’s success story in mind, circle back to that one goal or action that will make 2018 your best year yet. Ponder how energized and happy you will feel when you fulfill that promise to yourself, how you will take the obstacles in stride, and how you will go forth with confidence and strength to make it happen!

The persona of Linda is fictional but is based on a CAS client experience. The names in the anecdote have been changed to protect their anonymity.

Lynn A. Ferraina  |  èBella Magazine  |  Updated for accuracy and clarity

2018 is upon us! As we start compiling New Year’s resolutions, the primary focus is usually to improve our health or maybe to lose those extra pounds gained during the holidays.

But how about making some resolutions to improve your financial health as well? Here are some ways to get started:

Dump the Debt

Not only may we have eaten too much at holiday time, we may have spent too much as well. Make a commitment to pay off credit card debt as soon as possible. Many credit cards, especially store credit cards, can have interest rates in excess of 18 percent. Get in the habit of paying off your credit cards in full each month to avoid racking up high balances and interest accumulations. Review your credit scores with one of the three major providers (Equifax, Experian or Transamerica) to avoid potential identity theft.

Set an Investment Goal

If you are still working, make a commitment to max out your company’s retirement plan. Many companies offer to match a certain percentage of their employee’s contribution. For example, if you put 5 percent of your salary in your 401(k) and your company matches 3 percent, that’s a 3 percent raise. If your company doesn’t offer a plan, you can create your own by establishing an IRA (individual retirement account). You are allowed to deposit up to $5,500 in 2018 (or $6,500 if you are over age 50).

When depositing to a 401(k) or IRA, not only does it help you save for retirement, but it gives you a nice tax break as well. If you have old 401(k) plans from previous employers, consider consolidating by rolling over your old plans to the IRA you have established.

Review your Investment Plans

Whether you are still working or retired, it’s a good idea to see how last year’s financial plan met (or didn’t meet) your financial objectives. Is your current asset allocation working to achieve your short- and long-term goals? Financial objectives to consider each year are: time horizon, risk tolerance, how much you need to invest each year to meet your goals, and what investment vehicles to use to keep your plan on track.

Save for Emergencies

Before investing for the long term, make sure you have liquid funds available to cover short-term emergencies so you will not be forced to sell long-term holdings at market value. Six months of living expenses is advisable.

Check your Coverage

At the beginning of the year, it is also a good time to review your insurance plans. Make sure you are adequately covered for all of life’s contingencies, including health, life, homeowners, auto, disability and long-term care insurance.

Avoid Estate Issues

Reviewing your legal plans every other year or when you experience a life change is important as laws change all the time. Evaluate your will, trust, health care surrogate, living will and power of attorney to make sure they reflect current laws and your current wishes. Also, review your beneficiary options on life insurance, annuities, pension plans, IRAS, and 401(k)s to make sure they are correct and consistent with your legal documents.

Seek Professional Advice

Most people cannot do it alone. Advisors have years of education and experience to help you find the gaps in your current plans. They also have witnessed mistakes people make and know how to avoid them.

Establish Systems

One word that generally turns folks off is the word “budget.” Instead, I refer to it as a “system” to know what you own, what you owe, and what your income and taxes are. Basically, it is a way to keep track of what you spend and save each year. It should also include a “system” to list where your personal information and documents are, including your passwords, tax returns, insurance information, investments, legal documents and a listing of who you do business with (your financial advisor, lawyer, CPA, insurance agent, bank, etc.).

This system is crucial if you become ill or incapacitated, so that your previously named, trusted advocate can walk right in and take over your financial life if you can’t.

Downsize

If you haven’t worn an article of clothing or won’t be using a particular item in the future, start to downsize your closet and your life. There is something rewarding about giving away what we no longer need. Not only do you help your favorite charity, but you may receive a tax deduction as a reward for your giving nature.

Now is the time to review and set your 2018 financial resolutions. Good luck and may 2018 be a financially productive year!

By Jill Ciccarelli Rapps, CFP^®

Your total return on your assets is not only the result of how much money you earn on your investments; your return is also impacted by the amount you keep after taxes. Unfortunately, tax efficiencies are often overlooked when considering how to best preserve and enhance your wealth. As we approach the end of 2017, start planning today to find opportunities to save money on your taxes!

Timing is everything.  Compare your 2017 income to your projected income in 2018. If you anticipate that your 2017 income will be greater, you should defer income (i.e. year-end bonuses, collection of debts) to the following year; on the flip side, you may want to accelerate your income if your 2017 income will likely be less than your 2018 income. Likewise, you should use this comparison to determine if you should itemize deductions in 2017 or accelerate to next year (i.e. medical expenses, charitable gifts).

A word of caution: Amidst the Congressional discussion of tax reform, the amount you can claim for your standard deduction may increase in 2018, while other deductions may be eliminated. If the new tax plan does come to fruition, it could be beneficial to claim as many itemized deductions as possible in 2017, as certain itemized deductions may be useless in reducing your 2018 tax burden.

Hint: If you are charitably inclined, consider establishing a donor-advised fund (DAF) to accelerate your charitable giving. By creating a DAF, you have the flexibility to make varying yearly contributions to your fund based on your annual income.

For instance, if you have earned a significantly higher income in 2017, you could make a larger donation to your fund to offset your income. You will receive a charitable deduction for the full amount in 2017, but you have the flexibility to disperse assets to your favorite charities over the course of several years.

Don’t pay taxes on your IRA distributions. For those of you who are 70 ½ or older, another effective way to reduce your taxable income is to direct your required minimum distributions (RMDs) towards the charity of your choice. If you set up a direct link between your IRA and your preferred charity, your IRA distributions will not be reported as income on your tax return.

As an example, if you are in a 28% bracket and make the maximum annual contribution of $100,000 from your IRA, you may enjoy a savings of $28,000 in taxes; essentially, it only costs you $72,000 to make a $100,000 gift to your favorite charities.

A word of caution: All contributions must go directly to the charity by December 31.

Hint: This charitable giving technique could also save you money on your Medicare premiums and reduce other types of taxes like the 3.8% additional Medicare tax.

Take full advantage of the tax benefits available through retirement savings vehicles.  Traditional IRAs and employer-sponsored retirement plans (such as 401(k) plans) allow you to contribute funds on a deductible or pre-tax basis. To fully leverage these tax-advantaged accounts, you should contribute the maximum annual amount.

For 2017, you may contribute:

♦ Up to $18,000 to a 401(k) plan (or $24,000 if you are age 50 or older); and

♦ Up to $5,500 to a traditional IRA (or $6,500 if you are age 50 and older).

Employer plans typically have a contribution deadline of December 31, whereas IRA contributions can be made until April 15, 2018.

Hint:  For 401(k) plans, if you want to accelerate your tax deduction for 2017 by making the maximum annual contribution, ask your employer to defer a larger portion of your December income.

Review your investment portfolios now!  Understand whether you have realized or unrealized gains or losses in 2017, and whether you have any carry-forward losses from prior years. If you have unrealized losses in your portfolio, you should consider the benefits of “tax harvesting” – that is, selling these positions to offset realized gains. For instance, if you have realized long-term losses of $20,000 and realized long-term gains of $20,000, you essentially have wiped out $4,000 of taxes (assuming the 20% long-term capital gains tax rate).

Word of caution:  Long-term (held for more than 12 months) and short-term gains are treated differently. Make sure you to understand how each of these scenarios will impact your tax harvesting.

While these tips will likely have a positive impact on the amount of money in your pocket this year, there are many more strategies that can be implemented – especially if you are a high-income earner. Above all, you should meet with your financial advisor and CPA before the end of the year to determine the best plan for you to capitalize on tax relief opportunities.

Happy savings!

Kim Ciccarelli Kantor, CFP^®, CAP^®  |  Featured in the Community Foundation of Collier County’s 2017 Fall Newsletter

We all hold a special place in our hearts for the charities and other non-profit organizations that are dedicated to serving our community and our country. In gratitude for their admirable initiatives, many of us feel compelled to support these community organizations by donating our time, talents or financial support.

However you choose to pledge your support, charitable action is a truly rewarding means of expressing our altruism and impacting meaningful, positive change. As someone who has had the privilege of working alongside many successful families in the Naples community, I have always been impressed by our clients’ selfless philanthropic efforts.

Above all, I have been inspired by their eagerness to engage the entire family in the charitable giving process. By unifying their family members behind a common goal, these clients have not only instilled the virtue of philanthropy within their children and grandchildren; they have also established a powerful legacy that extends well beyond their lifetime.

Specifically, we have found that Donor-Advised Funds (DAFs) are a phenomenal vehicle for channeling your goodwill as a family unit, while also minimizing your tax burden and preserving your wealth.

A Donor-Advised Fund serves as a conduit between your family and the charitable organizations you wish to support. Once you’ve established a fund, the family donors associated with your DAF have the flexibility to contribute as you see fit; thus, the DAF provides you with considerably more freedom in comparison to a private family foundation. In many cases, the contributions to your DAF are entirely tax-deductible. Then, your family members (or other successor advisors) are responsible for directing the funds towards the organizations that best align with your values and passions.

How do I involve my family members in a DAF?

In our experience, the long-term effectiveness of a Donor-Advised Fund is greatly enhanced by the family’s willingness to unite behind a common philanthropic mission. Family unity can best be achieved through open discussion about finances between family members. The question is: How do you go about initiating this conversation and ensuring ongoing communication about your DAF?

First, a family meeting is a time-tested method for facilitating the free flow of ideas and bridging the communication gap between family members. The key is openness: ask each person about their charitable passions, their history of donating time and money, and their most important priority in terms of giving.

As the founder of the fund, you should share your wisdom and insight about philanthropy, and express your eagerness to engage each member in the decision-making process for the DAF. In addition, several of our client families have benefited from hiring an objective third-party facilitator, who can drive a meaningful conversation, alleviate emotional tension and address the most pressing areas of discussion.

Perhaps the greatest accomplishment that can be gleaned from a family meeting is the development of a family mission statement: a concise summary of your collective goals and wishes. Your mission statement will provide you with a set of well-defined criteria for selecting charities that are congruent with your family’s values and passions. In doing so, you can be confident that your philanthropic endeavors will impact change that is meaningful and fulfilling for the entire family.

Secondly, utilizing a website or closed social media group for your DAF can be an effective way to (1) articulate formal grant-making procedures and (2) promote continuous communication between family members. Using technology in this capacity could encourage younger family members to become more engaged in the DAF – inspiring the next generation to research new charities that are close to their heart and to support your family DAF for years to come.

Your Donor-Advised Fund serves as a tangible representation of your philanthropic vision and deeply held values. Your children, grandchildren and future posterity will always appreciate the charitable giving mechanism you have established – and with consistent communication, they can sustain your family mission and values into perpetuity.

Jill Ciccarelli Rapps | èBella Magazine | Aug • Sep 2017

As soon as your children or grandchildren are old enough to count, you should initiate the “money talk”. By fostering financial values within your family members at an early age, you can lay the groundwork for their continued financial growth and success throughout their lifetime.

Introduce your children or grandchildren to the concept of finance by discussing spending and saving in simple terms. As they get older, you can begin introducing them to more complex strategies: how to make their money work for them most effectively; priority spending; tips and tools for investing; and the pitfalls of misusing credit.

The resources outlined below will serve as indispensable guidelines that can benefit your children and grandchildren for years to come.

Five Secrets to Building Financial Independence

By nature of the relationship you share with your family, children and grandchildren depend on you to fulfill their financial needs. However, as they age, you should begin to instill a sense of independence. In other words, provide them with the values, tools and support they need to adequately meet their own needs.

Here are the five secrets to building financial independence:

1) Start at birth: Purchase a piggy bank for each child or grandchild shortly after they are born. As soon as you begin to educate them about money, provide them with an earnable allowance – and use the piggy bank as a tool to encourage regular savings. Have them save $0.50 or more out of each dollar they earn.

To make the savings process more fun and relatable, divide the piggy bank into various sections: retirement, education, charity, health care, etc. In doing so, younger family members will be more likely to see the value of saving consistently over time.

2) Talk about money regularly: Although discussions about money are often considered taboo in our society, financial conversations are one of the most critical topics you can discuss with your children or grandchildren.

Openly discuss financial topics around the dinner table with the whole family – with a particular focus on engaging children or grandchildren. Encourage all of your immediate family to play a role in conversations about developing budgets, prioritizing spending and selecting investments.

3) Impart smart values: Focus on positive messaging that helps them develop strong spending and saving habits. Help them foster a healthy attitude about money and guide them every step of the way. In doing so, they will start to make smart decisions on their own.

4) Lead by example: If you tell your children or grandchildren one thing while doing the exact opposite, they are not going to take your advice seriously. By exemplifying your advice in your personal financial life, younger generations are much more likely to follow your lead.

5) Do not misuse money in the relationship: Let your children or grandchildren earn their allowance from you. As a result, you will help to support their needs without creating a sense of entitlement. Also, never withhold money to make a point or as a punishment for bad behavior. Using money in this capacity will create a negative attitude towards finance that can lead them to make poor decisions down the road.

The Ten Commandments of Personal Finance

Once your children or grandchildren have grasped the basics of personal finance, introduce them to the Ten Commandments of Personal Finance. These principles provide the necessary framework that prepares your family for their financial future:

1. Thou shall not put out more money than taken in.
2. Thou shall spend money thinking of your future as well as your present.
3. Thou shall remember that compound interest is never retroactive.
4. Thou shall not collect credit cards or use them carelessly.
5. Thou shall honor always thy debts and obligations.
6. Thou shall develop a spending plan, “pay yourself first” by saving money, and start to invest systematically at an early age.
7. Thou shall always search for reasonable returns on assets.
8. Thou shall take advantage of 401(k) plans or other retirement savings options.
9. Thou shall practice dollar-cost averaging in your investing.
10. Thou shall obtain a financial education so as to be no one’s fool.

Knowledge + Values + Practice + Guidance = Success

As you continue to educate your children or grandchildren about money, the resources presented in this article will assist you in providing the knowledge and values that contribute to financial success. These principles are by no means a comprehensive guide; rather, you should supplement this information with your own knowledge of money and your deeply held values.

The next two steps to success are incumbent upon you: encouraging younger family members to incorporate this knowledge into their value system through continuous practice; while also offering the guidance and support they need to develop healthy financial habits.

A financial advisor may offer family meetings, educational summits, and other tools to assist you with these steps – ensuring that your insight and values are being effectively conveyed to the next generation.

When taken together, the combination of financial knowledge, time-tested values, consistent practice, and steady guidance will empower your children and grandchildren in their pursuit of lifelong financial success.

Jill Ciccarelli Rapps | Life in Naples Magazine | Aug • Sep • Oct 2017

For most Americans, financial independence is an important goal that motivates us throughout our entire lives. Even though our personal ambitions and goals may differ, we all share a common aspiration: generating enough money to live comfortably.

While many people think of work as a means to achieve financial independence – earning a salary to pay your bills and provide a high standard of living for your family – the term takes on a whole new meaning as you approach retirement. As a retiree, financial independence means that you are earning enough money from your investments and other assets to live your desired lifestyle.

Becoming financially independent requires a long-term commitment and a cohesive plan that can lead you towards your goals. Consider these “stepping stones” as you continue your journey to and through retirement!

Be patient. During your life, you will encounter many “get-rich-quick” schemes that promise wealth and success with little to no effort. However, as you probably have learned, very few people become wealthy overnight. Instead, the most effective way to achieve financial independence is to plan for the long term, stay committed to your goals, and make smart, stable investments.

Spend less than you earn. Each month, set aside a little money for savings before you pay your expenses; in other words, pay yourself first! The amount you save will vary based on your income and circumstances, but typically a 10-25% savings rate is a good goal to set (your financial advisor can provide you with more clarity). Over time, your regular savings habit will help you to develop resources for purchasing investments; then, your money can begin to compound and grow exponentially as you reinvest your returns.

Stay informed. Given all of the stocks and securities available on the market, it is important to consider the various factors that can impact your success as an investor. Understanding the current tax environment, inflation and interest rates will be critical in order to create an effective investment plan. In doing so, you will position yourself to build a portfolio that is stable and resilient, even amid the fluctuations of our economic climate.

Be proactive, not reactive. Neither the bear market nor the bull market will ever stay permanent; rather, the market is in a constant state of flux. When the market takes a turn for the worse, it can be difficult to focus on the long-term view – and many people end up making impulsive decisions that are not in their best interest. For this reason, you should be wary of reacting to the natural ebb and flow of the market. Instead, build a solid, proactive investment strategy and stay the course.

Of course, that is not to say that changing your investments is off-limits; but adjustments to your investment plan should reflect careful planning and analysis, not a spur-the-moment reaction to an emotional situation. By remaining calm, focused and logical when assessing your financial situation, you will be able to make smarter decisions that guide you towards financial independence.

Diversify. As the old saying goes: “Don’t put all your eggs in one basket.” A diversified approach to investing will strengthen your staying power (the ability for your portfolio to withstand fluctuations in the long run). As a result of this staying power, you will likely experience steady growth over time – cushioning your assets from volatile market conditions and mitigating your losses.

Seek professional advice. A professional financial planner provides the perspective and experience you need to identify and capitalize on opportunities to strengthen your portfolio. While many “DIY” investors are well-versed in market conditions and investment strategies, they often overlook these opportunities or make unforced errors along their journey to financial independence. Even if you consider yourself an expert on investing, seeking professional advice can greatly enhance your financial plan.

As a financial planner, I have witnessed the efficacy of these strategies in guiding my clients towards financial independence. While there are a plethora of factors to consider when creating a successful financial plan, the underlying theme is simple: save money early and consistently; invest proactively, not reactively; and seek guidance from the experts.

With these stepping stones to success, financial independence is easily within your reach.

Jill Ciccarelli Rapps | èBella Magazine | May 2017

Communication can make or break any relationship, especially the special bond you share with your significant other. In particular, failing to communicate about your money can place undue strain on your marital relationship. Without proper communication, you will find it nearly impossible to appreciate your spouse’s aspirations and philosophy regarding money.

Whether you’ve recently gotten married or have been married for decades, you and your significant other will both benefit from regular discussions about finances. Open and honest communication will not only enable you to avoid common misunderstandings that lead to hurt, resentment or confusion; but will also promote your long-term financial success.

Facilitating the Discussion

As a result of practicing these healthy communication habits, you will likely reduce conflict in your marriage and develop a mutually satisfying agreement about your financial plan.

Start by discussing your overall perspectives on money. What is your underlying approach to managing your finances? Are you a spender, a saver, or an investor? What important lessons or beliefs about money have informed your opinions? You’ll want to be completely honest when discussing your perspective on money. Your personal attitudes and beliefs about spending and saving will shape your behavior; which, in turn, impacts the financial outcomes that you and your spouse will achieve.

Recognize your differences. Differences of opinion are a healthy and normal part of any relationship. In many cases, you will discover that your perspective on money does not align perfectly with your spouse’s viewpoint. Unfortunately, minor disagreements about money can bubble under the surface for years and could eventually lead to a heated argument.

To prevent this downward spiral of conflict, it may be a good idea to have a third party, such as a financial advisor or coach, to help you bridge the gap between your perspectives and goals. In doing so, you will likely find some common ground – or at the very least, reach a clearer understanding of your spouse’s financial perspective.

Identify common goals. Where do you want to be at the end of 2017? How about in five years or 25 years? Both of you should dedicate plenty of time to articulating and clarifying your goals. Then, pinpoint the similarities between your respective visions. By discussing your common ground, you will find it much easier to focus on creating a unified blueprint for your financial future.

Find a compromise. As you discover areas where you and your partner are at odds, you may need to seek a centrist solution. For example, if your partner is adamant about having cash on hand to spend freely, create a budget that allocates some extra spending money for them. On the flip side, if your partner is savings-oriented, consider how you could reduce your expenses or generate supplemental income to develop your retirement nest egg.

No matter the situation, there is usually a compromise that fulfills both of your needs and reflects the big picture of your financial plan.

Designate your “family CFO”. You may find it useful to view your personal finances in the same light as a business. Most companies have a CFO who closely monitors their cash flow, expenses and profitability. An effective CFO will analyze the data, make informed recommendations, and work with other executives to make decisions that bring about positive financial change.

In the same way, you could benefit from appointing a family CFO, who will play the lead role in managing your budget and portfolio. It is crucial that your CFO is capable of overseeing your financial plan in a way that is fiscally responsible, agreeable to both parties, and aligns with your underlying goals. While the balance of financial power in your relationship may not be equal, both of you should have some level of involvement in the decision-making process.

The Foundation for a Healthy Future

 Conversations about money can be uncomfortable and contentious for some couples. That being said, a willingness to communicate openly about your finances will help you to achieve your goals and sustain a healthy spousal partnership. By celebrating your differences, collaborating on common goals, and developing a unified vision, you can revitalize your relationship and enhance your financial wellness.

If you would like to improve your communication with your significant other, a financial advisor can facilitate conversations about money and serve as an objective arbiter for recurring disputes you have encountered. A gentle push from an expert can be instrumental in finding consensus and opening new doors in your collective pursuit of financial success.

Jill Ciccarelli Rapps | Life in Naples Magazine | May • June • July 2017

In 2016, more than 10 million Americans – about 3% of the U.S. population – served as the primary caregiver for their elderly parent. The continuum of caregiver responsibilities vary based on needs, but often involves the daily basic care needs such as feeding, administering medicine, and helping with personal hygiene; as well as financial and emotional support.

As a caregiver, your obligations to your parent or loved one can be draining – both financially and mentally – so it is crucial to have a plan in place. By preparing for your role as a caregiver, you should ensure that all of their needs are met while still taking care of your own.

Here are some key tips to keep in mind to make the most of your time as a caregiver.

Have the Conversation Early

If possible, talk to your parents before their health degrades about putting a plan in place. By preemptively addressing these concerns in advance of need, you can prevent many of the hiccups that you are bound to encounter.

First, take a look at both of your parent’s financial resources and your personal financial situation. This crucial first step can help you to determine what options are feasible for your family to consider and can help you to make decisions about filling any gaps that may lead to financial hardship.

You should also draft a living will, and establish power of attorney and a healthcare proxy. The best approach is to partner with your financial advisor and attorney to develop a plan that meets your needs.

Gather All the Necessary Paperwork

You will also want to compile all of the necessary paperwork for your loved one’s next stage in life. Create a file of their important documents and ensure that this file is kept in a secure location that can be accessed by all parties concerned.

You will need to collect:

• Income information including pension, 401(k) and retirement plans, and SSI benefits
• Savings bonds, stock certificates, and annuity contracts
• Partnership, corporate, or company operating agreements
• Tax returns
• List of all bank accounts
• Documentation of any loans, debts, or credit cards or accounts
• Copies of their health and life insurance policies
• Medicaid/Medicare information
• Social security cards and birth certificates
• Property deeds and vehicle titles
• Contact information for their medical doctors and insurance agents
• Power of attorney, healthcare power of attorney, living will, and/or authorization to release healthcare information
• Medical histories and prescription information

Develop a Budget

Once you understand the full extent of your combined resources and have gathered your key documents paperwork, you should develop a budget. Though it may be difficult to determine a budget before you know the full extent of your parent’s health care costs, a financial planner can provide an informed estimation about their living expenses.

When creating your budget, consider all costs – not just medical and hospice care, but also factor in their day-to-day living expenditures (housing, food, utilities, etc.). Determining your budget can also help you decide if your parents should move in with you, if you can leave your job to provide full-time care, or if you can hire outside help. Most importantly, a well-formulated budget can help reduce the mental and emotional stress that arise from financial woes.

Get Help When You Need It

No one will ever be able to care for your parents like you can. However, that does not mean compromising your own future financial security for the sake of being their caregiver. If caring for your aging parents becomes unmanageable, tap into some of the resources that are available in your community.

For instance, a financial planner can provide you with the clarity and insight you need to plan your budget effectively. Additionally, there are myriad benefits available through Medicare and Medicaid, as well as free or low-cost government programs that can assist you in finding quality hospice care and medical support. Make sure that you take the time to learn about the full extent of these benefits!

Though caring for your aging parent is a difficult prospect to consider, it is critical for you to develop a comprehensive plan in the event that you find yourself in this position. By properly planning for future needs, budgeting for medical and living expenses, and seeking out community resources, you can effectively provide financial and emotional support for your aging parent.

Kim Ciccarelli Kantor | Naples Daily News | March 2017

In a perfect world, you would know exactly what to do and who to call when your spouse passes. You would have checklist of key estate planning considerations, which you had discussed with your advisors and your spouse before they passed. But for all the preparation in the world, it can be difficult to know where to start amidst the sorrow and grief of losing your spouse.

Of course, your first responsibility is family: handling all of the necessary arrangements for your spouse’s funeral and coordinating with your family members. Next, you need to notify your advisors – specifically, your attorney and your family financial advisor – and set up a meeting to gain a better understanding of your responsibilities as the surviving spouse.

Unfortunately, many people fail to adequately prepare for their spouse’s death. Of course, most people execute and sign their key estate planning documents in accordance with their wishes. They work with their financial advisor to name beneficiaries and properly title assets. They open a safe deposit box and make sure there are multiple signors. They secured their domicile and filed the necessary homestead papers. They prepare a balance sheet or a ledger of assets.

While all of these steps are necessary and valuable to the estate planning process, these actions will not sufficiently prepare you for the reality of losing your spouse.

By completing a thorough post-death dress rehearsal with your spouse and advisor team, you will effectively bridge any gaps in your plan that could undermine the proper execution of your estate. Create a comprehensive list of the most important priorities to contemplate at the time of your spouse’s death. As morbid as a post-death rehearsal may sound, a detailed rundown of your responsibilities will prepare you for the worst imaginable scenarios.

For instance, pre-death planning is especially imperative if both you and your spouse are deceased or incapacitated, and you need to defer to your Power of Attorney or successor trustee for oversight. Without a complete understanding of your responsibilities after your spouse’s death, that situation could be a total nightmare.

Your life plan hinges on how well you settle your affairs and the decisions you make. Prior to meeting with your advisors, claim nothing, make no decisions, and do not inform institutions of your spouse’s passing. Instead, gather information in preparation for this time together. Visit your safe deposit box, and bring your original estate documents and your spouse’s death certificate. Review your cash balances in accounts that are in your name – both individual and joint – to ensure that you have “operating” funds during the estate settlement process. Create a list of funeral expenses and medical bills – but wait to pay until you’ve met with your advisors.

During the meeting, talk earnestly with your advisors, who are well-versed on your personal circumstances as well as the planning and distribution options under your plan. Have your advisors review a flow chart of how your affairs should be handled, as well as a checklist of items you will be required to complete in accord with your attorney. Determine who will handle your required income tax return filings, and be sure that creditors are notified if a formal process needs to be followed.

If you need more clarity about your immediate duties after your spouse’s death, run through the process before they pass away. Evaluate your list of executor activities, and seek out estate planning opportunities that allow you and your family with the flexibility you need.

Most importantly, address the question: “What are my most timely priorities?” Then, begin to move forward.