Kim Ciccarelli Kantor  |  Life in Naples Magazine  |  May 2014

Charitable giving is a precious gift and a way to join together with family for a common goal. Here is an example of a Letter to family:

“Dear family,

In our hearts, we hold a special place for those organizations who have directly or indirectly served our family, our community or country. As a family, we have united together for common interests and strive to continue the best level of gifting we can do. From the interactions we experienced, we found a common element that is necessary with all families…the art of giving.

Charitable giving, either with our time as volunteers or monetary support through financial resources, has been integral to how we live.  As a side line benefit, we have been able to maximize our legacy, financial and otherwise, by minimizing taxes and uniting family members with differing financial capabilities. We have found a common thread among families that is not painful – the art of philanthropy – and giving money that has been set aside to gift was something not only worthwhile but feasible.  It can actually be done.

Our purpose is to continue the enriching experience we gained during our lifetimes through our family Donor Advised Fund. We are making an additional gift to this fund at the time our legacy passes to you.  It is your dad’s and my hope that as you work together in addressing issues, challenges and celebrating differences and successes of family members, you will unite together for important work to support charitable interests that need you.

Use our fund to bring together the younger generations, your children, nieces, nephews… our grandchildren and great grandchildren as they are so bright a generation and can get involved by researching charities that may benefit from a gift or that need help with a project.

If we have not yet done so, develop a family website where formal grant procedures can be put in place. Your families can share what is most important to them in addition to the philanthropic common element on an ongoing basis. Young members can develop the important art of giving back by preparing presentations and interviewing the organizations, followed by volunteer work.  They can tell of their experience and why the charity of their choice should be granted an award from the family DAF charitable fund. The family can work together to make decisions on how much should be given.

They can learn to review portfolios and, as a great side benefit to all this, work towards a common mission to develop the ability to have intelligent, open discussions about money. An outcome can be seen through development of a family mission statement of your own. Learn the art to facilitating a family meeting where you can set an example for the fiscal responsibilities they will assume with our and your legacy one day.  They will develop legacies of their own that will extend beyond this charitable fund. They may gift to this fund on their own and help to grow it, and the continued endowment to fund great purposes for nonprofit organizations in the communities which they live.

In the businesses you work, focus a piece of your time and resources on philanthropy. We have been blessed and can help. Love Mom and Dad”

Seek the privileges of giving back and search out the options that fit best for your family. They will appreciate what you pass on and the gift you leave them of giving.

Kim Ciccarelli Kantor  |  Life in Naples Magazine  |  April 2014

Managing change, our only constant, is for some natural and for others an increasingly difficult task.  When raising families, succeeding in careers or entering stages of life such as retirement…..we step in to a circumstance and manage through it. If we are visionary, we see it first and plan for it. Developing your legacy is a lifetime journey and passing it on can be limited to a one-time challenging event. This is true whether we talk of intangible things we pass or financial assets to family, friends and colleagues.

In this world of many options, your legacy planning is a journey for your family. It need not be a crisis, in many cases it is a time when families come together and appreciate the gift of values, philosophies, experiences, parenting and financial successes that are being entrusted to them. In some cases, families have tested the waters to see how well they might work together, for example with a Charitable Fund or Foundation, a business/investment venture or a dynasty trust established during a lifetime, to name a few premier choices.

Your professionals are a resource for you. The value of their time and yours is to join your personal legacies and family history with the journey you wish to have continued when you pass on your financial legacies. With over 5000 tax law changes in the last 20+ years, the technical side is best left to the professionals, but your active and meaningful preparation in composing your estate plans do make the difference; bridging effectively your thinking as you solidified your planning with the actual passing on of the financial estate to your heirs.

Whatever your desires, be flexible where it is needed, and perfectly defined and specific where required. Of most importance, evaluate your family members’ capabilities and desires to serve specific roles or inherit specific assets. Sometimes a parent’s understanding of what their child’s role should be changes dramatically when further discussion ensues.

Our current estate tax statute stems from a bill that was passed in 1916, but the estate tax law began early in 1797 when revenue was needed to finance the crisis with France. It was imposed on legacies and personal property that passed on without a will. In 1802, when the crisis ended, the tax was repealed only to be reintroduced much later during the Civil War era in 1862. The complexity continued adding a stamp tax on probate. In 1864, a succession tax on real property was added, only to find both taxes repealed by 1872.

During this time however, the concept of limited exemptions was introduced. Minor children were allowed an exemption up to $1,000. Congress, 22 years later added the inheritance tax imposing taxes on gifts and inheritances. This was in 1894 and was included with the tax imposed on interest and dividends in US Banks. The Supreme Court found this tax unconstitutional and shut it down, only for Congress in 1898 to pass another inheritance tax whose purpose was for military emergencies, repealed in 1902. The exemption at this time was $10,000 for spouses and estates.

Our current bill stems from the tax statute passed in 1916, followed by the introduction of the gift tax in 1924 (repealed 1926). In 1932, Congress passed the foundation of the Gift Tax law we know today, combined with the unified credit rules in 1976.  And the list goes on for tax enactments and subsequent repeals.

Change has always been a constant. And nothing is different when it comes to policies and taxes.  Seek out your attorney’s advice as to how best he can draft your wishes and be sure to tie everything together with your family advisor.

The views expressed in this newsletter may not reflect the views of FSC Securities Corporation. Although the information has been gathered from sources believed to be reliable, it cannot be guaranteed. Federal tax laws are complex and subject to change. This information is not intended to be a substitute for specific individualized tax or legal advice. FSC Securities Corp. does not offer tax or legal advice. As with all matters of a tax or legal nature, you should consult with your tax or legal counsel for advice.

Kim Ciccarelli Kantor  |  Life in Naples Magazine  |  March 2014

The IRS will see flow through its doors, or its computers, nearly 150 million tax returns. More than 50 systems are needed to process these tax returns that are based on reporting what occurred and how much we owe. It’s been vague to us why we label this filing as a “return” when the funds didn’t originate with the IRS.  This connotation has no resemblance to the retail world, of course where items are returned for cash or store credit. The IRS lives in a different world…..a phrase used often regards our ability to control many things, but death and taxes. We can, however, play a significant role in the outcome of both of these.  A difference can be made if you plan wisely before you are upon either of them.

With 90% of the IRS operations closed during the shutdown, they are in for a very tight timetable to be ready accepting returns by the January 31st announced date. Many Americans who are fortunate to have tangible and intangible invested assets will file much later as tax information is received. Some may defer and elect an automatic six (6) month extension. No one likes to pay the bill, and the bill must be settled by April 15, regardless of when you actually file. This is the not so great part.

What we do love at our firm about tax time is the value you receive if you approach your tax information with an insightful eye. Leave the details to a great accountant for your filing, but know your role is to decipher this information and use it as a planning guide and tool. This is not the role of your CPA and many confuse the two areas of tax preparation and tax planning. “Preparation” reports what occurred, “planning” proposes a specific outcome you are looking to achieve and planning for it well in advance. Every report-1099s, W-2, 1098, 1041, K-1, schedule C, the list goes on, tells a story. In the compilation of your information, keep a keen eye and then take the time to bring this information into a different light. This period is the most insightful look/see to how you are handling your financial endeavors, and what opportunities for improvement stand before you:

Review your itemized deductions – should you be doubling up on real estate taxes paid into the same year, can your medical expenditures be more effectively directed for improved health or less cost, should charitable gifts be given from stock or your mutual funds rather than cash, would a one time “charitable donor advised fund” provide a tool in a particularly high income year for future gifts you wish to make? Compare your last two years of itemized deductions and determine any trends that need consideration for your cash flow planning.

Review your front page on the 1040. What are the income sources and will there be significant changes in the upcoming year? Is there income from a Trust? If so, review your k-1 with your investment firm to determine the origination of the income and whether it will be consistent in your cash flow. Determine if tax planning may be accomplished within the Trust.

How will the new tax on investment income effect your liabilities going forward on your dividends and capital gains? Are there distributions received from pensions, annuities or IRAs? If so, is principle being depleted due to these distributions? Is there choices in how this income is received? What are the spouses surviving benefits should you die? These and many more questions and insights can be stimulated just from an overview of your return at the appropriate time.  Best of success in understanding the rich rewards that can follow.

The views expressed in this newsletter may not reflect the views of FSC Securities Corporation. Although the information has been gathered from sources believed to be reliable, it cannot be guaranteed. Federal tax laws are complex and subject to change. This information is not intended to be a substitute for specific individualized tax or legal advice. FSC Securities Corp. does not offer tax or legal advice. As with all matters of a tax or legal nature, you should consult with your tax or legal counsel for advice.

Kim Ciccarelli Kantor  |  Naples Daily News  |  January 23, 2014

Dealing with the financial histories of clients over the past 30 years has been a very valuable asset; a priceless treasure of experience and knowledge shared. If only these experiences and knowledge of our senior citizens, “the grandparents and parents” of our country, could be bottled and then digested by young adults, children, and grandchildren, it could be a very important step in the right direction.

This valuable source of information could alone help us make better decisions. No matter your age, the future starts right now, and the learning process never stops.

What advantages do our parents and grandparents offer us? They have gone past the idiosyncrasies that sometimes blind those of us in the trenches. When information is passed along to us from them, it is genuine. They are not motivated by an ulterior purpose.

I have noticed in my career that our senior citizens are not afraid to admit mistakes. They are honest and tell the truth inherent to affluence, to gaining knowledge, and to balancing our lives. Seniors are usually anxious to share, yet too few families benefit from this. Experienced investors and “survivors” have seen plenty of get-rich-quick schemes turn into quicksand. Today, in their later years, they understand the patience necessary to accomplish the goals they have defined for themselves. A wonderful attribute in sharing the retirement stage of my clients’ lives is that they know the difference between excuses and reasons; something the younger generation seems to have lost sight of. Our attitudes, as the younger generation, have to be re-cultivated and focused so that our perceptions are open to accept what life gives us, and to make the very best of it. Our attitude is most important.

Our parents and grandparents understand the necessity of sensible risk-taking. They lived through “the guarantees” of a proper retirement earning “good money” if they went to work at the local factory for X dollars an hour. They know they were taught wrong, only because of the lack of knowledge their parents had who did not understand taxes and inflation as the older generation does today.

Over the years, I have asked my older clients why they have not shared more of their experiences with their children and grandchildren. The answers were more common than unusual: “They have no interest” or “They haven’t asked.” In the process of estate planning, particularly open communications are vital. Sharing financial experiences can encourage
brighter more capable children.

I have asked younger family members why they did not “ask” or “have an interest.” I was surprised that in most cases they did not know how to ask and they do have an interest and a desire to learn.

Some suggestions for questions to open the door to meaningful communication with your senior mentors might be: What would you have done differently in your life if you had the choice? What were your goals when you were my age and how did you define them? Who were your mentors? What were the greatest tragedies in your life? What were your happiest
moments?

Balancing your attitude and financial decisions properly can be a difficult challenge; let’s seek all the experienced help we can and use it wisely. If only there could be a course on this.

I encourage you to seek experience and wisdom. Telephone your mom or dad, or grandparent today and schedule a breakfast. Ask questions that can lead to important research or homework necessary to make good decisions in our life experiences. You may find their primary purpose is for your happiness.

Kim Ciccarelli Kantor  |  Naples Daily News  |  December 11, 2013

There could come a time when the selection of a nursing home is necessary. Aside from what is generally a stressful and emotional time for the family, a “special needs” family member requires proper decisions made on their behalf.

Nursing home care can range from skilled to intermediate to custodial care. Nursing homes are for individuals who cannot do things for themselves. It is possible that the family is forced to choose a nursing home because a family member is being discharged from a hospital, and needs full-time care. Regardless of the circumstances, the selection of a nursing home can be one of the most expensive and ill-informed decisions a consumer can make. Often, families or caretakers are facing the selection of a nursing home during a time of crisis and have time constraints that hamper a well informed decision. The selections may be limited depending on the geographical area and/or financial capabilities. Families should become aware of the type of facilities available should the need arise, regardless of whether the requirement is an interim stay or a permanent stay.

First, contact the area agency on aging, county departments of social services, or other senior housing referral sources. In our offices, we try to maintain information on retirement communities and full care homes for our clients. Lifetime care is an integral part of a family’s financial and estate plan. There are several choices you could look at:

• Senior retirement housing
• Personal care boarding homes
• Adult foster care
• Homemaker services
• Home health care
• Home and community-based services

The type of setting you choose will be dependent on your special needs, the family member’s physical health, and mental ability; you will want to carefully select just the right setting for your loved one.

Some of the steps you may want to start within your search could include:

1. Visiting the retirement community and meeting personally the administrator and the staff. This should help you determine how they work with the people for whom they are caretakers.
2. Studying the general appearance and cleanliness of the community. Is it a pleasant environment?
3. Inquiring about the size of the staff, the turnover employment rate, their qualifications, and how well they like their work. Determine how many staff per residents, and if round-the clock care is available, and if needed, at what additional fee.
4. Observing the general activity and care of the residents.
5. Visiting the community around meal time to see the quality and palatability of the food served to the residents, noting the dining area’s attractiveness.
6. Consider the visiting hours available to guests and family, accessible outdoor area for residents, availability of telephone, and wheelchair accessibility. Is it a secure facility from the standpoint of security, as well as for the resident’s protection from wandering, etc.?
7. Other questions to ask may be related to the variety of programs and activities available for residents, both with the home and as a field trip.

An important part of caring for a family member who is living at the nursing home is the family’s participation in patient care conferences.

Federal law provides for a nursing home resident’s “Bill of Rights” and a list of these rights, not a summary, should be provided when the individual becomes a resident of the home. These rights are designed to insure the dignity and respect of the resident. The contract with the home should make reference to the resident’s rights. Other considerations should include Medicare acceptance, medical consents, the use of blanket waivers, responsible party(s), the admission agreement, transfer and discharge policies, bed-hold policies, notice time of any changes, and grievance procedures.

Begin doing your homework early on so you as a family may become comfortable with your planning when and if the need arises for nursing home care.

Kim Ciccarelli Kantor  |  Naples Daily News  |  November 15, 2013

When I was young, learning about money was a natural occurrence in our household. My parents insisted we learn about being Entrepreneurs, and we learned that knowledge itself could create wealth. Early on, we were encouraged to read and write and were compensated accordingly – $1.00 for a poem, $5.00 for a book report. We were given incredibly large zllowances. With this money, we were responsible for our school lunches, our supplies, and recreational activities. Each of us quickly developed spending or saving habits. These habits form when children are young, and it is our responsibility as parents to help our children learn the value of money. As soon as children can count, introduce them to money. Take an active role and regularly communicate, as they grow, about your values, money and how to save it, make it grow, how to use it sensibly and most importantly, how to spend it wisely. Support your children in developing good spending decisions and learning the difference between needs, wants and wishes.

Children can absorb information quickly, and it is with perseverance we teach them the concept of compound interest. Encourage them to save. Pay interest on their savings or develop a matching program. If you give your children an allowance, say – $5.00, give it in such a way that makes saving easier. If five $1.00 bills are given, then encourage one $1.00 to be saved. The amount is not important; developing the habit is.

Teach your children/grandchildren priority spending. If they have $10.00 to spend today, what could they buy if they chose to save? Teach your child to do his homework and compare for value, quality, quantity, etc.

Encourage young people to make spending decisions, whether good or poor, and then encourage a discussion of pros and cons — before spending takes place. Teach children about spending by choice, choosing from several items, and then narrowing those choices once the decision to spend has been made.

Helping your child evaluate media and marketing ads and differentiate between expense and value can be a worthwhile education to their money success in the future. Daily, our children are encouraged to spend. Oftentimes, the item is not even needed or wanted, but nonetheless, we buy. Equally important is the ability to use credit wisely. Alert young people to the dangers of buying and paying interest. Charge interest on small loans you make to them so they can learn how to evaluate the cost of renting someone else’s money. For example, buying a bike for $499 over 18 months at 18.8% interest or $31.85 per month really means a true cost of $575.00 for the bike. In actuality, the cost is higher. The loss of earnings on the child’s money has to be also calculated. If $31.85 per month was saved at an interest rate of 6.0%, the total would equal about $620 after 18 months. The child could then pay $499 cash for the bike and still have $121 in savings.

Credit cards for young children can be a learning experience or a disaster. Emergency use can be helpful, or having a credit card to establish good credit is fine, but a child should learn that credit cards should not be used for cash advances, or “wants” when the money is not available to pay cash. The National Center for Financial Education (www.nationalfinancialeducationcenter.org), offers books and resources for young children and young adults that encourage proper education. These are great birthday gifts or Christmas stocking stuffers.

Establish a regular schedule for a family discussion about finances. Topics can include spending, use of credit, savings, investment growth, and the effects of the earning. Be creative. Above all, teach your children/grandchildren that money is relatively unimportant, and the way to keep it this way is to have it, respect it, so that we may concentrate our energies on the real priorities of life. Help to assist your children/grandchildren to develop a net worth, cash flow statement and implement a spending plan. The basics will remain through their lifetime. The differences will mostly be in adding zeroes to the numbers as the years go by.

Good luck! Good Teaching.

Kim Ciccarelli Kantor, CFP® CAP™ is president and founder of Ciccarelli Advisory Services Inc., a Family Focused Wealth Management Firm in Florida and New York.

Kim Ciccarelli Kantor  |  Naples Daily News  |  October 24, 2013

Donor gifts come in all forms: artwork, furniture, clothes, stocks and cash, to name a few.

Some donors create charitable trusts for future gifting, and others create a continued legacy through a family foundation or community foundation family fund.

Are you making direct gifts or leaving a bequest by will? If so, it will benefit you to review the many charitable giving plans available. By creating your own specifically designed philanthropic plan, more significant benefits might pass to your selected charities, with a greater personal fulfillment for the family.

Gifting through a donor advised fund is one such example. This DAF, coordinated with a charitable remainder trust, provides tax benefits and current income. If desired, the DAF can continue as an endowment after your lifetime to involve your children and grandchildren in philanthropy.

The key is to discuss your wishes first, then discuss options best suited to your needs with a competent adviser versed in charitable planning.

A Charitable Reminder Trust, for example, is a split-interest trust. More than one beneficial interest exists in the trust. One interest belongs to income beneficiaries who receive income for their lifetimes.

The second interest are charitable organizations named to receive the assets after the death of the last surviving income beneficiary.

If your trust already exists, the second interest beneficiary can be updated to a modern day DAF.

And, to ease any administration or due diligence, more clearly focusing the family’s efforts on the charitable work, a local community foundation can partner with you to accomplish what is most important.

The trust is a complicated document, but a flexible, useful document for your philanthropy. The design world of trusts is anything but limiting.

A CRT is a tax-exempt entity. As a general rule, income taxes and estate taxes are not paid by the trust. This permits a tax-efficient method for investing portfolio assets. There is generally no tax on property transferred to a trust.

An exception would be the transfer of your IRA or deferred annuity assets during your lifetime. The trust is irrevocable and the ultimate beneficiary is your designated charitable organization. This organization might be your DAF. Proposed tax laws might adjust the amount of available deduction, so be sure to check with your advisors before proceeding.

As income beneficiary, you have two choices for income: receive a fixed income yearly amount (annuity trust) or a defined percentage of the value of the CRT assets (a unitrust). Once established, additional future gifts can be made only if you select a unitrust.

An annuity trust or unitrust, might invade principal to pay out the income beneficiary, but care must be taken that a charity ultimately will benefit. Additional trust designs apply if you wish to defer cash flow from the trust, or wish not to invade principal.

The creator – you – may retain the right to change charities that ultimately benefit from your kindness. This gives you a flexible, lifetime customization plan for favored charities. You also might consider a donor advised family fund as beneficiary under the local community foundation. The ease to update beneficiaries or define a special interest gift can be captivating.

A community foundation removes the administrative burden of planning a continuing endowment for several charities, or distributing desired gifts. A DAF can accept the gifts from your CRT at the last income beneficiary’s death.

Kim Ciccarelli Kantor, CFP® CAP™ is president and founder of Ciccarelli Advisory Services Inc., a Family Focused Wealth Management Firm in Florida and New York.

Kim Ciccarelli Kantor  |  Naples Daily News  |  October 10, 2013

Markets all over the world are interrelated and the striking resemblance of good times and bad times has in recent times become more apparent.

Confidence in investing, when markets have turned sour, is often a challenging task.  Keeping a straight head and having staying power is even more difficult.  Patience is a promising word in an uncertain time for investors.  “Patience” is something we must learn.

Consider your reaction to fluctuating and declining stock prices.

Are you a committed long-term equity investor?  If not, and you are invested in equities, then it’s time to learn just how to become committed.

If you cannot accomplish this goal, then your reactions to temporary market declines will precipitate in insane actions.  You may inadvertently lock in your losses forever.

Stock market corrections are in inevitable part of investing.  This, of course, does not make them any more pleasant an experience.

When any crisis or tragedy hits, you must keep a straight head.

This same advice applies to the market.  Adhere to the most obvious advice from experts.  Don’t run too briskly in any direction during pronounced volatility.

If you feel panicky, take a deep breath, take a walk, listen to music, pray or talk with your financial advisor.

Do not let short-term volatility deter you from staying on course with your long-term objectives.

Develop staying power.  This is especially important for retirees who take cash flow from their portfolios.  Review your income needs and expenditures.

Are you withdrawing too much from your portfolios, and if so, what adjustments would make sense?  Study options for alternate sources of cash flow.  Plan ahead 9 – 12 months and be sure you are either holding some liquid cash reserves or have immediate access to obtain them.

Review tax-planning techniques.  Perhaps there are tax advantages that can reward you and help leverage the value of your portfolio.

If you are living on dividends, your income stream may not be immediately affected; however, if you depend on the sale of equity shares, be careful.

Provided you hold your share count constant, you have the ability to earn back your principal.  Should you start liquidating stock shares at an advanced rate in a declining market, your income may be affected dramatically over the long term.

The patience of investors has been repeatedly tested over the last year in most global markets.  To live with varying markets decline, several rules must be followed:

1. Keep a straight head.

2. Develop staying power.

3. Smart money remains invested.

4. Focus on long-term goals.

5. Maintain a diversified portfolio.

6. Invest regularly in both bear and bull markets.

7. Consider tax opportunities.

8. Talk with your financial advisor.

What a wonderful world we live in and what a great opportunity we have to be shareholders of some of the best companies in the world.

The long-term fundamentals of a good business will ultimately reward its investors.  Think sanely and make sound decisions, especially in difficult times for markets or you personally.  Remember, these too shall pass.

Kim Ciccarelli Kantor, CFP® CAP™ is president and founder of Ciccarelli Advisory Services Inc., a Family Focused Wealth Management Firm in Florida and New York.

Kim Ciccarelli Kantor  |  Naples Daily News  |  September 18, 2013

Investing is not only about money. It is mostly about a frame of mind that gives you the focus you need to be a successful investor.

A task often mistaken for success is the selection of a particular stock, rather than the fact that you choose to buy stocks. Successful investing requires a disciplined approach to decision making. It’s about proper planning and sticking to that plan.

The right mindset, combined with the appropriate knowledge, can help enable you to become a successful investor. Follow these six basic steps to help you on your road.

First, define your objectives. Your primary financial goal will lend a hand in shaping your portfolio.

Second, design your asset allocation, with the first task in portfolio construction to determine your risk tolerance levels. Asset classes such as stocks, bonds, cash, real estate and foreign investments are not equal in volatility and performance.

Third, evaluate your need to diversify. Be diversified in your portfolio selections in accordance with your tolerance for risk and volatility. Over-weighting in any one area can add more volatility to your portfolio and may not reward you accordingly. A diversified portfolio should, at the very least, carry weightings in large cap growth and value stocks, small/mid cap growth and value stocks, fixed equivalents and foreign investments.

Fourth, take time for review. Success in reaching your objectives may depend on how much time you spend in honest evaluation. Answer questions that describe your objectives. Are you seeking preservation of principal and a moderate amount of current income? Do you need income, or do you want growth?

Five years from now, what do you expect your standard of living to be – the same, somewhat better, or substantially better than now? Do you envision your investment portfolio to be worth the same or a little more than it is today, moderately greater than it is today, or substantially better? Be honest with your answers. This self-reflection is really important.

Fifth, decide what to do with the income generated by your investments. The choices might include receiving all the income, receiving some and reinvesting some, or reinvesting it all because a need for current income does not exist. How do you feel about the long-term prospects for the economy? Are you pessimistic, unsure, somewhat optimistic or very optimistic? Certainly, your view impacts the direction you set for future investing.

Sixth, be realistic when setting a time frame for achieving your goals. Do you need your portfolio within 5 years, 10 years, 15 years, or beyond? A common failing is not matching investment selections with the proper time horizon. For example, placing assets needed within three years into stocks could backfire if the economy is not robust during that time.

Do you have the right mindset for investing? If your portfolio value suddenly declined by 15% (or by 50%) would you: Be very concerned because you cannot accept a fluctuating portfolio? Be unconcerned if income you were receiving was unaffected? Be wary, but know that you are invested for the long term? Or, would you be unconcerned because it’s part of long-term investing?

A proper mindset, combined with a disciplined approach in portfolio design, will greatly enhance your opportunities for becoming and remaining a successful investor.

Kim Ciccarelli Kantor  |  Naples Daily News  |  August 29, 2013

Priority spending is more of a buzz word around our house than the word “budgeting.”

Somehow, the thought of a budget brings negative connotations. A more positive experience is to choose how you wish to spend your discretionary cash flow. A mentor once told me money was meant to be relatively unimportant.

However, to keep it this way, one had to be in a position of financial security and confident that money need not become an issue.

Financial security does not have the same measurement for everyone. How much in financial assets you need is your choice. The key to success is finding that balance in your life which allows you to devote your time to those things that are most important to you.

For some, this may be family, faith, business or health matters.

The workplace today and the investment arena provide unlimited rewards not only monetarily, but personally. Young adults have the capability to plan out the lifestyle they seek. Putting money to work today with the multitude of investment choices is easy. Growing financial assets can be a reality for everyone.

Today, more individuals participate in the stock and bond markets than ever before. With the right investment philosophy, when $1 becomes $2 and $2 can become $4, money no longer needs to be an issue. Managing financial security properly does not stop with investment management.

It continues with the discipline of how you choose to spend your free cash flow.

Every day you make decisions on how to spend your money. Will you travel? Go to dinner? Purchase real estate? Buy furniture? Perhaps buy a car? Or invest in the market? Will you do your homework when purchasing and determine if you want the extra sports car today or a family cottage on the lake tomorrow?

What are your priorities? If it is to have a vacation house you can take your family to, and then structure your investments now to provide the capital you will need in the future.

Spending your available cash flow now on a car can negate the possibilities of a cottage purchase several years from today.

Those individuals who have found financial security have done so because they rationally think through the financial decision they make every day.

A form of measurement is applied when a dollar is spent versus invested. Spending a $1 today does not only cost that $1, but it costs the lost opportunity of what that $1 could do in your portfolio. If you can view your spending as a “priority spending” decision, you will perhaps become more disciplined in how you spend, save and invest.

Write down your short term and long term goals, work toward them and measure your progress for a confident financial journey.