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Page 1: Retirement & Financial Planning
Page 2: Retirement & Financial Planning

Is YourRetirement Plan

Healthy?

150 Magnolia Square Court | Aberdeen, NC 28315 | www.helpingseniorsplan.com

Call Jeff Gollehon, CLU, CHFC910-944-0575

Get a FREE Check-Up

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Call Jeff Gollehon, CLU, CHFCJefff Gollehon, CLU, CHFC910-944

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150 Magnolia Square Court | Aberdeen, NC 28315 | nolia Square Court | Aberdeen, NC 28315 | urt | Aberdeen, NC 28315 | NC 28315 | .hwww helpingseniorsplan.comlan.com

Page 3: Retirement & Financial Planning

Why Choose a Qualified Kingdom Advisor?There are a lot of qualified financial advisors. But can they help you be a faithfulsteward of the finances entrusted to you?

As a Christian striving to live a life of purpose and contentment, you need an advisorwho can give you advice based on the biblical principles of stewardship.

At Hicks & Associates, we share your Christian world view. We’ll help you create afinancial plan that aligns with your deeply held values and beliefs.

C. Theodore Hicks II, CFP®Financial [email protected](910) 692-5917

www.ameripriseadvisors.com/theodore.2.hicks

HICKS & ASSOCIATES

A financial advisory practice of Ameriprise Financial Services, Inc.

Brokerage, investment and financial advisory services are made availablethrough Ameriprise Financial Services, Inc. Member FINRA and SIPC. Someproducts and services may not be available in all jurisdictions or to all clients.

Ameriprise Financial is not affiliated with any religion or faith-based financial ad-visor organization.© 2012 Ameriprise Financial, Inc. All rights reserved. 137122MR0512

Page 4: Retirement & Financial Planning

retirement & financial planning | 4

For Advertising Call 692-7271©2012 The Pilot Newspaper. Content provide by Content that Works,ineedagreatstory.com and Metro Creative Srevices.

WHAT’S OLD IS NEWAND WHAT’S NEW ISWELL, UHM, NEW?Page 6

5 TIPS FORCUTTING DEBTPage 8

HOW MUCH DO INEED TO SAVEPage 10-11

HOW TO BUILD ACOLLEGE FUNDPage 12-13

SAVING & INVESTING:WHAT NEXT?Page 14-15

SAVING FORRETIREMENT:THE TIMELINEPage 14-15

BEGINNER’SGUIDE TO BUILDINGA BUDGETPage 18

RETIREMENT LIVING:SHOULD WE STAY ORSHOULD WE GO?Page 19-20

ON THE WAY TO AFINANCIAL PLANPage 21

RETIREMENT RETROFITPage 22-23

SENIOR CITIZENSORGANIZATION TO GIVEWORKSHOPONLONG-TERM CARE PLANNINGPage 24

SIMPLE MEANS TO |SAV-ING MONEYPage 25

DELAYING RETIREMENTHAS FINANCIAL,SOCIAL BENEFITSPage 27

HOW TOMANAGEPERSONAL DEBTPage 28-29

Contents

Page 5: Retirement & Financial Planning

Chances are, someone you know has received some form of long-term care in the past, or is currently receivingit now. How did they plan for it? What were their options? Did they use their savings, long-term care insurance,Medicaid, or Veterans benefits to help pay for their care? Was their home “protected” from their costs? I hearquestions like these every day, and unfortunately, most of us don’t know where to turn to get the right answers.With the average cost for nursing home care exceeding $7,000 per month in the US last year, we can’t afford tokeep this type of planning on the “back burner” any longer. Are you willing to risk your FINANCIAL SECURITY andFUTURE HEALTH CARE by assuming you’ve already “taken care of things?” Let me show you how to protect yourlife savings.

I’ve acquired a wealth of knowledge and experience in the area of long-term care planning over the span of my career as an elder law attorney, and I want to share it with you. I want to provide you with the necessary tools that will allow you to make the right decisions for your financial security. If you need a review of your current long-term care plan or assistance in creating and implementing a plan, I can help.

LONG-TERM CARE PLANNING

Southern Pines: 910-692-4444129 E. Pennsylvania Ave.Southern Pines, NC 28387

Fayetteville: 910-323-52552529 Raeford Rd.Fayetteville, NC 28305

www.ElderCareLawFirm.comToll free: 800-491-6556Fax: 910-401-1416

Member: National Academy of Elder Law Attorneys. VA Accredited.

Jason Sutton, Attorney

ELDER CARE LAW FIRM, PLLC

Q: What is long-term care?Long-term care is defined as the care needed when an individual needs assistance with performing two or more of his/her “activities of daily living” (i.e. bathing, dressing, eating, transferring, toileting and conti-nence). This care can be provided in one’s home, an assisted living facility or a skilled nursing home. The care is either provided by family members or licensed caregivers.

Q: How much does long-term care cost? In 2011, the national average for a one-month stay in a skilled nursing facility was $7,148 ($85,774/yr). The national average for a one-month stay in an assisted living facility was $3,270 ($39,240/yr). The national average cost for a home health aide is $20/hr.

Q: How is long-term care paid for? In 2011, nearly 3 out of 5 nursing home residents relied on Medicaid to help pay for their care. The other individuals relied either

on long-term care insurance, Veter-ans benefits, their own savings and resources or a combination to fund their nursing home care needs.

Q: Why should I plan for long-term care? Planning for long-term care gives you peace of mind know-ing you’ve done all you can to protect your life savings in the event the need arises. With the costs of LTC in-creasing each year, no one is immune to the potential financial devastation long-term care could cause.

Q: Does our government give us any incentive to plan for our long-term care needs? Yes. Currently there are some tax advantages to investing in long-term care insurance. However, our biggest incentive came January 1, 2011, when NC signed into law the Long-Term Care Partnership Program. This program encourages us to plan for our future long-term care expenses using long-term care insur-ance with the security of knowing that if we exhaust our insurance there will

still be some help available through the Medicaid program.

Q: Can’t I just wait until the need arises and then plan for my care?Planning can be done at any time. However, planning before the need arises gives you the opportunity to utilize more options and strategies to protect your independence and the control of your assets.

Q: What if I already have a loved one needing long-term care?Planning can be done at anytime, even if your loved one is already in a nursing home! It’s amazing how many people think it’s too late to protect assets because their loved one has already been diagnosed with dementia/Alzheimer’s or is already in a nursing home. No matter what your current health status is, long-term care planning can still be financially beneficial. Whether you’re healthy and in no need of care or you’re already receiving care, you need to know your options.

LONG-TERM CARE PLANNING FREQUENTLY ASKED QUESTIONS

Jason Sutton is the founder of The ElderCare Law Firm, PLLC. He earned hisBachelor of Science degree in BusinessManagement from North Carolina StateUniversity, while on a four-year athleticscholarship to play varsity basketballfor the Wolfpack. Mr. Sutton earnedhis Juris Doctorate from CumberlandSchool of Law at Samford Universityin Birmingham, AL. In addition to beinga member of the North Carolina BarAssociation, Mr. Sutton is also a memberof the National Academy of Elder CareAttorneys (NAELA). As a member ofNAELA, he strives to raise his practiceto NAELA’s Aspirational Standards, andto conform his practice of Elder Law toNAELA’s mission to establish NAELA asthe premier providers of legal advocacy,guidance and services to enhance thelives of the aging population and peoplewith special needs.

www.ElderCareLawFirm.com 800-491-6556

Our Services Include:Long-Term Care PlanningAsset Preservation PlanningMedicaid PlanningEstate PlanningEstate and Trust

AdministrationPowers of AttorneyHealth Care DirectoriesWills and TrustsGuardianshipElder Abuse

Page 6: Retirement & Financial Planning

For those of us that lived themajority of our lives in the lastcentury, it was a time of trueachievement. Man kind’s social,economic and technologicalaccomplishments were unprece-dented. According to experts, weachieved more and grew fasterduring the 20th century, than anyother time in the history of man.Some even propose that we grewmore in that last decade of the20th century than we had in thepreceding ninety years.Depending on exactly when you grew up,it probably seems like only yesterday whenyou were sitting in the movie theater watch-ing either Buck Rogers, Forbidden Planet,2001 a Space Odyssey, Star Wars, InspectorGadget or The Matrix. The predictions ofhow we would live seemed unrealistic, tosay the least. Amusingly enough, when onewatches one of these older Sci Fi moviestoday, we are often amused at how “nearsighted” some of the movies actually werein their portrayal of the future. Despite ourinability to “Beam me up Scotty” or travelat the speed of light, most of us areexperiencing today what we could onlydream of yesterday.Interestingly enough, this technology weall seem to take for granted today, has hadan amazing impact on our investments.Not only the “real time” data that is avail-able to anyone who wants it, but the speedin which information is transmitted, news ismade available and inevitably the speed inwhich fortunes have been made or lost.While the technologists, planners, engi-neers and others were dutifully making ourconsumer electronic and computing dreamscome true, there were others that were re-examining the way we invest. More specifi-

cally, the way we were investing incorrectlyor inefficiently. It was at this time, 1952,that a gentleman by the name of HarryMarkowitz, first introduced the world toModern Portfolio Theory, or MPT as it isknown today. This was followed up by hisbook on the subject in 1959. Although weall refer to it as Modern Portfolio Theory,Dr. Markowitz himself referred to it simplyas Portfolio Theory. Markowitz believedthat there was really nothing Modern aboutit at all.In the decades that have followed we haveall become familiar with, or at least haveheard some or all of the following terms…quantitative models, capital asset pricingmodel, behavioral economics, efficient mar-ket hypothesis, mutual fund separation the-orem, marginal conditional stochasticdominance, non-correlated assetclass, etc…Despite the fact that MPT employs theuse of such equations as Expected Return,

Portfolio Return Variance, Portfolio ReturnVolatility and Correlation Coefficient (asdescribed in Dr. Markowitz’s “EfficientFrontier” graph or what is more commonlyknown as the “Markowitz Bullet”) what itall boils down to is Diversification.Dr. Markowitz proved, through the use ofsophisticated mathematics, that investorswere always better off when they diversifiedtheir investments. No news there right?Here’s the catch though. He stipulated thatthe diversification must be complete andimpartial, meaning that the investments, inorder to provide optimum returns, MUSTbe in Non-Correlated Asset Classes. Morespecifically, you cannot have all of your in-vestments in Stocks or Bonds or both. Youshould also diversify your investments intoCommodities. The more diversified, impar-tial and unemotional the better.In further support of the conclusionsreached by Mssrs. Markowitz and Lintner,the Chicago Mercantile Exchange (CME)

published a study which stated that portfo-lios with as much as 20% in managed fu-tures can yield up to 50% more than stockand bond portfolios, while offering compa-rable risk.In the decades since it was first proposed,Modern Portfolio Theory’s total acceptanceand integration has pretty much been re-served for the likes of Pension Fund Man-agers and Sophisticated Investors, until nowthat is. In the years that have proceeded the2008 meltdown, more and more profession-als and investors alike have turned to, andeven embraced the practice of MPT. Theymight not realize that this is what they’redoing. Most simply think they are “Diversi-fying” their investments. Just like Dr.Markowitz proposed, albeit in a rather sci-entific manner.

Dean WhitehornPrime Algo Financial910 [email protected]

WHATʼS OLD IS NEW AND WHATʼSNEW IS WELL, UHM, NEW?

retirement & financial planning | 6

Page 7: Retirement & Financial Planning

Jason Sutton, Attorney

The Law Has Dramatically Changed! One of the biggest fears that many people have today is the fear of having their life savings wiped out if they end up needing long-term care. Whether you or a family member is in a crisis or not, it is important that you understand what you can do to protect your hard-earned life savings! Most of the public does not yet realize that the law on asset protection and long-term care planning has recently changed.

North Carolina legislators passed a new law authorizing the North Carolina Long-Term Care Partnership (LTCP) Program. It is extremely important that you know about these changes and how they may affect your long-term care planning. The government will NOT inform you of how to legally protect your life savings or of how to legally reduce or potentially elimi-nate your long-term care expenses.

Whether you are in good health or bad health, or if you already have a loved one in a nursinghome, assisted living facility, or receiving care at home, you should attend this workshop. Thisinformation-packed workshop will answer many questions you have about protecting yourlife savings from the high cost of long-term care expenses. Many people have been able tosignificantly reduce their long-term care expenses regardless of the value of their estate! Don’twait any longer to find out about this important information.

Invites You To Attend AnNORTH CAROLINA SENIOR CITIZENS ASSOCIATION

DON’T GO BROKE PAYING FOR NURSING HOME EXPENSES!

Protect Your Home and Life Savingsfrom Nursing Home and Assisted

Living Expenses.

Workshop Presenter: Jason Sutton, AttorneyElder Care Law Firm(910) 692-4444129 E. Pennsylvania Ave.Southern Pines, NC 28387

Workshop Date and Times:Wednesday, June 27, 201210:00 AM OR 2:00 PM

Workshop Location:Hampton Inn and Suites(Behind Best Buy & Starbucks)200 Columbus Drive (Hwy. 15-501)Aberdeen, NC 28387

North Carolina Senior Citizens Association is a nonprofit organization chartered by the State of North Carolina in 1977.

CALL 1-800-622-8686 (24 HOURS) TO GUARANTEE YOUR RESERVED SEAT.RESERVATION REQUIRED! SEATING IS LIMITED!

EDUCATIONAL WORKSHOP ON LONG-TERM CARE PLANNING

28315

Page 8: Retirement & Financial Planning

TRACK WHAT YOU SPENDYou’ve probably heard the conven-tional wisdom: Just give up yourmorning latte and you’ll find financialsecurity.

It’s more complicated than that, ofcourse, but insignificant purchases cangobble big sums. Michael Collins,director of the Center for FinancialSecurity at the University of Wisconsin,suggests keeping a list of everythingyou spend for at least a few weeks. Bytracking every purchase, you discoverwhat discretionary purchases can go;devote that sum to debt reduction.

MAKE A BUDGETEven for those who are discouragedby debt, the word “budget” can sparkeven more disheartening visions of

denial.But budgets have the big benefit

of ensuring that necessities are paid.Moreover, there are ways to budgetto allow a "yes" to some purchases,says Stuart Vyse, a psychology profes-sor at Connecticut College in NewLondon, Conn., and author of “GoingBroke:Why Americans Can’t Hold OnTo Their Money” (Oxford UniversityPress, 2008).

Vyse keeps two checkingaccounts. One is dedicated to neces-sary expenses; a monthly automaticdeposit guarantees that money isthere to pay the essentials.

Experts advise choosing any sys-tem that allows you to separatemoney for necessities. Of course, it’simportant to pay more than mini-

mums due on credit card debt.Additionally, Ithaca College (Ithaca,

N.Y.) consumer psychology expertMichael McCall recommends that youdesignate some cash for splurges.Paying for the fun stuff in cash isimportant, he says, since studiesshow that we’re more reluctant tospend when we must fork over actu-al dollars.

SET GOALS AND WORKTOWARD THEMOnce you’re on a budget, you’re like-ly to replace the pleasure that oncecame with spending with the gratifi-cation of seeing debt disappear.

“Specific short-term goals helpkeep people motivated,” Collins says.

While it may be tempting to payoff debt with the smallest balancefirst – rewarding, because you see“progress” quickly – focus instead onpaying off debt that carries the big-gest APR.You’ll save more money inthe long term by working down larg-er, higher-interest debts first.

DON’T GROW OLD WITH DEBTUnfortunately, there is no standard

guideline on how much mortgage orcredit card debt is dangerous, Collinssays. But it's not smart to continue torack up high-interest debt now, intend-ing to pay it off sometime down theroad. Older people who carry debtface a daunting challenge simplybecause they have a shorter time hori-zon to clear the slate before they retire.

“Your income is going to shrink[in retirement], and if you’re still car-rying credit card debt, then youcould actually have negative cashflow each month,” warns JohnUlzheimer of SmartCredit.com.

While they may plan to extendwork, debt-burdened pre-retirees usual-ly must cut spending to the bone.“Educate yourself,” suggests BarbaraWhitehead, co-author of“For A NewThrift: Confronting The Debt Culture”(Broadway Publications, 2008).Research ways to work down debt andlearn how to allocate dollars betweensavings and debt reduction, she says.

BECOME A RELUCTANT SPENDERHow much of your debt is due tospending on things you thought youmust have and now hardly careabout?

Instant gratification is responsiblefor a lot of the debt burden,Vysesays. Moreover, we’re subject to con-stant temptations.“The world haschanged dramatically,“ he says.“Inthe 1970s, when we went home atnight we were out of the market-place. Now you can go online orshop anytime.”

Before handing off your creditcard, ask:“What harm would there beif I don’t buy this right now?”Wait aday and it’s likely you will have for-gotten the item that would only addto your debt woes,Vyse says.

© CTW Features

5 Tips for Cutting DebtBrown-bagging will get you only so far. Putting household finances on a firmerfooting calls for deeper changes and fresh thinking | byMarilynKennedyMelia

Thirteen-point-eight trillion dollars is amighty big sum.Yet, for years, wehardly noticed it. Now it’s command-ing our attention.

From 2000 to 2008,Americans dou-bled the amount of mortgage and con-sumer debt they held, until it came to$13.8 trillion, according to the U.S.Federal Reserve.You know the rest ofthe story:The financial world col-lapsed and frightened consumers gotout their calculators to total up theirtabs. From the $13.8 trillion peak,households have reduced that debt byhalf a trillion dollars and counting.

There’s still a long way to go, econ-omists believe, before Americansachieve healthy balance sheets. Consumers have“learned the hard way thatbeing approved for a loan and being able to afford that loan are two very differ-ent things,” says Kim McGrigg, community relations manager for nonprofit coun-seling agency Money Management International, based in Sugar Land,Texas.Even when the economy is back on track, households should abandon the“everyone is doing it, so it must be OK”spending mentality, McGrigg says.Instead, families and individuals should focus on their own personal financialsecurity. Does a pile of bills stand between you and financial peace? Here aresome new ways to approach making a dent in debt:

retirement & financial planning | 8

Page 9: Retirement & Financial Planning

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Page 10: Retirement & Financial Planning

Many Americans realize the importanceof saving for retirement, but knowing ex-actly how much they need to save is anotherissue altogether. With all the informationavailable about retirement, it is sometimesdifficult to decipher what is appropriate foryour specific situation.One rule of thumb is that retirees willneed approximately 80% of their pre-retire-ment salaries to maintain their lifestyles inretirement. However, depending on yourown situation and the type of retirementyou hope to have, that number may behigher or lower.Fortunately, there are several factors thatcan help you work toward a retirement sav-ings goal.

RETIREMENT AGEThe first factor to consider is the age atwhich you expect to retire. In reality, manypeople anticipate that they will retire laterthan they actually do; unexpected issues,such as health problems or workplacechanges (downsizing, etc.), tend to stand intheir way. Of course, the earlier you retire,the more money you will need to last

throughout retirement. It’s important toprepare for unanticipated occurrences thatcould force you into an early retirement.

LIFE EXPECTANCYAlthough you can’t know what the durationof your life will be, there are a few factorsthat may give you a hint.You should take into account your familyhistory — how long your relatives havelived and diseases that are common in yourfamily — as well as your own past and pres-ent health issues. Also consider that lifespans are becoming longer with recentmedical developments. More people will beliving to age 100, or perhaps even longer.When calculating how much you need tosave, you need to factor in the number ofyears you will spend in retirement.

FUTURE HEALTH-CARE NEEDSAnother factor to consider is the cost ofhealth care. Health-care costs have been ris-ing much faster than general inflation, andfewer employers are offering health benefitsto retirees. Long-term care is another con-

How Much Do INeed to Save? A time to relax and

do all the things you’d

like to do. �e last

thing you want to do

is worry about how to

a�ord the lifestyle

you’re ready to live.

Retirement is supposed to be your golden years.

Eastman Palmer & Davis Wealth Management Group

www.eastman-palmer-davis.com

(910) 246-5352 | (866) 431-1089

125 Fox Hollow Road, Suite 104 Pinehurst, North Carolina 28374

Investment Services Since 1890Stifel, Nicolaus & Company, Incorporated | Member SIPC and NYSE

Bill Eastman, CFP® Senior Vice President/Investments

Co-Branch Manager

Rick Palmer Senior Vice President/Investments

Co-Branch Manager

Chuck Davis Financial Advisor

John Morningstar Financial Advisor

retirement & financial planning | 10

CONTINUED ON PAGE 11

Page 11: Retirement & Financial Planning

sideration. These costs could severely dipinto your savings and even result in your fil-ing for bankruptcy if the need for care isprolonged.Factoring in higher costs for health careduring retirement is vital, and you mightwant to consider purchasing long-term-careinsurance to help protect your assets.

LIFESTYLEAnother important consideration is your de-sired retirement lifestyle. Do you want totravel? Are you planning to be involved inphilanthropic endeavors? Will you have anexpensive country club membership? Arethere any hobbies you would like to pursue?The answers to these questions can help youdecide what additional costs your ideal re-tirement will require.Many baby boomers expect that they willwork part-time in retirement. However, ifthis is your intention and you find thatworking longer becomes impossible, youwill still need the appropriate funds to sup-port your retirement lifestyle.

INFLATIONIf you think you have accounted for everypossibility when constructing a savings goalbut forget this vital component, your sav-ings could be far from sufficient. Inflationhas the potential to lower the value of yoursavings from year to year, significantly re-ducing your purchasing power over time. Itis important for your savings to keep pacewith or exceed inflation.

SOCIAL SECURITYMany retirees believe that they can rely ontheir future Social Security benefits. How-ever, this may not be true for you. The So-cial Security system is under increasingstrain as more baby boomers are retiringand fewer workers are available to pay theirbenefits. And the reality is that Social Secu-rity currently provides only 26% of the totalincome of Americans aged 65 and olderwith at least $57,957 in annual household in-come.1 That leaves 74% to be covered inother ways.

AND THE TOTAL IS…After considering all these factors, youshould have a much better idea of howmuch you need to save for retirement.For example, let’s assume you believe thatyou will retire when you are 65 and spend atotal of 20 years in retirement, living to age85. Your annual income is currently $80,000,and you think that 75% of your pre-retire-ment income ($60,000) will be enough tocover the costs of your ideal retirement, in-cluding some travel you intend to do andpotential health-care expenses. After factor-ing in the $12,000 annual Social Securitybenefit you expect to receive, a $10,000 an-nual pension from your employer, and 4%potential inflation, you end up with a totalretirement savings amount of $760,000.(For your own situation, you can use a re-tirement savings calculator from your retire-ment plan provider or from a financial siteon the Internet.)This hypothetical example is used for il-lustrative purposes only and does not repre-sent the performance of any specificinvestment. The estimated total for this hy-pothetical example may seem daunting. Butafter determining your retirement savingsgoal and factoring in how much you havesaved already, you may be able to determinehow much you need to save each year toreach your destination. The important thingis to come up with a goal and then developa strategy to help reach it. You don’t want tospend your retirement years wishing youhad planned ahead when you had the time.The sooner you start saving and investing toreach your goal, the closer you will be to re-alizing your retirement dreams.

Submitted by Bill Eastman, CFP, Senior VicePresident/Investments and Co-Branch Manager ofStifel, Nicolaus & Company, Incorporated, a member ofthe Securities Investor Protection Corporation (SIPC)and the New York Stock Exchange, Inc. He can bereached by calling (910) 246-5352, or via email [email protected]

190 Fox Hollow Road • Pinehurst, NC910-695-0011

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expenses will come from savings, athird from future income (such asloans) and the last third from currentincome, employment and scholar-ships or aid. Use the cost of tuitionthe day your child was born as apoint of reference.

Start with as little as $100 amonth, or whatever is feasible.

“Once you’re in the habit of sav-ing, it’s easier to save more,”Kantrowitz says.

Here are some key ways to investcollege funds wisely.

Coverdell Education Savings Accountallows families to contribute up to$2,000 per child per year. There areincome limits. Like an individualretirement account, a Coverdellaccount can be invested in stocks,bonds, mutual funds, certificates ofdeposit or money market funds.

As the money grows, you areallowed to defer paying federalincome taxes. In many states you will

not have to pay state taxes, either.You can withdraw the money tax-free for educational expenses at anytime.This program, however, is bestfor individuals with modified adjust-ed gross income of less than $95,000,if single, or $190,000 for those whoare married and who file taxes jointly.

State-sponsored 529 college savingsplans, available to families of allincome levels, offer much higher con-tribution limits. Investors select froma platter of mutual funds and otherinvestments. Earnings are tax-free aslong as the money is used for quali-fied education expenses.

“Unlike the Coverdell, the moneythat you invest into a 529 plan mustbe used for college-related expenses,”Tanabe explains.

While 529 plans have proved pop-ular, returns are not guaranteed.Declines in the value of 529 plans areunsettling to families, especiallywhen students are nearing collegeage. States have added more conser-vative options to the plans, addingFDIC-insured certificates of deposits,savings accounts and age-basedaccounts that trim back stock invest-ments in favor of less volatile options

How to Build aCollege Fund

Saving for college? Finding courage totake the first step may be the biggesthurdle | byPatriciaRivera

Parents looking to salt away moneyfor both college and retirement canfind themselves caught in a giant tug-of-war.

Do you make the sacrifice to funda child’s college education and worryabout retirement later? Or do youassume that you’ll find a way tocover college costs with loans orscholarships and focus on your ownfuture instead?

Gen Tanabe votes for retirementsavings first.“The reality is, there isno financial aid for retirement. If youhaven’t saved enough, your childrenmay be left to shoulder the cost ofyour expenses,” says Tanabe, co-author of “1001 Ways to Pay forCollege: Practical Strategies to MakeAny College Affordable”(SuperCollege, 2011). Students will find a way with aid, jobs and loans, he says.

Others believe maximizing savings now, for both retirement and college, isfar preferable to planning a future built on student loans.

“Every dollar [you borrow] will cost you two, on average, by the time youfinish paying off a loan,” says Mark Kantrowitz, founder of college-cost resourc-es Finaid.org and Fastweb.com.“When you’re saving, you’re keeping the inter-est.When you’re borrowing, you’re paying the interest.”

Most experts agree that, if possible, you should save for both, early andoften, particularly given the rising cost of tuition.The College Board foundthat college costs increased 26 percent in the past five years, an average thatincludes both four-year public and private schools. Parents have not been ableto keep up.They were projected to meet just 16 percent of college costs in2011, down from 24 percent in 2007, according to Fidelity Investments’ fifthannual College Savings Indicator Study, released in August 2011.

But the Fidelity study also found that parents are changing their savingsbehavior. Some 40 percent of parents with children under age 5 started savingfor college costs in a dedicated account, up from 27 percent in 2007. More ofthem are using a dedicated college savings account like a 529 plan.“Familiesare planning earlier and saving more efficiently, yet saving for college will con-tinue to be a challenge,” says Joseph Ciccariello, a Fidelity vice president.

Kantrowitz says college savings should begin before or immediately afterthe birth of a child. But he points out that it is never too late to start saving.

For those who want to figure out how much they might need, Kantrowitzsuggests setting a goal of one-third of expected college costs.

“If you focus on the full amount, you’ll feel overwhelmed and you may noteven get started,” he says.You should assume that a third of your college

Learn more about…Federal student loans atstudentaid.ed.gov529 plans atsavingforcollege.comYour financial aid application atfafsa.ed.govInspiration for college atcollege.gov

© CTW Features

retirement & financial planning | 12

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as children age.Investors can change asset alloca-

tion in 529 plans just once a year.You can participate in any state’s

529 savings plan regardless of whereyou live, although your state’s planmay offer state-tax breaks or otherdiscounts. Buy a 529 either through afinancial adviser or directly. Look for:

Low expense ratio and other fees.Determine the annual accountmaintenance fees, transfer feesand commissions. Investmentsthat are actively managed, such asmutual funds, carry higher feesthan index funds.State benefits. Some plans includestate-tax breaks. Others offermatching contributions. Study theoptions.Investment options. Look for aplan that gives you a good mix ofinvestment tracks.Ease of changing account benefi-ciary. Should your child decidenot to attend college, make sureyou can change the beneficiary.Whatever you decide, select anoption to automatically transfermoney from your checking or sav-ings account to your 529 collegesavings plan account, Kantrowitzsays.

Prepaid 529 college savings plans arethe first cousins of 529 plans, Tanabesays.They allow state residents to paynow to lock in prices at a state uni-versity.A premium over the currenttuition rate is factored in to coverfuture tuition inflation. Some stateshave programs that allow families tobuy a fixed number of tuition creditsat today’s prices.

It’s important to read the fineprint on prepaid 529 plans to under-

stand how or if your state will handlea shortfall in the event the plan’sinvestments do not deliver expectedreturns. Some states have suspendedor closed their plans after financialdifficulties.

Rebate programs such as Upromiseor Babymint provide those who signup with rebates that go into a 529savings plan when you buy certainproducts – gasoline, clothing, food –from participating companies.

“Again, the most important thingis to start saving, no matter howmuch it is," says Kantrowitz.“Everylittle bit helps.”

© CTW Features

Top 529 plansState-sponsored college plans insix states received the highest rat-ing in 2011 from analysts atMorningstar, the Chicago-basedinvestment research firm.

Alaska’s T. Rowe PriceCollegeSavings planThe Maryland CollegeInvestment Plan, managed byT. Rowe PriceNevada’s Vanguard 529Savings Plan, managed byUpromiseOhio’s CollegeAdvantage 529Savings Plan, managed by theOhio Tuition Trust AuthorityThe Utah Educational SavingsPlanVirginia’s CollegeAmerica,managed by American Funds

© CTW Features

retirement & financial planning | 13

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Page 14: Retirement & Financial Planning

mean that your risk vanishes in thelong run, no matter how long youhold onto a stock, warns Zvi Bodie, co-author of “Risk Less and Prosper:YourGuide to Safer Investing” (Wiley, 2011).

EMBRACE YOURRISK TOLERANCEIn the wake of the market crisis,“A lotof people realized they don’t have asmuch tolerance for risk as theythought and are making adjustments,”Potts says.Assessing risk toleranceused to be hypothetical: How will yousleep if your investments drop invalue by 10 percent or 50 percent?Now, it’s real and observable:Whenthe markets crashed, did you buy, holdor sell your stocks?

Because you lock in losses if youunload stocks during a market slump,Potts recommends that risk-averseindividuals not make adjustments toinvestments already tied up in a

401(k) account.“Focus on where youput new contributions,” she says.Funnel new contributions and invest-ments “into vehicles you’re more com-fortable with.”

CONSIDER SAFER INVESTMENTSBodie believes that the riskiness ofstocks is understated and that manyinvestors have too much allocated tostocks and not enough allocated tosafer, inflation-indexed investments.Risk-averse investors in particularshould see how far a low-risk invest-ment strategy will take them, and thenmake adjustments to meet savings andretirement goals.“For safety and pro-tection against inflation,TreasuryInflation-Protected Securities and U.S.savings bonds called I Savings Bondsare unsurpassed,” says Bodie, a profes-sor of management at BostonUniversity.“Initial investment is guar-anteed, and return is paid in inflation-adjusted dollars.”

DON’T OVERCORRECT ORUNDER PREPAREEconomic collapse made a big impres-sion on young investors.“This painfuleconomic environment has affectedthe risk appetite of the 20- and

Saving and Investing: What Next?Tough economic times pushed many families to the brinkand left others with a fearful question: Have the old rules ofsaving and investing changed forever? | byDawnKlingensmith

Feeling distrustful of the stock marketand insecure about your finances andinvestments? Financial adviser DavidGottlieb sits down with people likeyou almost every day. Into his PepperPike, Ohio, office he welcomes an all-American parade of average saversand investors – newlyweds, singlemoms, families with kids to putthrough college, couples about toretire – most with a single uneasyquestion: Has the mortgage industrymeltdown, the housing collapse andthe rickety economy changed therules of personal finances and invest-ing? His short answer: No.

Gottlieb does suggest that his cli-ents make one radical change:Tuneout the headlines.

“I hear the same rant all the timeabout the president, the economy, theglobal economy, Greece. People are making decisions based on headlines andemotions,”which costs them in the end, says Gottlieb, a financial adviser forEdward Jones.

Investors were clobbered with massive investment declines in 2008; howev-er, the recession officially ended more than two years ago.Those who stayed thecourse have done well since 2009, compared with those who yanked moneyout of the stock market in a panic.

“If anything, the economic climate reinforces basic financial principles,”says Ruth Ann Potts, manager of advanced planning at Country Financial inBloomington, Ill.

The aftermath of the great recession is a good time to review those basicsand consider some new approaches, based not on doomsday newscasts buton your individual circumstances and goals.What have we learned since thegreat fall? A lot.

TAKE A DEEP BREATH AND STAY THE COURSEThe market crisis of 2008 proved that diversification offers no guarantee againstlosses; however, it tends to reduce the damage. Maintain a diversified, balancedportfolio, Potts advises, and don’t let a market slump change your long-terminvestment plan. Historically, the market consistently and reliably recovers.Adown market may even present an opportunity to add holdings and accelerateyour recovery.

But keep in mind that stocks are risky by definition; that’s why they havehigh expected returns. Just because the market historically recovers does not

Learn more about…Financial planning at everystage of life at mymoney.govBuying U.S. treasury securitiesonline at treasurydirect.govUsing credit wisely atfederalreserve.gov/consumer-info/default.htm

© CTW Features

retirement & financial planning | 14

CONTINUED ON PAGE 15

Page 15: Retirement & Financial Planning

30-something set.At a stage in lifewhere they can most afford to take onadditional risk with their retirementsavings, huge numbers of young folksare not,” says former portfolio managerand financial literacy advocateManisha Thakor, of Santa Fe, N.M.“Theproblem with this is that it sets themon a path to be under-saved for retire-ment when they hit their 50s and 60s,and thus they may end up taking ontoo much risk when they can leastafford to, where there are fewer yearson their side.”

DON’T BE RETIREMENT-RICHAND CASH-POOR“People are putting money in 401(k)sbut not in the bank,”Gottlieb says,adding that investors have somehowgotten the impression they need toretire with a million dollars.

Consumers also have been advisedthat anytime they come by extra cash,such as a bonus, they should use it allto pay down credit card debt. Gottliebsays to use some or most of it to chipaway at your balance, but to keep therest “just for the sake of having cashagain and paying for things in cashinstead of feeling broke all the timeand charging things.”

Beef up your emergency funds, too.Having the equivalent of three to sixmonths’ salary or living expenses setaside is still the recommended mini-mum, Potts says, but high unemploy-ment rates and the struggling econo-my suggest six to 12 months’ worthmight be more prudent.

In addition to an emergencyreserve fund, have a“put-and-take” sav-ings account for unexpected day-to-day expenses like home appliancerepairs or occasional splurges, Potts

recommends.If you are saving for a particular

item or event, consider opening aseparate “earmarked and untouch-able” account just for that:“Youalmost need to open up differentaccounts for different savings goalsso you won’t touch it.When you puteverything in a general account, itgets spent,” says Gottlieb, who has anaccount designated for his daughter’sbat mitzvah.“I understand peoplewill fight me on this and say [themoney] is not making interest. Butcash gives you the ability to buythings, not borrow things.

“The rate of return is not theissue," he says. "It’s having money onhand when you need it.”

TREAT EDUCATION ASAN INVESTMENTStudent-loan debt now eclipses creditcard debt.“As the price of educationhas risen and wages have stagnated,it’s no longer a no-brainer that anyeducational debt is good debt,”Thakorsays.“In the current environment, it isessential to step back and think strate-gically about how much you are pay-ing for an education relative to theearnings you expect as a result.Whenthe return on investment isn’t as highas you’d like, it’s time to think cre-atively.That may mean living at homewhile going to school or taking a yearor two off before even starting schoolto live at home, work and save. Or,start at a community college and thentransfer to a state school.

“The point is to view education asany other valuable asset and makesure the return justifies the up-frontinvestment.”

© CTW Features

retirement & financial planning | 15

Page 16: Retirement & Financial Planning

backed by other financial advisers. Ifthey are able, Sewell and Schaefferrecommend those in their 20s saveup to 20 percent of income, whichthey say is ideal.

IN YOUR 30sThis is the time to eliminate debt andbe smart about a home purchase.“Hopefully, college debt is behindthem and the only loans in place arewell-managed, auto- and housing-relat-ed loans,” says Schaeffer. If youremployer does not match a portion ofyour contributions to a company401(k) plan, Schaeffer says, it could beworth seeking out one who does.

Job changes and even careerchanges are common at this stage.“Ifyou enter a defined contribution planand if you have good savings levels at

every job, career changes are fine,”Rappaport says.

This may be the time a young cou-ple welcomes their first child.Whenwomen take a break from work forchildbirth and child-rearing they loseimmediate income and also lowertheir lifetime earnings, reducingretirement benefits. Sewell says thewife should propose that half her hus-band’s savings during that time fundthe retirement accounts.

Continue to save in a disciplinedfashion, even if investments are grow-

ing steadily. Backin the day, aninvestor couldsimply pick asound allocationof funds within a401(k) and“everythingwould be fine,”

Schaeffer says.This is no longer true.Individuals who begin their retire-

ment savings in their 30s should savearound 13 percent of their income,according to The ActuarialFoundation.

IN YOUR 40s“You should be approaching peakearning years," Schaeffer says.“Collegemay be competing with retirementfor your savings dollars. If your life-style will allow, save aggressively.”

Home and auto loans, bills andretirement savings alone can causefinancial strain during this life stage.But the addition of college tuitionpayments can make it unbearable,even for families that have made allthe right financial steps thus far.

According to a 2008 study from

Saving for Retirement:The TimelineHow to think smarter and plan better for retirementat every stage of life | byTanieshaRobinson

Funding retirement is easy. Just askplanner David Schaeffer.“Make all youpossibly can. Save all you possiblycan.”And, start early. Often, the peopleasking him for help on the eve ofretirement didn’t screw up theirinvestments.“It’s not that they didsomething wrong. It’s that they neverdid something,” says the Schaeffer, , aretirement planner with Futurity FirstInsurance Group in Phoenix.There’ssomething for folks at every age tolearn about saving and investing forretirement. Start here.

IN YOUR 20sSaving for retirement savings isn’t ahot topic among 20-somethings. Butyoung people develop financial hab-its and make life decisions that canhave lifelong consequences.

“The kind of job you get whenyou’re young, in your 20s, can have abig impact on your lifetime security,”says Anna Rappaport, a consultant for the Women’s Institute for a SecureRetirement,Washington D.C.“A teacher or a policeman gets into a public pen-sion plan.That’s a lot different from getting into an occupation where there’slikely to not be much benefit.”

Today, expected retirement income from pensions or 401(k) accounts mustbe coupled with disciplined lifelong personal savings, says Bonnie Sewell, prin-cipal financial planner at American Capital Planning,Washington, D.C. “This is

the easiest time in your life to save if you don’t buy intoan expensive lifestyle,” Sewell says.“Regardless of your age,your focus should be on disciplined saving and less oninvestments.”

It can be difficult for someone who just entered thelabor force to think about saving for retirement. “If it feelsbetter to call it ‘choices savings’ rather than retirement, dothat,” Sewell says. Early savings allows more “choices” lateron: career changes, marriage, divorce, health issues andmore.

The Schaumburg, Ill.-based Actuarial Foundation rec-ommends people who begin saving in their 20s to putaway about 10 percent of their income, a common rule

Tip

Tip

Start early. A25-year-old whosaves 15 percenta year is likely tobe able to affordto retire at 62. “Ifyou start later,you need to savemore,” Rappaportsays.

Because womentend to live longer,they need to savemoreaggressively.

retirement & financial planning | 16CONTINUED ON PAGE 17

Page 17: Retirement & Financial Planning

the NationalCenter on HigherEducation andPublic Policy, col-lege costs areroughly a third ofthe median fami-ly income forlower-middle-class Americans.The ActuarialFoundationadvises parentsto ask childrento help pay for

their education with earnings fromsummer and part-time jobs, scholar-ships and loans.

“If you make bad decisions on carsand mortgages and college, you’veshot yourself in the foot,” says finan-cial planner Sewell.

The Actuarial Foundation recom-mends those who begin saving intheir 40s to put away 20 percent ofincome.

IN YOUR 50sIt’s time to sock away every nickel.Ideally, for savers of this age, mortgagecosts should be in the range of 10

percent ofincome,Schaeffer says,and auto costsshould be low.“College costsare behind youand you are inthe 20-year homestretch to retire-ment,” he says.

Make “catch-up” contributions

to retirement savings now, if neces-sary. Resist any permanent withdrawalof retirement funds, especially beforeage 59.5, when early-withdrawal pen-alties disappear. Most account with-drawals will be taxed.

Individuals who’ve just beguntheir retirement savings during thislife stage need to save around 40 per-cent of their income, according to theActuarial Foundation.

AT AGE 65Full Social Security benefits kick in atthis time, but it’s not going to be thereward that past generations saw. Ifretirement savings have been lacklus-ter over the years, there are some res-cue options.“There’s no reason thatpeople who haven’t saved enough aredoomed to a spartan existence, unlessthey insist on living in a high-classarea or continue to spend at a level

that is unsustain-able,” Sewell says.

She suggeststaking on anextra job – part-time may beenough – andperhaps creatinga stream ofincome on theside from sellingsomething youmake or provid-

ing a service, from building websitesto de-cluttering homes.

Retirees can expect to spend 4percent of retirement assets annuallyto stretch savings over their remain-ing years, Schaeffer says. More thanthat is a problem.

© CTW Features

Tip

Tip

Tip

To determinewhether you’re ontrack in your sav-ings try the AOL’s"Am I SavingEnough? WhatCan I Change?"calculator atcalculators.aol.com/tools/aol/retire02a/tool.fcs

Learn what yourestimated socialsecurity benefitwill be at retire-ment by using theretirement estima-tor atwww.ssa.gov/estimator or call800.772.1213.

Sell assets thatare not producingmuch income orgrowth, such asundeveloped landor a vacationhome, and investin income-produc-ing assets.

retirement & financial planning | 17

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Page 18: Retirement & Financial Planning

percent,” Sandberg says.“Let’s say youbring home $2,000. Everybody whois past fifth grade math knows that10 percent of that is $200 a month.Try to set that aside. Most people cando it if they try hard enough.”

Sandberg suggests people whohave credit card balances should tryto think of them as loans and attemptto pay them off in six months.Takecare of the balances with the highestinterest rates first, a tactic that willhelp save money in the long run.

Budgeting can be painful at first,but Sandberg reminds people that itdoes get easier. It’s like changing eat-ing habits, she says.“At first, you payreally close attention to caloriecounts and statistics. But later, itbecomes pretty natural. It’s the samewith a budget. Once you get used toliving within your prescribed num-bers, it becomes a part of you.”

Here, tips for budgeting, from bothfinance expert Sandberg and theFederal Trade Commission:

you bring home each month. Includeall income – from your job, gifts, taxrefunds, unemployment or other gov-ernment assistance, alimony or childsupport, pensions, Social Security andprofits from sales of used goods.

your finances.You can choose fromphone apps, computer software orgood old-fashioned paper and pencil.

-ings account each month.The easiestto remember: 10 percent of yourtake-home income.

expenses – those that tend not tochange, including rent or mortgage, acar payment, telephone, cable andInternet.

vary – utilities, personal grooming,property taxes, insurance, gas andgroceries.

things like manicures, getting youreyebrows waxed, office supplies, hol-iday gifts or entertainment.

expenses and divide by 12 for amonthly estimate.

carry it over in a savings account forthe next month. If you have creditcard balances, pay them first insteadof building a savings account. Havinga savings balance and a credit bal-ance can give you a false sense offinancial security.

-pected comes up, such as un-reim-bursed medical bills, take care ofthem by finding other places you cancut.

to budgeting, it will become secondnature.

© CTW Features

Beginner’s Guide toBuilding a Budget

A budget is the foundation ofa solid financial plan. Here’san easy, real-world guide tosetting one up | byDebAcord

Erica Sandberg has this simple advice for consumers thinking about creating a

manicure, the special holiday bottle of wine, the extra $20 on a birthday lunchfor your best friend and that concert you’ve been dying to see.And don’t for-get to consider what might happen: a flat tire, a broken tooth or a speedingticket. Not figuring in life’s many little – and sometimes large – expenses canderail a budget.

Sandberg, a personal finance expert and author of “Expecting Money:TheEssential Financial Plan for New and Growing Families” (Kaplan, 2008), saysthe key to a savvy budget is accounting for everything.

“Be extremely comprehensive,” she says.“So many people tend to truncatetheir budgets.They divide their expenses into house, groceries, entertainment.That’s not enough categories.That’s not realistic.”

Sandberg believes many consumers overthink a budget.“A budget is justcash flow – money coming in, money going out. If you think of it that way, it’snot so overwhelming.”

Consumers who believe that a household budget boxes them in mighthave designed a plan that’s too inflexible, Sandberg says.“If they feel like theycan only spend $300 a month on movies and theater, for example, it makes

-tainment area for, say, new tires for the car, it makes it more flexible.”

The key to a successful budget is “a matter of manipulating it so you havemoney for necessities and things that are important to you,” Sandberg says.

Knowing how much money you need and how much you have is para-mount for successful budgeting.“Everyone should know off the top of theirheads how much they net in a month after taxes.Then, think in terms of 10

Learn more about…Managing your money atftc.gov (select ConsumerProtection and look for MoneyMatters, under What’s New)Making smart money decisionsat extension.org/personal_financeSetting up a template for yourbudget office.microsoft.com/en-us/templates(search “home budgets”)Managing money online atmint.com

© CTW Features

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retirement & financial planning | 19

Asmore baby boomers reach their 60s andstart to ponder retirement, many begin todebate where they should spend theirgolden years.Highly educated and active, boomers aren’tfollowing in the footsteps of their parents,many of whommigrated to warm-weatherdestinations. Stories of older relatives andfriends who fell ill far away from loved ones orbecome lonely after the excitement of a newdestination dimmed that dream of retirement.In addition, the boomer generation - thoseborn between 1946 and 1964 - is highly diverseand no single solution appeals to them all, saysCarol Orsborn, author andco-founder of Fleishman-Hillard’s boomer-fo-cused practice, FH Boom.The prime destinations seem to be communi-ties close to home with residents who vary inage - where boomers can continue to feelyoung and maintain friendships - and down-town urban centers, where they can make dowith less space and fewer cars, all while stayingclose to hospitals, a host of restaurants, shopsand cultural events.Ann Fry, a life coach and speaker who focuseson reinvention, is a prime example of thistrend. When she hit 60, she relocated to NewYork fromAustin, Texas. Fry decided to rentinitially, explaining “I love it, being able to callthe super and say, ‘Fix this’.”Boomers contemplating retirement chooseone of twomain paths: find a location close tohome, or move to a new location that’s closerto family or that offers longed-for social, cul-tural or natural amenities.

STAYCLOSE TO HOMEBecause relationships are so important to thisgeneration, many choose to stay within thesame community, Orsborn says. In fact, mostof those whomove into Dublin, Ohio-basedEpcon Communities’ various boomer-geared

developments come from a 7-to-10-mile radius,says Nanette Overly, vice president of sales andmarketing. But if they stay put in their ownhome, many opt to redecorate or remodel soit’s more convenient for their empty-nest years.Others downsize to a smaller home or condoto cut expenses and upkeep. And still othersupgrade to have more room for kids andgrandkids.

FIND AMORE APPEALING LOCALEAll sorts of reason spur boomers to move -from wanting to be closer to children, live in adifferent climate, find a state with lower costsof living and estate taxes, or to simply have anew adventure in a new community. They alsolook for a variety of housing stock, from single-family homes to condos and retirement villages.

With so many options, it’s not surprising thatthe easiest solution for many is to stay put.Nevertheless, the visibility and affluence of thisgeneration has given rise to experts from differ-ent disciplines who have lots of advice to shareon how boomers - and anyone debating whatto do - can be better prepared. Here are ninequestions experts suggest boomers ask them-selves to make the smartest, happiest move:

1. What are your goals?Before you focus on the type of house youseek, think about your big-picture goal, whetherit’s to be closer to your children and grandchil-dren or even farther away, says Marion Somers,the nationally recognized geriatric care managerand author of “Elder Care Made Easier”(Addicus Books, 2006).

2. Are you up for the upheaval?Redecorating, remodeling and moving all re-quire time, money and patience, and typicallyadd to stress levels. “Ask yourself whether youhave the stomach to go through a remodelingor move,” suggests Laura Meyer, co-author of“Remodel This!” (Perigee, 2007). Some olderhomeowners tolerate stress better since they’renot dealing with young children.

3. Are you ready to cut the umbilical cord?People become attached to their homes, Meyersays. “Are you really ready to leave?” she asks.

4. Will you continue to have a good supportsystemwhere you are or where you go?It may be your children or a good network offriends, but you need to know that you havepeople you can rely on, says Ann A. Fishman,president of Generational-TargetedMarketingCorp., New York. Even if you move to becloser to children, realize they may not alwaysstay there.

5. Will you be with like-minded folks?Boomers are social and like to be surroundedby a people of varied ages, says Fishman. Onesolution for some boomers is to share a condoor house. Smart development companies arebuilding communities targeted at homeownerswith like-minded interests, Overly says.

6. What type of house andcommunitymakes themost sense?Boomers need to carefully weigh their housingchoice and what level of services they want,based on realistic factors such as health and notjust pipe dreams, Somers says. They also needto be sure their setting offers the right ameni-ties. For those not sure, Somers has them an-swer questions, talk about possibilities, and putdown responses on paper.

Retirement Living: Should WeStay or Should We Go?As they near retirement, it's the question all boomers are asking | Danielle Cadet

CONTINUED ON PAGE 20

Page 20: Retirement & Financial Planning

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7. When is your decision going tobemade?Somers has clients determine a timetable ratherthan put it off indefinitely.

8. Can you afford your decision?Toomany boomers don’t know howmuchmoney they need to age, Fishman says. Theyneed to take into account state and estate taxesand the cost of daily living, including housing,health care and entertainment costs, she says.You also have to take into account any possibleincome changes.

9. Have you tried out your decision?It’s hard to test-drive a decision without owninga home, but The North Carolina Center forCreative Retirement, part of the University ofNorth Carolina at Asheville, offers seminarsand a Creative Retirement ExplorationWeekend program. Many communities mayoffer similar programs.

RETIREMENT COMMUNITIESBanish the phrase “old folks home” fromyour vocabulary. Retirement living optionshave never been more varied. Amongthem:

AGE-RESTRICTEDCOMMUNITIESGreat for people interested in livingamongst their peers, these communitieshave a mix of housing types and featureamenities like tennis courts and golfcourses.

COLLEGE TOWNRETIREMENT COMMUNITIESIdeal for anyone seeking a more youthfulenvironment, these communities includevarying forms of independent off-campushousing while providing access to univer-sity facilities and programs

ASSISTED LIVINGThese residences provide apartment-styleliving and offer personal care and supportservices with basic daily activities ranginganywhere from bathing and dressing assis-tance to medication management. Com-munities also include meals, housekeeping,activities, transportation and varying levelsof security.

CO-HOUSINGIn co-housing communities, residents ac-tively participate in the design and opera-tion of the neighborhood. Each home isprivately owned and decisions are madecooperatively. Residents often share thecost of health aides or an on-site health-care provider.

NATURALLY OCCURRINGCOMMUNITIESNORCs are a response to retirees whowant to remain in their homes for as longas possible. Essential services are pooledso that maintenance, transportation, elder-care, shopping and other basics are readilyavailable to the community�s seniors.

SUSTAINABLE COMMUNITIESFor seniors who want to live green intotheir old age, these communities promoteconscious living practices in every aspectfrom the neighborhood building materialsto waste disposal.

Sources: Co-Housing Association of the United States;Campus Continuum; NORC; Ecovillage Network ofthe Americas

Page 21: Retirement & Financial Planning

With the economy in turmoil, there’srarely been a more important time forfamilies to draft a detailed financialplan. Such a plan, including strategiesfor achieving big life milestones (edu-cation, buying a home and retire-ment), saving, investing and dealingwith inevitable setbacks, can helpsteer families through challengingtimes.

Few of us are prepared. Some 79percent of people claim to have afinancial plan, according to a 2011survey by the Certified FinancialPlanner Board of Standards, but thisnumber is misleading. Nearly half ofthose with a plan, 46 percent, say thatit exists only in their heads; 11 per-cent say they only have written downsome notes or ideas, not a completeplan.

Financial planner Simon Singersays too many families spend moretime planning a vacation than they domaking decisions about their life’sfinances.A financial plan, like a vaca-tion, requires setting a destination andestablishing an itinerary.“You need toknow where you are going and howyou’re going to get there,” says Singer,founder of Advisor Consulting Group,Los Angeles.

Families need to know where theystand financially, even if their finances

are in disarray. Doug Hendee, certifiedfinancial planner for BrightonSecurities, Rochester, N.Y., sees manyfamilies who ignore financial troublesin hopes they’ll simply disappear.

“So many people are embarrassedto look at their finances,” Hendee says.“But ignorance in this case is notbliss. How will you know what youneed to do if you don’t take a look atyour financial situation to figure outwhere you stand?

The good news is that crafting afinancial plan doesn’t have to be anunpleasant chore.

The most important part of anyfinancial plan also is the simplest: abudget.

A budget should take into accountthe money a family brings into thehousehold each month. It also shouldlist all of a family’s expenses.Theseshould be divided into two main cate-gories. Fixed expenses are those thatdon’t change from month to month:insurance payments, mortgage pay-ments, student loans.Then there arediscretionary or charges that fluctuatemonth to month, including utilitybills, gas, entertainment spending andgroceries.

“Families need to know wheretheir money is coming from andwhere it is going,” says Nancy Skeans,partner with Schneider Downs WealthManagement Advisors in Pittsburgh.“If they don’t understand that, it’salmost impossible for them to under-stand how much they can save andwhere they can cut expenses.”

Families shouldn’t focus too muchon the small details of a financial plan,Hendee says.What’s most importantis that they start putting together afinancial plan as soon as possible,even if it’s not yet complete.

© CTW Features

On the Way to a Financial PlanOdds are, you say you have one, but you don’t.Why your family needs a financial plan | byDanRafter

Learn more about…Investing and consumerprotection at investor.govThe basics of investing atinvestoreducation.orgEffective ways to save atconsumerfed.org (click onFinancial Services)

© CTW Features

In Search of a Financial AdviserThe key to finding the right investment services provider is asking the rightquestions – both of yourself and of prospective providers. Following are somequestions from the Coalition for Investor Education, a group of state securi-ties regulators, consumer advocates and financial planning and investmentadvisers, to help you identify the right provider for you.Remember, there are no foolish questions. Any reputable provider should be

happy to discuss these issues with you and answer any questions you may have.

Do you need helpdeveloping strategiesto reach yourfinancial goals or doyou simply wantsuggestions onappropriateinvestment productsto implement yourgoals?

Do you prefer workingwith someone who isprimarily considered asalesperson, anadviser or acombination of thetwo?

Do you prefer payingfor investmentservices through afee, commissions, apercentage of assetsin your account or acombination ofthese?

How important is it toyou that your providerhave a legalobligation to act inyour best interestsand disclose potentialconflicts of interest?

© CTW Features

How involved do youwant to be indecisions about yourspecific investments?

Do you wantassistance with a fewtargeted areas, or doyou need acomprehensive planfor your finances?Do you already havea portfolio ofinvestments youwould like helpmanaging?

retirement & financial planning | 21

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retirement & financial planning | 22

The American dream ofowning a house is rooted inthe ideas of financialsuccess and independence.Now, as more Americans hitretirement age and worryabout accessibility of theirhomes, the concept ofindependence is takingcenter stage.Remodeling for aging homeowners hasbecome an important industry, and contrac-tors and designers are helping the elderlyenvision homes that are both comfortableand feasible for the future.According to

MetLife’s 2010 Aging in Place 2.0 report, 80percent of U.S. residents over the age of 45want to remain in their existing homes evenif they need medical assistance. TheMetLife report also cites a 2007 study byClarity saying that 26 percent of olderpeople fear losing their independenceas they age.These homeowners face a difficult chal-lenge in balancing the need to remodel theirhomes for safety without creating resi-dences that will alienate future buyers.

FORWARD THINKINGHalf the battle is knowing the perils of re-

Retirement RetrofitSeniors remodeling for an accessible home need tobalance comfort, safety and resale value | Dan Rafter

CONTINUED ON PAGE 23

Page 23: Retirement & Financial Planning

retirement & financial planning | 23

With our retirement income expertise,wecan help bring your future into focus.

These days, you need more than just Social Security, invest-ments and a pension. You need the tools, resources andexpertise to plan for retirement.And you’ll find themall right here.For instance, we use an established discovery process to helpdeterminehowmuch you’ll realistically needeachmonth for yourretirement – and how to best meet that challenge. So let’s havea conversation.What develops from there can be a professionalrelationship that lasts a lifetime.

Visit us atwww.raymondjames.com/markhollingsworth

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305 N Page Rd • Bldg 1 • Suite 1Pinehurst, NC • 910-235-9179

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DO YOU HAVE ENOUGHTO RETIRE ON?

ENOUGH INFORMATION,THAT IS?

sale value before even planning a remodel.Anita Lang, a principal with IMI Design inpopular retirement town Scottsdale, Ariz.,has problem-solved for clients stuck in thisposition.Lang recently designed a huge walk-inshower in the master bathroom that wouldmake life easier for her clients as they aged.But the shower’s size left no room for abathtub, something that could hurt resalewhen it came time to sell.To skirt that problem, Lang made surethat the shower design would make it easyfor future owners to modify it to createspace for a bathtub.“It’s important to do what you can tomake your home safe and friendly as you getolder. But you don’t want to go to such ex-treme lengths that it makes it hard to resellyour home,” Lang says. “You don’t want toovercustomize your home.”

CHANGES, BIG AND SMALLArchitect Duo Dickson, author of “StayingPut: Remodeling Your House to Get theHome you Want” (Taunton Press, 2011),says that homeowners look at the process indifferent levels, from easy and inexpensiveto time-consuming and pricey.The first steps are the easiest ones, andwill have the smallest impact on resale value.These include widening interior doorwaysso that they measure at least 10 feet across,adding small ramps between rooms that riseor fall and making sure that bathrooms,kitchens and hallways are wide enough forwheelchair access.Homeowners can take a bigger step bycreating an entire suite that is handi-capped accessible, Dickinson says. Thisinvolves enlarging bathrooms, kitchensand bedrooms.It also means installing grab bars, bump-ing out walls to add more space to roomsand even installing elevators in those homesin which first-floor bedrooms aren’t an

option.These changes, though, can make futurebuyers hesitate, especially when they calcu-late the cost of removing elevator shafts orrelocating master bedrooms to a home’s sec-ond floor.

COMFORT FIRSTDickinson observes that more owners aresiding with the “comfortable and safe”factor today and agreeing to worry aboutresale later.“People are viewing their homes as per-manent assets, versus just stepping stonesfor something better,” Dickinson says.“People are also acknowledging the fact thatthey are living so much longer. They wanttheir homes to be comfortable as they age.”

BEST OF BOTH WORLDSNot all major remodels will be double-edged swords. Dickinson worked with acouple in their 50s, who spent thousands ofdollars to convert an old two-level kitcheninto a modern one-level version. It was acostly project, but one that will keep theirhome functional as they age and make thehome more attractive to future buyers.Bill Golden, a real estate agent with At-lanta’s RE/MAX Metro Atlanta Cityside,added that retirees should make sure thatany home remodel will not only make theirhomes safer, but more enjoyable, too. Herecommends, for instance, that owners withgrandchildren include a kid-friendly spacefor when their grandkids visit.“Consider the type of living you do nowand what you expect to do in the future,”Golden says. “If you know that you’ll wantto enjoy being outdoors as much as possi-ble, concentrate on usable outdoor spacesuch as a screen porch. If you have a partic-ular hobby that you enjoy, make sure thespace will accommodate whatever needsthat may require.”

Page 24: Retirement & Financial Planning

retirement & financial planning | 24

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The North Carolina Senior CitizensAssociation will present a free educationalworkshop on options and strategies toprotect your life savings from nursing homeand assisted living expenses at the HamptonInn and Suites in Aberdeen on Wednesday,June 27.The law has dramatically changed onlong-term care planning. North Carolinalegislators passed a new law authorizing theNorth Carolina Long-Term CarePartnership Program. It is important tolearn about these changes and how they willaffect your long-term care planning. Thisworkshop is designed not only for healthypeople and for people with serious healthconditions, but also for people who have afamily member already receiving care in anursing home, assisted living facility or athome.One of the biggest fears many peoplehave today is the fear of having their lifesavings wiped out if they end up needinglong-term care. Medicare and Medicare sup-plement policies don’t cover long-term careexpenses. With the average cost for nursinghome care exceeding $7,000 per month inthe US last year, it is important to knowwhere to go for the right answers. Whetheryou or a family member is in a crisis or not,it is important to understand what you cando to protect your hard-earned life savings.Moore County attorney Jason Sutton, amember of the North Carolina Bar Associa-tion and the National Academy of ElderLaw Attorneys (NAELA), will present theworkshop. “All too often, we hear stories offamilies draining their life savings, sellingoff a loved one’s home, farm, investmentsand other assets, and then applying for fi-

nancial assistance from the Medicaid or Vet-erans Administration programs. Thisprocess is unnecessary. With sound infor-mation and the right legal strategies, it ispossible to qualify for financial assistancefor long-term care without having toexhaust your life savings,” said Sutton.Other topics on the agenda include: avoid-ing some common mistakes people makewhen a loved one is already in a nursinghome; the proper way to gift money to yourchildren to protect eligibility for financial as-sistance; living trust issues; qualifying forveterans’ benefits; and what to do if a lovedone is already diagnosed with Alzheimer’sdisease, dementia or multiple sclerosis.

The workshop will be held on Wednesday,June 27 at the Hampton Inn and Suites (be-hind Best Buy and Starbucks) on Hwy15/501 in Aberdeen. Participants can attendeither the morning or afternoon workshopat 10:00 am or 2:00 pm. Seating is limitedand reservations are on a first come, firstserved basis. Call the reservation hotlineany time at 1-800-622-8686.

The North Carolina Senior CitizensAssociation (NCSCA) is a non-profitorganization established in 1977 by the stateof North Carolina. NCSCA’s mission isbuilding a better quality of life for seniorcitizens in North Carolina. For furtherinformation, please contact BarbaraMaxwell at 1-800-323-6525.

For more information please contact:Barbara Maxwell, Administrative Asst.North Carolina Senior Citizens Association800-323-6525 Ext. 30 or 910-323-3641

Senior CitizensOrganization to GiveWorkshop on Long-TermCare Planning

Page 25: Retirement & Financial Planning

retirement & financial planning | 25

If the ongoing recession has taught peopleanything, it's the need for saving money. Manypeople were caught off guard by the recession,and studies have shown just how little menand women had saved before the bottom fellout on the economy.In a 2011 poll from the National Foundationfor Credit Counseling, 64 percent of respon-dents admitted they would not be able to relyon their savings account if a $1,000 unplannedexpense suddenly popped up. And the prob-lem of not saving enough is not exclusive toAmericans. A 2011 survey from the CanadianPayroll Association indicated that 57 percentof the nearly 2,100 respondents admitted theywould be in financial trouble if their pay wasdelayed by just one week, while 40 percent ex-pect to delay their retirement due to lack ofsavings.Such figures should be enough to motivatemen and women to start saving, not only forretirement but for an unforeseen event like alayoff that could put finances in serious jeop-ardy. There are ways men and women can savemoney that don't require too much sacrifice.* Pay extra each month on loans. If payingextra money each month sounds like an oddway to save money, keep in mind that payingahead on loans can substantially reduce theamount of interest that accrues over thecourse of the loan. Some loan agreements in-clude prepayment penalties that actually penal-ize customers for paying ahead. But if the loanagreement has no such penalties, sending a lit-tle extra each month reduces the loan's princi-ple faster, meaning borrowers will pay less ininterest and pay off their loans faster.* Re-examine existing insurance policies. Aninsurance company is not liable to call you andoffer lower rates. However, a consumer oftenfinds his or her company is willing to lowerrates for those who initiate the conversation.For example, motorists who have gone a sig-nificant amount of time since their last speed-ing ticket or traffic accident can often

renegotiate their auto insurance policies andearn a lower rate. Some companies will auto-matically lower these rates, while others needsome prodding. Oftentimes, the threat of can-cellation is enough to motivate a company toreduce insurance costs. But policy holderswon't know unless they try. If the companyclaims there's no wiggle room, start shoppingaround for a new company, and don't hesitateto jump on a more affordable policy, even if itcan be a hassle to change companies and poli-cies.Another thing to consider when examining in-surance policies if the level coverage is stillnecessary. For instance, men and women whoopened an auto policy when their car wasbrand new might not want full coverage nowthat the car hasgotten older. Reducing coverage can save sig-nificant amounts of money.* Contact your credit card provider. Creditcard holders in good standing almost alwayshave the means to saving money at their dis-posal. That's because the credit cardcompany will likely be willing to lower your in-terest rate if you are a customer in good stand-ing. Lowering the interest rate can save cardholders significant amounts of money, but it'sstill ideal for card holders to pay off their bal-ances each month and avoid interest accruingin the first place.When speaking with a representative of yourcredit card company, discuss any additionalbenefits the company might provide. For ex-ample, some cards have an incentive programthat provides cash back on qualifying pur-chases, which might include groceries or airlinetickets. If your card offers such incentives, takefull advantage of them, just be sure to pay offthe balance in full each month.Saving money is something many people insistthey will start doing tomorrow. But it's the lit-tle changes you make today that can add up tosignificant savings down the road.

Simple means tosaving money

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our residents live an Optimum Life®. And with a lifetime base rent freeze, this caring lifestyle is more affordable

now than it will ever be again. Optimum Life, our culture

of wellness, is at the heart of everything we do. Our resident

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Call (910) 235-0700 today to scheduleyour personal visit and private tour.

CAROLINA HOUSE PINEHURSTPersonalized Assisted LivingAlzheimer’s & Dementia Care

17 Regional DrivePinehurst, North Carolina 28374

www.brookdaleliving.com Your story continues here…

Page 26: Retirement & Financial Planning

Retirement & EstatePlanning Services, Inc.

Roy Neal, Financial Advisor45 Dowd Circle, Suite APinehurst, NC 28374Office 910.295.7088

Cell Phone 910.585.0115

Visit our website atwww.plan4retire.com

Securities and Advisory Services offered through Private Client Services LLC,2225 Lexington Rd, Louisville, KY 40206 Phone 502-451-0600. Member FINRA, SIPCa Registered Investment Adviser.

Private Client Services LLC and Retirement and Estate Planning Services areunaffiliated entities

At our firm, we work for you - analyzing your needs and wants, trying to helpyou formulate a financial strategy that is both attainable and comfortable.Working together, there may be ways to help you use your resources tocreate a brighter financial future.

Call us today about your finances.

retirement & financial planning | 26

Page 27: Retirement & Financial Planning

retirement & financial planning | 27

Is your dream to start your own business, send your child to college, orsimply afford a comfortable retirement?

Our powerful four-tiered approach to holistic life planning can help youcontinue living the life of your dreams, or can help you get there if you arestill in your journey.

1. Discovery This is where we identify what drives you.

2. Planning We will translate your unique dreams and aspirations into a customizedaction plan.

3. Solutions There are thousands of options, but only one portfolio that fits your plan.

4. Monitoring Life is not static and neither is your plan. We will help you stay on top ofyour game.

Call today for more information or to schedule a consultation.

Four Powerful Steps for theLife of Your Dreams

Securities are offered through LPL Financial,Member FINRA/SIPC

SM

Audra Webb McLean, CFPFinancial Advisor, LPL Financial 205 SE Broad St Southern Pines, NC 28387 910 246 0838 office 910 692 7501 fax [email protected]

The need to save forretirement is somethingprofessionals start hearingabout from the moment theybegin their careers. Whetherit's parents extolling the virtuesof retirement plans or em-ployers who encourage theiremployees to take advantageof their retirement programs,saving for retirement is neverfar from the minds ofprofessionals.As important as such sav-ings can be, many workers aredeciding to delay their retire-ments. As much as men andwomen envision retiring to afaraway seaside villa for theirgolden years, such retirementsare not terribly common, andmany older workers havebegun to recognize the eco-nomic and social benefits ofdelaying retirement. Those un-decided about when they wantto say goodbye to the officeshould consider the followingbenefits to delaying retirement.

* Fewer years to worry aboutfinancing your lifestyle.Thanks to advancements inmedicine and more and morepeople living healthierlifestyles, men and women arenow living longer than in yearspast. While living longer,healthier lives is a plus, it doeshave an effect on retirement.Because people can now ex-pect to live longer, they mustensure their money lasts longenough. By delaying retire-ment, men and women willhave fewer retirement years tofinance.

* More chances to savemoney. It might be yourdream to retire early, but youcould be doing yourself agreat disservice by ending yourcareer prematurely. Men andwomen at or near the end oftheir careers are often makingmore money than they everhave, which enables them tosave more than they have in

the past, especially if childrenare full grown and supportingthemselves. Take advantage ofthese high-salary years, even ifit means working an extra fewyears. If you do, when you re-tire you could have substan-tially more in savings than youwould have had you retiredearly.

* Stay socially active. In addi-tion to economic benefits, de-laying retirement has socialbenefits as well. Many peopleget the bulk of their social in-teraction with colleagues andcoworkers. When men andwomen retire, these opportu-nities for social interaction candwindle rather quickly, and it'snot uncommon for retirees tobattle feelings of isolation.Delaying retirementallows you to easily maintaincontact with friends and col-leagues, and can lead to abetter quality of life.

* The chance to give back.Many older professionals viewretirement as being put out topasture, where their years orexperience aren't utilized.However, individuals whodelay retirement can use theirextra years around the officeas an opportunity to leave alegacy for the next generation.This is something profession-als find especially valuable astheir retirement draws nearerand they want to leave a last-ing mark, be it on their com-pany, within their industry orin the community in whichtheir company operates. De-laying retirement providesmore time to build this legacy,and can create a greater senseof fulfillment when men andwomen do decide to retire.Delaying retirement is grow-ing increasingly popular. Menand women often see it as achance to build a bigger nestegg and leave a more lastinglegacy within theircompany and community.

Delaying retirement hasfinancial, social benefits

Page 28: Retirement & Financial Planning

retirement & financial planning | 28

As if anyone needs their mem-ory jogged, debt is a substantialproblem for men and women liv-ing in fully developed countries.Estimates vary, but numeroussurveys have indicated the aver-age American household hasmore than $10,000 in credit carddebt, a figure that doesn't includedebt such as mortgages, car loansor student loans. In Canada, anearly 2011 report from the VanierInstitute of the Family suggestedthe debt-to-income ratio for theaverage Canadian family was 150percent, which means that forevery $1,000 a Canadian family

earns, it owes $1,500.What these figures illustrate is that eventhe most financially savvy debtor may be ina precarious position, one that, should anunforeseen layoff or medical emergencyoccur, could turn disastrous in a relativelyshort period of time. As a result, an individ-ual's ability to manage personal debt is ofparamount importance, and the followingtips can help men and women walking a fi-nancial tightrope address their debt in a waythat might help them get back on their fi-nancial feet.

* Eliminate bad debt.Not all debt is bad, but credit card debt is

How to managepersonal debt

CONTINUED ON PAGE 29

Page 29: Retirement & Financial Planning

retirement & financial planning | 29

Autumn CareAUNIQUE BLEND OF NURSING AND

REHABILITATIONWE ENCOURAGE YOU TO STOP IN AND TOUR OUR FACILITY TO SEE

WHAT WE MEAN BY “THE AUTUMN DIFFERENCE.”

• Short Term Rehabilitation, Long Term Medical Management and Respite Care• In house rehab team consisting of Physical, Occupational and Speech Therapies

• In house Laboratory, X-Ray and Pharmacy Services • Medicare and Medicaid Certified, HospiceContract, Private Insurance • Medical Director, 24 Hour Physician Coverage, 24 Hour LicensedCertified Staff • Individualized Care Program, Restorative Programs, Specialized Nutritional Pro-grams • Pain Management, Complex IV Therapy, Tracheostomy Care, Enteral Feeding, Wound

Care Management • Facility Transportation for outside appointments

OF BISCOE

401LAMBERTROADPOBOX708

BISCOE,NC27209PHONE: (910) 428-2117FAX: (910) 428-1165

[email protected]

rarely good. Card holders with substantialcredit card debt should contact their compa-nies as soon as possible to see if the com-pany is willing to work with them on arepayment plan. This is more prudent thandeclaring for bankruptcy, which will nega-tively impact an individual's credit score foryears to come. Companies are often will-ing to work with card holders about repay-ment plans that make it easier to pay downdebt. But once an agreement is made, cardholders must make meeting the terms ofthat agreement their top priority.

* Stop accruing bad debt.Using a card wisely is the key to avoidingunnecessary debt. When using credit cards,do not use them for everyday purchases likegroceries or movie tickets. This type ofcredit card usage is habit forming, and it'svery easy for card holders to quickly amass alarge balance on their accounts for itemsthey could just as easily could have paid forwith cash. Keep in mind interest will becharged on all balances not paid in full eachmonth, so don't make that cup of coffee orthat pair of movie tickets cost even more byadding interest to the overall cost.

* Pay down high-interestdebts first.Always work to pay down high-interest debtfirst while paying a little more than the mini-mum on low-interest debt. If a car loancame with an especially high interest rate(hint: borrowers whose down payment on acar loan was small or nonexistent are likelysaddled with a high-interest loan), work topay down that balance as much as possible.Something as simple as paying an extra $25per month on a $200 per month car pay-ment can reduce the length of time it takesto pay off that loan considerably. Once ahigh-interest debt is paid off, move on tothe debt with the next highest interest rate.

* Stop paying thebare minimum.Paying just the minimum will barely cover

the interest. That means the principal willhardly disappear, and the debt will be aseemingly impossible obstacle to overcome.Pay more than the bare minimum eachmonth, even if it means making sacrificeselsewhere.

* Avoid borrowing fromPeter to pay Paul.Transferring balances from a high-interestcard to a low-interest card is one thing, butborrowing against property or a retirementsavings account is playing with fire. With re-gards to borrowing against a 401(k), thepenalty to do so, not to mention the extraincome tax such a withdrawal will accrue,before retirement is substantial. In addition,the value of those retirementsavings will suffer considerably as theinterest earned will be on that much lessmoney until the full amount is paid backto the account.

Page 30: Retirement & Financial Planning
Page 31: Retirement & Financial Planning

500 East Rhode Island Avenue | Southern Pines, NC 28387 | (910) 692-0382 | (866) 545-1018 toll-free

PENICKV I L L AG E

A Continuing Care Retirement Community and Sandhills tradition since 1964, Penick Village

continues to set the standard for living by offering you an independent lifestyle that’s a natural

choice to build on for the future. What’s more, you and your family have the assurance that quality

care will be available if the need arises. We value independence and treasure individuality, while

promoting the best possible health, wellness and services for every resident. Call us to learn about our

great living options, and how we can help you plan for the future. Visit us at www.penickvillage.org.

PLANNING FOR the FUTURE?MAY WE SUGGEST the PERFECT SPOT.

You Could Be

Here

A Continuing Care Retirement Community

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Page 32: Retirement & Financial Planning

Where life just keeps getting better.

You’ve always been active, but you’ve reached the point in life where you want to spend less time doing yard work and more time doing the things you love. The beautiful communities of Belle Meade and Pine Knoll offer a healthy, engaged lifestyle with the added security of the St. Joseph of the Pines continuum of care should you ever need it. Don’t waste another second.

Call 910.246.1008. Schedule a visit today.

You may have slowed down, but your life sure hasn’t.

Southern Pines, North Carolina www.sjp.org 910.246.1008A member of the St. Joseph of the Pines Aging Services Network sponsored by the Sisters of Providence.


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