Summer 2011

Thoughts on Letting Go

We have a new college graduate in our family. In some ways Jeff and I feel like our job is done – we’ve gotten Sam
through 16 years of schooling and imparted about all the wisdom he’s willing to listen to. Now it’s time for him to make his own decisions about every aspect of his life. Do we hope he’ll still ask for our advice? Sure! But I don’t think we can assume he wants to hear it unless we are asked. In conjunction with this new freedom to live as an adult is our message to Sam that he must now be responsible for this new life – rent, cell phone, food etc. The “gravy train” has left the station. Continuing to pay for children’s expenses is something I often see clients do, long after the children have left home. It’s perfectly understandable to want to help our children have a good life and to be able to afford all the amenities and activities that fall under that description, which of course are different for everyone. Helping out once in a while with unexpected expenses is one thing, but there are good reasons to cut the purse strings. If we want our children to really stand on their own two feet we must give them the opportunity to do so, even when it means struggling for a bit. Through their experience of budgeting money, working hard to earn enough for the fun things, and waiting patiently for something, they learn important financial values. They may also discover what is personally important – is it working hard for a big income, or working less hard and having fewer “things”? Sometimes parents underestimate their children. One client of ours wanted to reduce the amount of living expense money he gave his daughter while she was in college, but wasn’t sure if she could live on less. To his amazement his daughter reviewed her expenses, came up with a budget and functioned fine on her reduced income. Another client absolutely needs to reduce this type of support for her son in order to protect her own future security, but unfortunately is unable to bring herself to do so. We all want the best for our children no matter what age they are. Helping to create the best means teaching financial values – a most important gift that will serve our children their entire lives. ~ Jill

Reflections on Italy

• You do not need salt on the table.
• The driver who flinches goes last.
• Timid pedestrians will never get across the street. 
• Gelato needs to be eaten daily.
• Rome is romantic.
• One and a half dollars buys about one Euro’s worth of goods and services (ouch).
• Italians drive fast but eat slowly.
• Route markers on the Autostrada do not necessarily agree with maps.The Chianti region is lovely and spectacular.
• Strands of Cypress have the same kind of magnificent order as the Pantheon.
• Michelangelo’s David should be viewed from a particular aspect for maximum appreciation.
• Tomatoes and mozzarella make a great breakfast.
• Always put raddiccio in your salad.
• Red wine is yummy.
• Without Christianity, artists might not have had enough subject matter.
• Without the concentrated wealth of the Medicis to pay for commissioned work, art may not have advanced as it did.
• The simplicity of the Pantheon is refreshing after a visit to Vatican City.
• People-watching piazzas are pleasing and plentiful.
• Sienna is a handsome city.
• The moat around Lucca is loaded with trout.
• Travelling wine bottling companies are ingenious!
• Con men do wear fancy suits.
• Rail travel is relaxing.
• Medieval cities are converted to shopping meccas.
• Polizia on the street bearing machine guns are apparently common but unnerving nonetheless.
• San Gimignano has great pottery.
• Tuscan sunsets are memorable.

~ Susan

Thou Paradise of exiles, Italy!" --Percy Bysshe Shelley

Heard on the Street

... a young man talking about how he cut expenses to pay off debt rapidly who said: "I’m living for a few years like most people won't, so I can live the rest of my life like most people can't."
... as of 2010 it costs the U.S. Mint 1.79 cents to make a penny.
... there are over 9 million female-owned businesses in America, generating more than $2.3 trillion in annual revenue.
... the website www.seniordiscounts.com lists hundreds of discounts for those over age 50.

Elder Fraud

How do we protect our aging parents from financial scams? A recent MetLife study shows that financial abuse of elders is growing. They estimate the total cost at $2.9 billion, a 12% increase since 2008. Financial abuse includes stealing credit cards, forging checks, transferring assets and otherwise stealing money. Women are twice as likely to be targeted as men, partly because they live longer and are often living alone. The impact on the elderly is magnified by the fact that there is little or no opportunity to recover the loss by going back to work or growing remaining assets. Some red flags for abuse include:

• Sudden withdrawals from bank accounts
• Additional unwarranted names added to accounts
• Substandard care even though funds are available 
• Sudden changes to the will
• Unexplained transfer of assets

Cognitive impairment can make seniors vulnerable to financial fraud. Studies show that people in general tend to make poorer financial decisions as they age. Elder abuse is sometimes hard to perceive if the person is normally very private about their financial status. Adult children often do not find out about a problem until it is too late to correct. Seniors may also feel that any attempt to oversee their finances by their children means having to give up control or implies  that they are not capable of handling their own money. It is important for family to talk frankly with their older parents or relatives about the problem of elder abuse, and how they can work together to prevent it. The Alliance for Investor Education has a list of 10 websites with resources to help the elderly recognize scams and fraud. This can be found at www.investoreducation.org/elderinvestmentfraud

Protect Your Records

Wildfires in Arizona, floods in the Midwest, earthquakes in Australia and Japan – these are all a reminder that nature is unpredictable and can be devastating. While here in the Northeast we are not too concerned with wildfires or earthquakes, other weather events such as hurricanes and snowstorms are just as devastating. Preparing for a disaster is important in order to protect all manner of valuable items. By now the task of backing up your computer should be
second-nature. Using an online backup service such as Carbonite makes the task easy. But there are a few more actions you should take to help you protect and inventory your belongings. Scan a copy of all important documents such as tax returns, insurance policies, birth certificates, loan documents, real estate deeds, etc. Then either copy the information to
your offsite backup storage, or store it on a CD offsite in a safe deposit box. Keep most important documents in a safe deposit box. An exception is your will and other estate planning documents, which should be kept somewhere easily accessible to the executor or agent. Take pictures of or videotape an inventory of everything in your home. Be sure to highlight every individual item of value. Open drawers and closets to capture the contents. Don’t forget items in the garage or outdoor shed. Keep the photos or videotape in a safe deposit box or some other offsite facility and update it every year. If you have receipts to show the cost of an item, keep it with the inventory.