A powerful poem and perspective to expand your world, Sarah K delivers. If you are like me, you’ll have to watch more than once and listen deeply.

“If I should have a daughter, instead of Mom, she’s gonna call me Point B … “ began spoken word poet Sarah Kay, in a talk that inspired two standing ovations at TED2011.”

Do you see the impossible? You can change your world. Fear less. Do more.

UPDATE: Now in book form thanks to Seth Godin’s Domino Project.  B  What an awesome gift on insight and inspiration.

Download the Flyer

Join us Thursday, December 1, 2011 at the Jackson Township Branch of the Stark County Library for a free strategy session about long term care. Choose the most convenient time for you. Two Sessions: 3:30 – 4:30 pm or 5:30 – 6:30 pm. Click to download the workshop flyer here.

*Long Term Care Insurance – Is it right for you?
*Little Known Tax Advantages of Insurance
*Pros and Cons of Insuring Risk
*Misunderstood Benefits & Features
*Options if You Don’t Qualify for Long Term Care Insurance
*Options if You Don’t Want Long Term Care Insurance

Discussion will be focused on the topics presented in the Buyer’s Guide to Long Term Care by the National Association of Insurance Commissioners. Click to order your own Shopper’s Guide to Long Term Care Insurance.

Instructor: Lynn Shepherd, CFP®

It’s always a joy to share retirement planning tips with people who are serious about taking action. That was the case July 29th when the Columbus State Downtown Campus Conference Center was buzzing with hundreds of people who opted to spend a Friday learning about how to make wise financial choices.

Retirement planning was a hot topic, with 120 people registered for the two retirement planning classes I was teaching.

I feel fortunate to have been involved as an instructor for this program since 2004. At that time, it was called Women & Money.  The expanded program is called Smart Money Choices. I was honored that the State of Ohio invited me back to teach the Top Ten Retirement Tips.

SPECIAL NOTE: As most of the clients I serve are either within a year or two from  retirement or already retired, I’d like to share highlights of these tips as they apply to that group of individuals.

1. Start Early. I’m not talking about starting early for  accumulating money. “Start Early” means planning now for the day the paycheck ends or life changes. If you are 2 years away from a planned retirement, start living on your expected retirement income now. If you are already retired, plan for the day when life changes. And it will. Taxes will go up. Medical expenses will go up. Investment returns will go up, down, and sideways. You may find yourself suddenly single. Or raising a grandchild. How will this impact your retirement income? What can you do now to reduce the future, inevitable risk of change?  Start planning now. It’s never too early.

2. Develop Realistic Goals.  It’s time for a reality check. What are your current expenses? Will your home be paid off when you retire? Chances are you can’t retire at 50 and have enough money to provide you with a sustainable income, without a paycheck, for 35 years. Supporting adult children or a lavish lifestyle once the paycheck stops is dangerous to your future financial health.

3. Expect to live beyond 100. Enough said.

4. Plan for 70% replacement of income. At a minimum. 70% of income used to be a good rule of thumb. However, your early retirement years are when you most often have both the freedom and health to travel, enjoy hobbies, and explore new opportunities.  You may actually spend 100% of your pre-retirement income. With inflation and health care costs looming, it is vital that you plan for future income to keep pace with inflation. 70% of your current income sounds like a lot now. But twenty years from now? Not so much.

5. Diversify. Conventional wisdom has taught us all to diversify through asset allocation. That is a good beginning, but I strongly believe you must also diversify based on risk and how an asset will be taxed. With the inevitable rise of tax rates (and elimination of deductions), strongly consider researching the benefits of a Roth conversion. With tax free growth and elimination of the RMD requirement, the Roth IRA is worth exploring. As we age, it is also necessary to reduce risk and preserve assets. Please note that diversification does not ensure a profit and does not protect against losses in declining markets.

6. Do Your Homework. But realize that information is not knowledge. And knowledge is not wisdom. Keep in mind that your individual circumstances mandate that you need a personally crafted plan, customized for your individual needs and goals. Do your homework not just about investing or estate planning, but to find an adviser who has the experience, ethics, and education to help guide you to make wise choices based on your circumstances. Find someone who will listen and act with your best interests in mind. Don’t let your past experience or conventional wisdom shut the door on certain investments which may be extremely valuable to your income plan. Keep an open mind and learn the naked truth about annuities. You might be surprised.

7. Know IRA Contribution/Conversion Limits. If you are over the age of 50 and have earned income, you have the advantage of “catch up” provisions. Instead of contributing $5,000 to an IRA, you can contribute $6,000. In a 401k,  the contribution limit rises from $16,500 to $22,000.  (See IRS Rules to learn more.) Once you retire, you cannot contribute to an IRA or a qualified plan such as a 401k or 403b. But you still have options. Now anyone can do a Roth conversion. No income limitations. No rule that spouses have to file joint returns. This is a huge planning opportunity IF done right. NOTE: As an adviser who specializes in retirement distribution planning, I see costly mistakes being made that could have been avoided. Please consult with a specialist before making a decision based on what you read.

8. Rollover Retirement Funds When Changing Employers. Maybe. Most often rolling over your retirement funds to a personal IRA provides a wide array of investment choices and options that you may not have in your retirement plan. One of the most overlooked benefits of transferring assets into your own IRA is the ability to fully control your beneficiary designations. This is particularly important in the event of a second marriage. ERISA rules, along with your Plan’s documents, controls your qualified plan.  As an example, you must be very careful when naming children as beneficiaries in a 401k plan if you are married or remarry. An IRA may provide you with the power of beneficiary choice that a qualified plan does not.

9. Adjust Your Portfolio. The accumulation stage of saving for retirement is entirely different than the distribution phase.  Adjust your portfolio to reduce risk and provide a sustainable income and lifestyle. Pay attention to changes in the tax rules. Reduce your equity exposure as you age.  Determine your need for stable income. That floor can include your pension and social security income. The monthly income you need to depend on to pay your living expenses should not be subject to market fluctuation.

10. Call Social Security Administration to Determine Benefits. You may be surprised to learn that there is a strategy in claiming social Security benefits which can greatly enhance income for both you and your spouse. Widowed? Divorced? You can file on your spousal record.

The free 2011 Smart Money Choices financial planning program presented by the Ohio State Treasurer’s Office offers a number of courses other than Retirement Planning. Included are classes in Budgeting, Credit & Debt Management, Consumer Fraud, Estate Planning, Insurance, Investments, Kids & Money, and Social Security.

The next Retirement Planning classes I’ll be teaching will be held in the Youngstown, Ohio area on August 26, 2011. Classes will be held at the Holiday Inn Conference Center in Boardman. If you know of anyone in that area, please let them know about an exceptional opportunity to get objective information from a panel of professionals.

To register, you can call 1-800-228- 1102, Option #1 or visit www.ohiotreasurer.gov.

Contact Lynn with retirement questions.

Confused about annuity or long term care options? It’s hard to know who to trust for delivering reliable information about your insurance options.

Visit the National Association of Insurance Commissioner’s website and Request a Free Consumer Guide about fixed deferred annuities, equity or fixed indexed annuities, choosing a Medigap policy, or a shopping guide to long-term care insurance. The NAICThe National Association of Insurance Commissioners (NAIC) is the oldest association of state government officials. Its members consist of the chief insurance regulators in all 50 states, the District of Columbia and five U.S. territories. The primary responsibility of the state regulators is to protect the interests of insurance consumers, and the NAIC helps regulators fulfill that obligation in a number of different ways. website can be a great educational resource.

To keep informed about resources you can really use, be sure to claim your free SWAN360 retirement newsletter! The sign up form is on your right!

Do you know the origin of Valentine’s Day?

In a time long ago and a land far away, in the reign of Roman Emperor Claudius II, things were not going well for the empire. Claudius had launched so many bloody wars that he was running out of soldiers and no one wanted to volunteer for his latest adventurers.

In a stroke of madness, Claudius decided that the solution to his problem was to ban all engagements and marriages. This way, he reasoned, young men would not be ‘tied down’ to their families and would be more inclined to sign up and ship out. Obviously, folks who wanted to get married were not happy with the new law.

Valentine to the Rescue

A clergyman named VALENTINE, thought the law was nuts and unjust and took to secretly marrying couples. It worked great…until he was caught. While in jail waiting for execution – it was a capital offense to oppose the Emperor – young people threw flowers and notes of appreciation to the man who stood up to a power-mad government on their behalf. Valentine knew he had done the right thing and, thanks to the support and love and received from so many, kept his spirits high to the very end. For the ‘crime’ of marrying people who loved each other, Valentine was executed on February 14. And thus the origin of today’s holiday. ” Legend also says that a jailed St. Valentine sent a letter to his beloved, the jailor’s daughter, signed “Your Valentine.” Now you know!

Straight from the Heart – Lessons from Valentine

So St. Valentine’s Day is really all about honoring someone for doing what he knew in his heart was right … for others! Valentine’s Day is the third most celebrated holiday, surpassed only by Christmas and Easter. The average Valentine’s Day consumer is spending $113. We spend $2.3 Billion (with a “B”) on greeting cards and $1.7 Billion (another “B”) on candy! $4 BILLION in one day. To tell someone we love them.

I can think of a better way.

Words of Love that Make a Difference

Take your words of love and write them down. Three of the most important financial planning documents you can have are:

• Beneficiary forms on your IRA, 401k, insurance policies, bank accounts.
• Power of Attorney, which helps you manage your property during your lifetime in the event you are unable to do so; and a
• Will, which helps distribute your assets after death.

Beneficiary Forms:

Unfortunately, beneficiary forms are often the most overlooked documents that can make the largest impact on your loved ones. Review every single account that has a beneficiary designation and make sure these forms are current and list the person or people you want to receive your money. List both a primary and contingent beneficiary(ies). This simple process saves time, money and frustration.

Powers of Attorney:

A Power of Attorney gives someone else the legal authority to make decisions on your behalf. This document, in my opinion, can actually be just as important as a will. Whomever you name as your attorney-in-fact is required to make decisions in your best interests, just as you would have made for yourself if you were able.

You can have a business/financial power of attorney as well as a Health Care Power of Attorney. Each document is very important for different reasons.

The Power of Attorney (POA) can be put into place immediately (Example: As in the case of a husband and wife who are separated through military service or business travel) or “spring” into action in the event you are unable to make decisions for yourself.

If your Power of Attorney is not a “Durable Power of Attorney” the authority granted will immediately end when you become incapacitated. The simple definition of incapacitated is that you are unable to make decisions for yourself. Incapacity can be a result of an accident, stroke, or come on slowly like Alzheimer’s.

Whatever the reason, if you do not have a Durable Power of Attorney in place, it will be necessary to appoint a guardian through a Court proceeding. Lesson? Check your documents. Make sure the language specifically says “DURABLE!”

A common misconception is that a Power of Attorney will allow you to transfer property at death. The Power of Attorney, even if it is Durable, automatically ends at death. Why? Because by its very nature, a Power of Attorney gives someone else to make the decisions for you that you would make for yourself, if you were able. If you have died, obviously you wouldn’t be making any choices!

Authority will also end when you revoke it, get divorced*, a court revokes it (rarely happens) or the person you gave authority to is not available to serve. Lesson? A Power of Attorney does not take the place of a Will.

(*If your spouse is your attorney-in-fact and you get divorced, your ex-spouse’s authority is automatically terminated in only the following thirteen states: Alabama, California, Colorado, Illinois, Indiana, Kansas, Minnesota, Missouri, Ohio, Pennsylvania, Texas, Washington, and Wisconsin. In every other state you must terminate the authority yourself.)

Will

Your will is a legal document which helps transfer property at your death. A will only covers property which goes through Probate. In other words, any assets that you own that name a beneficiary such as insurance, IRAs, 401(k)s, savings bonds, and POD accounts at a bank or TOD accounts at a brokerage, do NOT pass via Will.

Also assets titled jointly, such as bank accounts, brokerage accounts, or your home also do NOT pass through your will.

Medical Directives

Medical directives can include a health care proxy, durable power of attorney for health care, a living will, and instructions directly to your doctor. According to Elder Law Answers, both a health care proxy and a durable power of attorney for health care designate someone you choose to make health care decisions for you if you are unable to do so yourself.

A living will instructs your health care provider to withdraw life support if you are terminally ill or in a vegetative state.

So this Valentine’s Day, do something really meaningful for yourself and for those you love.

How Safe Is Your Retirement?

Are you planning to complete a 401k retirement rollover in the near future?
Are you considering converting your Traditional IRA into a ROTH IRA?

Wait. Without the right information, you may make a costly, but avoidable, retirement mistake. The same kind of money mistakes that many individuals, just like you, have already made just because they didn’t know what they don’t know. It doesn’t have to be that way.

Join us Tuesday, November 2, 2010 at the North Canton Public Library and I’ll share critical information you need to know before you make any 401k Retirement Rollover or ROTH IRA conversion decisions.

If you are like many Americans, your largest asset is probably your 401k retirement plan or your IRA.  As a result of diligent, disciplined savings, you’ve managed to accumulate a substantial tax-deferred account. Now what? How can you protect your hard-earned savings from excessive taxation? For you and your loved ones. Discover how you can take advantage of little known strategies to successfully transform savings into an income stream you can count on. Tax-efficiently.

North Canton Library Retirement Workshops – First Tuesdays with Lynn

I have partnered with the North Canton Public Library to host a series of free retirement planning discussions specifically addressing the needs of Boomers and beyond who are close to retirement or already retired. The meetings will be held on the first Tuesday of each month and focus on critical financial issues that specifically relate to people over the age of 50 who want to manage risk, protect assets, and create a reliable income stream for retirement.

Retirement Workshop Reminders

Sign up to receive our SWAN360 Retirement Newsletter and we will send you an email reminder of the date, time and topic of each upcoming workshop!

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