We’re big advocates for (and providers of) formal financial education. Classes, books, blogs, and podcasts all offer great opportunities to learn about how to make, save, grow and spend your money. We don’t think anyone should ever stop learning. We also know that we learn some of the most important lessons before we even leave our childhood homes. In honor of Father’s Day, here are some of the lessons our staff has learned from their dads: Kris Kersten To put money aside every month in a different account for Christmas, a car or a vacation, so you have it available when you are ready to use it and not go in debt! Tanya Winch Pay your bills on time; under almost all circumstances, do not purchase property with an ARM loan; be curious and aware of Uncle Sam’s tax rules; find work you love and/or learn to like the work you are given and, most importantly, be a conscientious & good steward of all you are blessed with. Sam Winch Spend less than you make. Christian Peterson When I was just out of college my father said to me, “Start now saving 10% of your salary and you will retire a millionaire.” (and a million dollars back then was a lot more money than it is now!) Sandy Shultz My dad always had another job in addition to his full-time job teaching…he saved that money he made from his part-time gigs to pay extra money on the mortgage and would use it for fun things (vacation, boat, etc). He still calls it his “left pocket money!” Beth Gorr Always have a safety net of a few months of bills – you never know when you are going to need it. No one can take away what you put upstairs. And don’t put off what you can do today to tomorrow. Matt Weyers No one can take away what you put… | Read More »
Financial Planning
Five scams that target seniors
Due to their own diligence and good habits, senior citizens often find themselves targets of scams. Retired people generally have built up an attractive pool of financial resources through a lifetime of hard work. Those assets can attract nefarious people who haven’t been as responsible with their life choices. Additionally, senior citizens can be more trusting, and they may not be as adept with modern technology. All of this means they need to keep up with various financial and technological scams. Here are five scams listed by the U.S. Department of Justice: The Social Security Imposter Scam This is a telephone scam in which the caller claims the victim’s Social Security number has been suspended due to suspicious activity, or because it has been involved in a crime. They ask to confirm the victim’s Social Security number, or they may say they need to withdraw money from the victim’s bank and to store it on gift cards or in other unusual ways for “safekeeping.” Victims may be told their accounts will be seized or frozen if they fail to act quickly. This can appear as a robocall during which victims may be told to “press 1” to speak to a government “support representative” for help reactivating their Social Security number. They also use caller ID spoofing to make it look like the Social Security Administration is calling. With such trickery, perpetrators convince victims to give up their Social Security numbers and other personal information. The Tech Support Scam Callers claim to be computer technicians associated with a well-known company or they may use internet pop-up messages to warn about non-existent computer problems. The scammers claim they have detected viruses, other malware, or hacking attempts on the victim’s computer. They pretend to be “tech support” and ask that the victim give them remote access to his or her computer. Eventually, they diagnose a non-existent problem and ask the victim to pay… | Read More »
Why you need a POA for Health
The day before her 18th birthday, my daughter broke her wrist and needed surgery to repair it. The timing of her injury provided a profound lesson for us both. As we had been her entire life up to that point, her father and I were her legal guardians at the initial doctor’s visit, with full access to the information we needed to make medical decisions for her care. HIPAA kicked in the next day, the moment she turned 18, and medical professionals were no longer able to tell me anything. She had to sign her own paperwork (with her broken wrist) and she had to fill out a release to allow me to attend her medical consultations and surgical appointments. Had she been knocked unconscious in the bike accident that caused her injuries and remained so the following day, her father and I might not have been able to help her make these important medical decisions. To avoid this type of medical limbo, it is very important to complete a Power of Attorney for Healthcare form. This form allows you to designate a health care agent to make decisions for you should you become incapacitated. These rules vary from state to state. For instance, Wisconsin is not a next-of-kin state. This means that if you are ever unable to make your own health care decisions, that ability does not automatically go to your spouse or parents. The HIPAA Privacy Rule does defer to a medical professional’s judgment in these cases, but it is much safer to complete the paperwork to ensure the people you trust have access to the information they need to advocate for your care. Fortunately, the paperwork you need to establish a legal Power of Attorney for Healthcare is readily available and it doesn’t cost anything to fill it out. You can download the Wisconsin form from this site. If you have any questions about your patient… | Read More »
A summer checkup for your financial health
Summer is an important season to pay attention to your health. You need to watch your sun exposure, make sure all that extra sunlight isn’t disrupting your sleep and keep the weight you might gain from those ice cream sundaes under control. It’s also the perfect time to take a look at your financial health. Here are five areas you can analyze to make sure you’re in good financial shape moving forward: Do you have a budget and are you sticking to it? Are you adjusting your budget for inflation? It isn’t enough to spend less than you make, you also need to account for rising costs of essentials like food, fuel, clothing and housing. Are you saving enough for an emergency? Ideally, you should have saved three to six months of living expenses to tide you over in case of an unforeseen emergency like job loss, illness, natural disaster, fire, major appliance replacement or vehicle repair. Are you paying off your debt in the most effective way? The first step is to analyze your debt situation and review the applicable interest rates. Then, set up a payment plan and stick to it. Do you have an income gap and, if so, how will you address it? A retirement income gap occurs when your income stream from Social Security, pensions, and/or rental property is not enough to cover your retirement budget. Before you retire, you need to know how you will cover this gap. Will you withdraw from an IRA? If so, how much can you afford to withdraw without losing principle? Do you have an annuity? If so, what will your start date be to turn on your payment stream? How will taxes impact your retirement budget? It is important to know the difference between qualified accounts, like traditional IRAs and 401(k)s, and non-qualified accounts, like your checking or savings accounts. You will need to pay taxes on withdrawals… | Read More »
Just Joshing
Josh Tatum’s infamy straddles three centuries thanks to a financial scheme that apparently netted him $15,000 and inspired the U.S. Treasury Department to recall and then re-design the Liberty Nickel. If you’ve ever used the phrase “just joshing around”, you’ve referred to Mr. Tatum. Young, enterprising and, by some accounts, both deaf and mute, Josh Tatum took advantage of some similarities between the nickels minted in 1883 and gold pieces worth five dollars. Both coins were the same size and had remarkably comparable designs. At the time, the word “cents” did not appear on the nickel. So, as the story goes, Josh enlisted a friend of his to help him electroplate the nickels so he could pass them off as gold. He simply purchased low priced items, paid for them with the nickel that looked like a $5 gold piece and then collected the change. By some accounts, he wracked up more than $15,000 with this scheme, or more than $337,737.00 by today’s standards. Eventually, Josh was caught and charged but not convicted. His apparent defense was that the merchants were responsible for recognizing the value of the coins he handed over to them and, as a deaf mute, he never said anything to mislead them. He said he viewed the extra change he received as a gift. The opportunity to pass these nickels off as more valuable gold coins came and went very quickly. The U.S. Treasury first released the “Liberty Nickels” on Feb. 1, 1883 and, by March 11 of that same year, they began re-casting them with a design that included the word “cents” on them. If you’re planning to celebrate April Fool’s Day by “joshing around”, remember the origin of that phrase and always be sure to double check any financial transactions you make.