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The Greatest Gift to Leave Your Children & Free End of Life Checklist

July 5, 2019 By Lauri Salverda, CFA, CFP®, AIF®

fountain pen writing on paper

I have seen it over and over: a beloved parent dies and the adult children do not know where to start.  The first question is always, “What do you think they would have wanted?”

Once the question is out, then the arguments begin.  All relatives have opinions informed by their own experiences, and they rarely agree. “She told me this.” “She supported this.” “She would never have done that.” It causes strife during a time when people could be focused on grieving and carrying out their loved one’s wishes.

The sad part is it does not end there. Beyond the practices for mourning and celebrating their loved one’s life, adult children are responsible for details and logistics too. “Do you know what her passwords were?” “No. What about their financial accounts, do you know who we should call?” “What about insurance, did she have insurance?” Finding passwords, locating and inventorying accounts, managing insurance policies, and determining who needs to be contacted—the list goes on.

Unfortunately, too many times this crucial information—where everything is, what their wishes are and who to contact—dies with the person. The greatest gift you can leave your children is clear, organized information.  It is so important to provide this information so when the time does come when they have to say goodbye, they have time to grieve and celebrate your life, rather than being put under the pressure of wondering what your wishes were or where to find everything. 

Some of the items that are often forgotten and forever lost include:

  • End of life wishes;
  • Retirement or Pension Plans at old employers;
  • Stock purchased through the company;
  • Burial plots or policies purchased;
  • Intellectual property;
  • Electronic property;
  • Relatives unknown to children; and
  • Valuables that the children were not aware were valuable.

There are a number of ways you can share this information. One option, which many people find overwhelming, is to sit down and have an end of life discussion with your loved ones. This also has the potential drawback of people misremembering or forgetting details when the time arrives. Another option is to fill out an end of life checklist and to alert your family members to its existence. Filling out an end of life checklist may be difficult, but no one wants to leave surviving loved ones with arguments, fights, or lawsuits that last lifetimes.

Because I’ve seen how critical this is for the well-being of families, I’ve created a free end of life checklist that you can download by signing up for our e-mail list. You can also contact your own financial advisor for a list. Most people would gladly give up their inheritance to know what their parent would have wanted. Take the time to do it now—start today, this week. It’s hard emotional work, but it is a gift that can only come from you.

Filed Under: Financial Planning Tagged With: estate planning, family finances, financial planning

Financial Literacy Month

March 13, 2019 By Lauri Salverda, CFA, CFP®, AIF®

April is Financial Literacy month! What a great opportunity to talk to our children and young adults to find out what they know and how to improve on it.

a hand holds a pencil to a blank page, ready to write

High school students do most of their learning about money and finances from parents. But many parents do not feel equipped to teach their children about financial issues. In 2018, the research group Brookings Institute published a large-scale review of youth financial literacy, which showed a continued failure of U.S. high school students to pass simple financial literacy tests. In fact, in a 2008 literacy test by Jump$tart, high school seniors averaged 48.3%—more than 10 points lower than a passing grade. We need to do better for the sake of our children. And we can start both at home, but also in supporting our schools.

Talk to your children’s teachers and school administrators and discover what they provide in financial literacy. In 2011, Minnesota passed the Minnesota K-12 Social Studies Standards that went into effect in the 2013-2014 school year. The goal of these Standards was to provide Minnesota students with some training in economics. Of the 34 economic education benchmarks for students 1-12 grade, 5 are related to personal finance.

While most schools do not have the funding to add programs, there is support available for schools. BestPrep is a Minnesota based non-profit organization that provides educational programs to students in grades 4-12. They have developed many programs which are available at no cost to schools. One such program is Money Matters. They provide volunteers from the financial industry who go into schools and teach classes about personal finance. They have financial experts volunteering to develop presentations that not only address the Social Studies Standards, but go beyond. They work with students on understanding money basics like budgeting, credit vs. debit, and credit scores. Additionally, BestPrep provides volunteers e-mentors for classrooms as they discuss financial topics. The students can e-mail questions to their e-mentors who respond not only with answers, but with new ways to look at their personal finances.

Another way you could be involved is to volunteer with a group of students and participate in the Stock Market Game. You do not need to be a financial expert to run this game. BestPrep provides training and on-going support. The curriculum not only provides students with an education in business, economics, and financial literacy, but also gives students a richer understanding of the U.S. economic system, current events, and teamwork. To see all that BestPrep has to offer go to www.BestPrep.org.

There are many organizations that not only work with students, but provide individual guidance for any adult interested in helping youth achieve financial literacy. Check out some of the great resources listed below to learn more about what you can do!

Share Save Spend – www.sharesavespend.com

The Financial Educators Council –  www.financialeducatorscouncil.org

The Mint.org – www.TheMint.org

Filed Under: Blog Posts, Financial Planning Tagged With: financial literacy, financial literacy month, financial literacy resources, literacy for kids

How to Choose a Financial Planner

February 15, 2018 By Lauri Salverda, CFA, CFP®, AIF®

The search for a good financial planner should be exactly that: a search. This is a person who is going to get to know a lot about you, so don’t just pick the first one your search engine kicks back.

First, take some time to identify between three and five people you want to interview. Before someone makes your short list, be sure they are a certified financial planner. How do you know? In their biography or on their website, look for CFP® following their name. For no cost, you can visit www.napfa.org or www.letsmakeaplan.org to find qualified planners.

CFP® professionals, when providing financial planning, are required to act as fiduciaries as a condition of their certification. Why does that matter? Simply put, it means they’re bound to put your interests first when offering advice. And only those with certain certifications are required to do this!

What to Ask a Financial Planner

After you’ve got your list of qualified (on paper) candidates, it’s interview time. Make a list of questions and bring some notes about yourself. Do you know what you’re looking for in a financial planner? “I’ll know it when I see it” isn’t very helpful, so be concrete and think about your values and your situation. Do you want someone experienced with locally-based investments? Someone who shares your values around philanthropy? Someone who works with a lot of single parents?

As you sit down with each planner for an interview, look up from your notes long enough to check that the individual is really listening to you. Are they multitasking? Or are they focused on you, and even taking notes themselves? Second, how does the conversation make you feel? Are you instantly comfortable, trusting and excited about working with this person? If there’s no rapport, you should keep looking.

As you’re keeping tabs on those less concrete aspects of the interview, you can run through the 10 questions to ask provided by letsmakeaplan.org. For example, ask about their experience, qualifications, services, costs, and how the office runs their client relationships. Take notes, take the answers away and consider if they match what you’re looking for. With solid information about each person you’ve interviewed, choosing the right planner should happen almost automatically.

What You’ll Learn About Lauri

We look forward to a productive conversation with all potential clients, where we can get to know one another better. Here’s a brief sneak peek into what you’ll learn about how Lauri operates as a CFP®:

    • She knows her clients personally. Lauri will get to know your likes, fears, comfort level with financial conversations, values, goals, and how your needs are changing over time. This way, when you call her with an issue, she hones her advice to what’s most important to you.
    • She educates her clients. Lauri believes you should feel empowered to make your own decisions, not be told what to do. For example, if an advisor recommends you roll your 401k into an annuity, you should understand why, on top of knowing the other options.
    • She understands that all areas of a client’s life are interrelated. Your values influence who you are and what you need. For example,
      • If a person is philanthropic, giving is important to them. How does this impact their retirement goals?
      • If a family has an active lifestyle that includes boats, trampolines, and other recreational items, their insurance coverage should reflect that.
      • If a couple is making decisions about putting their kids through college, their values come into play. Perhaps their parents didn’t pay for college, so they value teaching their kids the discipline of working through school. How do changes in today’s rising college costs influence the reality of this?

Take your time, make your list, and come to your interviews prepared. We’ll be here when you’re ready.

Filed Under: Blog Posts, Financial Planning

Do You Know What a Fiduciary Is?

November 10, 2017 By Lauri Salverda, CFA, CFP®, AIF®

If you know what a fiduciary is, you’re in the minority of Americans. In April of 2016, entrepreneur and life coach Tony Robbins stood on a Manhattan street and interviewed passersby, finding that the only respondent who could define the word was a fiduciary. Although it’s not a prayer, it is, as one respondent guessed, “something awesome”.

Obviously, there are a lot of questions on the topic that need answering.

So, what is a fiduciary?

A fiduciary is a financial advisor who is required by law to put the client’s interests ahead of their own, and to disclose any possible conflicts of interest.

Don’t all financial advisors put client interests first?

Unfortunately, this is not the case. The majority of financial advisors are held to a suitability standard. Meaning, these advisors need only suggest items that are suitable for your objectives, income level and age. Suitable doesn’t always mean best. Additionally, they do not need to disclose any conflicts of interest.

Is disclosing a conflict of interest that important?

It really is. According to a recent article by Bloomberg, there are half a million brokers who earn commissions if they can convince you to buy an expensive alternative to the thriftier, better-performing investment options on the market. That’s more than ten times the number of advisors who adhere to a fiduciary standard.

Government research estimates that consumers lost $17 billion a year to conflicted advice in the recommendations made by brokers and sales agents posing as advisors related to retirement plans. This, to put it bluntly, helps explain why so many Wall Street brokers are insulted if their annual bonus is in the low seven figures.

Why is working with a fiduciary so important?

Let’s put it in perspective:

Say you’re looking for a restaurant for dinner tonight. You want a place that’s not too far away, and is open on a Thursday night. A quick online search will turn up a whole host of “suitable” options. But how will you know which one is going to best cater to your customer experience? Do you take the top “sponsored” result on your search? Or do you turn to outside resources, like Yelp, where feedback is based on the diner experience, not sponsored by their marketing department? More than that, you probably confirm multiple sources — asking your foodie friend for a recommendation, and checking the restaurant’s rating on Google, too. You don’t trust a single biased source for dinner, and you certainly shouldn’t trust an advisor who has motives other than your best interests in mind.

How do I find out if my financial advisory is a fiduciary?

Just ask! If you are currently working with or looking for a new financial advisor, simply ask, “Are you acting as a fiduciary at all times? Will you sign an oath stating that you will always put my interest above all others?” They’re obligated to answer, and if they can’t, or won’t, be prepared to find someone who can, and will.

Remember, at Castle Rock, your interests always come first.

Filed Under: Financial Planning, Industry News

The Financial Nomad: Conserving Your Retirement Money by Becoming an Expat

October 13, 2017 By Guest Blogger

This post is by guest blogger Victoria Thompson, a U.S. expat who is excited to share her experience abroad in Argentina with others exploring the idea of living abroad.

In the wake of healthcare law changes, inflated premiums and rising housing costs, life in the United States can be a struggle. But if you’ve the free time and flexibility retirement affords, you might want to consider a move to another country — not only to save money, but for the adventure of a lifetime.

“But I can’t do that, I’ve got pets, grandchildren, responsibilities, health problems,” you protest.

I assure you, you can.

In the wake of a divorce in my 50s, the Great Recession, my son leaving for college, getting laid off, and massive changes to my professional industry (print publishing), my life resembled the spin-cycle of an overloaded Maytag. When my house had to be sold as part of a divorce agreement, I shouted to the universe, “You want to see change? I’ll show you some change!” I did what I felt was the only sensible thing: I moved to Buenos Aires.

“Madness!” you may think — but it was a calculated madness. The U.S. dollar was worth four times the value of the Argentine peso. My Minnesota winter was an Argentine spring. So, into a storage unit went the accumulation of 20 years of married life stuff, and onto a plane I stepped. I spoke no Spanish, but I had lots of free time, no responsibilities, and a cache of cash from selling the house. I’d planned on staying six months, with the option of a longer stay if I found the city agreeable and Buenos Aires would have me. The recession would be almost over by then, right?

If the idea of packing it all in and departing to lands unknown is appealing to you, here’s some hard-earned wisdom I’d like to impart:

Preparation

Research the countries that interest you, taking into consideration favorable exchange rates and quality medical care. A good site to begin reading is internationalliving.com. Many sites have discussion groups where you can ask question of expats already living there, and their assistance is invaluable. I used BAexpats.com a little before I left (and a lot when I arrived). I got help on everything from how to activate a Spanish-language cellphone to what bars showed American football. I used it to get invited to parties and to invite others to mine, and make a lot of new friends in the process.

Finding a Place to Live

You can arrange an apartment or house to rent online, but I wouldn’t recommend it. One needs to learn the neighborhoods, or “barrios” as it was for me. Photos are well and good, but sometimes don’t match up to the real life experience. It’s also good to meet your landlord so you know what kind of service you’ll receive. Airbnb or Vacation Rental by Owner are good options for a short-term stay while you hunt for a residence. In some countries where corruption is the norm, it’s helpful to bring an interpreter or friend with you as you visit rental agencies. I brought an Argentine friend to help me when looking for apartments. After we walked out of one agent’s office, she told me he bragged to his assistant (in Spanish) that he was planning to scam both the homeowner (and me) by skimming money off the top. He’d forgotten that my friend was Argentine.

It’s also helpful to know cultural and societal norms. In Argentina, to rent a dwelling for a year you need to pay a year in advance in cash, and have a citizen vouch for you to get a lease. Otherwise, you’ll pay tourist rates. I paid tourist rates. I found my home on Vacation Rental by Owners and because I was staying for six months, negotiated a lower rent. Educate yourself on how to negotiate a long-term rental. Once again, expat websites are your new best friend. Another option is renting a room in an established household. I have a friend who teaches English all over the world and she prefers to live in other people’s homes for the company. She’s become close to several families this way and still keeps in touch. You’ll learn more about the culture living in someone’s home, and it’s often much less expensive.

Medical Insurance

It’s important to understand the options for healthcare in the country you choose. In my case, the BAexpats site was very helpful as a research tool for choosing a health insurance company. For $100 a month, I purchased a comprehensive plan with no deductible and no copays. During my stay I needed a root canal and a crown, and it paid for those as well. I also had a full physical. As an American, the reasonable cost astounded me.

Social Connections

I made friends with my hairdresser, the guys who owned the cafe across the street, the two Argentine guys who owned the local expat bar, and the man who fixed my laptop, as well as friends and acquaintances from BAexpats. I went to a fabulous New Year’s Eve party at the former Russian Embassy, attended several “pop up” dinners, danced tango and hosted Thanksgiving dinner, Christmas party, and Australian Day parties at my home. I had a much more vibrant social life in Buenos Aires than I ever did in Minnesota, made even easier by being single.

Spend some time learning to understand the cultural norms around affection and friendliness where you go. Argentines are warm and outgoing generally, and the expat crowd — because they’re away from their homes too — are very easy to meet. If you’re moving alone, consider what the cultural norms might mean for your social life. (If people are generally more reserved and slow to make friends, are you okay with having a small social circle?) I’ve heard from other expats that it is difficult to make friends when people find out you’re only there for a finite time because they don’t want to make the social investment, but wasn’t the case for me.

Transportation

Being in a large metropolitan area with a subway, buses, trains, and cheap taxis made getting around without a car easy. You can always rent a car if you want to explore more of the country, but in my case that was unnecessary. I walked many miles every day — an excellent way to get to know the neighborhood. It also was the source of some wonderful memories: it’s while walking that I came upon the stunning Art Deco building, the surly French coffee shop proprietor who warmed up when asked about the vinyl records he’s playing, the pet store where puppies ran free and visitors were welcome to play with them.

Language

Because I spoke no Spanish, I prioritized finding a reasonably-priced tutor who came to my home three times a week. Most Argentines in Buenos Aires were not bilingual, even in the professional classes. And I never met one taxi driver who spoke English. But, with a little creativity you can get by. I always wrote my destination address on a piece of paper to give to the driver. It also helped that I’m also totally unashamed to make a fool out of myself: I once employed pantomime to act out the action baking soda takes when it’s incorporated into cookie dough (which I was attempting to make). As I swooshed my arms upwards in imitation of a chemical reaction, I gathered a small crowd in the store. People began shouting out their guesses to me. It felt like I was in a game show!

Putting it All Together

People often ask me “How did you find the courage to move to another country alone?”  The hardest part is adjusting your attitude. Once that’s accomplished, the rest falls into place.

If the country you choose is not what you envisioned, consider your options and context.

  1. Culture shock can be extremely difficult, especially if you’ve had a very monocultural upbringing or social context. Consider that perhaps you need to be there at least a year to acclimate to the culture or build social connections.
  2. If you’re certain this isn’t the locale for you, move to another country. If your stuff is in storage and you’ve tied up loose ends at home, you’ve nothing to lose. Spend some time figuring out what it is that was difficult for you, and research how those challenges might surface or fade away in other cultural contexts.
  3. Or simply go home. There’s no shame in that.

Thank you for reading about my journey. I’ll be starting a new one soon as I approach retirement age this year and prepare to move to Madrid. One expat experience usually leads to another. In my case, three friends from my stay in Buenos Aires are in Madrid, waiting to welcome me.

Filed Under: Financial Planning

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