Mobile Check Deposit Coming to an Investor Access App near You!

Contributed by: Clare Lilek

The Raymond James Investor Access mobile app continues to get more convenient for its users. As long as you have the most up-to-date version of the Apple or Android application, you can now use it to deposit checks into your Raymond James accounts. You can deposit a check into almost any retirement and brokerage account that is linked to your Investor Access—only SIMPLE IRAs, pledged, and minor accounts are not included in this feature. You simply choose the destination of the account, enter in the check amount, and then snap a picture of the front and back of the check and the check will be deposited to your account!

Deposit limits correspond to the monetary size of your Raymond James relationship. See this handy chart below to know your daily deposit limit:

Helpful Tips and Exceptions

• Checks you can NOT deposit include:

  • Fee payments

  • Foreign Checks

  • Rollover Checks

  • Account Starter Checks

  • Please send any of these above types of checks to us, and we can deposit them for you.

• IRA Contributions

  • You can deposit these checks using the mobile check deposit

  • During January up until tax day, you will be able to choose your contribution year (current or prior year)

  • The app will not let you contribute over the allowed amount

• 3rd party checks are available for deposit

If you have any questions on using this new feature, check out the FAQ page from Raymond James.

The mobile check deposit feature on the Investor Access App is for your convenience. If you don’t have Investor Access, you can enroll here. When in doubt, however, feel free to send your checks our way and we will deposit them in the correct account on the day we receive them. We are always happy to help you with our friendly and traditional in-person service – let us know how we can help you!

Clare Lilek is a Challenge Detroit Fellow / Client Service Associate at Center for Financial Planning, Inc.®

Money Sense for Young Kids

Contributed by: Matt Trujillo, CFP®

As a dad of two young boys, I read and think a lot on how to teach my sons about how to handle money.

Even before my boys could count, they already knew something about money: it's what they had to give the ice cream man to get a cone, or put in the slot to ride the rocket ship at the grocery store. So, as soon as your children begin to handle money, start teaching them how to handle it wisely.

Making Allowances

Giving children an allowance is a good way to begin teaching them how to save money and budget for the things they want. How much you give them depends in part on what you expect them to buy with it and how much you want them to save.

Some parents expect children to earn their allowance by doing household chores, while others attach no strings to the purse and expect children to pitch in simply because they live in the household. A compromise might be to give children small allowances coupled with opportunities to earn extra money by doing chores that fall outside their normal household responsibilities.

When it comes to giving children allowances:

• Set parameters. Discuss with your children what they may use the money for and how much should be saved.

• Make allowance day a routine, like payday. Give the same amount on the same day each week.

• Consider "raises" for children who manage money well.

Take it to the Bank

Piggy banks are a great way to start teaching children to save money, but opening a savings account in a "real" bank introduces them to the concepts of earning interest and the power of compounding.

While children might want to spend all their allowance now, encourage them (especially older children) to divide it up, allowing them to spend some immediately, while insisting they save some towards larger ticket items they really want but can't afford right away. Writing down each goal and the amount that must be saved each week toward it will help children learn the difference between short-term and long-term goals. As an incentive, you might want to offer to match whatever children save toward their long-term goals.

Shopping Sense

Television commercials and peer pressure constantly tempt children to spend money. Therefore, children need guidance when it comes to making good buying decisions. Teach children how to compare items by price and quality. When you're at the grocery store, for example, explain why you might buy a generic cereal instead of a name brand.

When it comes to shopping with children who want you to buy them every little thing they see, take a moment to explain your “yes” and “no” decisions. By explaining that you won't buy them something every time you go to a store, you can lead children into thinking carefully about the purchases they do want to make. Then, consider setting aside one day a month when you will take children shopping for them. This encourages them to save for something they really want rather than buying on impulse. For those big-ticket items, suggest that they might put those items on a birthday or holiday list.

Finally, don't be afraid to let children make mistakes. If a toy breaks soon after it's purchased or doesn't turn out to be as much fun as seen on TV, eventually children will learn to make good choices even when you're not there to give them advice. For more tips on how to raise Money Smart Kids, check out our webinar on the topic!

Matthew Trujillo, CFP®, is a Certified Financial Planner™ at Center for Financial Planning, Inc.® Matt currently assists Center planners and clients, and is a contributor to Money Centered.

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The views expressed herein are those of Matthew Trujillo and are not necessarily those of Raymond James.

5 Steps for When You're in the Retirement Home Stretch

Contributed by: Laurie Renchik, CFP®, MBA

It’s the home stretch! Important retirement decisions during the five to ten years before you leave the workforce can easily create more questions than answers. Dropping to the bottom line, one way to describe retirement readiness is getting in step with financial and lifestyle matters before you stop working. 

What to do? Start with the big picture and think about what the ideal retirement looks like for you. Maybe you have already dropped to the bottom line and have a preferred timeframe in your sights. Either way, below are five steps to help.

Five Fundamental Steps to Help Guide Decisions Leading Up to Your Retirement Day:

1. See When You Can Realistically Retire
   It’s not a simple decision. Start with getting a general idea about out how much money you’re likely to spend each year. Some expenses drop off like payroll taxes, retirement savings, and potentially mortgage debt. Additional expenses may surface like extended travel, bucket list items, or higher than average health care costs.

2. Make a Plan to Pay Off Your Debt
   While you are still working, review all outstanding debt. Personal loans, student loans, and credit cards tend to have higher interest rates. Make a plan to pay these off before you retire. Now is also the time to find the balance between putting “extra” on the mortgage and funding retirement accounts. Your financial planner and CPA can help with these decisions.

3. Run the Numbers to Understand Where You Stand Today
   This is your opportunity to see how close you are to your potential retirement goal and what changes you might need to make. An annual review with your financial planner will help chart progress, identify gaps, and create solutions.

4. See How Retirement Age Affects Social Security Benefits
   Some people are inclined to begin receiving Social Security as soon as possible, even if it means reduced payouts. For planning purposes the best decision depends on many variables including health, wealth, tax situation, and life expectancy. Understanding the impact to your retirement plan is a big part of making the decision when to draw those benefits.

5. Keep Your Plan on Track
   Now that you are hitting the final stretch it is time to give your retirement savings all that you can.  Ramping up for the next ten years will make a big difference. 

You are almost there! Candidly thinking through your options and taking your plan to the next level is sure to help you hit your retirement mark in good stride. But if you need help along the way, please reach out to us or your Financial Planner for guidance.

Laurie Renchik, CFP®, MBA is a Partner and Senior Financial Planner at Center for Financial Planning, Inc.® In addition to working with women who are in the midst of a transition (career change, receiving an inheritance, losing a life partner, divorce or remarriage), Laurie works with clients who are planning for retirement. Laurie is a member of the Leadership Oakland Alumni Association and is a frequent contributor to Money Centered.

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Opinions expressed are those of Laurie Renchik and are not necessarily those of RJFS or Raymond James. Every individual's situation is unique; please consult with a financial professional before making any investment decision.

The Flexibility of a Roth IRA

Contributed by: Kali Hassinger, CFP®

Whether it’s a 401(k) or 403(b), many employers provide employees with the option to defer their income and help save toward retirement. Although these are essential savings tools, it’s important to be aware of and understand other retirement savings options as well.  With a Roth IRA, your money is given the same opportunity to be invested and grow over time without taxation, with the additional benefit of being tax free at withdrawal! With a Roth IRA, however, the funds invested are already taxed, so there is no immediate tax benefit. Roth IRAs do provide additional advantages and flexibility, which can make them very attractive additions to your retirement savings.

Use of Contributions

Because you’ve already paid tax on the funds invested, Roth IRAs can allow you to take out 100% of your contributions at any point, with no taxes or penalties. Generally, contributions are assumed to be withdrawn first. Earnings, on the other hand, are subject to penalty if withdrawn prior to age 59 1/2.

First Time Homebuyers

Roth IRAs can be beneficial to young investors thanks to an exception which allows the account holder to withdraw funds prior to age 59 ½ without paying the 10% penalty tax.  After the Roth IRA has been established for 5 years, the account holder is able to withdrawal up to $10,000 if the funds are used toward his or her first home purchase. This means that a couple, if they both have established Roth IRAs, could use up to $20,000 toward their first home purchase.

Required Minimum Distributions

Roth IRAs do not have required minimum distributions (RMDs) during the lifetime of the owner, unlike other tax-deferred savings (like traditional IRAs, 401(k)s, 403(b)s) which require the owner to begin taking distributions at age 70 ½.  An inherited Roth IRA will, however, require the beneficiary to take annual distributions, but these withdrawals are still tax fee.

Conversions

Since Roth IRAs can be beneficial for long term tax planning, the IRA has placed income limits on who can make contributions. If your income is above this threshold, however, you may be able to work around those limitations by completing a back-door Roth conversion. This process is essentially opening and funding a traditional IRA with a non-deductible contribution, but then immediately converting the funds from that account into a Roth IRA. 

Whether you’re just starting out or getting close to retirement, a Roth IRA could be a beneficial addition to your retirement savings. By simply understanding all of your options, you can be more equipped to help achieve your long term financial goals. Please contact us if you have questions about this type of retirement account and how it could benefit your financial plan, we’re here to help!

Kali Hassinger, CFP® is an Associate Financial Planner at Center for Financial Planning, Inc.®

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The information contained in this blog does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Kali Hassinger and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. Investments mentioned may not be suitable for all investors. Roth IRA owners must be 59½ or older and have held the IRA for five years before tax-free withdrawals are permitted. Like Traditional IRAs, contribution limits apply to Roth IRAs. In addition, with a Roth IRA, your allowable contribution may be reduced or eliminated if your annual income exceeds certain limits. Contributions to a Roth IRA are never tax deductible, but if certain conditions are met, distributions will be completely income tax free. Unless certain criteria are met, Roth IRA owners must be 59½ or older and have held the IRA for five years before tax-free withdrawals are permitted. Additionally, each converted amount may be subject to its own five-year holding period. Converting a traditional IRA into a Roth IRA has tax implications. Investors should consult a tax advisor before deciding to do a conversion. Every investor's situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. Prior to making an investment decision, please consult with your financial advisor about your individual situation.

The Last Day for 2016 IRA Contributions is Coming Soon!

Contributed by: Jeanette LoPiccolo, CRPC®

Just like last year, the 2017 federal tax return deadline doesn't fall on the usual date of April 15. With the 15th falling on a Saturday and a holiday on the 17th, income tax filings for the 2016 tax year and federal tax payments are due on Tuesday, April 18th, 2017.

The last day to make a contribution to an IRA for any tax year is when taxes are due.

So, April 18th, 2017 is the last day to make a contribution to your individual retirement account for the 2016 tax year. Even if you file for an extension on your tax return, the deadline for 2016 IRA contributions is still April 18th.

Individuals who are 50 or older can contribute up to $6,500 to an IRA during a tax year, whereas younger savers can contribute $5,500. Making a contribution to an IRA before the tax deadline is a great way to catch up if you didn't maximize your IRA contribution during the last calendar year. 

Contributing to your retirement account is not just a smart decision for your future. Making a contribution to a traditional IRA can potentially reduce taxes you owe or result in a larger refund for the 2016 tax year. 

In addition, did you know that the Saver’s Credit is available to some taxpayers who make IRA contributions? While not everyone reading this blog may be eligible for this deal, you may have a friend or family member who is. You can pass along this info because helping others save money feels good too, right? 

It’s called the Retirement Savings Contributions Credit (aka the Saver’s Credit). Nick Defenthaler, CFP®, wrote a great blog about it.

Want a quick example of how the Saver’s Credit works? Jill, who works at a retail store, is married and earned $37,000 in 2016. Jill’s husband is finishing college and didn’t have any earnings. Jill contributed $1,000 to her IRA for 2016 before the 4/18/17 deadline. After deducting her IRA contribution, the adjusted gross income shown on her joint return is $36,000. Jill may claim a 50% credit, $500, for her $1,000 IRA contribution.

For more information, check out the IRS website link here.

If you have any questions or want to contribute to your retirement account, please feel free to contact us or your CERTIFIED FINANCIAL PLANNER™ professional.

Jeanette LoPiccolo, CRPC® is a Client Service Manager at Center for Financial Planning, Inc.®

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This information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Opinions expressed are those of Jeanette LoPiccolo and are not necessarily those of RJFS or Raymond James. Please note, changes in tax laws may occur at any time and could have a substantial impact upon each person's situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax issues. You should discuss tax matters with the appropriate professional. Links to third party websites are being provided for informational purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website's users and/or members.

Sources:
irs.gov
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Preparing for Aging: Baby Boomers vs. Generation X

Contributed by: Sandra Adams, CFP®, CeFT™

In our day-to-day work with clients, Baby Boomer and Generation X clients, assist their parents and sometimes grandparents (those in the “Silent Generation,” born in the mid-1920s to early 1940s) plan for their aging years. But are those “children” planning for their own aging years? Are they learning any lessons from watching family members age? Who is planning better at preparing for aging – Baby Boomers or Generation X?

As it turns out, neither generation is as prepared as they should be, but Generation X is actually LESS prepared for aging than the Baby Boom generation. Why is that?

• Generation X has more debt (student loan debt, credit card debt, etc.), which caused them to start saving later.

• Generation X has less access to pensions and feels less secure in their promised future Social Security benefits.

• Generation X is even more of a “sandwich generation” than the Baby Boomers. Call it a club sandwich with multi layers: Generation Xers can be stuck in the middle of supporting grandparents, parents, children, and grandchildren all at the same time all while trying to hold down a job and going back to school to get additional education or credentials. Wonder why we can’t pay attention to our own health and well-being? (Yes, I am a Generation Xer!!)

• In addition to having no time to visit physicians and do the routine self-care that should be done due to the multi-levels of our responsibilities, recent studies by MDVIP, Inc. (WHSV 2014) indicate that this generation is also afraid of receiving bad news, which also deters them from visiting the doctor (which of course, may prevent getting information on conditions early, when they could be treated).

With each generation, we anticipate that life expectancy assumptions get a little bit longer if only for improvements in health care and technology. Therefore, each generation needs to be even more prepared, financially, physically, psychologically and otherwise for a longer life that may occur. Both the Boomers and the Generation Xers have a lot of work cut out for them if they want to be prepared!

If you feel that you are behind in your plan for aging and need some assistance, we can help! If you’re in Generation X, take the time to view our webinar dedicated to planning for your retirement. If you have any questions, free to reach out to me at Sandy.Adams@centerfinplan.com.

Sandra Adams, CFP® , CeFT™ is a Partner and Financial Planner at Center for Financial Planning, Inc.® Sandy specializes in Elder Care Financial Planning and is a frequent speaker on related topics. In addition to her frequent contributions to Money Centered, she is regularly quoted in national media publications such as The Wall Street Journal, Research Magazine and Journal of Financial Planning.

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This information has been obtained from sources considered to be reliable, but we do not guarantee that this material is accurate or complete. Opinions expressed are those of Sandy Adams and are not necessarily those of RJFS or Raymond James.

Tax Terms: Carried Interest and the Buffett Rule

Contributed by: Matt Trujillo, CFP®

If you followed the 2016 campaign coverage as closely as I did, than you probably heard some tax-related terms repeated time and time again. Two terms in particular were “carried interest” and the “Buffet Rule.” For those that aren’t terribly familiar with these terms I will attempt to give a brief description of each.

What is "Carried Interest?”

Carried interest refers generally to the compensation structure that applies to managers of private investment funds, including private-equity funds and hedge funds. As a result of the carried interest rule, fund managers' compensation is taxed at lower long-term capital gain tax rates rather than at ordinary income tax rates. Both Clinton and Trump released plans calling for carried interest to be taxed as ordinary income.

What is the "Buffett Rule?”

In a 2011 opinion piece, Warren Buffett, chairman and CEO of Berkshire Hathaway, argued that he and his "mega-rich friends" weren't paying their fair share of taxes, noting that the rate at which he paid taxes (total tax as a percentage of taxable income) was lower than the other 20 people in his office (Warren E. Buffett, "Stop Coddling the Super-Rich," New York Times, August 14, 2011).

As Buffett pointed out, this is partially attributable to the fact that the ultra-wealthy typically receive a high proportion of their income from long-term capital gains and qualified dividends, which are generally taxed at lower rates than those that typically apply to wages and other ordinary income.

The "Buffett Rule" has since come to stand for the tenet that people making more than $1 million annually should not pay a smaller share of their income in taxes than middle-class families pay. As a result, some have proposed that those making over $1 million in annual income should have a flat minimum tax of 30%.

What is the right thing to do? That is not for this humble author to decide. But at least now, some of you can be better informed about what these terms mean the next time you hear them on the news!

The tax environment is evolving rapidly. Be sure to talk to a qualified professional before implementing any changes to your tax and investment strategy.

Matthew Trujillo, CFP®, is a Certified Financial Planner™ at Center for Financial Planning, Inc.® Matt currently assists Center planners and clients, and is a contributor to Money Centered.

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The information contained in this blog does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Matt Trujillo, CFP®, and not necessarily those of Raymond James. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional.

More Potential Changes Under the Trump Administration

Contributed by: James Smiertka

The New Year always brings changes, but this year may be particularly notable. We have a new U.S. President & our Congress is ruled by a Republican majority. This surely brings a new direction for the country and also the prospect of policy and regulatory changes.

As we know, President Trump made tax reform a key issue during his campaign, and he has proposed wide-ranging changes to the U.S. tax system. Additionally, with the GOP with majority control of the House and the Senate, there is a better chance for an overhaul of the federal tax system than in the past. Changes will most likely not be quickly completed, and it is likely that any tax reform will not take place until late 2017 or early 2018.

Here are some of the potential changes:

Estate Tax

• Trump’s plan seeks to repeal the current estate tax as well as the alternative minimum tax (AMT) and generation-skipping transfer tax (GSTT)

• Total repeal is unlikely

• $10 Million exemption (per couple)

  • Assets above this amount would be subject to capital gains tax

• Likely change to the asset basis step-up for heirs

  • Date of death value rules likely preserved for heirs of smaller estates

  • Limited basis step-up for heirs inheriting from larger estates

• There is also the potential for state estate taxes to disappear as they are based on the federal estate tax system

Gift Tax

• Will most likely stick around in some form

  • Prevents income shifting from donors in high tax brackets to the donated in lower tax brackets

• If the estate tax is repealed, we could be looking at a change to the lifetime gift tax exemption in the neighborhood of around $1 Million or higher (lifetime), with the annual gift tax exclusion preserved (currently $14,000/year)

There are a wide range of possible combinations of estate & gift tax reform, and potential tax planning opportunities depending on the details of that reform. Here are some potential scenarios, per Michael Kitces:

While there are many potential planning scenarios for both individuals and businesses, nothing is certain. Only very broad strokes have been “painted” thus far. Regardless, Center for Financial Planning, Inc. is always staying up to date with the most recent changes. Make sure to speak with your financial advisor if you have questions on any of these topics.

Also, make sure to check out our previous blog on the new administration’s potential impact to marginal tax brackets, standard deductions, and capital gains tax.

James Smiertka is a Client Service Associate at Center for Financial Planning, Inc.®

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The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of James Smiertka and not necessarily those of Raymond James. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. Sources:

• Kiplinger Tax Letter, Vol. 92, No. 2 (1/27/17)
• http://www.forbes.com/sites/ashleaebeling/2016/11/09/will-trump-victory-yield-estate-tax-repeal/#aef41902bf2a
• https://www.kitces.com/blog/repeal-estate-gift-taxes-and-carryover-basis-under-president-trump/
• http://www.forbes.com/sites/nextavenue/2016/12/12/what-the-trump-tax-proposals-mean-for-high-net-worth-retirees/#5f7253b17ef4
• http://www.cnbc.com/2017/01/22/how-trumps-proposals-may-affect-every-income-tax-bracket.html

The Connection between Home Renovations and Financial Planning

Contributed by: Nick Defenthaler, CFP®

About two months ago, my wife and I decided that it was time to take the plunge and finish our basement.  As I’m sure many of you can relate to, our 18 month old son’s toys have quickly taken over our living room. What was once a peaceful area for us to relax and watch some TV, has literally turned into a mini-jungle gym! We wanted more room for his play area as well as give us some extra space for entertaining friends and family. Home renovations are a pain. We’ve all been there. They’re expensive, stressful, and can often time end up being a money pit. After much thought and months of saving, however, we decided it was the right time to move forward with our project.

I think it’s important to note that I am NOT a do-it-yourself kind of guy. The extent of my handyman skills are changing lightbulbs and hanging a picture. I think acknowledging this as a weakness is extremely important. Since I know home improvements are not my forte, we’ve elected to delegate this work and hire a professional to make sure our project was done properly and to our liking. Even if I had the expertise to do some of the work on my own, I know I wouldn’t want my spare time to be consumed working on the basement. I’d much rather spend that time with my family and friends. 

We spent several weeks interviewing different contractors to determine who we felt would be the best fit for our project. Many things were taken into account throughout this process. Referrals from friends and family, quality of work, level of comfort and cost, just to name a few. We probably met with five contractors who all wanted the job, and who were all fairly close in price. Jack, the contractor we ended up hiring, was not the cheapest, but he wasn’t the most expensive. We decided to move forward with him because we gained a level of trust with him and knew he did quality work for mutual friends and family members. Jack won me over when I called him about five times within two days, asking him what probably seemed like simple, and more than likely, dumb questions. To Jack’s credit, however, he never lost his patience with me or made me feel silly for asking them. He was willing to make sure my mind was at ease, knowing this was not something I was an expert in. Although the process has been stressful at times, Jack has kept us in the loop the entire time, been extremely honest and overall, has done a phenomenal job building out our basement to how we had envisioned. 

As our basement is in the final stages of completion, I couldn’t help but take a step back and realize how many similarities existed with our home renovation and how we work together with clients at The Center. Over our 30+ year history, in my opinion and experiences, the clients that have the most potential success are those who realize that investing and financial planning is not an area of expertise or something they want to spend free time on. They value delegating, have the desire to hire a professional they trust and know we will be with them throughout each step of life to help them achieve their personal and financial goals. One of the best pieces of advice I was ever given was to always identify and accept the things you are not an expert in, and hire a professional to do the work right for you. I firmly believe those who find the most success in life are masters at this. By doing so, it allows us to focus more energy on the areas we are truly passionate about. Time is hard to come by, why not try to spend more of it on the things that create more meaning and happiness for us and our family? So give us a call when you’re ready to delegate, we’re always here to help and answer your questions!

Nick Defenthaler, CFP® is a CERTIFIED FINANCIAL PLANNER™ at Center for Financial Planning, Inc.® Nick is a member of The Center’s financial planning department and also works closely with Center clients. In addition, Nick is a frequent contributor to the firm’s blogs.

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Any opinions are those of Nick Defenthaler, CFP®, and not necessarily those of Raymond James.

Why Approaching Difficult Topics Now Could Help Avoid a Mess with Parents’ Finances

Contributed by: Sandra Adams, CFP®, CeFT™

As I write this, we are a couple of weeks into 2017, and already I have been involved with two client family meetings – adult children meeting with their parents about their parents estate planning and finances. I am sure this is just the tip of the iceberg for this type of meeting – and I am so thankful. Why? Because these families are planning ahead! Approaching these sometimes very difficult topics now can be the key to avoiding a very big mess later.

You might think “So, what’s the big deal? Mom and Dad seem to have things under control. They can pay their bills just fine, they seem to be financially comfortable, and I don’t want to invade their privacy and ask them too many questions about their money, so let’s leave well enough alone until we really need to get involved.”

Here are just a few of the “big deals” that could occur for those who wait until mom and dad can’t handle things (i.e. in this case, parents now are unable to handle financial affairs due to incapacity):

• Parents may not remember where they hold accounts, what their account numbers are, passwords, etc.

• Parents may not remember all income sources, amounts, etc. (pensions, Social Security, etc.) and may not have been reconciling checkbooks.

• Parents may not have been paying bills and may not remember what bills need to be paid (you are lucky if they have bills set up for auto bill pay, as many of this generation have been uncomfortable setting this up).

• Parents may or may not have a filing system and/or record keeping system that you can understand; depending on the stage of their incapacity, they may or may not be able to explain it to you.

• If your parents have existing Durable Powers of Attorney (General/Financial and Medical) that give you authority to act on your behalf, you can hope that they are up to date and written broad enough instructions to be used with most financial and medical institutions.

• You can hope that there aren’t too many other surprises that you didn’t expect!

My advice is always to follow the proactive planning of some of my clients, and start talking to your parents in advance of a crisis (or in advance of “that time” when parents can no longer do things themselves). Sure, it is not always the most comfortable conversation to start, but you might be surprised to find that many older adult parents find comfort in knowing that their children (1) want to be involved, (2) are interested in their well-being, and (3) know that there is a plan in place once the family meeting has taken place. Start the process of planning for your parents today! Don’t hesitate to contact me if I can be of assistance (Sandy.Adams@CenterFinPlan.com).

Sandra Adams, CFP® , CeFT™ is a Partner and Financial Planner at Center for Financial Planning, Inc.® Sandy specializes in Elder Care Financial Planning and is a frequent speaker on related topics. In addition to her frequent contributions to Money Centered, she is regularly quoted in national media publications such as The Wall Street Journal, Research Magazine and Journal of Financial Planning.

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The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Sandy Adams and not necessarily those of Raymond James. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. Prior to making an investment decision, please consult with your financial advisor about your individual situation.