Lost Life Insurance Policies -- How Do You Find Them?

As I watched the many documentaries and tributes to those that perished during the 9/11/2001 attacks, I was reminded of how many spouses and children were left behind.   Families were left with voids in their lives, not only physically and emotionally, but financially as well.  It is likely that many of those that died during 9/11 left behind financial security by way of life insurance policies with their spouses and/or children as the beneficiaries.  What happened if the beneficiaries were not aware of the details of those policies?

Every day, life insurance policyholders fail to inform the beneficiaries of the policies they have in existence.  As a result, death benefits go unclaimed and families are left to struggle financially.  Where can you go to find insurance policies and benefits that you may be due?

• Michigan’s Money Quest - The Michigan Department of Treasury’s site for unclaimed property.
• NAUPA – The National Association of Unclaimed Property Administrators.
• MissingMoney.com – A search engine for unclaimed property in the U.S.
• NAIC – The National Association of Insurance Commissioners orphaned life insurance policy search.
• MIB Solutions – Lost life insurance policy locator service.

If you think you may be the beneficiary on a lost insurance policy, start your search today.

In addition, if you are the owner of a life insurance policy, make sure that the important people in your financial life are aware of the policy (insurance company, policy number, beneficiaries).  Document your life insurance policies and additional important financial information using the Center’s free Personal Financial Record Keeping document.

What Does MOM Stand For?

The other day, my teenage daughter related to me a quip she received by way of Twitter.  It goes something like this… a child was pestering his mother about his urgent need for a new cell phone.  The mother continued to answer “NO,” without an end to the requests.  She finally asked in frustration, “Do you think I’m made of money?”   The child replied, “Isn’t that what MOM stands for… Made Of Money?”

My first response to this story was to chuckle; it is a very clever play on words.  However, after my own children continued to use the Made Of Money reference over the next several days, I realized that this is a clear indication of a real problem.  Most school age children and younger adults are receiving little to no financial education at school or at home.  They see the kids on TV and their friends at school ask and receive anything they ask for, without understanding what it takes to earn the dollars that are being spent.

As a parent, what can you do to begin to teach your children about the value of money?

• Help them learn the difference between wants and needs. 
• Pay them an allowance, but make them earn it with specific weekly responsibilities.
• Put them in charge of something (financially) at home; put them in charge of something at home (like food for their pet).  They are in charge of buying it when it runs out…using part of their allowance.
• Encourage saving (i.e. if they can save ½ of something they want, you can match it to make up the difference).

For list of Financial Education Resources for Parents and Children, visit the Certified Financial Planner Board of Standards, Inc. website at http://www.cfp.net/learn/resources_children.asp

Back-to-School Shopping -- 5 Financial Lessons for Your Kids

It’s that time again – the first day of school is right around the corner!  You likely received your supply lists weeks ago and stores have been advertising back-to-school items since the Fourth of July.  If you’re like me, you’re dreading the last-minute crowds…and the bill at check-out.

I have read several articles recently telling parents that the easiest way to save money on school supplies is to leave your children at home.  As tempting as this may be, I urge you to take your children on this shopping trip.  Back-to-school shopping can be a great opportunity for financial education. 

Here are 5 financial lessons you can teach your children:

1.  Take inventory of what you have.  Before you leave the house, make sure you know what you have and what you need to avoid purchasing duplicate items.

2.  Comparison shop.  Search printed newspaper ads or shop the internet to find sales and compare prices on the items you need.  Coupons are also a great savings tool!

3.  Set a budget.  Set the maximum dollar amount you can afford to spend, and stick to it.  This is a basic cash flow planning principle we should all stick to!

4.  Stick to a list.  Make a list of the items you need, and don't deviate.  Just like a trip to the grocery store, straying from your list can be detrimental to your wallet.

5.  Make smart choices.  Within your budget, there may be items you choose to spend more on.  Consider buying store brands for basic items, and spending a little extra for others (backpacks, clothes, etc.) to enhance quality or style.

Prepare a plan and stick to it for the start to a successful school year!

Phone Scams Catch Unsuspecting Grandparents Off-Guard

A family member calls and says “Grandma, I need your help and please don’t tell mom and dad.”  The reality is that the request can be real or it can be a line used by a criminal posing as the victim’s grandchild.  Differing versions of the same scam have been around in one form or another for years. Unfortunately, when the caller is a con artist looking to pull off a phone scam; deceit and lies are designed to catch the caller off guard.         

Recently, I was talking with friends and uncovered an ugly story that bears repeating even if it saves one grandparent from financial loss (not to mention the emotional aftermath of being scammed). 

The criminal called posing as a grandchild and convinced the well-meaning grandmother that he was in serious trouble.  The circumstances sounded plausible in a moment where fear for the safety of a family member was heightened.

The “facts” heard by the unsuspecting grandmother:

• My grandson is in Mexico attending the wedding of a friend
• He was driving a rental car and was sideswiped
• The hit and run driver left the scene
• The police took my grandson to jail
• An attorney is going to save the day and free my grandson
• I can help by wiring $3,000 ASAP  

While most of us would like to believe we would never be trapped in a scam like this, it is does happen.  Awareness is one important key to stopping phone scam criminals from preying on family trust and loyalty.  

Please pass the word among your family members to be on alert for calls like this.  If calling an immediate family member is not an option, then consider contacting a trusted financial advisor to talk through the situation before taking action.

Who, What, When, Where & Why

WHO…WHAT…WHEN…WHERE…WHY.  The “five W’s” - we all learned about them in elementary school, but why am I mentioning these “W’s” in a financial planning BLOG, you ask?

It turns out that the five W’s can help you to take control of your financial life.  Whether you are new to financial planning or well established, it is important have a clear understanding of YOUR five W’s:

WHO are your key financial advisors (financial planner, CPA, attorney, insurance agent, etc.)?

WHAT do you have (assets, accounts, policies, benefits, etc.)?

WHEN did you acquire each piece of your financial puzzle (maturity dates, etc.)

WHERE are your assets and important documents held or stored?

WHY do you have what you have and how does this fit into your overall financial plan?

Taking an inventory of what you have and recording the information in document form is important for a couple of key reasons:

• For you, it is a reference guide so that key information is not lost or forgotten.
• For your family and or future durable power of attorney/executor, it is an invaluable guide to assist in handling your financial affairs when you are unable to handle them yourself.

HOW do you get started on your “five W’s”?  For a free copy of the Center’s Personal Record Keeping Document, go to https://static1.squarespace.com/static/54341a03e4b08690c01bc8de/54dcf260e4b018fb5adfbec4/54dcf263e4b018fb5adfcdbe/1303923614337/record_system.pdf

Investing Against Human Nature

“The loser is the trend-chasing, comfort-seeking investor. The market doesn’t reward comfort. It rewards discomfort.”  Rob Arnott

The above quote brings to mind a book I read recently, The Little Book of Behavioral Investing by James Montier. It attempts to describe in detail why we are our own worst enemies in investing. 

Human evolution has dictated much of our decision making process and emotions.  In modern society we don’t have to play the predator/prey game of survival on a daily basis.  Yet much of our instincts are based on this survivalist mentality developed hundreds even thousands of years ago. 

Contrary to when it was safer to go with the herd, a safety in numbers mentality can be detrimental when applied to modern investing.  Enter the discomfort.  Going against the grain when it comes to investing can be very scary, for example funding your Investment accounts when you’d rather throw a brick through your financial advisor’s window; however, it is generally where the best investment returns come from. 

Having a sound investment process in place to identify opportunities and maybe more importantly to avoid “knee-jerk” reactions is critical in investing.    Process, in an uncertain world, is one of the few things we can control.  Just as important as the process, is the time that must also be taken to reflect on your process when you are most successful and not necessarily when you are making the most mistakes. 

Investing involves risk and you may incur a profit or loss regardless of strategy selected.  Any opinions are those of Center for Financial Planning, Inc., and not necessarily those of RJFS or Raymond James.

Welcome to "Money Centered"

We at Center for Financial Planning are excited to bring you “Money Centered,” our financial planning and investment blog with the Oakland Press.  We plan to use our firm’s 25 years of experience and expertise to bring you actionable advice on a wide range of financial planning and investment topics, including:

• Retirement Planning
• Education Planning 
• Tax Planning
• Estate Planning
• Insurance Planning
• Investment Planning
• Elder Care Planning
• Life Planning

We believe that money is not an end, but a means to an end.  Money is a tool to use to help you reach your personal life goals – to have the life you deserve and dream of. 

We want to be your source for information and views on issues related to your financial life, so please drop us a line with comments, questions or suggestions for future topics.