News & Insights

What You Need to Know About Preventing Elder Abuse in La Jolla, CA

by Chris Jaccard, CFP®, CFA on 5/18/2018

It is a sad fact of life that often those who are close to us are the ones who have the ability to hurt us the most, even trusted caregivers or family members. Members of the La Jolla community may recall the chilling case of Robert Stella, an elderly man who was tied to his bed, starved, and forced to live in squalor by his ex-wife (NBC, 2014). Elder abuse can happen to any older adult in any community, but the subject of our story today is how our community members in La Jolla, CA may defend themselves and their loved ones from elder abuse.

Elder Abuse: The Silent Perpetrator

Elder abuse takes many forms. In some cases the crime is overt and violent, but most of the time the unsuspecting victim is silently preyed upon for a period of time by a familiar person.

  • It can be as surreptitious as the plumber who “cases” the house on routine visits, only to return back through an unsecured window at a time when he knows that the victim is asleep or habitually out of the house. He pillages as much money and jewelry as he can from the places where he knows the victim keeps her valuables, and then leaves.
  • Elder abuse can happen over the phone. Let’s say an older adult suffering from dementia receives a solicitation from someone pretending to be a relative, saying that they have an immediate need to wire over some money to get them out of a pinch.
  • We’ve even heard of Medicaid facilities partaking of the monies awarded to the facilities’ patients to use for themselves while the patients starve or go malnourished.
  • Sadly, elder abuse even happens within families. Ex-spouses, children, siblings, cousins, etc., acting out of desperation, can act as perpetrators of this crime to their own family members.

Americans who are financially abused lose an average of $140,500, according to a Certified Financial Planner Board of Standards study (CFP Board, 2012).

Finally, the Industry Reacts

Over the past few years, several states have enacted regulations to protect vulnerable adults from exploitation and abuse and now the financial services industry is catching up – enacting the first uniform, national standard to protect vulnerable adults.

Read more

posted in BlogPersonal Finance

Beware the Ides of March: Are You Your Own Retirement’s Worst Enemy?

by Financial Alternatives on 3/7/2018

The Ides of March commemorate Julius Caesar, the Emperor who significantly expanded the Roman Empire — only to meet his demise by a conspiracy carried out by his own people.  Just as Caesar’s fate turned to misfortune as a result of his tragic flaw, we see people who are their wealth’s worst enemy. If you’re making these retirement planning mistakes, it’s best to seek counsel before the bright day brings forth the adder.

Making Emotional Decisions

In our decades of experience, we’ve seen examples of perfectly rational, logical people who make emotional decisions that lead to their finances becoming compromised. Unfortunately, being called in to be the independent voice of reason after the fact is a step too late.

A common emotional trap that people run into when managing their own money includes holding on to company stock or an inherited position for nostalgia reasons. This can lead to dangerously undiversified portfolios.

Timing the Market

Very few people get this right. Most of the time, trying to sell at the top of the market and buy when the market has dipped creates more trouble than it prevents. Even professional money managers can’t successfully time the market.

Choose an advisor who will balance your needs for principle protection, income, and growth against market conditions. This approach, rather than one of reactive trading, is the best way to create long term growth.

Read more

posted in BlogGeneralPersonal Finance

How Are Your Financial Institutions and Advisor Compensated? It’s Important.

by Jim Freeman, CFP® on 1/19/2018

Wells Fargo is the latest example of a financial institution harming its clients by creating a compensation structure that incentivized employees to act contrary to their clients’ best interest.

Regulators found over 3.5 million fake credit card and bank accounts created by Wells Fargo employees who were pressured by managers to meet unrealistic sales goals. Wells Fargo was also caught selling nearly 1,500 renters and term life insurance policies to clients without their knowledge.

How in the world could this ever happen?

Some Wells Fargo customers said bank employees lied to them saying they were giving them a quote when in fact they were unknowingly being signed up for a policy.

When these issues were initially uncovered, Wells Fargo fired thousands and tried to lay the blame on these rouge employees. But as the truth came out, it was obvious that the problem lay with management’s incentive compensation structure. In reality it was the leadership who had put extreme pressure on employees to sell products in an effort in increase profits and thereby increase bonuses.

Read more

posted in BlogPersonal Finance

What High Earners Should Know About the Tax Cuts and Jobs Act

by Ellen Li, MSBA, CFP® on 1/5/2018

Understanding the implications of the 2017 Tax Cuts and Jobs Act is important for any high earner, or high earning family, who wants to maintain its financial success.

As illustrated below, the recent tax reform will modify the tax rate for high income earners. But that’s just where it begins. High earners should also be aware of how the tax code will significantly impact the decisions you are making about your healthcare, business, and gifting decisions.

Table Source: “Highlights of the Final Tax Cuts and Jobs Act, “ by Tim Steffen, 2017 (http://www.investmentnews.com/assets/docs/CI1136191218.PDF)
Read more

posted in BlogGeneralPersonal Finance

5 Year-End Tax Planning Tips for 2017

by Chris Jaccard, CFP®, CFA on 12/1/2017

Here are a some tax-planning techniques and strategies you can still consider in the last few weeks of the year:

1. Watch out for large mutual fund distributions this year

Many mutual funds have realized large gains and typically distribute those gains in November and December.  Don’t buy a mutual fund in your brokerage account right before it makes a 10%, 20%, or 30% (of NAV) distribution – it just turns part of your purchase into a taxable event!  Look for widely published estimates, and if expected to be large, make sure you buy shares after a fund’s ex-dividend date.

Read more

posted in BlogPersonal Finance

Embracing Retirement by Making the Right Housing Decisions

by Ellen Li, MSBA, CFP® on 9/22/2017

As a busy financial advisor and  mother, I like to balance myself with the practice of yoga. To me, yoga is more than just the practice of body movement, it’s  also an exercise of mental discipline.  Recently one of my favorite instructors used “embrace change” as our mantra and it really resonated  with me both  professionally and personally.

At Financial Alternatives, we recently helped two clients make new housing choices in their retirement years — one client remodeled their house and redesigned the living space on the first floor to make living there safer and more comfortable. The second client decided to move to an assisted living facility. In both cases, it was a transition, a new change that our clients embraced with courage and wisdom.  Stories such as these show the importance of making the right housing decisions  during your retirement years. These decisions could  have a tremendous effect on you  both financially and emotionally.

Read more

posted in BlogGeneralPersonal Finance

5 Steps to Take After the Equifax Breach

by Chris Jaccard, CFP®, CFA on 9/14/2017

Background

Now that some of the dust has settled on one of the worst cyber security breaches in history, we think everyone should go through the 5 steps listed below.  Why everyone?  Because there is no way to be certain if you have been affected by the Equifax breach or not.  I entered false info to test Equifax’s verification site including a last name of “test” and a SSN of “123456” only to find that it positively identified me as a person impacted by the breach.  [9/16/17 Update: Equifax’s Chief Information Officer and Chief Security Officer are “retiring” and their internal investigation continues.]

Also, please make sure everyone in your family has taken these steps including your spouse, kids in college, domestic partner, and perhaps even minor children.

Step 1: Review Your Credit Report

Use the Annual Credit Report site to review your credit report from at least one of the three listed credit reporting agencies (“CRAs”).  By law, you are allowed one copy every 12 months, so we suggest you request a report from one of the three CRAs every 4 months.  Check for rogue activity or inaccuracies, and contact the CRAs to address the issue.

Read more

posted in BlogGeneralPersonal Finance

New Medi-Cal Recovery Laws; another Reason Why Proper Estate Planning is Needed

by Ellen Li, MSBA, CFP® on 5/24/2017

Long –term care in nursing homes, assisted living facilities, and home care can be very expensive. If you don’t have substantial assets or a good long term care insurance policy, the cost of care may deplete your assets over time.

What happens then?

If you qualify for Medi-Cal, (California’s version of Medicaid), it will pay for the cost of care, subject to recovery (repayment) from the estate when the recipient dies. In the past, the aggressive recovery program  put an inordinate burden on the heirs and survivors who were sometimes  forced to sell the family home to pay the estate claim or forced to sign a “voluntary lien” which accrued at 7% annual interest.

Read more

posted in BlogGeneralPersonal Finance

5 Tips on when to file your tax return (and when to expect the information you need)

by Chris Jaccard, CFP®, CFA on 2/28/2017

Depending on your sources of income and the types of investments you have, it may be a good idea to wait to submit your tax return until close to the April filing deadline.  Based on our experience, here are some thoughts on the timing of your preparation and when you can expect to get all the information you need.

1. Potentially File Early

If you have a relatively simple tax return and only have wage (W-2), contract work/rent (1099-MISC), or social security (SSA-1099) income, you should have everything you need to file your taxes by mid-February.  Basic 1099-INT or 1099-DIV forms should be available by early February.  Also note that the IRS does not require banks or investment custodians to send some 1099s if the amount to be reported is less than $10.00, so you don’t need to hold out for “de minimus” information like this.

Read more

posted in BlogPersonal Finance

Scam Watch: Protect Yourself From Phishing Schemes

by Thao Truong on 11/4/2016

It has recently come to our attention that the clients of some of our colleagues have reported a jump in the number of phishing attempts on their investment accounts. Although we haven’t heard this from any of our clients recently, we understand that becoming a cyber-security victim can be very painful and costly.

We continually upgrade our systems and procedures to help prevent and detect unauthorized access, but hackers are getting smarter and bolder. Because security is a shared responsibility, we think our clients and others need to know what a phishing attack looks like and what steps they can take to defend themselves.

Read more

posted in BlogGeneralPersonal Finance

Blog Topics

Featured Literature

Search

Subscribe

Receive updates by email.

Disclaimer

Posts are general in nature and do not constitute the rendering of legal, investment, accounting or other professional advice.