7th Day Financial

Three Paralyzing Fears That Stop People From Planning Their Estate

Fri, 07 Oct 2022 14:23:00 GMT

First, planning For My Death Will Hasten My Death

Many times, while discussing estate planning with clients, I have encountered hesitation from clients due to the very real fear that preparing for death can bring about death. Surprisingly, this is a very real fear experienced by many people. I have had clients become nervous about signing their documents because of this fear.

Knowing that this is an “Old Wives Tale” does not alleviate those fears that people have, whether rational or not. This fear seems to be that preparation for death is like inviting death into the home. I have had clients admit that they know that such fears are irrational, but they have them just the same. While I suspect that some folks use this “fear” as an excuse to procrastinate about doing to the work necessary to set up a living trust or other estate plan, this “fear” must be confronted.

My advice has always been, putting affairs in order brings peace of mind and reduces stress. This usually leads to a longer, rather than shorter, life. Reducing stress is a healthy thing to do. At the end of the process, I have never had a client say they were sorry they completed their plan. It universally brings them a sense of relief and accomplishment.

They know they have done the best to protect their family. The stress that comes with knowing you have a task to accomplish that you are reluctant to do disappears when it is done. I have heard it expressed that it was like removing a weight from their shoulders.

The truth is that planning your estate is more likely to extend your life rather than shorten it.

Secondly, I worry that a Living Trust will make my life more difficult

The truth is that there is no difference. While, setting up the trust and transferring assets initially is difficult, once done, it is done. Once the trust is in effect, buying and selling assets is no different other than the wording of title. There is no additional effort or inconvenience.

I have tried very hard to come up with some inconveniences caused by having a Living Trust. There was a time when trusts were so rare that some bankers and store clerks would balk at their use. No more! Today they are so common that such an occurrence is virtually unheard of. When refinancing real estate, you might have to do an extra deed returning your property to your trust. That’s all I can think of. That’s not much of a difficulty. A trust is not going to change your life, other than give you a great deal of peace of mind.

Lastly, I am worried that my spouse will not have full use and control of our property after my death.

The truth is that having a Living Trust is the best way to be sure your spouse will have full control of all assets after your death.

If you have no estate plan, the probate court will divide up your estate according to the laws of your state. Many states include a distribution to children as part of their distribution requirements. This could strip your spouse of as much as half to two-thirds of the family estate.

A will is not much better as you have courts and lawyers involved. The court can remove or regulate the spouse’s control. Major decisions will require the court’s involvement. Step children and other disgruntled heirs can make life difficult for your spouse.

Resolve all these fears with a Living Trust

Find that peace of mind that comes with overcoming procrastination and fear. Take that first step today in creating your Living Trust. Then you can go about life knowing your estate and family are secure.

To avoid the ravages of probate, outrageous attorney fees, and astronomical death taxes visit my website by clicking the link below.

The post Three Paralyzing Fears That Stop People From Planning Their Estate first appeared on 7th Day Financial .

Top 10 Retirement To-Do’s

Fri, 07 Oct 2022 14:22:00 GMT

For many people, retiring from work can be almost as life-altering as having children or getting married, and it can require just as much personal adjustment. After all, that last day of work means more than just a dramatic shift in your daily schedule; it also represents a significant change in your role. Retirement is a chance to redefine yourself, and these ten tips will help.

Keep Moving

Remember the image of a retiree sitting back in their rocking chairs and watching the world go by from the comfort of their front porch? While that might be how your grandfather spent his retirement, it’s not the life today’s seniors have in mind. These days, people in their 60s, 70s, 80’s and beyond are more active than ever. According to the Mayo Clinic, the health benefits of getting regular exercise include everything from managing weight to controlling health conditions like Type II Diabetes. What’s more, getting regular exercise, especially with friends or a spouse, can build your endurance and dramatically improve your state of mind and energy level. Great activities to consider include walking, swimming, or even cross-country skiing.

Continue Learning

You know that old saying about learning something new every day? That still holds true, no matter what your age. Stretching your mind, whether through crossword puzzles, library books, or community education classes, is a great way to stay sharp well into the future. Set the goal of trying something new every day, week, or month and enjoy checking it off your list. Have you always wanted to make pottery on the wheel, learn French or practice watercolors? Now is the time to expand those skills. You’re free from the responsibilities of work and child-rearing, so you can focus on doing (and learning) exactly what you want. Some seniors even go back to school to finish their college degrees. To find out about classes near you, contact your local community center, college or university.

Share Your Wisdom

You’ve spent a lifetime accumulating great lessons and a valuable perspective, and retirement is the perfect time to share those gems with others. Young people, whether they’re neighborhood kids or your own children or grandchildren, can benefit from the lessons you’ve learned over the years. One great way to pass on your wisdom is to make a book of life lessons. You can cover a specific topic, like raising kids or managing your finances, or you can make it general. Recording these lessons also helps to keep them fresh in your mind.

Find a Support Group

Any time of great change can be bittersweet. While you may enjoy your new freedom, retirement can also bring a sense of loss. In addition to your changing role, you may be dealing with financial stress, aging, illness, and loss of loved ones. You don’t have to face these challenges alone. Care.com, a site for seniors and their families, says that joining a support group can help seniors cope with challenging situations by sharing their feelings with others. A support group can even provide a social outlet if you’re feeling isolated.

Stay Social

Did you know that recent research indicates that seniors who have an extensive network of friends are healthier and longer-lived than those who simply have a close family? While family relationships are very important, they aren’t a substitute for having friends. You can make friends by attending classes and events at your local senior center, getting out in the community through a church or school, or by starting a weekly card game or book club. While they shouldn’t replace “real life” friendships, virtual friends can also be a great joy. Get active on social networking sites or start a blog to share your experiences with friends around the world.

Record Your Story

Sharing your life story can also be a great way to enjoy your retirement. Reviewing the events of your life allows you to reflect on all you’ve learned and experienced over the years. In addition, recording the your story and family history lets you share those important memories with those you love the most. You can record your life story in a variety of ways. It might be as simple as sitting down in your favorite chair with a tape recorder and just telling the tales you remember. Alternatively, you can write a memoir or hire a professional to do your Video Biography to share with your children, grandchildren, and their descendants. No matter what format you choose, you’ll be giving future generations a priceless gift.

Volunteer Your Skills

Volunteering is another important part of a healthy retirement. Whether you help out in the local elementary school or dish up food at a soup kitchen downtown, you’re giving the gift of your time. Mentoring others is an excellent way to make a difference in the world. Sites like ‘Micro Mentor’ can help you connect with new entrepreneurs who might benefit from your expertise. Perhaps you will even volunteer to teach a course at a community center. You can also speak to local hospitals, nursing homes, schools, churches, and daycare centers about how you can help.

See the World

Now that you don’t have the set schedule that comes with work, every day is a vacation day. Make the most of all that time by doing the traveling you put off during the busier years. Whether you trek to the other side of the globe or the other side of town, this is a great time to see new places. Organizations like Seniors Home Exchange give you a chance to trade houses with others who might enjoy staying in your home. Another great option is Elder Treks which features exotic adventures for active people over age 50.

Take a Moment to Enjoy Life

You’re not rushing off to work in the morning to putting the kids to bed at night, so take a few minutes to just enjoy life. Whether you’re sipping your morning coffee out on the patio or relaxing in front of a fire in the evening, one of the great joys of retirement is the slower pace and the chance to really appreciate all that you have. Keeping a journal can help you focus on those moments as you record them for the day. Another option is carrying a digital camera. You’ll be surprised at what might inspire a photograph, and in the moment it takes you to pull the camera out and turn it on, you can remember to stop and smell the roses you’re about to photograph.

Identify Activities You Love

Overwhelmed with all the options of activities you might enjoy? Let your life inspire you! What did you enjoy doing over the years? Perhaps you loved building model cars as a teenager. Maybe you enjoyed quilting with your mother. List as many favorite activities as you can, then sit back and analyze your list. What do those activities have in common? Perhaps they are all creative or adventure-oriented or social. These common threads can guide you toward the perfect new hobby or experience.

However you choose to spend your time, retirement is a major life change and your outlook will determine a great deal. Attitude is everything. Stay focused on the positive, continue to set goals, and explore. Keeping a good attitude is one the most important ways you can improve your quality of life.

The post Top 10 Retirement To-Do’s first appeared on 7th Day Financial .

Creating a Paycheck for Retirement – A Series on Retirement Income Planning

Fri, 07 Oct 2022 14:18:00 GMT

Whatever your retirement dreams, they can still be made a reality. It just depends on how you plan and manage your resources. On any journey it helps to have an idea where you’re going, how you plan to travel and what you want to do when you get there.

If this sounds like a vacation, well, it should. Most people invest more time planning a vacation than something like retirement. And if you think of retirement as the Next Act in your life and approach it properly, you won’t be so easily bored or run out of money to continue the journey or get lost and make poor money decisions along the way.

It’s How You Manage It That Counts

How much you need really depends on the lifestyle you expect to have. And it’s not necessarily true that your expenses drop in retirement. Assuming you have an idea of what your annual expenses might be in today’s dollars, you now have a target to shoot for in your planning and investing.

Add up the income from the sources you expect in retirement. This can include Social Security benefits (the system is solvent for at least 25 years), any pensions (if you’re lucky to have such an employer-sponsored plan) and any income from jobs or that new career.

Endowment Spending: Pretend You’re Like Harvard or Yale

Consider adopting the same approach that keeps large organizations and endowments running. They plan on being around a long time so they target a spending rate that allows the organization to sustain itself.

1.Figure Out Your Gap: Take your budget, subtract the expected income sources and use the result as your target for your withdrawals. Keep this number at no more than 4%-5% of your total investment portfolio.

2. Use a Blended Approach: Each year look at increasing or decreasing your withdrawals based on 90% of the prior year rate and 10% on the investment portfolio’s performance. If it goes up, you get a raise. If investment values go down, you have to tighten your belt. This works well in times of inflation to help you maintain your lifestyle.

3. Stay Invested: You may feel tempted to bail from the stock market. But despite the roller coaster we’ve had, it is still prudent to have a portion allocated to equities. Considering that people are living longer, you may want to use this rule of thumb for your allocation to stocks: 128 minus your age. Regardless, you really should keep at least 30% of your investment portfolio (not including safety net money) in equities.

If you think that the stock market is scary because it is prone to periods of wild swings, consider the risk that inflation will have on your buying power. Bonds and CDs alone historically do not keep pace with inflation. Only investments in equities have demonstrated this capability.

But invest smart. While asset allocation makes sense, you don’t have to be wedded to “buy-and-hold” and accept being bounced around like a yo-yo. Your core allocation can be supplemented with more tactical or defensive investments. And you can change up the mix of equities to dampen the roller coaster effects. Consider including equities from large companies that pay dividends. And add asset classes that are not tied to the ups and downs of the major market indexes. These alternatives will change over time but the defensive ring around your core should be reevaluated from time to time to add things like commodities (oil, agriculture products), commodity producers (mining companies), distribution companies (pipelines), convertible bonds and managed futures.

4. Invest for Income: Don’t rely simply on bonds which have their own set of risks compared to stocks. (Think credit default risk or the impact of higher interest rates on your bond’s fixed income coupon).

Mix up your bond holdings to take advantage of the characteristics of different bond types. To protect against the negative impact of higher interest rates, consider corporate floating rate notes or a mutual fund that includes them. By adding Hi-Yield bonds to the mix you’ll also provide some protection against eventual higher interest rates. While called junk bonds for a reason, they may not really be as risky as other bonds. Add Treasury Inflation Protected Securities (TIPS) that are backed by the full faith and credit of the US government. Add in the bonds from emerging countries. While there is currency risk, many of these countries do not have the same structural deficit or economic issues that the US and developed countries have. Many learned their lessons from the debt crises of the late 1990s and did not invest in the exotic bonds created by financial engineers on Wall Street.

Include dividend-paying stocks or stock mutual funds in your mix. Large foreign firms are great sources of dividends. Unlike the US, there are more companies in Europe that tend to pay out dividends. And they pay out monthly instead of quarterly like here in the US. Balance this out with hybrid investments like convertible bonds that pay interest and offer upside appreciation.

5. Build a Safety Net: To sleep well at night use a bucket approach dipping into the investment bucket to refill the reserve that should have 2 years of expenses in near cash investments: savings, laddered CDs and fixed annuities.

Yes, I did say annuities. This safety net is supported by three legs so you’re not putting all your eggs into annuities much less all into an annuity of a certain term. For many this may be a dirty word. But the best way to sleep well at night is to know that your “must have” expenses are covered. You can get relatively low-cost fixed annuities without all the bells, whistles and complexity of other types of annuities. (While tempting, I would tend to pass on “bonus” annuities because of the long schedule of surrender charges). You can stagger their terms (1-year, 2-year, 3-year and 5-year) just like CDs. To minimize exposure to any one insurer, you should also consider spreading them around to more than one well-rated insurance carrier.

The post Creating a Paycheck for Retirement – A Series on Retirement Income Planning first appeared on 7th Day Financial .

The Importance Of “Self-Awareness For Entrepreneurs.”

Fri, 07 Oct 2022 13:51:00 GMT

Ever since Tim Ferriss published The Four Hour Work, in which he introduced the lifestyle business concept, a lot of people are chasing the same dream.

It’s pretty appealing, right? You start a business, automate it, hire a virtual assistant, and make money while you’re sleeping or traveling the world.

Everyone wants that. That’s why a lot of people have made it their business to teach you how to do it. They say things like:

“Do these 20 things and you’ll earn six figures.”
“Get this online course and you’ll become rich easily without putting in the work!”
“I travel the world and make 100K of passive income per month. Here’s how I do it.”

But entrepreneurship is not easy.

Have you thought about starting a business? Maybe you’re sick of the 9-5, want more freedom, and be your own boss?

All valid reasons to start a business. But you need a little more than that.

I’ve read that 96% of businesses fail in ten years. so I Googled it. It appears that it’s not backed by research. One person probably claimed it once and everyone else copied it.

But there’s some truth in that statement. Entrepreneurship is a long-term game.

Do you want to start a business? Or are you an entrepreneur?

The latter is something you do for the rest of your life. I’ve started businesses that failed in the past. But I’m still an entrepreneur. You see?

Entrepreneurship is not something you do; it’s something you are.
The question you want to ask yourself is: “What am I?”

This article might be about entrepreneurship, but you can apply it to everything in life. Building a solid career or business both require self-awareness.

In Letters From A Stoic, Seneca writes:

“You must consider whether your nature is more suited to practical activity or to quiet study and reflection,

and inclince in the direction your natural faculty and disposition take you.”

Too often, we do things for the wrong reasons: Money, reputation, coolness, outside pressure.

But in life, it’s much better to follow your nature. Of course, to do that, you need to know your nature first.

Then, build your life around what you are, not what you or other people want you to be.

For instance, I’ve always been an entrepreneur. When I was a kid, I always had a side-hustle. I remember ripping CDs, printing booklets, and selling them for half price. Not particularly legal, but hey, I had no clue back then. That’s who I am.

Who are you?
Ask yourself a few questions.

Why do I want to start a business?
Am I interested in entrepreneurship or am I just attracted to the outcome (freedom, time, money)?
Do I want to learn the skills I need to succeed? As an entrepreneur, you need basic knowledge of everything that happens in your business.
If you’re thinking about starting a business, try to speak to some entrepreneurs in your environment. Ask about what they do on an average day.

Make up your mind after careful consideration. Not after watching a video from an idiot who is pretending he’s living “the” life. Or after looking at some motivational quotes on Instagram.

That’s not entrepreneurship. That’s a fantasy.

Starting a business is hard work. But it’s definitely not impossible. And everyone who puts their mind to it can make it happen.

Just take the time to think about what you are. Then, start small. Don’t overcomplicate it. It took me two business degrees to learn this simple strategy:

Research: Is there a need for your product? If it doesn’t exist, it’s probably because people don’t care. Nothing is new in this world.
Create: Stick to one product/service. You don’t need complex stuff with 10,000 variations.
Sell it. Yes, entrepreneurs are basically sales people who work for themselves.
That’s all. And always repeat the same process if you want to introduce new products.

The post The Importance Of “Self-Awareness For Entrepreneurs.” first appeared on 7th Day Financial .

6 Dangers From A Prolonged Period Of Inflation!

Fri, 07 Oct 2022 13:48:00 GMT

Throughout, history, we have experienced, a variety of economic conditions, and circumstances, including, recession, inflation, and somewhere, in – between! For a few years, we experienced, very – low inflation, largely, caused by a variety of conditions, world – wide, and largely, disrupted – by, the ramifications, and impacts, created and caused, by this horrific pandemic! Currently, we seem to be experiencing, a serious amount of inflation, created, by many factors, including, but, not, limited – to: post – pandemic ramifications; Supply and Demand issues, caused, to a large – degree, by, supply – chain, issues; maintaining, unrealistically – low, prolonged period of near – record – low, interest rates, etc. With, that in mind, this article will attempt to, briefly, examine, consider, review, and discuss, 6 potential dangers, from prolonged periods of inflation, and why, it is important to know, and understand, options and alternatives, to attempt to choose, the best – path – forward!

1. Cost of Living: Some factors, determining, the Cost of Living, include: wages (and wage growth); prices, etc, and how wages, are, or, aren’t able, to keep – up, with the increase in costs, etc! Most realize, we have, in the past – few months, experienced, a huge, jump, in pricing, most – apparent, in the food stores, restaurants, and, nearly, everything, related – to, day – to – day, existence, etc!

2. Federal Reserve: In recent times, the near – historic – low, extended period, of interest rates, has, in addition, to the intended measures (helping businesses, and the economy, in trying – times), has caused a Real Estate, Sellers Market, and, a huge rise, in home prices, in most parts of this country! In addition, it created a surge, in consumer use of credit, because, borrowing, appeared, cheaper! However, most economists forecast, many of these supports, and maintaining, such low rates, will, gradually, be reduced (or minimized), probably, beginning, next year. What impact will that have, and will we see, the historic reaction, which has been, when rates rise, it helps reduce inflation, etc?

3. National economy/ conditions: Largely, because of a world – wide, supply – chain, set of obstacles/ challenged, many industries, have experienced, challenges, in terms of, getting sufficient amounts of needed materials, etc! Go into, nearly, any store, and you will see, more – sparse, shelves, than we have seen, in recent memory! In addition, building supplies, products, food, toys, cars and car parts, etc, are under – stress, because of this!

4. Worldwide economies/ economic conditions: Nearly, every nation, is experiencing, economic issues and challenges! The United Kingdom, because of worldwide, as well as specific national trends/ causes/ conditions, has been largely, impacted! Since, we live, largely, in a global economy, when there is any disruption, in the supply – chain, it affects, everyone!

5. Stock and Bond Markets: Because of several reasons/ factors, the United States Stock Market, has benefited, significantly, and experienced, significant increases, in the price of stocks. In addition to the obvious ones, because, interest rates, have been, so low, many investors, believed, stocks, were, nearly, the only game – in – town! When, if, interest rates, rise, bond rates, will rise, and existing, bond prices, will adjust, and drop!

6. Immediate, intermediate, longer – term ramifications/ impacts: The immediate impact of inflation, is, usually, rising prices, and, wages, which, usually, rise, at a far – lower rate! In the intermediate – period, we begin to see, weakening economic trends, and in the longer – term, depending on how long, it ensues, there are often, several, undesirable ramifications, and impacts!

Don’t take inflation, and its risks, for – granted! The more you know, and understand, the better prepared, you will be!

Article Source: http://EzineArticles.com/10530039

The post 6 Dangers From A Prolonged Period Of Inflation! first appeared on 7th Day Financial .

Medicaid & Estate Planning Services in Florida

Fri, 07 Oct 2022 13:37:00 GMT

For people of all backgrounds, races, genders, etc., retirement is something we will all face. Knowing what you will be able to do with your life once you are incapable of work is something that many people find stressful. For the elderly, it can be difficult or scary wondering how they are going to pay for all their expenses without having a job. It can be especially scary for those who do not qualify for Medicaid. Thankfully, with the help of 7th Day Financial, it can be easy to navigate these decisions that might otherwise feel restrictive from having a safe and happy retirement.

In order to qualify for Medicaid in Florida, you must be a resident of the state of Florida, a U.S. national, citizen, permanent resident, or legal alien, in need of health care/insurance assistance, whose financial situation would be characterized as low income or very low income. There are lots of retirees who feel that they need Medicaid, but fear that they do not qualify. Medicaid has very specific rules, especially about assets, that may prevent someone from benefitting from financial help.

Younger people, disabled individuals, and people who are in the middle of their career or getting ready to retire also require representation in these same areas. James Johnson Elder Law does more than assist with qualifying for Medicaid. They also help to manage an estate plan and handle probate and trust administrations. Young adults may need assistance while dealing with trust administrations, as there are often certain tax laws they may not know about prior to receiving trust and managing it. Some may have trouble getting the money they had expected to receive after their relative passed away.

Other people who may need extra help from 7th Day Financial are parents who have disabled children. They may need extra help with guardianship or managing the paperwork associated with an aging person with special needs. Sometimes, the insurance they have does not give all the benefits they need to keep themselves and their child healthy and safe.

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