What keeps you awake at night? If
you're like most Americans, you've
probably more than once found your-
self up in the wee small hours, lying on
your back, staring at the ceiling above
your bed, having a little conversation
with yourself.
On the one hand, you're feeling
pretty good about things. But on the
other hand -- and this is why you're
awake -- there are those nagging little
questions that can get in the way of
anyone's peace of mind: "Am I doing
all that I should to protect my
current lifestyle? Have I done
enough to look after the people I
love the most? Am I doing
enough to take care of me?"
For many, the answer to these
late night eye-openers is a
resounding "no." That's because
those typical "everyday" con-
cerns such as paying bills tend to
distract people from thinking
about their long-terms plans. But
working with a financial profes-
sional can have a positive impact
on people, according to a recent
study commissioned by
Northwestern Mutual.
"We found that those people
who work with a professional
demonstrate more knowledge
about financial matters than
their counterparts who do not,"
says Janie Schiltz, vice president
of Northwestern Mutual.
"Moreover, the study reveals that
working with a professional can
have a positive effect on a person's
financial behavior as well."
Making a difference
A good advisor will immediately set
out to put your mind at ease when it
comes to helping you answer those
financial concerns that tend to keep us
all awake at night.
"There are a variety of ways to begin
this process of working with a profes-
sional," Schiltz says. "Some profession-
als will take a new client through a per-
sonal needs analysis -- a detailed ques-
tion-and-answer process that compares
a person's current financial approach to
their long-term goals regarding retire-
ment, education funding and similar
matters. The result of this process is
usually a report that provides the client
recommendations for accomplishing
his or her goals."
In addition to providing a thorough
analysis, there are a variety of other
ways that working with a financial pro-
fessional can make a difference.
For example, a professional can
show a client how to organize the
financial strategy into three buckets:
Those matters related to risk and pro-
tection, those regarding savings and
investing and those regarding retire-
ment and wealth distribution. A pro-
fessional can help a client grasp the dif-
ferences between term and permanent
life insurance and that owning the
right amount of life insurance is more
important than the type of insurance.
On the theoretical side, a financial
professional can help make a client
smarter by making him or her aware of
how "blind spots" -- like loss aversion
and mental accounting -- can affect
decisions in real-life financial situa-
tions.
"Blind spots are a product of emo-
tion and can handicap even the savvi-
est of clients," Schiltz says. "No one is
immune and when people become
aware of them they are much better
equipped to build a financially secure
future for themselves."
When you work with a professional
According to the Northwestern
Mutual study, those who work with an
advisor tend to have a more aggressive
investment mix, better savings habits
and more certainty about retirement,"
Schiltz points out.
For example, according to the
Northwestern Mutual study:
· Those with a financial advisor are
much less likely to be concerned about
the adequacy of their income or savings
in retirement, or about the future of
Social Security.
· When compared with those who
have no advisor, those with one are
more likely to have a target retirement
age and are more likely to anticipate
retiring at 64 or younger.
· Among younger people, those
with a financial advisor are more likely
to identify clear savings goals for retire-
ment than those with no advisor.
· Those with an advisor make larg-
er annual contributions (approximately
twice as much as those with no advisor)
toward reaching their financial goals
related to retirement, college educa-
tion, short-term needs and emergen-
cies.
Courtesy of ARA Content
No one likes to think about death or
make funeral arrangements when griev-
ing for a loved one who has just passed
on. Yet, when that dreadful day arrives,
someone has to do it, and decisions have
to be made quickly and often under great
emotional distress. And, like it or not,
death is a costly affair.
According to Funeralplan.com, a free
online consumer information and educa-
tional resource on funeral planning,
funerals rank among the most expensive
purchases many consumers will ever
make. A traditional funeral, including a
casket and vault, costs about $6,000,
although extras like flowers, obituary
notices, acknowledgment cards, or lim-
ousines can add thousands of dollars to
the bottom line. Many funerals run well
over $10,000. That's why many choose to
preplan and prepay their own funeral.
Preplanning allows you to compare
prices and services so that, ultimately, the
funeral reflects a wise and well-informed
purchasing decision, as well as a mean-
ingful one. When you prearrange, you
have control over the decisions relating
to your death -- the disposition of your
body, the funeral or memorial service and
what you want your obituary to say about
your life. You also relieve your family of
having to make important financial deci-
sions during a period of great stress and
grief -- a time when people aren't think-
ing very clearly and may not know what
to do because you never made your wish-
es known.
Preplanning your funeral can be as
formal or as informal as you want it to be.
It can be as simple as following a pre-
planning checklist and sharing your wish-
es with a family member, or it can be
made in the form of a preneed contract,
which can be set up with a funeral direc-
tor and prefunded through life insurance,
a bank trust agreement, or another
method. When done properly, preplan-
ning your funeral can give you peace of
mind.
Below are some guidelines to follow,
courtesy of Funeralplan.com, should you
decide to preplan and prepay your funer-
al.
1. Plan the actual funeral. Shop
around and talk to a few funeral directors.
Compare prices for such things as a cas-
ket, embalming and the cost for profes-
sional services. Resist one-stop shopping,
which can include such things as prayer
cards, thank-you notes and guest registers
-- they add up quickly. Many opt for a
funeral home in their neighborhood for
personalized services.
2. Decide on body disposition. Do you
want to be buried or cremated? If you
want an earth burial, a cemetery plot
needs to be purchased; if above- ground,
a mausoleum crypt. If cremation is your
choice, make a plan for how you will dis-
pose of the ashes. Do you want them
stored in a columbarium niche or buried?
Maybe you prefer to have your ashes scat-
tered. An option some people take is to
donate viable organs and tissues to a
medical school.
3. Decide on the type of ceremony.
You may want a traditional funeral serv-
ice with visitation and a member of the
clergy conducting services at a church or
a funeral home. Will you want an open or
closed casket? Maybe you want a special
friend to do the eulogy or family members
to read scripture passages or poetry. Any
favorite hymns? If you would rather have
a memorial service (a service in the
funeral home or a church where the body
is not present), express that wish. A com-
mon misconception is that when a body
is cremated, you don't hold a funeral. You
can hold a funeral before cremation if you
want to.
4. Tally the total cost of the funeral.
Tally all costs, which will probably be
considerable, and decide about prepaying
with bank savings, trusts, life insurance,
or annuities. Some of the costs involved
include:
· Basic services fee for the funeral
director and staff -- a fee that customers
cannot decline to pay that includes serv-
ices common to all funerals regardless of
the specific arrangement: funeral plan-
ning, securing the necessary permits and
copies of death certificates, preparing the
notices, sheltering the remains, and coor-
dinating the arrangements with the
cemetery, crematory or other third par-
ties. The fee does not include charges for
optional services or merchandise.
· Charges for other services and mer-
chandise -- costs for optional goods and
services such as transporting the remains;
embalming and other preparation; use of
the funeral home for the viewing, cere-
mony or memorial service; use of equip-
ment and staff for a graveside service; use
of a hearse or limousine; a casket, outer
burial container or alternate container;
and cremation or interment (the act of
placing a dead body in a grave).
· Cash advances -- fees charged by
the funeral home for goods and services it
buys from outside vendors on your behalf,
including flowers, obituary notices, pall-
bearers, officiating clergy, organists and
soloists. Some funeral providers charge
you their cost for the items they buy on
your behalf. Others add a service fee to
their cost, which they are required to dis-
close to you in writing, although they are
not required to specify the amount of
their markup. Funeral providers are
required to tell you if there are refunds,
discounts, or rebates from the supplier on
any cash advance item.
5. Draw up a will. Regardless of how
much or how little wealth you have, it's
important to have a will unless you want
the state to take over after you die. Have
a lawyer draw one up for you. Organize all
the papers and important documents
you'll need to take with you to the lawyer.
Your will is an inventory of all that you
own -- real estate, bank accounts, stocks
and bonds (if any), annuities and life
insurance. List your personal property,
such as jewelry, paintings, and col-
lectibles, and specify who gets what. Be
clear about the distribution of your assets,
but don't forget to list your liabilities --
mortgage, loans and credit cards. Sign
your will and have it witnessed by two
people with their correct addresses
included (should they be summoned by
the court). You will need to designate an
executor to administer your will after you
die. And, if drawn up by a lawyer, the
original copy will be filed at his or her
office. A duplicate copy should be kept in
a safe place where survivors will find it --
like a safe deposit box. (Remember:
Whatever is in your will is not set in
stone. You can make changes to it any
time you want.)
K
C
M
Y
The Citizen. Auburn, New York
Secure Your Future
Wednesday, January 31, 2007
9
4
Wednesday, January 31, 2007
Secure Your Future
The Citizen. Auburn, New York
How to preplan and pay for a funeral
Comprehensive Estate Planning.
Our planning services address not only estate tax
reduction, but also income tax reduction and asset
protection strategies.
Call today for a no-cost, no-obligation consultation, and start
charting the course for your financial future. 252-3600
DANIEL R. CUDDY
CPA, CFP
®
, CSA
*Advisory Representative
7 William Street, Auburn, NY
www.cuddyfinancial.com
252-3600
* Securities offered through H.D. Vest Investment Services
SM
, Member SIPC.
Advisory Services offered through H.D. Vest Advisory Services
SM
, Non-bank
subsidiaries of Wells Fargo & Company.
What Keeps You Awake At Night?
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BARRE
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Veteran Owner - Jim Moulton
M
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253-7971
Open: Mon.-Fri. 8:15-3:15
Other times by appt.
131 Seymour St.
Auburn, NY
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117 Genesee Street
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Auburn,
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