The Independent Investor
By Bill Schmick
Passing the torch—have you had “the talk” yet?
Whether you are a Baby Boomer or the child of one, it is about time you faced the music.
We all know that life ends, no matter how hard we try to ignore it. Having a family meeting
before it is too late may save needless heartache and financial turmoil.
Today, we are in the midst of an enormous transfer of wealth within America. Trillions
of dollars of assets are passing from one generation to another and will continue to do so
over the next couple of years. And whenever large amounts of money are involved, there is
a need for knowledge, advice and estate planning. You can’t do that if you or your family are
in the dark when it comes to family finances.
Most experts will tell you that a family meeting is the best way to address this elephant
in the room. It is a meeting where all the players come together—outside professionals
(financial advisor, lawyer or accountant), parents and children. It should not be a spur-
of-the-moment event, nor scheduled around a traditional family get-together like
Thanksgiving. The last thing you want is the grandkids or extended relatives or friends
interrupting the meeting, nor do you want your parents or siblings to be surprised by an
impromptu talk after Sunday dinner.
Subjects such as long-term care, investments, tax-deferred savings accounts, income
needs of ailing parents or children, federal and state taxes (both now and when settling
the estate), the fate of any real estate property, including the parents’ home (and possibly a
second home) are just some of the issues involved. As you can imagine, it is an important
event where quite a bit of data may need to be located, gathered, presented and discussed.
Take it seriously because, done right, a huge burden will be lifted from everyone’s shoulders.
My own parents were products of the Great Depression. 'They were taught to waste
nothing, save everything and, above all, never, ever, confide financial information to
anyone—least of all the kids. As a Baby Boomer, you may have inherited those same traits,
and your parents may still be alive. If so, you may need to confront those ideas and put
them to bed. In fact, you may have to have two family meetings, one with your parents and
a second with your adult children.
Clearly, whatever generation you represent, broaching the topic of your family’s personal
finances can be daunting at best, but someone needs to get the ball rolling, and it might
as well be you. A few years back, Allianz Life Insurance conducted a study called The
American Legacies Study, which revealed that within every family existed an alpha child.
That’s the person who communicates the most between family members, who plans,
schedules and makes sure you all attend those traditional get-togethers. It is the person the
family comes to for advice. That is the person who should organize and co-facilitate the
meeting.
If you are that alpha child, then this responsibility is on your shoulders but, if not,
swallow your pride and ask a sibling who qualifies to accomplish this. Once that is settled,
the next person you need to get on board is your parents’ most trusted adviser, or if
you are talking to your kids, invite your own professional. In your case, that might be a
money manager, like me, or a financial planner, but your parents may have relied on their
accountant, a family lawyer or even someone they know at their local bank. In any case,
ask your parents and make sure that person is not only invited to attend but will help you
prepare for the meeting.
In my next column, I will explore in more depth what should actually occur during the
family meeting and what items are absolutely essential to be discussed and planned for.
In the meantime, I suggest you pick up a copy of an excellent book on the topic: Can
We Talk? A Financial Guide for Baby Boomers Assisting Their Elderly Parents by Bob
Mauterstock. The author is an expert on the subject. His book is a comprehensive and
practical guide in helping elderly parents get their financial lives in order.
Bill Schmick is registered as an investment advisor representative and portfolio manager
with Berkshire Money Management (BMM), managing over $200 million for investors in the
' i.rkshires. Bill’s forecasts and opinions are purely his own and do not necessarily represent
e views of BMM, and none of his commentary is or should be considered investment advice.
Jirect your inquiries to Bill at 1-888-232-6072 or Bill@afewdollarsmore.com. Visit www.
afewdollarsmore.com for more of Bill’s insights.
FROM THE DESK OF THE EDITOR
Have You Heard... ?
Senior Tar Heel Legislature makes transition. In early April, a brief ceremony was held in
New Bern marking a change in the STHL representation of Carteret County. Victor Heinrich
accepted the position of STHL Legislative Delegate for the county, which was held by John
Thompson for the past 10 years. Mr. Thompson will continue to serve the county as a long
standing member of the Regional Aging Advisory Council and in support of Mr. Heinrich.
Mr. Heinrich, a Carteret County resident since 2010, has served with the STHL for the last
year and welcomes the opportunity and challenge of stepping up to represent the county on
aging issues. He also serves as an AARP advocacy volunteer, board member of the League of
Women Voters of Carteret County and supporter of the Military Affairs Committee of the
Carteret County Chamber of Commerce. If you have questions about the work of STHL, please
contact Mr. Heinrich at 571-4735 or veheinrichl@gmail.com.
Created over 22 years ago by legislation co-sponsored by then-senator Beverly Perdue, the
NCSTHL has a representative in all 100 counties in North Carolina who are tasked with the
responsibility for advocating for the elderly and informing and educating the public on issues
before the NC General Assembly.
Local library system receives federal grant. The State Library of North Carolina has
announced the 2016-2017 Library Services and Technology Act grant awards to 48 localTibrary
branches across the state, including the Craven-Pamlico-Carteret Regional Library (CPCRL).
'These federal funds will be used to meet the needs of citizens through projects that advance
literacy and lifelong learning, expand access to library resources and expertise, promote
partnerships and collaboration, and digitize materials important to the cultural heritage of
North Carolina. The $100,000 grant to the CPC Regional Library is in the Project Access &
Digitization category.
According to CPCRL Regional Director Susan Simpson, the grant will be used to replace the
library’s Integrated Library System (ILS), which provides online access to collections and patron
accounts, tracks transactions and inventory, and integrates electronic resources. The goal is to
improve the library’s operations by enhancing and broadening the proficiency of persons of all
ages to explore, utilize and enjoy the print, non-print and electronic resources av^able in the
CPCRL collections now and in years to come.
The Craven-Pamlico-Carteret Regional Library is one of 12 regional library systems across
the state. The CPC system includes Bogue Banks Public Library, Carteret County Public
Library, Cove City Public Library, Down East Public Library, Havelock Public Library, New
Bern Public Library, Newport Public Library, Pamlico County Public Library, Vanceboro Public
Library and Western Carteret Public Library.
These grant awards are made possible by funding from the federal Institute of Museum
and Library Services under the provisions of the Library Services and Technology Act as
administered by the State Library of North Carolina, a ^vision of the NC Department of
Natural and Cultural Resources.
Bogata Revisited
(Continued from page 27)
Venturing off Septima onto a side road you are immediately climbing or descending,
depending on the direction. Using a cell phone application, you can summon an Uber
driver from almost anywhere and be on your way in a matter of minutes. As it is here in the
United States, paying is all prearranged so no money exchange happens in the cab. We were
pleased on each of our cab rides, as the vehicles were clean and quick to show up.
Just a few days into our visit, I lost a filling and required the services of a dentist, which
was to be my first personal encounter with medicine in another country. My son-in-
law contacted his dentist, who agreed to see me that afternoon. I knew I needed to take
antibiotics prior to any dental procedure as I have had a partial knee replacement. My son-
in-law assisted when my Spanish failed me, and Dr. Vivas sent me off to get amoxicillin
prior to my procedure. I returned the following afternoon and all was done in about half
an hour. With no idea how much the charge would be, I knew at home it would have been
close to $300, but with medicine ex-USA, prices are quite different. He charged me about
150,000 pesos, which may sound like a lot, but with the conversion rate favoring the dollar
greatly, it was only $50. We had a good laugh about the price difference, and I have had no
issues with pain of the tooth. Thank you. Dr. Vivas.
The building where my daughter lived has a great many features for the tenants,
including an indoor swimming pool that adjoins a large outdoor play area for the kids.
This floor also has an outdoor kitchen and seating area. My son-in-law went to reserve
the cooking area for us on Thanksgiving so we could cook the turkey on the grill, but another
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The Shoreline I