Also in this issue: - The Spectrum Magazine
Also in this issue: - The Spectrum Magazine
Also in this issue: - The Spectrum Magazine
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F<strong>in</strong>ance : <strong>The</strong> Right ‘Papers’ — at the Right Time — Can Protect Your Family<br />
David Amann<br />
Special to <strong>The</strong> <strong>Spectrum</strong><br />
T<br />
o protect your family, you need more than the best <strong>in</strong>tentions — you need<br />
the right “paperwork.” And you’re go<strong>in</strong>g to need it dur<strong>in</strong>g two dist<strong>in</strong>ct phases<br />
of your life — your work<strong>in</strong>g years and your retirement.<br />
Let’s take a look at these time periods, along with some of the key<br />
documents you may need.<br />
Work<strong>in</strong>g years<br />
While you’re work<strong>in</strong>g, your most valuable asset is your <strong>in</strong>come. Without<br />
it, your family might not be able to pay off the mortgage or send the kids<br />
to college, and that’s why you need to put the appropriate <strong>in</strong>surance and<br />
protection policies to work.<br />
You can typically purchase a surpris<strong>in</strong>g amount of term <strong>in</strong>surance — which,<br />
as the name suggests, covers you for a specified number of years — for relatively<br />
modest premiums. In fact, due to longer life expectancies and other factors,<br />
term <strong>in</strong>surance premiums, <strong>in</strong> general, have actually gone down <strong>in</strong> recent years.<br />
Most term <strong>in</strong>surance policies offer only a death benefit with no cash<br />
value. So, if you don’t die before your policy expires, you will get noth<strong>in</strong>g<br />
back from the premiums you paid <strong>in</strong>. However, when you buy “permanent”<br />
<strong>in</strong>surance — such as whole life, universal life or variable universal life<br />
— your premiums pay for both a death benefit and an <strong>in</strong>vestment component,<br />
and any earn<strong>in</strong>gs have the potential to grow on a tax-deferred basis.<br />
Apart from life <strong>in</strong>surance, you may need another important document<br />
— a disability <strong>in</strong>surance policy. An <strong>in</strong>jury or illness that prevents you from<br />
work<strong>in</strong>g can seriously erode your sav<strong>in</strong>gs and <strong>in</strong>vestments, so you’ll want to<br />
protect your <strong>in</strong>come. Your employer may offer some type of group disability<br />
plan. But if <strong>this</strong> plan doesn’t pay at least 60 percent of your <strong>in</strong>come, doesn’t<br />
pay benefits to age 65 and has a wait<strong>in</strong>g period longer than your sav<strong>in</strong>gs can<br />
last, you may need to look at supplemental private disability <strong>in</strong>surance.<br />
Senior Activities<br />
<strong>The</strong> follow<strong>in</strong>g activities provided by the Veterans Memorial Senior Center,<br />
1455 Madison Ave., Redwood City, are open to the public.<br />
National Senior Week<br />
Sept. 10–14<br />
Monday, Sept. 10, 9:30 a.m.–12 p.m., Sunset Room — Panel discussion and<br />
a chance to experience a heal<strong>in</strong>g body treatment from a reiki, acupressure,<br />
massage or chiropractic practitioner.<br />
Tuesday, Sept. 11 — Grandparents Day! Jo<strong>in</strong> us <strong>in</strong> celebrat<strong>in</strong>g the wonderful<br />
relationship between grandparents and grandchildren.<br />
Wednesday, Sept. 12, 10:30 a.m., Goldstar Room — Lecture on the myths<br />
and realities of hospice, from Mission Hospice.<br />
Thursday, Sept. 13, 11 a.m., Sunset Room — Lecture on how to f<strong>in</strong>d help at<br />
home, from Home Instead.<br />
<strong>The</strong>se events are free, and all are welcome. For more <strong>in</strong>formation, call<br />
Merrylen Sacks at 650-780-7320.<br />
Gilroy Gardens Community Services Trip<br />
Saturday, Sept. 22, 10 a.m.–4 p.m.<br />
Let us take you on an adventure to Gilroy Gardens, which has whimsical<br />
gardens, unique rides and one-of-a-k<strong>in</strong>d exhibits. Cost of $60 <strong>in</strong>cludes roundtrip<br />
transportation, entrance <strong>in</strong>to the park and lunch. Please call 650-780-<br />
7344 to reserve your spot today.<br />
Tax Rebate: Homeowner and Renter Assistance<br />
Wednesday, Sept. 26, 9 a.m.–1 p.m.<br />
Homeowner and Renter Assistance is an annual payment made by the<br />
state of California to qualified <strong>in</strong>dividuals. Payment is based on your total<br />
household <strong>in</strong>come and a percentage of the assessed value of your home.<br />
Retirement years<br />
When you retire, you’ll still need to protect your family, but at <strong>this</strong> stage of<br />
your life, your focus may be on leav<strong>in</strong>g a legacy. Toward that goal, you will<br />
have some estate plann<strong>in</strong>g considerations. And estate plans can be complex,<br />
so you will need to work with an attorney.<br />
Of course, everyone’s situation is unique, but here are two of the most<br />
common documents associated with estate plann<strong>in</strong>g:<br />
Will. If you don’t have a will, your wishes may never be fully honored,<br />
because state law will dictate how your assets are divided. And if you<br />
have no liv<strong>in</strong>g relatives and you die <strong>in</strong>testate (without a will), your estate<br />
will go to the state.<br />
Liv<strong>in</strong>g trust. If you have only a will, your assets may have to pass through<br />
probate, which can be time-consum<strong>in</strong>g and expensive. But with a<br />
properly established liv<strong>in</strong>g trust, your assets can pass directly to your<br />
beneficiaries without court <strong>in</strong>terference, legal fees, lengthy delays and<br />
public disclosure. <strong>Also</strong>, a liv<strong>in</strong>g trust can give you more precise control<br />
over how — and when — you want your assets distributed. You could,<br />
for example, have money distributed to your children or grandchildren <strong>in</strong><br />
<strong>in</strong>stallments over a period of years.<br />
As you can see, you need to have your “papers” <strong>in</strong> order to properly take care<br />
of your family — no matter where you are on life’s journey.<br />
Edward Jones, its employees and f<strong>in</strong>ancial advisors are not estate planners<br />
and cannot provide tax or legal advice.<br />
Renters may also qualify for assistance. Your <strong>in</strong>come must be $42,770 or less,<br />
and you must be 62+. No walk-<strong>in</strong>s; by appo<strong>in</strong>tment only. Call 650-780-7272,<br />
beg<strong>in</strong>n<strong>in</strong>g Sept. 4, to make an appo<strong>in</strong>tment.<br />
AARP Driv<strong>in</strong>g Course — Renewals Only<br />
Friday, Sept. 28, 1 p.m.–5 p.m.<br />
This course is especially designed for drivers age 50 and over. No walk<strong>in</strong>s;<br />
by appo<strong>in</strong>tment only. Please call 650-780-7270 or sign up at the ma<strong>in</strong><br />
build<strong>in</strong>g. Br<strong>in</strong>g a check for $10 payable to AARP to the class on Friday. <strong>The</strong><br />
<strong>in</strong>structor is Glenn Behm. Space is limited, so reserve your spot today.<br />
AARP Driv<strong>in</strong>g Course — Newcomers Only<br />
Saturdays, Sept. 29 and Oct. 6, 9 a.m.–1 p.m.<br />
This course is especially designed for drivers 50 and older who have not<br />
taken <strong>this</strong> course before. Tak<strong>in</strong>g <strong>this</strong> course might allow you to qualify for<br />
auto <strong>in</strong>surance discounts <strong>in</strong> most states. Must make an appo<strong>in</strong>tment. Please<br />
call 650-780-7270 or sign up at the ma<strong>in</strong> build<strong>in</strong>g. Br<strong>in</strong>g a check for $10<br />
payable to AARP to the class on Friday. <strong>The</strong> <strong>in</strong>structor is Glenn Behm. Space<br />
is limited, so reserve your spot today.<br />
To learn more about the Veterans Memorial Senior Center, call 650-780-7270.<br />
Redwood City Parks, Recreation, and Community Services Department<br />
provides recreational facilities and activities for all ages and <strong>in</strong>terests, and<br />
supplies build<strong>in</strong>g and custodial services for city build<strong>in</strong>gs. Redwood City<br />
Parks also operates the Veterans Memorial Senior Center and the Fair Oaks<br />
Community Center, provid<strong>in</strong>g social, educational and cultural activities as<br />
well as <strong>in</strong>formation, referral and counsel<strong>in</strong>g services to persons liv<strong>in</strong>g <strong>in</strong><br />
Redwood City and neighbor<strong>in</strong>g communities. Redwood City Parks is more<br />
than you th<strong>in</strong>k! Its Web site is located at www.redwoodcity.org/parks.<br />
www.<strong>The</strong><strong>Spectrum</strong>Magaz<strong>in</strong>e.net