Brooke's Blog

Last week we received our new homeowners insurance policy and renewal statement.
Why is this worth a blog post?
Because I actually read the policy!
And sure enough, I learned some things about our coverage that I didn’t know.
First of all, Red Alert…..our policy has been rewritten. Our carrier has made significant changes to the coverage they offer. I spent 45 minutes reading the policy, another 30 minutes on the phone asking questions, and another 30 minutes reading the policy again.
Did I “have the time” to do this? No. Am I glad I took the time to do it? You bet.
In some areas our coverage has improved and surprise surprise, it some areas our coverage is less. I guessed this would be the case because our premium is actually lower.
Good news:
We have replacement cost and the overall coverage we thought we had.
Limits relating to specific personal property items in many cases have increased.
The cost of earthquake insurance through the California Earthquake Authority has decreased by an average of 12.5% across the state!
Bad News:
There are limitations on the length of time we can be away from the premises and maintain full coverage.
Coverage for personal property at another residence we might own has been virtually eliminated.
And several endorsements are no longer available.

As they say, forewarned is forearmed.

Americans are the most generous people and that likely includes you. Though your generosity is probably not motivated by the tax deduction, it would be unfortunate to learn that your gift is not deductible.
If your charity of choice does not maintain proper IRS filings it will loose it’s tax exempt status and you’ll be out a deduction.
According to Louis Michelson,Esq. of Los Angeles, due to recent changes in the filing requirements for charities, more organizations are bumping into this problem, if only temporarily.
Avoid being caught unaware, lookup your favorite charities in Pub 78 on the IRS website, www.irs.gov.

The college application process has been a near full time occupation since I blogged back in October. No matter how responsible your high school senior, I highly recommend a team effort within the family. Too many details and deadlines to keep track of alone on top of academics and extracurriculars. I foolishly thought the main job was accomplished when the final application was submitted before Christmas. You should basically set aside all of January to gather your financial records, file the FAFSA with preliminary information, complete your tax return, amend the FAFSA with final information, complete the even longer Profile, make sure your child is finding any and all scholarship opportunities and writing the necessary essays(yes….more essays), writing thank you notes to interviewers, setting up access to and regularly checking portals, confirming receipt by admissions of all required documents, updating applications for first semester grades and last minute SAT, Subject Tests or ACT results from the Dec exam. Oh, is your child considering sports? Don’t forget to register with the NCAA and request official SAT/ACT test results for them also. Basically it’s a follow up nightmare but all worthwhile when the first acceptance arrives and you know that your child is at least going to college. Steady yourself for the heartbreak of the horrible reject letter. I hope your child escapes the reject experience, but in this era of state budget problems and reduced enrollment, it’s not likely. The UC system announces next week on the 15th and the remaining Private schools will be soon too. Can you believe it’s still not over? Now we have to make final school visits. I truly pray that your child opts for early decision and you can enjoy a relaxing and peaceful January and February.
Good Luck,
From a wiser but wearier financial planner

Robert B. Friedland, Ph.D., AIF^® is a fellow Garrett Planning Network colleague and principal of Friedland Financial Planning, Inc., in Rockville, MD.

Robert is a nationally recognized public policy expert on Social Security, pensions, healthcare, and long-term care and continues to teach and conduct research at Georgetown University.

Due to Brooke and Robert’s like-minded approach to financial planning and investment analysis, they have recently joined together as affiliated partners. This association allows them to collaborate on strategic issues and client services for the benefit of clients of both firms.

Robert is married with three children. He is an involved community volunteer and Chair of the Center for Health Policy Development.

His website can be visited at: www.friedlandfinancial.com

Hedonist’s Guide to goal setting

Goal Setting been a hot topic in our office these last few months, especially with our 2011 Pocket Planner going out this January.  In our editing process, we were getting feedback from various sources, and it seems that everyone has differant ideas of what Goals should or shouldn’t be.  The one common thread we found was that the first step of Goal Setting is critical for any benefits to be realized.
Please see the linked article for an enjoyable approach for any of your New Goals!

Become debt free in 2011 | KSBY.com | San Luis Obispo, Santa Maria, Santa Barbara, Paso Robles.

See this link for a media clip of Brooke with tips for a debt free 2011.

Follow this link to the New York Times article about Gordon Murray and his views on life, death, and money.

Have you considered the impact of possible long term care
costs on your finances? A good financial plan will address this
possibility and whether your best choice is to self fund or
consider a long term care policy. This is not an all or nothing
decision. You may want to insure just a portion of possible long
term care costs for basic peace of mind. If you are shopping for a
long term care policy make sure the insurance company is highly
rated and committed to the long term care market. You don’t want
any surprises when it comes time to tap into your policy’s
features. Here are a few things to avoid when buying a policy: care
facility restrictions, pre-existing condition exclusions,
non-tax-qualified policies, requirements; such as hospital
admission, that must be satisfied to claim benefits. Also, if you
live in California you may want to consider an insurance company
that participates in the California Partnership for Long-Term Care.
Kiplinger Magazine publishes a very helpful Long Term Care
Workbook.