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Your legacy is in your own hands

  • Written by Scott Johnson

Scott-Johnson---HeadUnless you keep close track of obscure holidays and observances, you probably didn’t know that August is “What Will Be Your Legacy? Month.” Still, you might want to use this particular month as a useful reminder to take action on what could be one of your most important financial goals: leaving a meaningful legacy.
A legacy isn’t simply a document or a bunch of numbers — it’s what you will be remembered for, and what you have left behind that will be remembered. It’s essentially your chance to contribute positively to the future, whether that means providing financial resources for the next generation, helping those charitable organizations whose work you support, or a combination of both.
To create your legacy, you’ll need to do some planning. And you can start by asking yourself a couple of key questions:
What are your goals? When you think about leaving a legacy, what comes to mind? First and foremost, you may well want to leave enough money to help your own grown children meet their financial goals. After that, you probably have other things you’d like to accomplish. Perhaps you want to provide resources for your grandchildren to attend college? Or set up a scholarship at your own alma mater? Give financial support to a cultural, social, religious or scientific group? By thinking about your goals and putting them on paper, even in an informal sense, you’ll be taking the important first step in leaving the legacy you desire.
How can you turn your goals into reality? If you don’t take some concrete steps, your legacy just won’t materialize. And the most important step you need to take is to create a comprehensive estate plan. Your estate plan can be quite involved, because it may involve several legal documents, such as a will, living trust, health care power of attorney, and so on. In creating these materials, you will need to work with your legal and tax advisors because estate planning is definitely not a “do-it-yourself” endeavor.
You probably shouldn’t wait until you are deep into retirement to take action on your estate plan because developing the necessary documents and arrangements can take a fair amount of time — and you’ll want to make these preparations when you’re in good mental and physical health. Also, the longer you wait to set up your estate plan, the less likely it will be that you’ve communicated your wishes clearly to your family members, who may end up unsure about what you want and what their roles are in carrying out your plans —and that’s an outcome you certainly don’t want to see.
In fact, clear communications are essential to developing a successful estate plan. You should not only tell your family members — and anyone else affected by your estate plan — what you are thinking of doing but also inform them about the professionals with whom you are working and the locations in which you are storing any vital documents, such as your will.
By identifying your goals, working with the appropriate professionals to create an effective estate plan, and communicating regularly with your family members and other “key players” in your life, you can go a long way toward leaving the legacy you desire.
So, do what it takes to launch that legacy.

Scott Johnson, CFP, is a financial advisor with Edward Jones, 8146 W. 111th St., Palos Hills, 974-1965. Edward Jones does not provide legal advice. This article was written by Edward Jones for use by your local Edward Jones financial advisor.

Edward Jones, its employees and financial advisors are not estate planners and cannot provide tax or legal advice. You should consult your estate-planning attorney or qualified tax advisor regarding your situation.

Smart use of variables can lead to right answers for retirement

  • Written by Scott Johnson

Scott-Johnson---HeadIf you think back to your math classes in high school or college, you may remember that many of the problems involved the use of variables. Changing these variables around in any fashion would change the outcome of the problem. Similar situations occur in life all the time. To illustrate: If you look at the need to manage your retirement income so that you can’t outlive it as a “problem” to be solved, you will need to adjust some variables to arrive at the solution you seek. That’s why it’s so important you be aware of the key variables involved in your retirement income planning.
What are some of these variables? Consider the following:
• Your investment mix — You might think that once you reach retirement, you can invest solely in income-producing vehicles, but you can’t forget about inflation. Even a low rate of inflation, such as we’ve had for a number of years, can seriously erode your purchasing power over time — which is why you need to consider owning at least some investments that provide growth potential. Of course, you can change your investment mix at any time: For example, you might want to shift to a greater percentage of income-oriented investments as you move deeper into retirement.
• Your withdrawal rate — You’ll need to calculate how much you can afford to withdraw from your investment portfolio each year without depleting it prematurely. Your annual withdrawal rate will depend on a few different factors — such as your projected longevity, your investment mix and your other sources of income — but you’ll want to be careful not to take out too much too soon. As was the case with your investment mix, you have the flexibility to adjust your withdrawal rate during your retirement years.
• Your Social Security — You can start collecting Social Security benefits as early as age 62, but your benefits will be permanently reduced by up to 30% unless you wait until your Full Retirement Age (FRA), which is likely 66 or 67. However, your monthly checks can increase if you delay taking your benefits beyond your Full Retirement Age, up to age 70. If you come from a particularly long-living family, and you have sufficient income apart from Social Security, you might want to delay your payments to get the larger benefit amount. Once again, you have a choice to make.
• Your earned income — Just because you’ve retired from one career, it doesn’t mean you’ll never again earn some income. Many retirees take part-time jobs, do some consulting or even open a small business. Whether you feel that you need to work, or you just want to work, the money you earn from employment can be an important component of your overall retirement income.
As you can see, all these variables involve choices on your part. And how you choose to exercise each variable will affect all the other variables. Consequently, as you manage and monitor your retirement income, you’ll need to make many important decisions. Still, this doesn’t have to be a scary prospect — because the very fact that you have choices means you also have a great deal of control over your situation.
So, study your choices carefully, as you work toward achieving the income you need to enjoy the retirement you want.

Scott Johnson, CFP, is a financial advisor with Edward Jones, 8146 W. 111th St., Palos Hills, 974-1965. Edward Jones does not provide legal advice. This article was written by Edward Jones for use by your local Edward Jones financial advisor.

CNB Bank & Trust promotes local talent

  • Written by — CNB Bank & Trust

CNB Bank & Trust has announced that Joe Orrico has been promoted to Assistant Vice President and Kelly Wood has been promoted to Assistant Vice President. These promotions followed the board of directors’ annual employee review process.

Joe is a graduate of Stagg High School in Palos Hills. After schooling he attained several years’ of experience working in customer service and sales. Since transitioning into community banking in 2006 as a teller, he has worked his way up to his current position. Joe began employment with CNB of Oak Forest when they opened their facility in 2010 as a Lead Sales Rep. Joe now serves as Assistant Vice President/ Regional CSR Supervisor and resides in Joliet with his wife, Jessica, and their son Maelin with another son on the way.

What can investors learn from the All-Stars?</p><p>

  • Written by Scott Johnson

  Baseball’s best players were scheduled to gather in Minneapolis this week to participate in the All-Star Game. If you’re a fan or even a “weekend athlete,” you can admire these players for their abilities, even if you — like the vast majority of humanity — can’t hope to duplicate them. But if you’re an investor, you may be able to learn some practical lessons from the All Stars.

So let’s look at a few common All-Star traits to see how they might apply to investors:

Could this tablet replace laptops?

  • Written by Shelly Palmer

Techno Talk

Will Microsoft’s Surface Pro 3 replace your laptop? That’s the $1 million question. Microsoft officials say it absolutely can — and they’re right.

The Surface Pro 3 is Microsoft’s newest tablet. The device has a bigger screen than its predecessors (12 inches), is more powerful and comes with better accessories.

There are five models, ranging in storage (64 GB to 512 GB), power (Intel i3, i5 and i7 Processors) and price ($799 to $1,949).

If you really want to replace a laptop, you’re looking at any of the four best models (which start at $999).

At these levels, the insides of the Surface Pro 3 are essentially the same as what’s inside a MacBook Air. For all practical purposes, the Surface Pro 3 is simply a laptop with a detachable keyboard.