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Personal Finance

Seven Cardinal Rules to Retirement Planning

Financial Planner Says Independent & Credentialed Advisors May Better Tailor Individual Portfolios

"An onslaught of retiring baby boomers; the uncertain duration of Social Security funding; difficulty with workplace retirement accounts like 401(k)s – even if these factors were stronger than they are now, you'd still have a heavy burden in managing your finances during retirement," says financial planner Carl Edwards.

"Financial planning for retirement has always been a daunting prospect; the current landscape simply makes your preparation that much more crucial in using your assets well," says Edwards, a highly credentialed consultant and owner of C.E. Wealth Group, (http://www.cewealth.com).

"Many advisors and clients rely too much on single product lines. This misuse often gives products and the financial industry in general a bad name. Advisors who are restricted in the types of financial products they can offer or understand may not provide the best advice. Independent and credentialed planners, on the other hand, don't have their hands tied in what they can offer clients and may provide better advice."

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Giving is Good!

Black news from Pasadena - Personal Finance - Charitable gifts in estate planMany of my clients wish to make charitable gifts as part of their estate plan. It is common for individuals to leave a share of their estate to their favorite charity, alma mater, fraternal organization or church. If you are considering making a gift to an organization as part of your estate plan, you should really think it through. While you can give a general gift without restriction, a gift with a well-defined purpose may be better. Let's consider a few examples.

Example 1: Someone gives $25,000 to his fraternity "to be used for scholarships", with no other restrictions. The fraternity could decide to only award two scholarships of $500 each year. Assuming that the money earned 5 percent ($1250) a year on average, the scholarships would never stop. On the other hand, the fraternity could decide to award one $2,500 scholarship each year, thereby only awarding ten scholarships from the gift.

Example 2: Someone gives $500,000 to "maintain and improve" the facilities of a non-profit organization, with no other restrictions. If the organization decides to only use the interest on the money to do minor repairs and paint the building every other year, the $500,000 would never get spent. On the other hand, most of the money could be spent rapidly by doing major remodeling, installing state of the art fixtures and purchasing new furniture. If the $500,000 was never was spent, did the donor achieve his or her goal?

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