your$ magazine -- fall 2011
DESCRIPTION
Your$ -- A financial magazine for Wisconsin educators from WEA Trust Member Benefits.TRANSCRIPT
FALL 2011 FALL 2011
your$™A magazine from WEA Trust Member Benefi ts
TM
weabenefi ts.com
your insuranceRenting? Protect your property.
your investmentsWhat’s in your portfolio?
your kioskEight ideas to build your child’s money skills.
Caring forand protecting elderly parents
}
Historically, we have announced our
guaranteed rate for the new year at the
WEAC convention in October. With
no convention scheduled this year,
eager participants have already been
inquiring about when and how we will be
communicating the 2012 rate to you.
For those who want to be fi rst in the
know, the guaranteed rate for 2012 will be
announced on October 31 at weabenefi ts.
com and also in our recorded message
when you call 1-800-279-4030.
3 YOUR ACCOUNT- Year-end distribution deadlines.
- New mutual funds are here.
- Review and update your nonelective account.
- New WEAccess will improve online experience.
4 YOUR STORY- Two members share their stories
about helping elderly parents.
6 YOUR INSURANCE- Renting? Renters insurance is an
economical way to protect your personal property.
4
6
In this issue we
salute Barb, Mary,
and all those who are
caring for the physical,
emotional, and/or
fi nancial needs of their
elderly parents.
Educators are
natural givers—in
tune with the needs of
others (family, friends,
students)—and often putting those needs
ahead of their own. So, I was thrilled to
learn that the fi nancial education, services,
and products we off er were helpful
resources as these two participants made
decisions about their fi nancial future.
If there’s one thing that comes through
loud and clear from their stories, it’s
the signifi cance of planning ahead—
everything from building our savings, to
considering future care options, to estate
planning. We are better able to care for
others if we take care of ourselves fi rst. To
be sure our children will thank us someday
and hopefully follow our lead.
Please use us as a resource. Whether you
are just starting your career or preparing
for retirement, we have knowledgeable
and caring staff who are here for you.
• • •
your$CONTENTS FALL 2011
{
8 YOUR INVESTMENTS- What’s in a mutual fund? We’ve
broken it down for you.
10 YOUR KIOSK- How to talk to your parents about
long-term care insurance.
- Tips for teaching kids about money.
president’s letterDave Kijek, President/CEO, WEA Trust Member Benefi ts
{
2 weabenefi ts.com
© 2011 WEA Member Benefi t Trust.All Rights Reserved.
™
Caring for parents: good reminder to plan ahead
10
weabenefi ts.com 3
{ your account
ACT 14: auto insurance law changes
Holiday ScheduleWe will be closed:
Thanksgiving—Nov. 24–25, 2011
Christmas—Dec. 23 & 26-27, 2011
New Year’s—Jan. 2, 2012
There is no fee to pay your
insurance policy premiums with ACH or payroll deduction.
In these challenging times, automatic payments can help with
budgeting and eliminate the need to pay a large sum all at once.
Did you know?
Heading south
for the winter?
Make sure we have your contact info. Give us a call at:
Personal Insurance1-800-279-4010
Retirement & Investments1-800-279-4030
Newly enacted legislation (Act 14)
includes insurance laws that will impact
all Wisconsin residents with auto and
umbrella policies. If you are a WEA P&C
policyholder, you will receive notifi cation
60 days prior to renewal explaining how the
changes aff ect your coverage.
A complete description of the changes
can be found at oci.wi.gov (search for Act
14) or go to weabenefi ts.com/act14.
IRA and 403(b) NewsYear-end distribution deadlinesLump-sum withdrawals
If you would like to take a lump-sum withdrawal from your WEA TSA Trust or WEAC IRA accounts before the end of 2011, your original written request form must be received (not postmarked) by us on or before December 16, 2011, for processing the following week. We cannot accept requests via fax. Forms received after December 16 will be processed the second week in January 2012.
403(b) and IRA exchanges/transfers/rollovers outExchanges, transfers, and rollovers require a two-week processing time.
Accurately completed paperwork (including approved TPA transaction autho-rization) received by December 9, 2011, will process by the end of December. This includes requests for IRA recharacterizations and conversions. Paper-work received after that time will process in January 2012.
Postdated checksPostdated IRA contribution checks are not accepted and will be returned.
We are not able to accept checks written and received this tax year (2011) for next tax year (2012). Please do not postdate your checks.
New mutual funds are here You should have recently received information regarding changes to the
investments available in the 403(b) and IRA programs. These changes are a result of an annual investment committee review and the Board of Trustees’ approval. For additional information or to view a prospectus, please visit our Web site at www.weabenefi ts.com or call 1-800-279-4030.
Nonelective, employer-paid contributionsIf you will be receiving nonelective, employer-paid contributions in your
403(b) account, it is important to review your account and update your future contribution allocations. Contributions will be defaulted into an age appropriate Vanguard Target Retirement Fund* if no contribution allocations are on fi le. Please call 1-800-279-4030, Ext. 8568 to review your allocations.*Target retirement funds invest in a mix of stock and bond funds that steadily become more conservative as they approach their target date. Target retirement funds are not guaranteed and may gain or lose value now and after their target date.
Avoid penalties! Watch your contribution limits…it’s year end! It’s up to the participant (not the employer) to pay attention to limits.
NEW and improved WEAccess coming in November! Participants will receive a letter about new login procedures.
Property and casualty insurance programs are underwritten by WEA Property & Casualty Insurance
Company. The terms and conditions of your coverage are exclusively controlled by your written policy.
Please refer to your policy for details.
4 weabenefi ts.com
{ your story
Dick Kasten is at the window
watching the lawn crew mow the
grass surrounding his fi rst fl oor
condo in Menomonee Falls. It’s a beautiful
setting. Th e living room windows look out
at a well tended garden bed with a backdrop
of undeveloped prairie and woods.
Th e condo is home to Dick and his
daughter Barb. Barb is among the 41% of
baby boomers who provide assistance to
aging parents. She is also among the 8%
who have a parent living with them (USA
Today/ABC News/Gallup Poll).
As the last baby boomers reach the age
of 50, it is expected that this group of
Americans will spend more years caring for
elderly parents than they spend raising their
own children.
With advances in medicine, individuals
are living longer than ever before. Th e
largest growing age group in the U.S.
is people in their 80s. Th e fortunate
increase in longevity comes with some
consequences. It means planning for more
years in retirement, and that’s going to
require more savings. It also means your
chances of having or being an elderly parent
that needs some assistance is pretty high.
Michelle Slawny, Sr. Financial Planner
from WEA Trust Member Benefi ts, says
about half of the Wisconsin public school
employees she creates plans for are helping
their parents in some way. “It’s a challenge.
Trying to save for retirement, getting
children launched, and caring for their
parents.”
Michelle emphasizes the importance
of not compromising your own fi nancial
security. “Utilize other resources to pay
for college and help your parents. If you
jeopardize your own fi nances now, you
risk putting yourself and your children in a
tough spot down the road.”
The turning pointDick is sharp. Despite some diffi culty
getting around, he looks great at 90 years
old. And, he thinks his current living
situation is wonderful. “I’ve got it made,”
he says. Barb explains that her dad came to
live with her 10 years ago after her mother
passed away. “It made sense economically,
and I just knew that I would take care of
him at some point, because I promised him
Caring for and protecting elderly parents
that he would never go to a nursing home.”
Dick was living in their family home—a
tri-level in Cudahy. Much larger than he
needed and too far away. “After Mom was
gone, I told him we had two years to get the
house sold.”
Barb is single, which made it an easy
decision, but she acknowledges some
adjustments were required. “I hadn’t lived
with anyone for years, so it took some
getting used to. But he’s one of the easiest
people to be around. He’s made me become
a more ‘fl exible’ person.”
“We have a beautiful relationship,”
Dick says. You can sense how much he
appreciates his daughter. “Th e most
diffi cult part is communication—trying
to understand each other. It’s not perfect,
but it’s just been a beautiful relationship.
I’m 90. If Barb wasn’t here, I’m not sure
where I’d be.”
“It was an adjustment for both of us,”
says Barb. She handles meals, fi nances,
household chores, doctor’s appointments,
medicine dispensing, and personal care.
“Everything that makes him feel okay
physically and emotionally.”
Maybe you’re not caring for elderly parents now, but you might be soon.Forty-one percent of baby boomers who have a living parent are helping take care of them with personal help, fi nancial assistance, or both.Members Barb Kasten and Mary Dobbe are among them.
55weabenefi ts.com
The retirement decisionUntil this year, Barb worked full time as
a middle school counselor in the Waukesha
school district. “I really loved it. I hadn’t
planned to retire until I turned 60, but it
just worked out that way.”
A couple years ago, Barb attended a
fi nancial seminar called Preparing for
Retirement presented by Michelle Slawny.
“After the seminar, I set up an appointment
for a Retirement Income Analysis. I wanted
to see where I was at fi nancially. She showed
me what I could expect if I retired at 58 and
60.”
Since then, a couple things transpired.
“Dad had several surgeries last November
and then with everything going on
politically…I called Michelle to see if 58
was still an option.” Fortunately, Barb
saved for retirement with a 403(b), which
gives her an additional source of retirement
income and helped her retire early.
Michelle suggests that with retirement
benefi ts of all kinds being eliminated or
reduced, public school employees will
need to rely more heavily on their personal
savings. “Anyone considering retirement
before age 62 needs to make saving a priority
if they want to achieve their fi nancial goal.”
No regrets“It was strange not going back to school
this year. On teachers’ fi rst day back, Dad
had an appointment near Butler school.
Afterward, I said ‘let’s drive by the school.’”
Barb seems surprised that she’s taken to
retirement as well as she has. “It’s given me
so much fl exibility. I can do things in the
evening with friends if I want. When I was
working I rarely went out in the evenings.
Th e days were so long for Dad.”
Knowing the diffi culty others go through
with fi nding care and managing everything
from a distance, makes Barb feel lucky.
“I’m very fortunate. I have friends who
are dealing with very tough issues as they
become more and more responsible for
their elderly parents, like Alzheimers,
independent vs. assisted living and nursing
home alternatives. Th ese are very diffi cult/
emotional issues.”
Getting your ducks in a rowCaring for your aging parents means
helping them plan for their future, and this
can be overwhelming. It’s a diffi cult subject
to raise. But waiting until after the need
becomes acute will only make important
decisions more diffi cult.
“After Mom passed away, we sought help
from an estate lawyer,” says Barb. Th ey had
his will drawn up, as well as a living will,
power of attorney, and power of healthcare.
“Th is not only gave us peace of mind but
also avoids having his estate go into probate
upon his death.”
Barb has also been realistic about
planning ahead for herself. When she was
in her early 40s, she took out a long-term
care insurance policy. “Being single, I want
to know that if I need assistance or nursing
home care, I will have some choice in where
I go and the type of care I receive.”
A strong partnershipBarb and Dick have been through a lot
together. “I think of it as a partnership,” says
Barb. Dick says again, “It’s not perfect, but
it’s just been a beautiful relationship,” Barb
chuckles as she tells how Dick still plays his
parental role. “He’ll say ‘Barb, don’t stay up
too late.’ I have to remind him I’m 58 years
old. He’s a special person. He’s given me as
much as I’ve given him, probably more.”
continued on page 9 Part 2: Mary’s story
Barb’s Tips• Reduce your worries while you’re away.
When Barb was working, she worried about Dick moving around the condo. “I
used to pack a cooler each morning with snacks, drinks, and lunch so he wouldn’t
have to go to the kitchen.”
• Take care of yourself physically and emotionally.Barb exercises most days and stays connected to friends. “Th e social outlets are
extremely important. I’m very fortunate that from day one, my friends have
included Dad. It’s just been great.”
• Collect key information for you and your parents.It is extremely important to have appropriate legal documents in place. “It gives
you peace of mind and makes you aware of your parent’s wishes.”
• Look at LTC insurance for you and your parents.Long-term care services are NOT covered by Medicare or health insurance. Long
term care insurance protects your assets and gives you fl exibility in how you
receive your care. “I was 47 when I took out my LTC policy. An early age, but the
premiums were something I could manage at the time. Th ose premiums increase if
the decision to take out LTC is made later in life.”
{MEMBER PROFILEBarb Kasten
was a special education teacher for eight years in Mequon. She received her master’s degree in counseling and worked at Homing and Butler Middle Schools in the Waukesha district for the
next 25 years. “Middle school is such a pivotal time for kids. It was very rewarding to be part of that. And, I worked with really wonderful people.”
Barb was among the 4,935 Wisconsin public school employees who retired this year. “The time was right for a number of reasons. And, fi nancially I knew it was an option.”
She enjoys spending time with friends, exercising, reading, gardening, and going to movies.
All investment advisory services are offered through WEA Financial Advisors, Inc.
weabenefi ts.comweabenefi ts.com6
Protect your stuff
Add up the value of your belongings,
and you’re probably looking at
thousands of dollars. Could you
aff ord to replace your property if it were
stolen or damaged during a fi re?
Renters insurance protects your personal
property against damage or loss and insures
you in case someone is injured while in
your apartment.
Your landlord’s policy does not cover your personal property
Th e homeowners or commercial
property insurance policy your landlord
carries insures the landlord’s property,
not yours. If a fi re or other disaster
destroys your possessions, you could
suff er a signifi cant fi nancial loss unless
you have renters insurance. A renters
insurance policy provides protection for
your personal property, such as furniture
or electronic equipment, in the event that
it is stolen or damaged as a result of fi re,
theft, or other unexpected circumstances. It
also covers “loss of use” or living expenses
due to having to live elsewhere while your
apartment is being restored following a fi re
or other damaging event.
Note: Consider scheduling your
computer for extra protection from loss and
damaging events like spills on the keyboard.
Deductibles do not apply to scheduled
items.
Liability protectionIn addition to personal property
coverage, renters insurance policies
also provide liability coverage. Liability
insurance provides coverage against a claim
or lawsuit for bodily injury or property
damage to others caused by an accident for
which you are found liable. Th is coverage
is worldwide, extending to incidents off
the rental premises.
Example: Someone slips on the
wet fl oor in your apartment kitchen and
breaks their arm or you hit someone with a
ball while golfi ng. Th ey want you to cover
their medical expenses, pain and suff ering,
and/or ongoing physical therapy. Th e
liability protection included in your renters
insurance policy (not your landlord’s
insurance) would cover you.
What else should you look for in a renters insurance policy?
An important factor to consider when
shopping for renters insurance is “actual
cash value” vs. “replacement cost” coverage.
Renters Renters InsuranceInsurance
The average two bedroom apartment has over $20,000 worth of belongings that are not covered by a landlord’s policy.
Kids in college?Kids in college?Your dependent children away at
college may be covered under your homeowners or renters insurance policy. Check with your insurance company. There may be restric-tions such as the age of the college student or whether they live in on-campus housing.
Insured with us?Whether your dependent child
is living in a dorm or renting an apartment while attending college, they are covered by your Member Benefi ts homeowners policy (up to 10% of the personal property limit in your policy—subject to deduct-ibles and coverages in your policy). So, if you have $100,000 in personal property coverage, then each stu-dent living away from home has the equivalent of $10,000 worth of coverage.
{ your insurance
weabenefi ts.com 7weabenefi ts.com
Calculate the coverage you need
Ideally, you want enough renters insurance to replace your personal possessions in the event of a total loss. You can calcu-late how much coverage you need by calculating the value of your personal possessions.
Compile an inventory of your belongings. Make note of the original cost of each item. Attach receipts if available. Total the amounts for a rough idea of how much coverage you need.
TIP: Using a video camera or photos will provide details that a written description can’t capture.
TIP: Use our online worksheet to help you organize your infor-mation. Go to weabenefi ts.com/inventory and click on the link to Personal Property Home Inventory Worksheet.
Make several copies of your inventory. Keep one copy for yourself and leave another copy with a family member, neighbor, or at some other location—such as a safe deposit box—for safe-keeping.
“Depending on the amount of coverage and the deductible, a typical renters insurance policy with Member Benefi ts starts at $6–$7 per month.” - Kelly Behnke, Personal Insurance Consultant at WEA Trust Member Benefi ts
Actual cash value coverage reimburses
you for the cost of the personal property
at the time it was lost or stolen, minus the
deductible. Th is means that depreciation
will be factored in to determine what the
insurance company will pay you. For
example, if your laptop is stolen from your
apartment fi ve years after it was purchased,
you would be reimbursed for the current
value of the laptop, not what it would cost
to replace it.
Replacement cost coverage, on the other
hand, will reimburse the full value of the
new laptop.
MythMyth“Personal belongings “Personal belongings stolen out of my car stolen out of my car are covered through are covered through my auto insurance.”my auto insurance.”
Note: A renter’s insurance policy from
Member Benefi ts comes with replacement
cost coverage.
Renters insurance is inexpensive
Renters insurance is a very economical
way to protect the investment you have in
your personal belongings.
Depending on the amount of coverage
and the deductible, a typical renters
insurance policy with Member Benefi ts
starts at $6–$7 per month.
Even if you feel your possessions are
fairly modest, losing even one big-ticket
item or a lot of smaller possessions at once
could be fi nancially devastating. Unless
you have enough money saved to replace
everything you own—clothes, furniture,
computer, entertainment system, etc.—
renters insurance is defi nitely worth the
cost.
Personal property is insured through your renters insurance policy, not your auto insurance.
Member Benefi ts homeown-ers and renters insurance cov-ers personal property anywhere in the world up to the personal property limit shown on your declaration page, subject to your deductible.
Property and casualty insurance programs are underwritten by WEA Property & Casualty Insurance Company. The terms and conditions of your coverage are exclusively controlled by your written policy. Please refer to your policy for details.
WHAT’S IN YOUR PORTFOLIO?
When it comes to saving for
retirement, there are three things
you can do to improve the end
result: Work longer, save more, or increase
the return on your investments.
Many don’t want to work longer and/or
are not able to save more, so let’s consider
the third option—increasing the return
from your investments.
To illustrate how improving your
rate of return can impact your account
balance, let’s pretend that you have a goal
to accumulate $500,000 by the age of 62.
If you start saving at age 25 and earn an
average annual return of 5% each year, you
will need to save $390 per month to meet
your goal. However, if you earn an annual
return of 8% each year, you will only need
to save $184 per month. Of course earning
8% per year is more appealing, but how do
you achieve a higher rate?
The answer: stocksOver the long term, stocks have
historically outperformed all other
investments. (Th e sidebar shows how
portfolios with diff erent percentages of
stocks have done over time.) But often
people are afraid of making a mistake or are
concerned about market volatility. So, they
avoid stock investments and settle for lower
returns from lower risk investments.
According to Scott Th omas, Assistant
Retirement Consultant, playing it too safe
might not be the best strategy. “Th ere are
three things you need to account for when
saving for retirement: increased longevity,
reduced employer-based retirement
benefi ts, and infl ation. Including stocks
in your portfolio may help overcome these
obstacles and ensure that you have enough
money in retirement.”
Basic trainingLearning the basics about how to evaluate
an investment and build a diversifi ed
portfi olio can empower you to take control
of your fi nancial future and potentially
improve your bottom line. Which stocks
you choose and how much you allocate to
stocks is the key to managing your risk.
Mix it upA diversifi ed portfolio is less risky than
a portfolio that is concentrated in one or a
few investments.
You’ve heard the saying, “Don’t put all
your eggs in one basket.” Th is is the basic
idea behind diversifi cation. Putting your
money in diff erent types of investments can
help you achieve a more consistent long-
term performance than you would likely
achieve if you put it all in a single type of
investment. In theory, when certain types
of investments are declining in value, other
types are gaining value.
“Th e question you need to ask yourself
is ‘Am I willing to take on a little more risk
for better long-term returns?’” says Scott.
Member Benefi ts off ers 20 diff erent mutual
funds—investing in varying degrees of
stock—in our 403(b) and IRA programs.
Together with our Guaranteed Investment,
these mutual funds give participants the
fl exibility needed to manage risk and build
a diversifi ed portfolio to help improve the
end result.
What to look forEvaluating funds may seem complex, but
Scott suggests there are just four key things
to look at when comparing funds.
1. Fund class/fund strategy: Make sure
you compare apples to apples. Large-cap to
large-cap, mid-cap to mid-cap, etc.
2. Expenses: Know the annual percent
charged for managing the fund and
compare it to funds in its peer group.
3. Risk/Return profi le: Identify the risk
and return characteristics based on all types
of available investments.
4. Morningstar™ ranking for 5-year risk and 5-year return: Th is assessment
compares the risk and return of a fund to
similar funds.
For help assessing the funds available
in our programs by these four criteria, go
to weabenefi ts.com/assessfunds or call a
retirement consultant at 1-800-279-4030.
Including stocks in your asset allocation may boost your long-term returns and pad your nest egg.
8 weabenefi ts.com
Stocks in this example are represented by the Stan-dard & Poor’s 500®, which is an unmanaged group of securities and considered to be representative of the stock market in general. Bonds are represented by the fi ve-year U.S. government bond. An investment cannot be made directly in an index. The data as-sumes reinvestment of income and does not account for taxes or transaction costs. Keep in mind that mutual fund investments are not guaranteed and may gain or lose value. Past performance is no guar-antee for future results. Future performance may be lower or higher than past performance. Before investing in any mutual fund, call WEA Trust Member Benefi ts at 1-800-279-4030 to request a prospectus. We advise you to read it carefully and consider the fund’s investment objectives, risks, and charges and expenses carefully before investing. The prospectus contains this and other information about the invest-ment company. The 403(b) retirement plan is offered by the WEA TSA Trust. TSA program securities of-fered through WEA Investment Services, Inc., mem-ber FINRA. The Trustee for the WEAC IRA program is First Business Trust & Investments.
9.9%
9.1%
8.1%
6.8%
5.4%
50% 50%
100%100%
25% 75%25% 75%
75% 25%75% 25%
100%100%
9.9%
9.1%
8.1%
6.8%
5.4%
Average annual returns (1926-2010)
• Stocks • Bonds
{ your investments
weabenefi ts.com 9
Take care of you, tooMary knows she also has to take care
of her own fi nancial future, which looked
brighter before the recent political upheaval.
Like Barb, Mary had taken advantage
of Member Benefi its’ fi nancial planning
services off ered by Michelle Slawny. “Th e
last time I met with Michelle, she showed
me exactly what impact my share of WRS
and health insurance would have on my
take-home pay. It wasn’t as bad as I thought
because it’s taken out pre-tax.”
Mary has also attended numerous
fi nancial seminars and thinks she’ll be able
to manage the plan Michelle helped her
with. It includes continuing to contribute
to her 403(b) savings account. “My
experiences with Member Benefi ts really
helped with planning for my mother’s
health and fi nancal needs, as well as my
own.”
Her next fi nancial move will be to reduce
her expenses by selling her mother’s house.
“I told her it was time. It’s never easy to let
go. She collected so many things over the
years. Deciding what to keep will be hard.”
continued from page 5
Part 2: Mary’s story
After her father died 19 years ago,
Mary Dobbe started spending
more time helping her mother
Bernadine, now 77. “Her vision is bad.
I’ve been taking care of all of her bills
and mail because she just can’t see to do
it.” Bernadine has diabetic retinopathy,
a degenerative eye disease that can cause
severe vision loss or blindness.
Until last fall, Bernadine was living alone
in the family home. Mary lived two blocks
away, so there was plenty of checking in.
But even then, there were worries. “I
discovered she wasn’t taking her pills unless
I was with her. Same thing with eating. I’d
ask her what she had for dinner and she’d
say ‘Oh, a little of this and that.’”
Collecting key documentsLast summer, Mary felt compelled to get
a Power of Attorney for Finances and Health
Care for her mom. “I just felt I needed to
get it done.” Th en, a series of unfortunate
events ended with Bernadine in a nursing
home. “Having those documents in place
made all the diff erence.”
A fi nancial power of attorney allows
you to write checks, pay bills, change
investments, and attend to other fi nancial
matters on behalf of your parents. However,
this legal document needs to be created
before a parent becomes incapacitated.
“I couldn’t even cancel her cable account
without it.”
Mary has also contributed fi nancially to
her mother’s care over the years. Her name
is on the deed to the house (along with her
brother’s), and she continues to pay taxes,
utilities, and such.
Finding helpWhen it was obvious Bernadine would
not return home, Mary worried about
how they would pay for the nursing home.
Bernadine did not have long-term care
insurance nor the personal assets to cover
it. Mary sought help at the county level
and social workers helped them fi le for
assistance with the state.
Often, caregivers of elderly parents are
unaware of the help that may be available
in his or her community. Don’t leave these
resources unexplored. Take the time to make
some phone calls and ask a lot of questions.
Th ere are people and organizations out
there that can help you take care of your
parent(s).
Protecting parents from scamsMary worries less about her getting
meals or her medications now that she
has constant care. And, she has improved
socially. But a suspicious phone call last
summer put her on alert.
“While I was on vacation, Mom called.
She was upset.” Bernadine received a call
from a lady who knew she was diabetic and
talked about her sugar-testing meter. By
the end of the conversation, Bernadine had
given the woman information including
her birth date. “Th e caller had also asked
for her social security number, but thank
goodness Mom doesn’t know it.”
Mary has no idea whether the call was a
scam or not, but the idea that they asked for
personal information is worrisome.
Take care, buyer beware Bernadine is not alone. One out of every
fi ve older Americans has been sold an
inappropriate investment, paid excessive
fees for a fi nancial product or service, or
has been a victim of fraud or identity theft,
according to a 2010 study by the Investor
Protection Trust. In fact, seniors lost nearly
$3 billion last year to fi nancial predators.
Th ose looking to take advantage of the
elderly use many tactics to get the sale. Th ey
entice with free off ers, play on people’s fears
and exploit their loneliness.
Educate your parents about what
information should be protected and
take precautions like shredding bills and
statements before disposing of them.
In addition, be aware of fi nancial products
on the market that could jeopardize their
fi nancial security. Strongly encourage
your parents to let you help evaluate any
products they are interested in purchasing.
{MEMBER PROFILEMary Dobbe is an early childhood teacher in the Waupaca school district.
Rule of thumbWhen considering any fi nancial product, make sure you understand:
• The overall product features.
• The tax implications for the investor and benefi ciaries.
• The projected rates of return and the certainty of those rates.
• The liquidity of the investment.
• (For annuity products) the age the annuitant must reach before being eligible to receive regular annuitized payments without penalty.
• All of the fees and costs associated with that product.
One out of every fi ve older Americans has been sold an inappropriate investment, paid excessive fees for a fi nancial product or service, or has been a victim of fraud or identity theft.
10 weabenefi ts.com
{ your kiosk
How to talk with your parents about LTC insuranceMany people who have raised the topic of long-term care insurance (LTCi) to their parents—or other aging relatives—may be able to relate to these all-too-typical responses: Below are suggestions to help you have a different type of conversation—and a better outcome.
Invite them to a personal online LTCi seminar.WEA Trust Member Benefi ts sponsors personal online
seminars in the comfort of your home. One of our LTCi
specialists will walk everyone through an informative
presentation that covers the basics of long-term care and what
to look for in a policy, and can also answer general questions
about medical conditions and estimate monthly policy costs.
WEA Trust Member Benefi ts is sponsoring the protection
of long-term care insurance because we believe it’s important
to anyone who wants to take personal responsibility for their
fi nancial future and quality of life.
Register for an online seminar at weabenefi ts.com/calendar or call 888-247-5905 for more information.
Long-term care insurance products are underwritten by multiple LTC insurers. Program administered by LTCi Marketing Administrators, (LiMA)
Do NOT use the words “long-term care” early in the conversation.
For many people, the words long-term care equal nursing home. Th is
is because LTCi in its early years (less than 40 years ago) was primarily
designed as nursing home insurance. Although this is no longer the case,
don’t run the risk of closing the door to this important conversation.
Take a more positive approach that shows you share their desire for
independence and quality of life.
Express the hope that they remain in their home the rest of their lives.
When asked where they would prefer to receive extended personal care,
most people will choose the familiarity and comfort of their own homes.
Today’s LTCi policies recognize this fact and are designed to pay for
home health care. When a policyholder qualifi es for benefi ts, (ie, needs
help with activities of daily living such as dressing, bathing, etc.), the
policy will pay for home health aides to provide such services along with
transportation, housekeeping, shopping and more. Some policies will
even pay cash to relatives and friends who assist with informal care needs.
Focus on independence, quality of life, and peace of mind
Emphasize that you want to protect their ability to have choices about
where and how they receive the care they need. Once they understand
this, tell them that only LTCi is designed to provide this protection.
Medicare won’t pay for extended personal care (nor will the best health
insurance policy), and Medicaid is not something most people should
be considering. In fact, the sad reality is that many people end up on
Medicaid after they’ve spent through their personal assets and savings–
something they had worked hard their entire lives to avoid.
Look into LTCi sooner rather than later.Th ere are three important reasons to take action sooner than later:
• LTC insurance is underwritten, which means they must be in
reasonably good health when applying.
• An LTC event can happen at any time, because no one knows when
one might take a serious fall, suff er a stroke, or develop a disqualifying
medical condition.
• Th e premiums are age-based, so the younger the applicant, the lower
the premiums over the lifetime of the policy.
“Are you worried that we’ll spend
your inheritance?”
“Are you saying we’re not capable of staying in our
home?”y
ble ur “Are you
trying to put me/us in a nursing
home?”
weabenefi ts.com
{KIDS & MONEY
11
New SeminarThe Basics of Budgeting and Saving WorkshopAs Wisconsin public school employees adjust to reduced take- home pay, having a written budget is more important than ever. A budget gives you control over your fi nances. It empowers you to set and reach fi nancial goals, helps you manage day-to-day fi nances, and prepares for the unexpected. A budget also gives you permission to spend and allows you to set the course for your fi nancial future.
You will learn:• The benefi ts of a written budget.• How to create a working budget.• How to evaluate your income and
read your pay stub.• How to categorize and reduce your
expenses.• Tips for managing your debt.• Why saving for your future is
necessary and possible, even now.
Check our seminar schedule at weabenefi ts.com/calendar for an offering near you.
What are you teaching your kids about money? Well before they start
school, children develop attitudes that could infl uence a lifetime of
fi nancial behavior. Parents can infl uence even very young children for
a lifetime by demonstrating sound money management. In addition,
talking to your children about money can help them build a sense of
fi nancial awareness and fi nancial responsibility. Here are some ways
you can teach your kids about money.
Play games that teach money concepts.Board games such as Monopoly and Life can be a fun way for children to learn about money. An added bonus: the whole family can play together.
Take your child shopping.Going to the grocery store can be very educational if you take the time to turn it into a learning activity. Tell your child what your budget is, share what is on your list, and talk about the decisions you make in order to stay within your budget. Explain how coupons can help you save money.
Give an allowance.School-age children can earn an allowance by helping out with chores. Earning an allowance gives children hands-on experience with managing their money.
Encourage saving.There are different kinds of saving: saving in order to buy a particular item, saving for an emergency, and saving to build up future fi nancial security. Try to teach your child to designate a portion of their money to different types of saving.
Teach generosity.Have a discussion about charity and encourage your child to pledge a portion of their allownace to the charity of their choice.
Open an account.Go with your child to your local credit union and open up an account. Explain that the money in the account will grow because of interest paid by the credit union.
Use cash.Whenever possible, pay with cash to demonstrate the physical exchange of money for goods and services. The prevalence of paying with plastic can be confusing for younger children. Take time to explain how the credit union and ATM card work.
Set a good example.How you handle money will have an impact on your children’s money management skills. Don’t spend more than you earn, create a budget and stick to it, keep credit card debt in check, and save for the future.
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Member$aving Tips
Plan now for a garden next year. You’ll eat healthier and reduce your grocery bill (and maybe your waistline) Get back to freezing and canning your excess produce and you can extend the savings through the year.
Organize a swap event with your colleagues or neighbors. Unwanted, unneeded, or outgrown items can fi nd a new home through an organized exchange at work or in your community.
Jeanne MeaseRetired, Denmark School District
PRESORTEDSTANDARD
US POSTAGEPAID
MADISON WIPERMIT NO 2750
PO Box 7893, Madison, WI 53707-7893
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Rolling over is easyRolling over is easy and it may save you more money than you realize.
Work with one of our Retirement Consultants to:
1. Evaluate your current provider. They’ll look at what you’re currently paying in fees, discuss your investments, and help you determine if a move is right for you. If it’s not, they’ll tell you that, too.
2. Prepare paperwork.Brenda, Ana, or N’Kenza will pre-fi ll the necessary forms and mail them out to you for your completion.
3. Monitor the transfer process. Our transfer specialists will work with the releasing company to ensure funds are processed in a timely manner. They’ll even participate in a conference call with your current provider.
We accept ttrollovers from
a variety of retirement
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The 403(b) retirement plan is offered by the WEA TSA Trust. TSA program securities offered through WEA Investment Services, Inc., member FINRA. The Trustee for the WEAC IRA program is First Business Trust & Investments.
Ana, Ext. 2239
Brenda, Ext. 3300
N’Kenza(Milwaukee area)
Call 414-259-1990,
Ext. 1133
Call us at 1-800-279-4030
Call
Open to family members. Remember, your spouse, parents, parents-in-law, and children can also participate in our IRA program.