Mike Bonacorsi CERTIFIED FINANCIAL PLANNER™

2010 Seacoast Half Marathon

2010-11-18T06:49:00.000-08:00

Here I am with my friends at the start of the 2010 Seacoast Half Marathon, the first for all of us. It was a great day and a great race. We all finished and already looking forward to next year.

Adding Details to Estate Planning

2010-10-04T12:01:00.000-07:00

Over the past few months, I have had to the occasion to help clients organize the assets of deceased family members as they prepare to settle estates (including my own family). In most cases, wills or trusts were prepared, however details regarding the assets referred to in these documents could not be found. Stock certificates were missing, investment statements and tax returns were not available even contact information for accountant, financial advisor and attorney was buried in old boxes, drawers or had disappeared over the years.

The experience of trying to help locate missing documents has led me to suggest as part of an estate plan’s preparation to create a “Detail Book.”
1) Start with a list of contacts, be sure to include; financial advisor, attorney, accountant, tax preparer, physician, and funeral home (if chosen).
2) Next a list of requests you might want carried out at your death; i.e. cremation, family only, favorite song, prayer or poem, type of service.
3) If you have prepaid for your funeral a copy of the agreement should be included. Usually arrangements are made years in advance and a readily available copy can help family members as they prepare the arrangements.
4) Location of original will, or trust.
5) Copies of end-of-year bank, brokerage, investment, and retirement accounts, if you have multiple investment accounts held directly consolidating them in a brokerage account might make sense. If you have physical stock certificates, depositing them into a brokerage account or having them held in book form by the transfer agent can save a lot of the time and cost associated with replacing them.
6) Include a copy of the previous two or three year’s tax returns. The information on these forms and their support paperwork (W2’s, 1099’s, 1099R’s etc) can be invaluable. They will list sources of income, dividends, and transactions, probably one of the best sources of information.
7) Copies o f life insurance and annuity statements, these are tax deferred and will not show up on tax forms it is important to have information regarding issuers and policy numbers.
8) Review your beneficiaries on accounts, make any changes necessary with the appropriate custodian, trustee or issuer of the account, make a copy of the form and keep it in the book. If you are satisfied with the current listings, make a copy and save that in your book.

Depending on your situation you mad have additional items to include in your “Detail Book”, I tried to list the most common issues. Once you have completed the book put it away for safekeeping and make sure you let the administrator of your estate know where it is. When the time comes, it will help to make a difficult time easier.

Mom

2010-09-13T10:44:00.000-07:00

I made my weekly call to my mom on Thursday September 2nd for our weekly chat. It was a little later than normal and I got her voice mail, not surprising, mom wasn’t one to be hanging around waiting for a call. I assumed she was in the Great Room of the assisted living home where she was living, or out shopping (her favorite pastime) with one of her friends, or just out running around with her brother Jack.

On Friday I got a call from Jack, mom was in the hospital, she had been complaining about not feeling well and the doctor had admitted her. She had a recurring problem and was going through a routine treatment and Jack thought she would go home Saturday.

That Saturday was a busy day went for a run then, Karen and I took care of our regular Saturday errands. Around 8PM I noticed a message from Jack, without listening to the call, I called him back. He told me my mom had passed away. She had gone home earlier in the day and had been visiting with one of her neighbors, after a time she returned to her room and a few minutes later she was found slumped over in her chair.

It caught me off guard, each week we spoke and she sounded great, her voice was the same I had been hearing all of my life. When Karen and I went to visit in June she kept up with us step for step.
My mom will never be mistaken for June Cleaver or Harriet Nelson, like all of us she had her own issues to deal with and demons to battle but, she was the one who cooked my favorite meals, took me to the doctor when I got sick, laughed at my jokes and smiled when I walked into the room.

Last Thursday when I couldn’t reach her I left a message on her phone. “Hey it’s me, where are you, out goofing off? I will give you a call tomorrow, love you.” I feel short changed that I didn’t have the chance to talk to her, having her go without a return to my call, keeps a loose end.

Maybe she knows what I am writing, “I miss you and love you”.

Interview With Artie Lynnworth

2010-09-08T05:30:00.000-07:00

Here I am interviewing Artie Lynnworth about his new book "Slice the Salami" on the "Mike Bonacorsi Show."

Back To The Grind

2010-08-27T12:04:00.000-07:00

I think coming back from vacation is one of the toughest things to do. Think about it, one minute you’re kicking back, chillin’, not a care in the world then all of a sudden Monday morning comes and BAM you are back in it. It is so much easier to slow down and go away than come back to the chaos.

Sure, after a week or so you get your rhythm back and settle down in to your routine but until that happens, you feel like you are trying to get solid footing in the middle of a tornado.

Several years ago I read an article (not sure where) discussing the benefits of not taking time off, the article suggested maintaining the same daily routine. The claim was we could function better without the disruption and stress of starting and stopping our daily habits and schedules; up every day at the same time, work the same hours each day, and go to bed at the same time each night.

It makes sense many of our ancestors followed this routine and managed to make it work. It also sounds boring, same thing same time every day. I don’t know about you but I like to mix it up, I like to get away, I like to sleep late some days, I like to change my routine it keeps it fresh and exciting.

Still, coming back to work after some time off is a bear.

I Can’t Be That Old-I Don’t Feel It

2010-08-11T13:35:00.000-07:00

Thursday night, I was flipping through the channels, and landed on PBS to watch the Leonard Cohen Live in London Concert, Karen came into room, listened for a few minutes and asked about the performance unfamiliar with the music.

“This is good, who is it?” “Leonard Cohen, he has been around for a while I first heard him around forty years ago, Burke used to play his album.”

STOP, HOLD IT RIGHT THERE!

What did I just say? Did I just admit I have memories that go back forty years and longer? Impossible, it seems only a few years ago I was a kid, old people talk refer to memories by how many years ago they happened, not me.

I suppose as I think there has been a lot of water under the bridge but, forty years, has it really been that long since I was sixteen.

I don’t feel half way through my fifties but, then again I don’t know how I should feel, I remember how my parents and their friends described their aging process as one of continuously slowing down, fifty was old, sixty older, and past that ancient.
I know I am in better shape than I was in my twenties, thirties and forties I may have been stronger when I was younger but my overall condition is better, due to major lifestyle changes. I am smarter, I made mistakes and learned from them, I have more experiences and most important, I finally realized I don’t know everything and have a lot more to learn. Sure, I am a little gray around the edges, maybe a little thinner on top, but I have friends that had the same issues in their twenties and thirties.

Maybe it is my attitude, sure there are time to be serious and behave like an adult but if it isn’t necessary I like to laugh hard, sing loud, and as Karen says “behave like a twelve year old.”

As long as I don’t feel old enough to have memories that go back forty or fifty years ago who cares if they happened. The way I feel I feel I will be telling someone about the blog I wrote, fifty years ago.

York Maine 5k

2010-08-03T10:36:00.000-07:00

My Radio Show-Why I Do It

2010-07-22T08:41:00.000-07:00

After a recent radio show, someone commented on how I focused on not just financial issues but had guests dealing in various areas of life planning on my show.

“Wouldn’t it make more sense to talk about investments and products like the guys on TV?”

I took a deep breath and explained, there are many people offering investment advice (myself included) but what I am trying to do is go beyond products and returns. I want my listeners to realize planning for their retirement goes beyond the value of their 401k. It involves setting goals, celebrating milestones, and envisioning the lifestyle they want.

It means understanding their current position, identifying strengths and weakness and creating strategies for their unique situation not a “boiler plate cure-all”. I also want them to realize the importance of preparing now for when they are gone.

I want them to understand the importance of a healthy lifestyle and the possibility of living twenty, thirty years past traditional retirement, maybe even longer.

I want them to rethink and recreate the old ideas of retirement no longer thinking of it as the “beginning of the end” but to enter this new stage of life prepared and ready to live it like they own it‼

July 4, 1965

2010-07-09T09:25:00.000-07:00

Celebrating the Fourth of July last week got me thinking about the fun we had as kids on the holiday. We lived in Lawrence but had a camp in Georgetown (about 12 miles) where we spent time during the summer. The neighborhood was summer camps and year-round homes built around Rock Pond where we spent most of our time boating, swimming and fishing.

Most of the residents were belonged to the Association, the money paid to the Association maintained a private beach and provided activities during the summer at the Hall. The Hall was a small function room with a bar in the back, on weekend afternoons the men would play bocce for beers (losers pay) and the evenings there would be a dance or bingo for the kids.

The Fourth was the day we waited for early in the morning we would start getting ready for the first event of the day was the races. We would line up by age when the starter gave us the go, we would charge to the finish line the winner would receive a ribbon everyone else – nothing.

Next, the watermelon-eating contest, tables of ice cold melon triangles laid out; pick your wedge, hands behind your back, go! No manners needed here, three or four bites and it was over, you looked around the table and your friends and competition had cheeks full of fruit and juice running out of their mouths.

Then hot dogs, hamburgers, Orange Crush and Coca-Cola, a quick swim, and off to the center of town for the parade. Back for more swimming and hanging with your friends, after supper, it would be time to go to the carnival at the schoolyard and a giant bonfire would finish the day.

The Mike Bonacorsi Two Minute Retirement Readiness Update- Social Security

2010-07-02T09:05:00.000-07:00

Take A Break, It’s Good For You

2010-07-02T07:04:00.000-07:00

We just returned from a week’s vacation in Georgia visiting my mother. I gained a few pounds, played some golf, and spent time with relatives, some I haven’t seen in over forty years. My mother lives in is a small Mayberryesque town in central Georgia, similar to the size and feeling we see throughout New England.

It is nice to get away. A break in your day- to- day routine gets you out of the mechanical doldrums you settle into and wakes you up, physically and mentally. While on vacation I managed to stay away from business (except for the occasional phone call or email), I feasted on the local food (I can still taste the fried chicken, and greens), and we enjoyed travelling through the area with my mother and her brother Jack as our tour guides.

This was the perfect time to get away and relax and recharge, the first half of the year was ending and I am getting ready to charge full stride into to the second half with renewed enthusiasm. Breaking your daily grind whether you take time off, start a new project, even something as simple as rearranging your work area (move your desk to give you a different view) can make a difference.

Mike Bonacorsi’s Two Minute Retirement Readiness Update- Life Expectancy

2010-06-21T08:47:00.000-07:00

Two Minute Retirement Readiness Update- Cash Flow

2010-06-13T08:45:00.000-07:00

A Different Time

2010-06-10T06:12:00.000-07:00

I remember when I first started hearing about retirement, it was around 45 years ago. I was in the third or fourth grade and my grandfather was talking about his upcoming retirement from the mills in Lawrence.His retirement was an event that should have made me happy; he lived next door to us, he would be around more, I could spend more time with him hanging out and watching cowboy movies but I wasn't happy - I was sad.

I was sad because everyone that I knew that had retired at that time died within a few years; for me my grandfathers retirements signaled his death.Retirement planning for many of his generation covered a five to ten year time period, a fraction of the twenty,or thirty plus years the baby boomer generation may expect to live past traditional retirement age (65).

He received a pension and social security, my grandmother continued to work,and they continued to live a simple life following the same day-to-day routines. My grandfather would head out in the morning do the daily shopping and errands, come home for lunch then meet with his friends; play some cards, a glass or two of wine, then back home to get dinner ready.

This lifestyle lasted three or four years into his retirement, until his health began to fail him, he was seventy when he died, life expectancy was around seventy two at the time.

Today an average life expectancy for an individual at sixty five is in the eighties, many will make it to the ninties and beyond. Longevity carries good and bad news: I will longer longer but am I prepared for it. Money, health and lifestyle all have to be considered, it's not as simple but there is so much more time to do so much more.

Mike Bonacorsi's Two Minute Retirement Readiness Update

2010-06-06T12:10:00.000-07:00

2 Minute Retirement Readiness Tip

2010-06-03T12:55:00.001-07:00

Golf -I Just Don’t Get It!

2010-05-25T07:24:00.000-07:00

I have been going to golf courses, attempting to hit a little round ball approximately 1.5 inches in diameter with a bag of L shaped sticks into a hole in the ground for over ten years with no success. Now to some of you this may sound like an activity you are familiar with; golf. I assure you in no way shape or form can my activities on the golf course be considered golf.

All winter I think to myself this year I am going to turn it around, my tee shots will be straight, and my putts will drop in the hole but it doesn’t happen. I take lessons. I hit buckets of balls at the driving range and still no improvement, my ongoing concern is whether or not the dozen balls I bought on the way to the course is enough.

I was invited to play with an acquaintance recently and warned him my game was pretty ugly. He said “it can’t be that bad, if we were any good we wouldn’t be working” after the round he said “I owe you an apology, you were right.”
So today is Tuesday and once again I will play in my weekly golf league, I have been to range a couple times since last week’s round and hoping for some improvement. I am not sure it will come, I keep saying this is the last time I will play, but I keep going back. I just don’t get it.

The Mike Bonacorsi Show- May 18, 2010 with guest Nancy Padberg

2010-05-20T08:04:00.000-07:00

Mike Bonacorsi is a CERTIFIED FINANCIAL PLANNER™ professional, author of the book Retirement Readiness; Creating Your Vision, Knowing Your Position, and Preparing for Your Future, and host of the Mike Bonacorsi Show on WSMN Radio.

The Focus of his practice is helping clients create plans and strategies for retirement built around the key areas of Lifestyle, Wealth and Health. Mike believes that retirement planning is more than just the value of your 401k.

Today Nancy Padberg from BestBoomerTowns.com is on the Show. Ms. Padberg is a former Fortune 500 Times Mirror executive, Integrated Marketing Communications Vice President and MBA graduate from the Graziadio School of Business & Management at Pepperdine University. Ms. Padberg has over 17 years of publishing and marketing expertise, served on several boards, is a guest speaker, published author, former Big 12 golfer and resides in Santa Monica.

The Mike Bonacorsi Show- May 18, 2010 with guest Nancy Padberg of BestBoomerTowns.com

2010-05-20T07:58:00.001-07:00

The Mike Bonacorsi Show- May 18, 2010 with guest Nancy Padberg of BestBoomerTowns.com

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Nudge

2010-05-17T08:05:00.000-07:00

Nudge-to push against gently, especially to gain attention or give a signal.

At some point we all need a nudge to motivate us to get things moving, whether it is starting a new project or reenergizing your efforts in an existing activity. This nudge can be as subtle as a whisper in your ear or as blatant as a kick in the pants but when it comes you need to be ready to take advantage of the momentum it creates and turn it into action.

This weekend, accepting a friend’s invitation, I attended National Speakers Association meeting as a guest; “you’ll love it, the people are great and the speakers are top-notch” she said.

I am always cautious about joining a group, I’m not one to mingle, however she was right, the people were friendly and I felt comfortable from the moment I walked in.

My nudge came when the speaker began, Chad Barr (CB Software, Chad Barr Group) a web designer and internet strategist, began to speak about web presence, websites, blogs, articles, videos you name and this was my “kick-in-the pants” moment.

I have been thinking about making changes to my website for the past month or two, I had been thinking about updating my blog regularly for the past three months, I had been thinking about doing some e-books. I had been thinking about doing all these things but not doing them something else always got in the way.

This was more than a timely event or a coincidence, maybe a sign from above, who knows but it is Monday morning and I am posting my first blog in three months and have built scheduled postings into my calendar. I will be discussing my website with my web person later this week and plan on having the e-book complete by June 30.

Reasons to put off, ignore or delay are plentiful and easy to accept, fighting the urge to follow them is difficult. Nudges are difficult to find but powerful and loaded with potential energy when acted on. They may come from a book, a speech, maybe a dream, but you need to recognize it and use the momentum it provides.

I Went, I Plunged, I Had a Blast

2010-02-08T17:02:00.000-08:00

Yesterday was 30 degrees with a 15-20 mph wind, the water temperature at Hampton Beach was a few degrees warmer; a good day for a swim? You wouldn’t think so but that is exactly what I and several hundred others did participating in the Special Olympics of New Hampshire’s annual Penguin Plunge.

Being a rookie I didn’t know what to expect, Karen and I arrived at the Hampton Beach Casino & and Ballroom around 10:30 to see a party in full force. The place was packed with fellow plungers, some in costume, and supporters, and an 80’s cover band was on stage rockin’. I found my teammates the “No Flockin’ Ideas” from the Plus Company in Nashua and the first words out of everyone’s mouth was “are you ready for this”?

At 11:30, the costume parade began and the changing tents opened, these were giant heated tents to hang out in until it was time to plunge. There were four waves of plungers; we were in the first group. Once changed we headed out toward the beach, you don’t realize how cold it is at first because you are still warm from the tents but, it didn’t take long for the chilly reality to set in.

The wait at the starting line seemed to last forever, I’m not sure if it was the cold or the nervous adrenaline that forcing me to jump up and down. All of a sudden, the crowd started to move forward and I Knew there was no turning back. I remember laughing as I dashed to the water; I plowed in to thigh deep then dropped under. As I came up the cold caused me to take one deep inhale, I think it was the only breath I took until I reached the warmth of the tent.

After changing, we headed back for lunch, laughs and our stories of the experience. Karen and I are new to Special Olympics, my first involvement last summer with softball and now basketball and Karen working with the snowshoe team sponsored by the Plus Company. The plunge event like all events involving Special Olympics had me smiling from the time I arrived to the time I left. When I was I asked how I felt my answer wasn’t “cold” it was “I had a blast, and I will do it again next year”.

10 Retirement Planning Ideas for 2010

2010-01-25T12:04:00.000-08:00

After a rocky year, we have finally turned the corner to 2010, like many of you I am ready to put 2009 in the history books and move forward. I am always excited to move onto the next year, I consider it the time to recharge, review and restart after the craziness of the holidays.
Over the past year, I have written a number of articles relating to issues to help you plan and prepare for your future. I thought this would be a good time to list ten actions for you to take as you review your current plan and prepare for the upcoming year.
1) Review your expenses, not just your monthly bills but include your out of pocket spending. Get a notebook and track where your money goes, after a month of tracking review your spending habits. Look for “habit expenses” you can reduce or eliminate.
2) Increasing your savings should follow cutting back on expenses. Increase your 401k contribution add to your IRA, or your savings account on a regular schedule. It does not have to be a lot but once you start do not stop, over time it will add up.
3) Lower your debt where possible work on paying off loans, and credit cards. Add to your scheduled payment when possible, every dollar of debt payment you reduce puts a dollar in your pocket.
4) Review your Social Security and pension benefits. Social Security provides statements to you each year showing possible benefits available. Start thinking about when you will take your benefits. Make sure you weigh the pros and cons of each option and consider the affect your decision will have while you are alive and the needs of your surviving spouse.
5) Review your estate plan and make sure your plans align with your wishes; review your will, trust and beneficiary designations to make sure they are current.
6) Review your insurance policies and make sure you have sufficient coverage; auto, home, life and liability.
7) Spend more time with family and friends reconnect with someone with whom you have lost touch.
8) Review your health with your doctor just as you would your financial plan with your advisor. Discuss areas to work on to improve your health, set reasonable goals, and commit to them.
9) Exercise your mind. Your brain needs exercise just like a muscle to perform at peak capacity, make this a year to learn something new and give your brain a workout. Take a class, learn a language, write a book, or join a book club.
10) Take some time for yourself. It is ok to be selfish and enjoy some “me” time. A massage, a spa day, a round of golf, whatever the activity take time out of your busy life to do the things you enjoy.
Make your goals reasonable do not decide to reduce your monthly expenses by eating two rather than three meals a day. A more practical goal would be to fill your travel mug with coffee before leaving for work and eliminating a stop at the high-end coffee shop, you can probably save ten dollars a week or more.
Make sure you get a notebook and commit to your goals and the strategy to reach them in writing, the commitment to accomplish is much stronger if it is in writing and monitor your progress. Set dates to accomplish each goal for example meet with attorney to update trust during the month of February, add fifty dollars a month to my IRA, the more specific the goal and strategy the stronger the commitment.
Each January 1 people make resolutions and by January 15 they have been forgotten. Make this year the year you carry your resolutions from January 1 to December 31, look at your accomplishments and you will stronger more confident and more “in control”.

Caregiving Considerations for Elderly Parents

2009-12-23T07:53:00.000-08:00

Are you a baby boomer caring for parents who are having difficulty dealing with day-to day activities? Many boomers find themselves preparing for their retirement while caring for parents who, due to physical restrictions or mental impairment, are no longer able to maintain the independent life.
As our parents age it will be necessary to discuss with them the possibility that due to illness or injury they may no longer be able to live as independently as they had in the past. In the past, care was usually provided by a family member or if the care required skilled caregivers, a nursing home. Now, families are busier and more spread out geographically than in the past and the parent requiring the skill may not feel comfortable depending on their children for help.
Depending on the level of care needed many options for care are available, some of the more familiar options are:
1) Home Care, can be provided by a skilled care provider. This type of care can provide meals, transportation, assist with bathing and other daily functions. Trained professionals, nurses and therapists, can also provide home services as needed.
2) Adult Day Care can benefit those who are able to get around by providing daily social and health services in a supervised environment.
3) Assisted living facilities provide personal care, housekeeping and assistance with daily functions. Continuing Care Retirement Communities are communities that provide different levels of care from independent living to full-time care.
4) Nursing homes provide skilled nursing care, therapy, and personal care and assistance.
Make sure your parents are involved in the “due diligence” process, give them the opportunity to voice their concerns and pay attention to what they are saying. Remember, they are facing the realization that after spending a lifetime of caring for themselves and others they are the ones that need care.

Year-End Tax Thoughts

2009-12-07T07:31:00.000-08:00

With a little less than a month left in 2009, you still have time to implement some year-end tax planning strategies for the year and review some options for next year.

Reviewing your investments is a good place to start if you have investments that have lost money now may be the time to sell. By selling at a loss, less than your purchase price, you can offset taxes on current or future capital gains. If you do not have gains or unused losses you are allowed to carryover the losses to future years, until exhausted.

If you qualify for a deductible IRA contribution you have until April 15, 2010 to make a 2009 contribution. Your ability to take a deduction will depend on income and qualified plan participation but it should be considered.

Contributing to a qualified charity either cash or property may qualify for a tax deduction. It is important to note detailed record keeping of the contribution including amount, date, and acknowledgement by the charity is necessary; gifts above $250 require stricter documentation.

First time homebuyers received an extension on the tax credit, up to $8000 that was set to end last month. Certain conditions must be met before you can qualify for the credit:

1) You must be a first time homebuyer. A first time homebuyer has not owned a home within the last three years and the purchase must be the buyer’s primary residence.

2) Income limits apply. The full credit is available to buyers with modified adjusted gross income (MAGI) of up to $125,000 or $245,000 joint. The credit is reduced up to $145,000 and $245,000 and not available at higher incomes.

3) In order to qualify there has to be a contract to buy in place by May 1 and the sale must be closed by July 1. If the purchase completes in 2009, it can be applied to the buyers 2008 or 2009 income tax, if completed it 2010 it can be applied to either the 2009 or 2010 tax return.

4) Existing homebuyers can also take advantage of the credit. If they have lived in their existing, home for at least five out of the past eight years and use the purchase as a primary residence. The credit for existing homebuyers is lower, up to $6500.

Energy improvements to your home can provide up to $1500 in tax credits and up to $3400 may be available for the purchase of certain hybrid vehicles.

Year-end tax strategies require thought and planning, the decision to take the credit or deduction in the current year or waiting until the following year will depend on your situation. It is important you sit with your financial advisor and tax advisor to determine the correct strategy for you.

Education - It is for Everyone

2009-11-09T06:18:00.000-08:00

A couple of weeks ago Ellen Griffin, Dean of Continuing Education at Southern New Hampshire University, was a guest on my radio show. The discussion was the increase in baby boomers returning to the classroom, the reasons and the opportunities.

Many are returning to school to increase career opportunities in their current profession, graduate program enrollees have increased as well as certificate programs, others are returning to school in preparation for a career change. People are expecting to stay in the workforce longer, whether it is at their current job or a new career, and keeping current with your industry and increasing your value is necessary to remain competitive.

The ease of learning may also contribute to the rise in boomer enrollment, satellite campuses, workplace classrooms and online courses make it easier to participate and complete study programs. It is possible to complete a degree program online without leaving your house or setting foot in a classroom.

Boomers who attend a live classroom bring something to the table their younger classmate’s lack, real life experience with the subject matter. This can be a plus to someone, who is learning the theoretical workings of an issue, to have the opportunity to hear firsthand the actual application of the theory.

One area in particular that has attracted the attention of baby boomers is community service, this generation has a “give back” attitude and there is interest in bringing their management and leadership skills to the non-profit area.

A Boston Globe article on September 13, 2009 referred to the fact that people are expecting to stay in the workforce longer and fifty year olds consider themselves mid-career. The number of Americans over 65 is expected to grow to 20% of the population by 2030 and to continue to increase meanwhile the younger generations will grow at a slower pace. This will open up opportunities for older workers to continue to stay in the workforce, keeping current through education and training will strengthen their position value.

Make Sure Your Assets are Covered

2009-10-13T19:13:00.000-07:00

Two weeks ago I invited Chuck Worcester, owner of Hometown Insurance, to be a guest on my radio show to talk about the importance of property, casualty and liability insurance. Having Chuck on was a good reminder to incorporate a risk management strategy as part of your total financial plan and, like the other strategies, needs monitoring and updating.

Often home and auto insurance coverage once established are put on autopilot and ignored until filing a claim becomes necessary. It is important to meet with your insurance agent and review the risk management strategy of your financial plan annually. Maintaining the proper coverage for you assets is critical to protect against damage, injury, or claims against you.

As part of the annual review of your coverage, you should:

1) Make sure your coverage is adequate for your assets and make sure all assets that need insurance coverage are covered. Your life changes and so do the assets you own, keep your agent aware of purchases that will require insurance and make sure they are covered.

2) Make sure your agent knows how certain properties will be used (business or property) and who will be using it (employees, family, etc). This is especially important when you are insuring vehicles and equipment or allowing others access to use your property.

3) Make sure you have adequate liability coverage. Insuring against a piece of property being damaged or stolen is not enough you need to have coverage for damage and injury to others. A large claim or lawsuit against you may exceed your policy’s coverage consider a separate liability umbrella policy for greater protection.

4) Make sure you are getting the best coverage for your dollar. Have your agent compare rates and coverage but remember cheapest is not always best.

Losing the use of property due to damage or a lawsuit against you due to negligence, injury or damage to other’s property can be devastating. You can’t control all the risks out there, accidents happen but you need to be prepared, and maintaining an active risk management strategy can offer protection. Don’t ignore this critical strategy from your financial plan.

Health Planning is Retirement Planning

2009-09-15T06:51:00.000-07:00

I try to keep a regular weekly exercise schedule, running 3-4 miles three times and lifting weights two or three days. I exercise because at fifty-five years old I understand the benefits of being healthy more energy, lower blood pressure, stronger heart, and hopefully the ability to live a long and active life.

All the talk and concern about health care costs makes me wonder why we aren’t more pro-active about taking control of our own healthy lifestyle. Watching what we eat, regular exercise, and following our doctors instructions can add to our “quality of life” as we get older.

Taking control of your lifestyle health is more than a handful of vitamins and a walk around the block. It takes work, changes, and maybe some sacrifice, but the rewards will be worth it. You will feel better, confident, and in control; imagine losing 20 pounds and shopping for a new outfit because your old ones are too big. How about having the energy to play catch with your children or grandchildren when they visit?

If you have already made the commitment to yourself to be healthy, don’t stop or slow down. If you are ready to make some changes to your lifestyle there are steps you should follow:

1. Before beginning any exercise program or lifestyle changes consult your physician. Discuss your intentions and ask about any restrictions, limitations or concerns the doctor may have, if diet changes are needed ask for a recommendation to a dietician or nutritionist.

2. Work with a trainer, if you are unfamiliar with setting up an exercise program. Let the trainer know what you want to accomplish, (lose weight, lower blood pressure etc), and any concerns from your doctor. Work together to set goals, short and long term.

3. Realize that creating a healthy lifestyle is more than dieting to lose ten pounds before your high school reunion. Just like a financial plan your plans to create a healthier lifestyle must have strategies that are implemented, monitored and tweaked as time goes on.

Exercising and maintaining a healthy lifestyle doesn’t guarantee we will live longer or healthier but it certainly increases the odds. By taking care of our health we can extend the quality of life needed to enjoy the later years of life. I saw a great quote the other day “it is not how long you live, it is how you live long.”

How Will They Remember You?

2009-08-31T10:37:00.000-07:00

I have gotten into the habit of reading the obituaries in the newspaper each Sunday morning, I jokingly tell people I am checking to make sure my name isn’t listed. There are two types of listings; on the first page the listings are informational name, date of birth, family and arrangements, listings on the second page are more biographical, they mention accomplishments, honors and awards.

I rarely look at the names on the first page, I go straight to the second page, it isn’t that I am interested in who has died but what is written about them. As I read their obits, I think about how I would like to be remembered.

Last week my wife’s father died, his obituary mentioned his wife and family, his time in the military, and his work history, but not much about him.

At his wake, there were some tears but, a lot more smiles laughter and story telling. Children, grandchildren, nieces, and nephews all had stories about Fred. How he started a fishing club with a disgusting initiation involving fish guts, and taught them limericks about the, “man from Dundee”. Camping trips, bonfires so big they could be seen from outer space, the annual golf outing (which still continues 24 years later) and more practical jokes and quotes than I can list, eighty-seven years worth.

There were no secrets about how his family felt, they will miss Fred, but whenever any members of his family get together they will remember one of his stories, or recite one of his famous sayings, and then they will laugh.

I didn’t have the chance to know Fred well, I met him after Karen and I had started seeing each other six years ago, his hell-raising days long past, most of what I know of Fred comes from the stories told.

Next week when I read the obits and think about how I’ll want to remember me when I’m gone I will think of this: it is nice to have a big fancy write-up about your life but will you be remembered a week later when the paper has been thrown out? I like the way people will remember Fred they will be telling his stories long after the newspapers have decomposed.

Reduce Debt to Improve Retirement Cash Flow

2009-08-24T07:48:00.000-07:00

One of the simplest ways to improve your positive cash flow is to reduce the money going towards the repayment of personal debt. One of the most common forms of debt we carry is credit card balances, paying these balances off and controlling our use of the cards can increase our monthly income.
To see the benefit of paying down your cards and eliminating the payment simply add up the monthly payments of all the cards, major cards, gas cards, and store cards you carry balance on and put that money towards your income. How much money are you missing out on?
If the increase in income isn’t enough incentive take a look at your statement, look at the interest rate you are paying, and see how little is going towards principal and how much is being put towards finance charges (interest). Realizing that it will take several years of minimum payments to pay for last year’s weekend vacation should start you thinking.
The best way to use credit cards is to control the way they are used:
1) Pay balances off as quickly as possible, if it has to be carried set a
target date and stick to it.
2) If you currently have balances start paying them down. Start with the card with the highest rate, pay as much as you can until it is gone, then move to the next.
3) Look for card with low interest rates and transfer balances. Understand the terms before you commit. How long will the rate last what will it reset at, and what are the fees?
4) See if your current card will lower your rate. Will they match the competition?
5) Do not be late with payments. Many cards will increase interest rates substantially if you are late with a payment. Pay on time.
6) Don’t charge it if you can’t afford it. If you are using a card to facilitate a purchase, fine. If you are using a card to purchase something you cannot afford but will allow you to own with small payments forever and a day, don’t do it.
Eliminating your existing debt and rethinking the way you use your credit cards before you retire should be a priority strategy towards strengthening your financial position.

Time For a Plan Review

2009-08-10T12:58:00.000-07:00

We are a little more than halfway through summer and it has been an odd one to say the least. Here in New England June and July were rainy and raw. Now that August has arrived, it seems as though summer is finally here, hopefully it will last into September and October.

Since many of us take advantage of down time to recharge and regroup during the summer, this is a good time to set aside a bit of time to review your life/financial plan. Some of the areas you want to touch on are:

1. Personal goals and timelines; are you still on track or do you need to extend or adjust your original thoughts?

2. Finances; are your investments and savings strategies aligned with your goals? Have you reviewed your current cash flow; is it in line or are you running a deficit each month? Do you foresee any major expenses or windfalls in the near future?

3. Are you maintaining enough insurance on your life and property?

4. Have you created an estate plan and have you reviewed it recently? Review your wills, trusts, and beneficiaries every few years to make sure they are current with your wishes.

5. Have you considered a Power-of Attorney for finances, Power-of Attorney for health care, and Living Will?

These are just a few of the topics that make up a life/financial plan, your situation and needs determine priority. Remember your plan is not a static document, life changes, tax and law changes, good events, and bad events will all cause an adjustment in your plan.

Living Longer and Retirement Planning

2009-08-03T11:51:00.000-07:00

Last week I watched a video about the oldest practicing lawyer in India, he is 99 years and has been practicing law for 74 years. He will not take any new cases, but he has 15 left to finish this year then, at the age of 100 begin a “long and happy retirement.”

Today this is considered an oddity but, could it become the norm at some point? The world population is getting older, the number of people 65 and older is expected to increase from 516 million in 2009 to 1.53 billion in 2050, according to data released by the US Census Bureau.

The number of centenarians (100 years) has increased to more than 340,000 worldwide versus a few thousand in the fifties. By midcentury, the number of centenarians in the US could grow from 75,000 to 600,000.

Advances in medicine, healthcare and education concerning lifestyle choices have been big factors in longer living. Problems like heart disease, and many types of cancer a few years ago were the beginning of the end, now with proper treatment and monitoring they have become health issues rather than life-ending.

As a segment of the population grows fast another slows down, while the age group over 65 is expected to see a jump by 2050, the group under 15 years old will grow at a much slower rate, from 1.83 billion to 1.93 billion. In 2017, the number of people over 65 will exceed the number under age 5.

The aging population will stress Social Security, Medicare and health services, while the disappearance of pensions and lack of savings for retirement will them modifying their original thoughts of retirement. Longer and healthier life expectancies will find people working longer at their current job or starting a new career to provide income, benefits, or to remain active will be the norm rather than the exception.

Retirement Planning - 3 Keys to a Complete Plan

2009-07-27T11:54:00.000-07:00

Retirement planning is more than the value of your 401k, there is more to it. Too many people benchmark their account balance to their ability to enjoy life. I have been involved in the financial services industry for close to twenty years and during my career I have never heard anyone retire because his or her 401k had reached a certain dollar amount.

Retirement means different things to different people; for some it may mean a new career, others may want more time for themselves and family, and in some cases, a change in attitude is all it takes.

Regardless of your definition, there are three keys to maintaining a full and satisfying retirement:

1) Lifestyle- This is who you are, how you want to live your life. What you want to do and when you want to do it.

2) Wealth-These are your financials your 401k, savings, income, expenses and taxes. What you own and what you owe. How you take care of yourself and your family during your lifetime and the arrangements you make to take care of your family when you are gone. The strategies and adjustments you need to make if there is a shortfall or excess.

3) Health-maintaining good health will keep you active, motivated and inspired. Understanding how to deal with health issues when they pop-up will reduce stress, and speed recovery.

Three keys to retirement, with may sub-groups and strategies, that work together to create a plan for your retirement.

** The views and strategies described may not be suitable for investors and many not ensure profit or protect against possible loss. Past performance does not guarantee future results. Nothing herein constitutes legal or tax advice

Working Without a Net-The Disappearing Pension

2009-06-25T06:01:00.000-07:00

At 45 years old, after 15 years at her current job, Mary received a notice that her employer was discontinuing it's defined benefit pension plan. She would not lose the accumulated value up to this point however, the company would no longer be contributing to the plan. This meant that Mary and the other employees were now wholly responsible for funding their retirement.

Mary had counted on that pension; the expense of raising a family, managing a household, and saving for college made it difficult for her and her husband Joe to commit money towards their retirement. They had hoped Mary's pension income along with Social Security, the small amount of savings in their 401k, and part-time work would cover their expenses during retirement. Would they have to work forever just to pay their bills? What would happen if they ran out of savings, or felt they were no longer able to work?

The defined benefit pension provides a benefit at retirement; an ongoing stream of income, often based on a formula of compensation and length of employment. The employer funds the plan, calculated to determine the amount needed to provide the benefit. Several options for distribution are usually available including a single life distribution that ends at the death of the pensioner or a survivorship option that provides a reduced benefit that continues through the lifetime of the surviving spouse.

The income is usually a percentage of actual compensation during the years of employment. Some plans have cost-of-living adjustments to safeguard against rising costs while others are vulnerable to the loss of purchasing power caused by inflation. Personal savings, IRA's and 401k's are still important to help fill the gaps between income and expenses, as well as providing for lump sum withdrawals and emergency resources.

The responsibility of making sure the plan benefit is available at retirement is the responsibility of the employer. The value of the plan is subject to periodic review by an actuary to ensure it is on track to meet the obligations. During prosperous times with strong investment performance, the plan might become over funded, exceeding the obligations due. Other times, poor performance could cause the plan to become underfunded. The employer would be responsible for bringing it back to funded status.

During the 1990’s a shift began to occur regarding retirement benefits provided by employers. The costs of funding and the complicated administration caused many employers to begin freezing these plans and offering only defined contribution (401k) plans. These plans do not provide a defined benefit, it is unknown; only the contribution has a value. Investment performance and contributions determine the plan value; it may be more or less than the contributions at any time, including retirement.

By making the move from a defined benefit plan to a defined contribution plan the security of a no-cost continuous income stream escapes us. The responsibility of funding retirement moves from the employer to the employee. The employee makes pre-tax contributions to the plan through payroll deductions and directs it to the investment sub-accounts offered. The employer may or may not choose to contribute to the plan.

There is much discussion at this time concerning new retirement options; the decline of the pension, concerns about the longevity of Social Security, and the cyclical market declines will require us to be pro-active towards our retirement. Working longer, saving throughout our career and more employee education concerning retirement planning are steps in the right direction.

The Mike Bonacorsi Show

2009-06-02T16:36:00.000-07:00

My radio show based on my award winning book "Retirement Readiness; Creating Your Vision, Knowing Your Position, & Preparing for Your Future" is broadcast every Tuesday at Noon til 1 pm EST on WSMN Radio AM 1590.

To hear my broadcast live go to http://www.wsmnradio.com/ Tuesdays at Noon.

You can also listen on PodBean.com at http://mikebonacorsi.podbean.com/

The podcast is new so check back for updates as I will be adding more shows to the list.

Financial Planning is More Than Money: How strategies fit into Plans

2009-06-01T13:44:00.000-07:00

What is the difference between a strategy and plan in charting your course for retirement? Strategies are the options you might follow to meet different goals. A plan is a global document that encompasses a number of goals equally and consists of action steps that help you to meet those goals.

I was reminded of this difference recently when reviewing the “plan” created by Lou, a friend of mine. Lou asked if I would, “take a look” at his plan and offer an opinion. He handed me a document that was several pages long, which contained the results of a risk analyzer and portfolio recommendations. I could see that he had spent some time creating this.
I immediately thought of the difference between strategies and plans and said, “This is interesting as a strategy, but lacking as a plan.” He looked puzzled at my comment and I went on to explain, a true financial plan is a life plan. It starts with a vision of how you see your future, creating goals, setting priorities.

Once your goals are set, then you develop strategies. These should consist of more than building a portfolio. Strategies are the engine that drives you to your vision. They are the action steps that lead you to meet your goals. They must be comprehensive to be truly effective. Like an engine, which cannot run efficiently on a few cylinders, throwing together various strategies, without a global plan, will only get you spotty results and ultimately misfires. Strategies include creating timelines, understanding all areas of money management, insuring and protecting against catastrophe, and creating a Plan B for the unexpected.

A plan is an active document--an evolving project--which requires monitoring, tweaking and updating. Changes in your job, relationships, health, and financials will necessitate updates and adjustments. When priorities change, one goal may be accomplished, while another is added to replace it. For instance; the birth of a child or grandchild, may add college planning to the plan, or health issues may require additional care costs. Changes in relationships may require revamping your estate planning goals.

When the plan is active and not set in stone, you can easily readjust and keep moving forward. Making sure you stay on target to your goals will require vigilance. You will be updating and rebalancing your accounts, making adjustments in your strategies, and revisiting your timelines.
Try thinking of building a life, or financial, plan along the lines of taking a long journey. First, you have a vision of the trip, decide upon the various stops along the way, and then chart the route you will travel. Your vision becomes stronger, once you have that map out, the car goes into the garage for a tune-up, and the hotels are booked. Once begun, the journey is likely to follow twists and turns you didn’t plan for and yet they add to the value of the experience. The restaurant you found on the back street when you took a wrong turn, the bad weather that caused you to postpone the canyon hiking for a trip to an antique shop full of bargains, all contribute to the evolving nature of an active journey. It’s always changing and that allows you to make the best of whatever comes your way.

As you build your life/financial plan, keep these thoughts in mind:

Start with a vision.

1. Set timelines for goals.

2. Create strategies that align with your goals.

3. Monitor, adjust, rethink, tweak.

4. The destination you reach may be more wonderful than you ever imagined.

About Mike Bonacorsi, CFP®

Mike Bonacorsi is a CERTIFIED FINANCIAL PLANNER™ professional, public speaker and award-winning author of Retirement Readiness: A Guide to Creating Your Vision, Knowing Your Position, and Preparing for Your Future. You can listen to his radio show, The Mike Bonacorsi Show, at WSMN, 1590AM or on your computer at http://wsmnradio.com on Tuesdays from noon – 1:00 PM. For additional information, visit http://mikebonacorsi.com/. Reprinted with permission of the author. 2009© Mike Bonacorsi CFP® All Rights Reserved.

Reviewing and Understanding Your Cash Flow

2009-05-12T14:44:00.000-07:00

Revisiting Your Cash Flow Before You Retire

Reviewing and understanding your cash flow, income streams versus expenses, is an important part of retirement planning that is frequently overlooked. The lifestyle you have created based on your income during employment may require some modification when you leave your current position.

Let’s start with understanding income; I define income as a consistent, scheduled, reliable stream of payment, for a determined amount of time. Social Security is an example of income; you receive your check at the same time each month, for the same amount, for life. If you have a Defined Benefit Pension with your employer, you can choose an option that will provide income to you based on your life expectancy or one that will continue to provide an amount to your surviving spouse.

Bond and CD interest fit the definition of income however; an issue may present itself at maturity. These products have a shelf life and at maturity and renewal, there is no guarantee the same opportunities will exist. Annuities can also provide a lifetime stream of income.
The key to these sources is in the definition, consistent, scheduled, and reliable for a determined period. If you receive a check on January 2 and you run out of money on February 1 you know there is another check coming on the third. Your income sources will not run out, they may stop after a pre-determined date, but not run out.

Drawing down on savings to supplement your income is a strategy to offset a shortfall but does not provide income. One reason is that savings can run out; if you spend it too quickly, it will be gone. Unless you are able to add to savings or, receive a high enough return to replace your withdrawal, you will eventually run out. As a strategy this requires careful consideration, drawing down on savings too early can have a negative impact in later years.

Once you have determined your income flow the next step is to list your outflow, expenses. Expenses fall into one of two categories, necessary or lifestyle.

Necessary expenses are those you need to survive, shelter, food, medical, insurance utilities, transportation. These are bills that if not paid will have a direct negative effect on your ability to live, or function day-to-day.

Lifestyle expenses are not necessary for us to live but, they are the ones that we like best, these expenses are fun and make us feel good. They can be impulse or emotional purchases, planned or unplanned, practical or not, but expenses that are not needed for survival. They include your daily out-of-pocket expenses that add up each time you swipe your debit or credit card.
Tracking lifestyle expenses on a daily basis can be key factor in understanding where your money goes and where spending habits need to be changed.
Understanding your income and expenses will become critical when you decide to leave your current job and paycheck. You no longer will have the regular paycheck you have grown accustomed to, and your lifestyle may require some modifications. Reviewing your situation and preparing for these changes will make the adjustments easier when the time comes.

About Mike Bonacorsi, CFP®

Mike Bonacorsi is a CERTIFIED FINANCIAL PLANNER™ professional, public speaker and award-winning author of Retirement Readiness: A Guide to Creating Your Vision, Knowing Your Position, and Preparing for Your Future. You can listen to his radio show, The Mike Bonacorsi Show, at WSMN, 1590AM or on your computer at http://wsmnradio.com on Tuesdays from noon – 1:00 PM. For additional information, visit http://mikebonacorsi.com/. Reprinted with permission of the author. 2009© Mike Bonacorsi CFP® All Rights Reserved.

Introduction to Retirement Readiness, Creating Your Vision, Knowing Your Position, & Preparing for Your Future

2009-05-03T13:28:00.000-07:00

This is not a book about a great investment strategy, a hot new product, or a guarantee of any kind. I wrote it to get you thinking about retirement before it happens.

Too many times over the years, I've met with people who've already made the leap into retirement without any real direction or thought. They want a lifestyle that doesn't match up with their finances; they make decisions based on what may or may not be working for someone else.

As you read this book, I want you to create a retirement life that is yours. Your dreams, goals, and ambitions should be based on your situation. To do this, we’ll create a vision, asses your situation, and prepare for the unexpected.

Read this book a few times- throw it in your briefcase, on your nightstand, in a desk drawer. Make sure it’s somewhere accessible. This is an interactive book. Answer the questions at the end of each section, be honest, and share your answers with your spouse.

More important, read this book before you retire, so you can hit the ground running on the day you declare yourself retired.

Last, I want this book to get you thinking. You have to make these decisions once in your life, and there are pros and cons for each decision. Don’t hesitate to seek out the advice of a financial professional for further input on creating a retirement plant that will fit your needs.

This book is available on Amazon.com at a 22% discount!

http://www.amazon.com/Retirement-Readiness-Creating-Position-Preparing/dp/193180771X

Who Says You Have To Retire At 65?

2009-05-02T18:46:00.000-07:00

Do you want your retirement years to be lively? Is your current job or career, fulfilling for you? If so, then maybe you are going to be joining the happy, busy ranks of those, more than 70% according to a recent A.A.R.P. survey, who are planning a "working retirement." If working past your retirement date seems grim, then cheer up. There is a silver lining if you know where to look.

1) Continuing at your current job has its positives - you know the job. There are no learning curves, or the awkwardness of being the new kid.

2) If you have personal debt or you are close to paying off your mortgage, working a few more years at your current income can go a long way to eliminating expenses.

3) Continuing to draw a paycheck will allow you to delay Social Security, for a higher benefit in the near future. Your benefit will continue to increase up to age 70. Keeping that weekly paycheck coming will also prevent you from drawing down your savings too early.

4) Chances are if you are near retirement, you may be close to peak earning and benefit levels. Perhaps you want to boost your 401k levels by maxing out your contribution and taking advantage of the over 50 catch-up contribution. Your employer may even contribute to your account adding to your total. Health benefits will probably continue and can provide continued coverage for you, your spouse and possibly other family members. It can also provide as a bridge to Medicare or act as a supplement.

5) You might not be ready to quit working. You may need income, require some benefits, or just like to work. There are many people out there, who enjoy the challenges work brings and going out there each day to meet them. For you "retirement" may the beginning of a new career!

You may be feeling like "George." His wife Linda says, "George is in his sixties and while all our friends are talking about retiring, he doesn't want to quit. George likes his job, he has the option to continue full-time, or work in a per diem arrangement, as long as he wants. He's the kind of person that needs to be busy. The income and flexibility in his job will allow us plenty of opportunity to enjoy ourselves without worrying about money. I have already stopped working, but this doesn't mean that my husband will. As long as we can enjoy more time together, then I am satisfied with his decision to stay in the workforce, for now." Linda and George have different dreams about retirement, but they have created a plan that works for them. Where do your dreams fit into your plans for retirement?

Social Security-when and Why Should I Start

2009-05-02T18:06:00.000-07:00

As you get closer to retirement, it is important to realize that there are decisions you have to make regarding certain benefits that will become available to you. One decision that affects all but a few groups is when to begin your Social Security benefit.

Three milestones require consideration when choosing your benefit, age 62, full retirement age (between 65 and 67) and age 70. At each of these ages your benefit amount changes and it is important to understand which age and amount is most advantageous to your needs and situation.

Age 62, the age where Social Security first becomes available, offers you a benefit amount approximately 75% of the amount you would receive at full retirement age. The common thought for many people is to begin benefits at this time, the idea being, “the longer I take the benefit the more lifetime benefit I will receive”. Starting benefits at age 62 made more sense when life expectancies were shorter; the “break-even” age for taking benefits at 62 versus your full retirement age is between 78 and 80 years old.

Another factor in your decision is whether you will continue to work between age 62 and your full retirement age. Earnings from employment may reduce your benefits if they exceed certain amounts. In 2008 if you have not reached full retirement age and earned over $13,560.00 your benefit reduction is $1 for every $2 earned. If you will reach full retirement age during 2008, your earning limit is $36,120.00 and benefits are reduced $1 for every $3 earned. The month you reach full retirement age you can relax, from that point on you are able to earn as much as you want with no reduction in benefit. One important note is that these limits are on income earned from employment, not pensions, annuities, IRA’s, or 401k withdrawals.

A third consideration is delaying you benefit. Social Security provides delayed retirement credits up to 8% per year to age 70 for those who can wait to take their benefit.

These options will determine the benefit you receive during your lifetime. An often, overlooked part of the decision process is what affect will my choice have on my surviving spouse? Your surviving spouse at full retirement age will receive a benefit equal to yours if it is higher than his or her own. If you chose to delay your benefit beyond your full retirement age, your surviving spouse will receive your benefit plus the additional delayed retirement credits.

It is important to realize that decisions like these should not be automatic or determined by the “if it works for him it should work for me” process. You need to determine the pros and cons of each option and understand how it satisfies your needs in your unique situation.