The calendar is sprinkled with scores of holidays – “Days,” “Weeks,” and “Months” – that most of us have never heard of. And many of them, frankly, are kind of funny. Just in January alone, for example, there’s “Run Up the Flagpole and See if Anyone Salutes Day” (Jan. 2); “Fruitcake Toss Day” (the 3rd); “Beer Can Appreciation Day” (the 24th); and – my personal favorite – “National Nothing Day” (the 16th).

However, just because a holiday’s not well-known doesn’t mean it shouldn’t be. For example, how many Boomers and seniors – the people with the most riding on their financial decisions – know that January is Financial Awareness Month?

Boomers and seniors have less time to make up for financial mistakes than younger people. They often have higher expenses in some ways (healthcare!) than younger people. And they have to make a lot more decisions about protecting their financial legacies than younger people.

How’s your financial awareness? Can you answer these questions to your own satisfaction?

• Does your Durable Power of Attorney adhere to the new regulations that came into effect in October…regulations that could conceivably make it obsolete?
• Do you have a long-term-care health plan in place? Or are you prepared to see everything you’ve worked for go down the drain?
• Are you 100% comfortable with your estate planning documents and your will? Because, if (heaven forbid) you become ill with dementia or Alzheimer’s, you won’t be able to change them.
• Do you know the rules for Medicaid eligibility? Or will you give money away to friends and relatives for safekeeping…only to be told you’ve disqualified yourself?
• If you’re a veteran, do you really understand the VA regulations, and exactly what you’re entitled to?
• Do you understand your trusts, guardianships, and living wills? Do you even have trusts, guardianships, and a living will?
• Are you in command of your 401K and IRA’s? Or are they in command of you?
• If you’re a Boomer, do you know where to find your parents’ important papers? Do you know who their accountant is, who their attorney is, who their financial/investment advisors are?
• Do you have any idea – really – about your parents’ assets? And their wishes?
• Do you really understand Social Security? Do you really understand Disability?
• Are all your financial records/papers in one accessible place? Or are they scattered around in boxes, or horned into overflowing file cabinets?

How’d you do on this little quiz? If you got a 9 or better (out of 11), you’re doing pretty well. If you got a 7 or an 8, you can expect to face some real uncertainty as time goes by. And if you got lower than a 7, get the patch-up material ready…because your boat is leaking!

But that’s where we come in. We specialize in patching up leaky financial boats for Boomers and seniors, so that, as they head into their golden years, they can do so without worrying about losing their life savings.

Over the past 33 years, we’ve helped thousands of South Florida families make sound financial decisions for their aging loved ones. We’ve guided them through the maze of regulatory and financial legalese. And we’ve helped them hang on to the financial resources they worked so hard to accumulate.

What better time than Financial Awareness Month to give yourself this test? And to do something about it, if you’re not comfortable with the results?

We’re only a phone call away.

Think you know everything you need to know about your IRA’s and 401K’s? Well, think again! If you’re doing retirement or estate planning, there are a lot of hidden traps out there.  And you’d better know how to avoid them if you want your retirement to be a happy one!

It’s not enough just to save for your retirement in a 401K. It’s also important to know how to withdraw the money. How to keep as much of it as possible. And how to pay as little in taxes and penalties as possible.

1. These days, of course, there’s no such thing as a job-for-life. Sometimes we all have to move on to greener employment pastures, voluntarily or not. But, if you can, try not to leave your company until you’re fully vested. Otherwise, you might lose thousands of dollars in matching funds.

2. At retirement, make sure your employer does a direct rollover into an IRA…or the “break in the action” can cost you up to 20% in taxes.

3. IRAs can often provide more investment options than 401K’s. But, nonetheless, check to see if keeping your 401K with your employer allows for investment opportunities you wouldn’t have otherwise. And – whatever you do – don’t forget to diversify!

4. You must take your first distribution by April 1^st of the year you turn 70 ½ (if this doesn’t make sense, remember – this is the government!). This means that (depending on when your birthday is) you may need to take two distributions in your first year. And it means, too, that if you’re supposed to do this, failure to do so will incur a substantial penalty.

5. If at all possible, avoid early withdrawals; withdrawals before 55 incur large penalties. Once you’ve rolled this over into an IRA, there are still withdrawal penalties. But there are also some exceptions…and you might be able to take advantage of them

6. If the bulk of your assets are in a 401 K or IRA, it’s much trickier to do estate and long-term-care planning. So it’s vital that you review your estate and long-term-care planning needs early in retirement…before you make a mistake that can come back to haunt you the rest of your life.

If the bulk of your assets are in these items, you may be

 walking on a very slippery slope!

If you’re not proactive – and don’t do your planning early – you could end up falling over the edge!