A Success Story

Earlier this year I wrote a money tip about finding lost pensions.
About a month later my daughter asked me for her dad's expired passports. As I rummaged through old papers I found a letter from one of my late husband's former employers stating that because of his employment of so many years he would be entitled to a monthly pension at age 65.

This letter started a months-long quest for the missing pension. My thinking was to act on my own advice!

The quest began in March by searching for the company that bought the firm my husband had worked for more than 30 years ago. I kept hitting dead ends as there had been several company mergers. Finally I discovered the name and address of the present firm - very different from the original. Also, the company headquarters were in a foreign country!

I emailed the main office, and to my surprise, had a response within three days. Who was I? What did I want? Why did I wait so long?

After a few exchanges they asked for birth, death, and marriage certificates as well as social security numbers. Weeks passed. They eventually responded saying they had no record of my husband ever having been an employee of that company!! I insisted that he had and he was not just an employee but also a corporate officer, at one time the Financial Vice President. Still no records to be found. They then told me to request a Record of Earnings from the Social Security Administration.

The SSA required a form (found online) and a check to pay for the record. Four months later the earnings report arrived showing the years, company names and earnings for my late husband. It was a short walk down memory lane of our early years together.

In the meantime, to back up the earnings report, I found online the company's old annual reports existed on microfische at the 42nd Street Library. (Several of which he oversaw as corporate Treasurer.)

Bottom line - This past week the company agreed to pay me the survivor benefit of half the pension in lifetime, monthly payments.

By law, companies may not just ignore pension obligations and absorb pension money. They must make an effort to find former employees but they give up after mail is returned three times. It is up to us to pursue.

Be $ Smart - take the initiative to find a lost pension. You will reap the rewards.

Below is a link to the brochure issued by the Pension Benefit Guaranty Corporation to help you in your search. Pass it along to friends and family. Good luck!

https://www.pbgc.gov/documents/finding-a-lost-pension.pdf

Important Topics to Cover as You Approach Retirement

There are many topics to cover before and during retirement. Sometimes the tricky ones may be neglected or ignored by your financial adviser. Here are a few to bring to the table:

1. Social Security - Claiming social security at 62 might not be the best deal for you. There are several claiming strategies which may put many more thousands of dollars in your pocket over your lifetime. Ask your financial adviser how these strategies may benefit you.

2. Required Minimum Distribution - RMD starts when you turn 70 1/2 for your tax-qualified accounts. The first year can be tricky with the possibility of two payments in one year. Find out the rules so you don't pay more taxes than necessary or be penalized if you forget to take the distribution.

3. Smart tax-planning - Your financial adviser cannot give you tax information (unless he/she is licensed to do so) but they can tell you what type of accounts you hold and how distributions may be taxed. Ask your tax adviser for guidance on the best withdrawal methods in retirement to keep taxes as low as possible.

4. Pension replacement - Today many people do not have pensions. Your adviser can recommend ways to set up a lifetime stream of income along side your social security benefits. Most likely he/she will suggest an income annuity, fixed annuity or immediate annuity. Be wary and shop around as annuities come in many sizes and colors!

5. Professional Help - maybe you've taken a few courses and read some books about retirement planning. You may want to do it yourself to feel in control or to avoid fees. Just like everything else, know when to ask for help and seek a professional. There may be a few critical parts you missed or need tweaking. Find a fee-only adviser to give you a second, unbiased opinion. The advice may prove invaluable.

Be $ Smart - prepare for retirement with good planning and advice.

Personal stories...

We never know how our lives may be impacted.  Right now I am awaiting the arrival of Sandy and wondering what havoc the storm will wreak.   I also feel powerless with my daughter, 8 1/2 months pregnant, over 200 miles away wondering how she will fare with the storm's low pressure and a full moon!
Life sometimes throws us lemons; it's up to us to make lemonade.

Please read the personal stories of a few people whose lives I have been privileged to guide:
One wintry, snow filled night Louise R. and her husband, Stan were returning from a friend's home in the next town.  The roads were icy and Stan could not control the car.  Stan did not survive the accident and Louise was hospitalized for two months.  No sooner was she home than the insurance agent arrived with the check for the life insurance policy on her late husband.  Before he left, he had sold Louise an annuity using the insurance  proceeds.  Fortunately, Louise had a good friend who called me for assistance.  I was able to review the annuity, determine it was not appropriate for Louise and had her money returned to her.  Louise understood she was grieving the loss of her husband and was not able to make important decisions at this time.  She hired me to assist her with all financial decisions for one year.

Margaret L. came to me devastated on learning that her doctor husband of 28 years had been diagnosed with terminal cancer and had less than a year to live.  Margaret was an artist and never bothered with money leaving all the decisions and bill-paying to Hal.  Over the next six months Margaret met with me for one hour a week learning financial terms and taking  money-tasks home to perform.   She arrived for her appointment one day very excited about a visit to their estate attorney the previous day; she actually understood what the attorney had presented!

Cathy C.  had  a trust fund left to her by her grandparents.  She gave me a call to learn if she should refinance her mortgage.  After reviewing Cathy's substantial portfolio we were able to determine she had more than enough assets to pay off the loan  and live mortgage-free.   We also reviewed the charities to which she contributed 10% annually based on her family tradition.   We found new organizations that spoke to those things about which Cathy felt strongly.

Larry T. had suffered an injury while working as a carpenter apprentice for which he received a  reasonable  settlement.  We reviewed Larry's job prospects and financial goals.   Larry opened a savings account and paid off his credit cards and medical bills.  Once those items were satisfied Larry had enough money to put a downpayment on a small wood-working shop of his own.

Sally P. had been a nurse for almost 30 years.  She was single and frugal.  Toying with the idea of retiring in a few years, Sally wanted to start enjoying the fruits of her labors while she was still physically able.  Her dream was to take one BIG trip a year until she retired.  On reviewing Sally's savings, pension and social security we determined Sally would certainly have sufficient money to satisfy her wanderlust without jeopardizing her future.