News Column

Randy Siller Cautions Against "Hidden Dangers" of Long-Term Financial Planning

Mar 25 2013 12:00AM

Marketwire

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NEW YORK, NY -- (Marketwire) -- 03/25/13 -- According to financial services veteran Randy Siller, even the most precise and strategic retirement plans often fail to account for the possibility of debilitating diseases -- including dementia. Siller points to a recent article from The Huffington Post, which notes that the threat of Alzheimer's is "the hidden danger" of retirement planning -- a potentially major medical issue with enormous financial implications, which can all but destroy a retirement budget. Randy Siller has released a new statement to the press, commenting on the Huffington Post article.

"Whether it's a horrible disease like Alzheimer's, which affects more than 5 million Americans, or just the aging process that leaves elders without the ability to manage their own affairs, cognitive impairments can be a major problem," notes Siller, in his press statement.

He continues, "The use of a power of attorney that gives a designated agent the power to take over your finances is a common answer to this problem." Siller goes on to offer some particular advice. "The use of a 'durable' power, which is effective immediately and survives your impairment, is often recommended over a 'springing' power, which usually requires a determination of impairments from one or more physicians."

This approach has a downside, however. "The risk with this approach is that the person holding the 'durable' power may act at any time, even before you become impaired," remarks Siller. "One solution is to let your attorney hold the power until it is needed, at which time it can be released to the agent or agents you have named." Continues Siller, "It is very important to name one or more individuals whom you trust to look out for your best interests."

Siller makes note of some other financial matters, worthy of consideration. "One other practical point to consider is that powers of attorney are not as easily recognized by many financial institutions as trust powers are. For that reason, the better plan is often to add the use of a 'revocable living trust,' where the trustee named has the power over the assets held by that trust."

He elaborates on this point. "The usual strategy is to have the 'durable power holder' transfer any assets not already held by the trust into the revocable living trust. From that point forward, the trustee(s) of the trust, often the same people who are appointed by the power of attorney, use their trust powers to handle the financial affairs of the impaired."

Concludes Randy Siller, "Regardless of the approach taken, careful planning is required in advance of the impairment to provide the necessary protection of one's finances."

ABOUT:

Randy Siller is a veteran of the financial services industry, and a founding partner of the firm Siller & Cohen. For more than two decades, the firm has offered wealth advisory services to families, individuals, and businesses across the country. Randy Siller has been cited in numerous publications, including Time and Fortune.

Registered associates of Siller and Cohen are registered representatives of Lincoln Financial Advisors Corp. Securities and advisory services offered through Lincoln Financial Advisors Corp., a broker/dealer (Member SIPC) and registered investment advisor. Insurance offered through Lincoln affiliates and other fine companies. Siller and Cohen is not affiliated with Lincoln Financial Advisors Corp. CRN 201302-2077691



Source: Marketwire


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