You may have bought long-term care insurance (LTCI) to help cover the potential costs of long-term care. The Life Insurance and Market Research Association (LIMRA) estimates that over 7 million Americans have LTCI. However, the U.S. Census Bureau estimates that in 2010 there were over 40 million Americans age 65 and older. So only a small percentage of those who face the increasing prospect of long-term care have LTCI.

Companies leaving the business

In spite of the apparent need for LTCI, some of the largest providers of individual LTCI have either stopped selling individual LTCI or they’re planning to do so (although some of these carriers will remain in the group LTCI market).

So if the need for LTCI remains, why are some of the biggest insurers getting out of the individual LTCI market? There are a number of reasons, such as poor investment returns due to the chronic low interest rate environment, the fact that more policyowners are keeping their insurance instead of letting it lapse, the rising cost of long-term care, and the fact that people are living longer, leading to larger LTCI payouts.

If your LTCI carrier is getting out of the LTCI business, don’t worry–you’re still covered. Generally, insurers that leave the LTCI market must either continue to service existing policies or transfer that responsibility to another carrier.

Your LTCI premiums may increase

If you purchased your LTCI policy more than a few years ago, you could be in for a surprise when you get your next premium bill. Several states have allowed insurers to increase their premiums. If your premium does increase significantly, you may be faced with a dilemma: do you keep the insurance and pay the higher premium, or should you stop paying for the insurance altogether and lose not only the insurance coverage, but also all the prior premiums you paid? Here are some alternatives to consider:

Shorten the length of your insurance coverage. For example, if you have lifetime coverage, decrease it to 3 or 5 years. The National Clearinghouse estimates women need care on average for 3.7 years, while men need care for about 2.2 years.

Drop or change your inflation protection. This provision can almost double your premium in some cases. Depending on how long you’ve had your policy, your daily benefit might have increased enough over time to allow you to lower the inflation protection from say 5% compound to 3% simple interest (and lower the cost for that protection), or you might even be able to drop the inflation coverage completely.

Consider replacing a current costly policy with a new one. Even though you are older, you may find that today’s carriers offer policies with fewer “bells and whistles” and at a lower average cost. Also, some insurers now offer life insurance or annuities that also provide long-term care benefits. For example, many life insurers allow you to accelerate a portion or all of your death benefit to provide a monthly payment that you can use for long-term care expenses (although there may be an additional cost for this provision).

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No Rendering of Advice The information contained within this website is provided for informational purposes only and is not intended to substitute for obtaining more specific accounting, tax, or financial advice from a qualified professional accountant.Presentation of the information is not intended to create, and receipt does not constitute, an accountant-client relationship. Internet subscribers, users, online and other readers are advised not to act upon this information without seeking the service of a professional accountant. Any U.S. federal tax advice contained in this document is not intended to be used for the purpose of avoiding penalties under U.S. federal tax law. Accuracy of Information While we use reasonable efforts to furnish accurate and up-to-date information, we do not warrant that any information contained herein or made available through our website is accurate, complete, reliable, current or error-free. We assume no liability or responsibility for any errors or omissions in the content of this website or such other materials or communications. Disclaimer of Warranties and Limitations of Liability This document is provided on an “as is” and “as available” basis. Use of this or our website is at your own risk. We and our suppliers disclaim all warranties. Neither we nor our suppliers shall be liable for any damages of any kind with the use of this website.

Courtesy of Broadridge Financial Solutions, Inc. (all rights reserved)

What are the requirements?

In order to obtain the PFS credential, an applicant must:

• Be a CPA in good standing
• Be a member in good standing with the AICPA
• Earn a minimum of 80 hours of personal financial planning education
• Pass a comprehensive Personal Financial Planning exam
• Have at least two years (or 3,000 hours equivalent) of full-time financial planning business experience
• Agree to be bound by the AICPA Code of Professional Conduct
• Meet continuing education requirements

What does a CPA/PFS do?

CPAs with the PFS credential are able to address their clients’ comprehensive financial planning needs through their training in business, tax, estate, charitable giving, investments, risk management, and retirement planning. Every area of your plan has potential tax implications. You can be assured with a CPA/PFS credential holder that these issues will be integrated into your financial plan and not overlooked.

Some areas in which a CPA/PFS may offer services include:

Taxes. As a CPA, the PFS professional is educated and trained in corporate, estate, and income taxation. A CPA/PFS is able to help you make financial planning decisions with a clear understanding of the tax impact.

Business planning. A CPA/PFS has the experience and background to help with succession planning and other issues that affect your financial goals.

Investments. A CPA/PFS can provide information on the investments you have, and advise you on the changes that will be in your best interest, based on your financial goals.

Estate planning. Service can include enhancing your estate value, conserving existing assets, minimizing estate and transfer taxes, and facilitating the transfer of your assets to your heirs or charitable organizations.

Retirement planning. A CPA/PFS can help you identify your retirement goals and establish a plan to maximize your income for a comfortable retirement.

Risk management. Many PFS credential holders can offer expertise in risk management, including strategies involving life and long-term care insurance, and liability coverage.

While addressing these needs, it is important to understand the standard of care to which a CPA/PFS is held. As CPAs, they are licensed and regulated by their state board and must provide a standard of care defined by the law. Penalties for noncompliance are much more than losing a credential or membership; a CPA’s license to practice in that state could be in jeopardy. In addition, there may be repercussions for breaking state laws.

How is a CPA/PFS compensated?

Typically, CPAs earn their living by charging hourly or flat rates for their services. Many CPAs with the PFS credential embrace a fee-only approach, charging fees for specific services provided as a flat fee, hourly fee or based on assets under advisory. There are some that use a fee-based approach, which is a combination fee-and-commission structure, but we suggest you look for the fee-only approach.

Regardless of the method, the Code of Professional Conduct requires a CPA/PFS to act with integrity, objectivity, due care, and competence; disclose any conflicts of interest (and obtain client consent if a conflict exists); maintain client confidentiality, disclose to the client any commission or referral fees; and serve the public interest when providing financial services. You can review the code at www.aicpa.org.

How can a CPA/PFS help you?

A CPA with the PFS credential will help you by taking a holistic approach to your financial planning process. No recommendation is made without considering the impact on all of your goals. He or she can help you control expenses and develop and implement a plan for retirement, education, or wealth protection. He or she can also offer advice in tax planning or asset management. Specifically, a CPA/PFS can help you:

• Establish financial and personal goals through objective analysis of your situation
• Evaluate your financial well-being through a thorough analysis of your assets, income, liabilities, taxes, investments, and insurance
• Identify areas of concern and help you address them with a suitable plan that emphasizes your financial strengths while reducing your financial weaknesses
• Establish plans to effectively transfer accumulated wealth to either successive generations or charitable organizations
• Review your plan periodically to accommodate your changing personal circumstances and financial goals

How to choose a CPA/PFS

The relationship you establish with your financial professional is a very personal one. For the relationship to be effective, you have to be comfortable sharing many details of your financial and family life. A CPA is one of the most trusted advisors for both individuals and their closely held businesses. Combine this with the expertise evidenced by the PFS credential, and you can feel comfortable that the CPA/PFS professional will work hard for you and your family’s best interests for years to come.

Here are some questions you may want to ask a CPA/PFS to help you decide whether he or she is the right planner for you:

• What is your education? What schools did you attend and what degrees have you earned?
• What licenses do you hold? Are you registered with the Securities and Exchange Commission (SEC) or state securities regulator, or the Financial Industry Regulatory Authority (FINRA)?
• Do you execute securities trades through a broker-dealer? Who is it?
• Do you specialize in a particular area?
• What type of products and services do you offer? How are you compensated for your services? Do you receive a commission for products you may sell to me?
• Have you ever been disciplined by any government board or regulatory agency?

Is a CPA/PFS right for you?

The financial world has become a very complex place. Even if you’re used to handling your own financial affairs, the time may be right to consult a CPA/PFS who can review your financial situation and offer suggestions that may help you reach your financial goals.

For example, are you familiar with all of the different investment opportunities that might be available to you? Are you on track to meet your financial goals, such as saving for your child’s college education, securing enough income for a comfortable retirement, or protecting your assets against risks and lawsuits?

Call us and we can help you determine the best course of action.

“Tax season gives us a snapshot of our total financial picture,” said Stephen Ahern, CPA/PFS, CFP® with Sullivan Bille Group/Wealth Management Advisors, LLC in Tewksbury, MA. “With W-2s, 1099s and other paperwork handy, it’s an important opportunity to assess where we are and to make adjustments that can move us closer to our financial goals.”

This year, in particular, the need for financial planning is more urgent. Several federal tax provisions are scheduled to expire at the end of the year or take effect at the beginning of 2013 that could influence financial strategies. The tax rate on capital gains, for instance, is scheduled to rise from 15 percent to 20 percent. Qualified dividends are set to be taxed as ordinary income. And a new 3.8 percent Medicare tax will be applied to the investment income of higher income and higher net-worth individuals.

“It’s important to understand how these changes could affect your financial situation and to plan now for appropriate investment, retirement and estate strategies,” Ahern added. “Year-end could be too late.”

As a CPA with the Personal Financial Planning (PFS) credential, Ahern has demonstrated robust knowledge in tax, investment, retirement, estate and insurance planning and committed to ongoing education. For over twenty-five years Ahern has been working with people to reduce their tax burden and solidify their financial futures.

To speak with Ahern about using the tax return as a basis for financial planning, contact him at 800-818-1120 extension 260.

About Sullivan Bille Group – Wealth Management Advisors, LLC
Sullivan Bille Group take client relations to an integrated level. working with each client to achieve financial and life goals by taking a comprehensive approach to planning and managing their wealth on a fee-only basis. From the company to the individuals who own it, SBG incorporates business & personal income and estate tax planning, investment optimization, college and retirement analysis and risk management with each client’s goals and objectives to develop a truly effective wealth management plan.

To estimate necessary savings rates, the researchers first sought to determine what level of retirement income would provide an equivalent standard of living to a retiree’s final year of preretirement income. After they took account of changes in various tax burdens, commuting expenses, housing costs, and other factors, they estimated that a single worker earning $20,000 prior to retirement (the CRR study’s “low” income) would need about $17,600 afterwards, including Social Security benefits calculated according to the current formula. Someone earning $50,000 (“medium” income) would need about $40,000 after retirement, and someone earning $90,000 (“high” income) would need about $73,000. Both of those estimates also assume the current levels of Social Security benefits.

Here’s how the projected savings rates work out for a consumer at each level, assuming a normal retirement age (67) and an average annual investment return of 4% after inflation is take into account:

• A low income retirement saver would need to set aside 8% of income each year starting at age 25. If the same person were to wait until age 35 to start, the rate would go up to 12% of income per year. If the same person were to wait until age 45, the necessary savings rate would rise to 20% per year.
• A medium income retirement saver starting at age 25 would need to set aside 12% per year. Waiting to start until age 35 to start the savings program boosts the rate to 18%. Waiting until 45 pushes it 31%.
• A high earnings saver would have to set aside 16% per year starting at age 25. If he or she waited to start until age 35, the rate would increase to 25%. Waiting until 45 causes the required savings rate to rise to 42%.

Keep in mind that if Social Security were to be cut back, savings rates would have to be increased proportionately to cover any reductions in anticipated benefits. Also keep in mind that if real investment returns average higher than 4% in the future, the amount of savings can be reduced somewhat. But the researchers noted that “… the effect of the rate of return on required saving rates, for workers at all earnings levels, is smaller than the effect of the age at which saving starts and, especially, the age of retirement.” In other words, starting your savings program earlier and then working longer could have the greatest impacts on your financial readiness for retirement.

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Consider municipal bond funds

If one of your investment goals is generating income, municipal bonds funds might be good choices, especially if you’re in a high tax bracket. These funds invest in the debt issued by states, cities, towns and public revenue authorities.

Investments in municipal debt generally are exempt from federal income taxes, and often from state and local income taxes as well. However, know the tax impact of the vehicle you’re considering before investing because some bonds may lack one or more of these tax benefits, or may even be subject to the alternative minimum tax.

Also, be aware that state and municipal bonds usually pay a lower interest rate. This means that their rate of return might end up being lower than the after-tax rate of return for a taxable investment. To compare a tax-exempt investment to a taxable one, you must calculate the tax-equivalent yield:

Tax-equivalent yield = actual yield/(1 – your marginal tax rate).

The formula incorporates tax savings into the municipal bond’s yield.

Contribute to tax-advantaged accounts

If you’re enrolled in a qualified retirement plan, such as a 401(k) or 403(b) plan, fully fund it every year, or at least contribute enough to qualify for any matching employer contributions.

Even though a traditional 401(k) might appeal to you, don’t overlook the Roth 401(k). Your contributions won’t be pre-tax, but earnings accumulate tax-free, not merely tax-deferred.

Along the same lines, opening and contributing to a Health Savings Account (HSA) provides similar tax benefits to a retirement account when paying for qualified medical expenses, though you can contribute only if you have a “high-deductible health plan.” Distributions used for qualified medical expenses are tax-free. After age 65, HSA funds can be used for any purpose without penalty, but taxes will apply.

Own investments in the right accounts

It’s generally best to put tax-efficient investments — such as stocks or mutual funds that pay qualified dividends, equity index funds and tax-managed stock funds — in taxable accounts. These investments generate less in taxable income and capital gains, so you’re penalized less when tax time arrives.

Exchange-traded funds (ETFs) also can be a good choice for taxable accounts. This is because ETFs rarely make capital gains distributions and allow investors to pay most of their capital gains when the ETF is sold, thereby delaying tax liability.

Conversely, tax-deferred and tax-free accounts are good places to put any investment that generates a substantial amount of ordinary income, such as taxable bond funds and real estate investment trusts (REITs). Actively managed stock funds with high turnover rates are also good candidates for tax-favored accounts, given that you won’t be penalized for the manager’s active buying and selling.

Take smart profits and losses

If you sell a security within one year of purchasing it, any gain you earn will be classified as short term and taxed as ordinary income, at a rate as high as 35% in 2012. And, absent further action from Congress, the top tax rate is slated to rise to 39.6% in 2013.

On the other hand, if you hold a security for at least a year, your capital gain will be considered long term and taxed at 15%. This rate is also scheduled to rise in 2013, but only to 20%. Of course, there are other risks in holding for a longer time — such as your investment losing value — so taxes shouldn’t be your only consideration when deciding whether to sell.

When you have losses, selling a losing investment allows you to “harvest” the loss and use it to offset realized capital gains. With a wide variety of mutual funds and ETFs available, you can purchase an investment similar to the one you sold, allowing you to maintain a presence in that asset category. Just be aware of the IRS wash sale rule, which prohibits taking a current loss if you sell and then rebuy “substantially identical” securities within 30 days.

If you’ve bought a security at different times, it might also pay to track the potential impact of those lots for tax purposes. Selling one lot as opposed to another might trigger a much larger tax bite — or a greater tax loss than you can use to offset gains elsewhere in your portfolio.

Planning now can be valuable later

Even though few investors enjoy thinking about taxes, taking a little time to plan strategically in this area can have a significant effect on your results. We can help you manage your investment portfolio for maximum tax efficiency.  Please call on us to help you properly manage your wealth.

You may know that, without Congressional action, the gift and estate tax exemption will decrease and the estate tax rates will increase on Jan. 1, 2013. What you may not be sure of is which strategies to use now given the fact that estate tax law may change with the new year.

Facts of the situation

The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 increased exemptions and lowered rates through the end of this year. Beginning in 2013, the exemption and rates are scheduled to return to levels prescribed by pre-2001 tax law. Specifically, this means an exemption drop from the current amount of $5.12 million to $1 million and a top rate increase from 35% to 55%.

Regardless of whether Congress extends the current exemption and rates or takes other measures to prevent the return to the pre-2001-tax-law levels, consider whether you should take the opportunity this year to transfer significant wealth gift-tax-free to your loved ones.

Favorable time to give gifts

Two variables are working in favor of making gifts this year: 1) the $5.12 million gift tax exemption and 2) the fact that the value of many assets are depressed.

Keep in mind that the lifetime gift tax exemption is “unified” with the estate tax exemption, so the exemption covers up to $5.12 million in combined lifetime gifts and bequests at death. For example, if you make 3 million in lifetime gifts, you’ll have $2.12 million remaining to shield from estate tax if you die when the $5.12 million exemption is in place. And if the exemption drops to $1 million as scheduled, you’ll have no exemption available at your death.

Another caveat to consider is the possibility of a “clawback.” This may occur, for example, if you decide use up your entire $5.12 exemption this year but then die next year and the exemption is $1 million.

The IRS might attempt to impose estate tax on previous gifts to the extent that they exceed the date-of-death exemption amount. Many estate planning experts believe this won’t happen — but there are no guarantees. However, even if assets are clawed back into your taxable estate, any appreciation from the time you gifted the assets until your death should still be excluded. Finally, be sure to consider your own financial security. You don’t want to give away so much of your net worth that you can’t afford to support your desired lifestyle.

Annual exclusion still beneficial

Don’t forget to take advantage of the annual gift tax exclusion. It allows you to give up to $13,000 per year tax-free to any number of family members and other loved ones — without using up any of your lifetime exemption. And if you elect to split gifts with your spouse, the amount doubles to $26,000 per recipient.

To qualify for the annual exclusion, the gifts must be “present interest” gifts. This means that the beneficiary has an immediate right to the asset you give him or her.

Make the right moves today

With the uncertainty surrounding estate tax law next year, it’s important to visit with us sooner rather than later. As your Wealth Manager, we can help you find the peace of mind that your plan will be ready for whatever changes happen in 2013.

Mark J. Alaimo, CPA/PFS, CFP^® has been named a Principal in the firm and has been named as a Manager of Wealth Management Advisors, LLC (WMA).  Mr. Alaimo has been with the firm for over 6 years and assists clients with financial and tax matters in both WMA as well as within our sister firm, Sullivan Bille PC.  He holds a Master of Science Degree in Financial Planning from Bentley University and a Bachelor of Science in Accountancy from Bentley University. He is an alumnus of Central Catholic High School in Lawrence, MA and is active in his community in several capacities.   We appreciate his continued work and congratulate him on his new role!

The window of opportunity for many tax-saving moves closes on December 31. So set aside some time to evaluate your tax situation now, while there’s still time to affect your bottom line for the current tax year. With that in mind, here are 10 things to consider as the curtain closes on 2011. 1. Deferring income to 2012 means postponing taxes Consider opportunities you might have to defer income to 2012. You might be able to delay a year-end bonus, for example. If you’re able to push what would have been 2011 income into 2012, you may be able to put off paying income tax on the deferred dollars until next year. 2. Paying deductible expenses sooner may help you in 2011 Does it make sense for you to accelerate deductions into 2011? If you itemize deductions, it might help your 2011 bottom line to pay deductible expenses like medical costs, qualifying interest, and state and local taxes before the end of the year, instead of waiting until 2012. 3. Income tax rates to remain the same in 2012 The same six federal income tax rates that apply in 2011 will apply in 2012. So, depending upon your income, you’ll fall into either the 10%, 15%, 25%, 28%, 33%, or 35% rate bracket. And, as in 2011, long-term capital gains and qualifying dividends will continue to be taxed at a maximum rate of 15% in 2012; and if you’re in the 10% or 15% tax rate brackets, a special 0% tax rate will generally continue to apply. 4. Is AMT a factor? If you’re subject to the alternative minimum tax (AMT), special rules apply. For example, the AMT rules can effectively disallow a number of itemized deductions, making it a potentially significant consideration when it comes to year-end planning. You’re more likely to be subject to AMT if you claim a large number of personal exemptions, deductible medical expenses, state and local taxes, and miscellaneous itemized deductions. If you’ve been subject to the AMT in the past, or think that you might be for 2011, you’ll want to make sure that you understand how the AMT rules might affect you. 5. IRA and retirement plan contributions Employer-sponsored retirement plans like 401(k) plans and traditional IRAs (if you qualify to make deductible contributions) present an opportunity to contribute funds on a pre-tax basis, reducing your 2011 taxable income. Contributions that you make to a Roth IRA (assuming you meet the income requirements) aren’t deductible, so there’s no tax benefit for 2011–they’re still worth considering, though, because qualified distributions are free from federal income tax. The window to make 2011 contributions to your employer plan closes at the end of the year, but you can generally make 2011 contributions to your IRA up to April 17, 2012. 6. Special distribution requirements at age 70½ Once you reach age 70½, you’re generally required to start taking required minimum distributions (RMDs) from any traditional IRAs or employer-sponsored retirement plans you own. It’s important to make withdrawals by the date required–the end of the year for most individuals. The penalty is steep for failing to do so: 50% of the amount that should have been distributed. Barring additional legislation, 2011 will be the last year to take advantage of a popular provision allowing individuals age 70½ or older to make qualified charitable distributions of up to $100,000 from an IRA directly to a qualified charity (these charitable distributions are excluded from your income, and count toward satisfying any RMDs that you would otherwise have to take from your IRA for 2011). 7. Depreciation and expense limits to drop for business owners and the self-employed If you’re a small business owner or a self-employed individual, you’re allowed a first-year depreciation deduction of 100% of the cost of qualifying property acquired and placed in service during 2011; this “bonus” first-year additional depreciation deduction will drop to 50% for property acquired and placed in service during 2012. For 2011, the maximum amount that can be expensed under IRC Section 179 is $500,000, but in 2012 the limit will drop to $139,000. 8. Last chance to deduct energy-efficient home improvements This is the last year you’ll be able to claim a credit for energy-efficient improvements you make to your home (up to 10% of the cost of qualifying property). Improvements can include a qualifying roof, windows, skylights, exterior doors, and insulation materials. Specific credit amounts may also be available for the purchase of energy-efficient furnaces and hot water boilers. However, there’s a lifetime credit cap of $500 ($200 for windows). So, if you’ve claimed the credit in the past–in one or more years since 2005–you’re only entitled to the difference between the current cap and the amount you’ve claimed in the past. 9. Other expiring provisions Barring additional legislation, this is the last year that you’ll be able to elect to deduct state and local general sales tax in lieu of state and local income tax, if you itemize deductions. This also will be the last year for both the above-the-line deduction for qualified higher education expenses, and the above-the-line deduction for up to $250 of out-of-pocket classroom expenses paid by education professionals. 10. Get help Making effective year-end moves requires a solid understanding of the rules that are in effect for both 2011 and 2012. It also requires a comprehensive grasp of your overall financial situation. A financial professional can help you evaluate potential opportunities, and can keep you apprised of any last-minute legislative changes.

No Rendering of Advice
The information contained within this website is provided for informational purposes only and is not intended to substitute for obtaining more specific accounting, tax, or financial advice from a qualified professional accountant.

Presentation of the information is not intended to create, and receipt does not constitute, an accountant-client relationship. Internet subscribers, users, online and other readers are advised not to act upon this information without seeking the service of a professional accountant.

Any U.S. federal tax advice contained in this document is not intended to be used for the purpose of avoiding penalties under U.S. federal tax law.

Accuracy of Information
While we use reasonable efforts to furnish accurate and up-to-date information, we do not warrant that any
information contained herein or made available through our website is accurate, complete, reliable, current or error-free. We assume no liability or responsibility for any errors or omissions in the content of this website or such other materials or communications.

Disclaimer of Warranties and Limitations of Liability
This document is provided on an “as is” and “as available” basis. Use of this or our website is at your own risk. We and our suppliers disclaim all warranties. Neither we nor our suppliers shall be liable for any damages of any kind with the use of this website.

How Much to Withdraw

Historically, financial advisors have recommended that retirees limit annual withdrawals to a maximum of 3% to 5% of assets, adjusted for inflation, to limit the chances of running out of money. Yet a recent survey indicated the following:¹

• Nearly one-third of respondents believed they could withdraw between 7% and 10% annually.
• Just over 10% anticipated that they could withdraw between 11% and 15%.

Many respondents also underestimated the percentage of their preretirement income they would need annually to pay for living expenses. Only 45% of respondents understood that retirees typically need between 80% and 90% of preretirement income to maintain
their preretirement standard of living.

Factors Affecting Retirement Income

If your retirement assets are running short, a variety of factors are likely to influence how much you will need during your later years:

• Your retirement age.  Collecting Social Security at your earliest opportunity, which for most people is age 62, results in a permanent reduction of between 20% and 30% in the amount of your monthly benefit.
• Medical expenses. It’s no secret that Medicare is experiencing financial stress and employer-sponsored health care plans for retirees are less generous than they formerly were. The Employee Benefit Research Institute has estimated that a couple retiring at age 65 with median drug expenses would need to accumulate $271,000 to ensure a 90% probability that they will have enough to pay for medical care. This amount does not include the cost of long-term care, which would make the estimate even higher.
• Housing. A large mortgage or other indebtedness limits financial flexibility. If you live in spacious quarters, consider how you will be able to finance mortgage payments, taxes, maintenance, utilities, condo fees, and other expenses.
• Discretionary costs of living. It can be difficult to control expenses for necessities such as utilities and health care. But variable costs, such as restaurant meals and vacations, are a different matter. Review how you may be able to trim variable costs before you retire without leading a Spartan lifestyle. Getting used to a more efficient mode of living may help you in your transition to retirement.

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Source/Disclaimer:

¹ Source: MetLife, Met Life Mature Market Survey, October 2011.

November 2011 — This column is provided through the Financial Planning Association (FPA), the membership organization for the
financial planning community, and is brought to you by Stephen P. Ahern, CPA/PFS, CFP®, a local member of FPA.

Medical Economics is the leading business resource for office-based physicians, providing the expert advice and shared experiences doctors need to successfully meet today’s challenges in practice management, patient relations, malpractice, electronic health records (EMR/EHR), career development and personal finance.

Stephen is one of six advisors in Massachusetts being recognized.

Please join us in congratulating Steve on this honor.