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QUARTER 2 2024
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Learning the Vital Elements of Financial Literacy UNLOCK YOUR WEALTH POTENTIAL
RISK MANAGEMENT. Insurance is essential in avoiding catastrophic expenses, and it also is one of the least-understood financial products. Evaluate potential risks to your health, life, property, and ability to work and support yourself, then shop for adequate health, property damage, liability, disability, and life insurance. Be aware, however, that insurance policies are only as reliable as the financial health of the insurer, so beware of high-pressure sales tactics or premiums that seem too good to be true. If these topics seem baffling or confusing, it may be time to take charge of your financial literacy. Investopedia, a financial education website, posts
Americans have long insisted that all citizens learn basic literacy skills — reading, writing, and arithmetic. But only half of the states require students to learn financial literacy skills, which can be almost as important for a secure, productive life. As we observe Financial Literacy Month in April, it is worth noting that more than 1 in 3 Americans are still not financially literate — that is, they are unable to understand and apply basic financial concepts. These include calculating how fast an interest-bearing savings account will grow, or figuring out whether your investments are staying ahead of inflation. Becoming financially literate also requires such basic skills as budgeting, spending, saving, investing, and managing risk. Financial literacy skills help protect you and your family from scams, reduce financial stress and anxiety, and determine your lifelong standard of living. Your capability in this arena also shapes your access to higher education and housing and your ability to enjoy a comfortable retirement. As estate planners, we see the importance of financial literacy every day as we work with clients to understand tax, accounting, and other financial issues.
10% into an emergency fund to cover 3–6 months of expenses. To decide where to invest, familiarize yourself with the investment risk ladder, which compares asset classes from least to most risky — from basic tools such as cash and bonds, mutual funds, and exchange-traded funds to riskier options like individual stocks, real estate, hedge funds, and commodities. Learn to distinguish between assets insured by the Federal Deposit Insurance Corp. (checking,
savings, money market accounts, and CDs) and investments that are not FDIC-insured (stocks, commodities, annuities, mutual funds, cryptocurrencies, etc.). DEBT MANAGEMENT. Avoid high-interest debt such as payday loans, personal loans, and credit cards, and pay those off first. Your credit score depends in part on
hundreds of free resources. The online learning platforms Udemy, Coursera, and Khan Academy offer free or inexpensive courses
in financial skills. Seeking guidance from a qualified
financial advisor can be incredibly beneficial for individuals looking to navigate their financial journey effectively. Financial advisors offer personalized advice tailored
what percentage of your total credit card borrowing limit you are using. If you have a mortgage, consider reducing the total interest you will pay by making payments twice a month. For other, lower- interest debt, such as government-guaranteed student loans, make payments on time. RETIREMENT PLANNING. Financially literate investors understand pensions, 401(k)s and Roth IRAs, Social Security, and annuities. If your employer offers a 401(k) or Roth IRA, sign up and invest at least enough to earn the maximum matching funds. Start saving early for retirement, building a diversified portfolio of stocks, bonds, and commodities. Also, start researching how much you will need to save to retire comfortably. Consider getting professional advice from a financial planner or investment advisor, who is required to put investors’ interests first.
to your unique circumstances, helping you make informed decisions about investments, debt management, retirement planning, and more. Financial literacy is a key component in building and maintaining wealth for yourself and a stepping stone to creating generational wealth. If you would like to learn about strategies for transferring your hard-earned wealth to future generations and have that wealth be protected
Here is a brief explanation of some essential financial literacy concepts.
BUDGETING AND SPENDING. Track your spending over one month and assess your financial goals, then use that information to make a plan for how you want to spend your money. A good basic framework to get started is the 50/20/30 rule: Allocate 50% of your net income to basic needs, 20% to savings, and 30% to nonessentials. SAVING AND INVESTING. In allocating the 20% of earnings to savings, put at least 10% into a savings or investment account and another
for their benefit, then we invite you to attend one of our upcoming estate planning seminars to learn more.
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Meet Attorney Srushti Shah! A HEART FOR FAMILIES
If you own or have an interest in a business (corporation, partnership, LLC, etc.) then you need to file beneficial ownership information at the following website: https://www.fincen.gov/boi . For businesses established before 2024, the deadline for filing is 12/31/2024. For those established in 2024, you have a 90-day window. Businesses founded in 2025 and beyond must file within 30 days. This Act was created to prevent money laundering. The Act requires anyone who owns 25% of a business or has significant decision-making control over the business to file. If you believe this Act pertains to you, we recommend that you contact your CPA/tax preparer to have them file on your behalf. After filing, there is an ongoing requirement to update the records when there is a change in beneficial ownership, or when an owner’s name/address changes. Corporate Transparency Act
When a family loses a loved one, the process of grieving can be a long and difficult one. There are also numerous details that need to be addressed when it comes to taking care of the deceased person’s belongings, outstanding bills, final tax returns, and figuring out what work needs to be done to settle their estate. As the lead Trust Administration attorney for our firm, Srushti Shah is ready to help guide families through the process of administering the loved one’s estate, and to provide them with the understanding and support they need during such a difficult time.
Srushti has a keen interest in this area of the law, and a heart for it as well. Born in India and raised in the San Francisco Bay area, she began thinking about becoming a lawyer in her teens. “During law school, I really enjoyed my courses in trusts and estates. It is a field that would allow me to help people in the moment, and to assist them in planning their futures and benefiting the next generation,” Srushti says. After working briefly at personal injury and immigration law firms, she joined Litherland, Kennedy & Associates in 2022. “I work with Trustees to help them administer the living trusts that their loved ones thoughtfully set up,” Srushti says. She helps trust administration clients understand the steps needed to administer a trust like gathering information about assets and debts, and discusses necessary actions to meet legal deadlines, pay final expenses, and pass on assets to the heirs. “I often work with the children of decedents because they are often named as trustees. I enjoy seeing the interactions among the family members and helping them communicate.” In addition to supporting clients and their families, Srushti is organizing a special family event of her own. “I was recently legally married, and my husband Prajan and I are planning a three-day destination wedding celebration for our friends and family in Mexico this summer,” she says. Just as she does at our law firm, Srushti will be strengthening family ties across generations. “We are both the oldest children in our families, and we wanted to honor our parents’ wishes that we carry out all the religious and cultural activities associated with a traditional Indian wedding,” Srushti notes. Soon after their wedding ceremony and celebration on the third day, Srushti will be back at work, helping other families.
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2024 CHANGES TO MEDI-CAL ELIGIBILITY
Effective January 1, 2024, the Medi-Cal eligibility asset test has been removed for people aged 65 and above, and those deemed disabled by the state or who are blind. This is huge! Previously disqualifying factors such as a second property, financial accounts, or certain insurance/annuity policies will no longer disqualify individuals from receiving Medi‑Cal benefits.
So, what does this mean for you?
Many seniors express concerns about how they will cover future care expenses if needed. Witnessing oneself, a spouse, or a parent facing declining health can be distressing, especially when considering the potential financial strain of care. Home care costs can exceed $50 per hour, while Assisted Living communities may demand $10,000 monthly. And beyond that, there is skilled nursing care which costs approximately $15,000 to $24,000 per month. Medi-Cal, California’s implementation of the federal Medicaid program, is set up to help pay for long-term care expenses. Medi- Cal ignores assets for eligibility and the program only looks to your income to determine your share of cost. Once an individual is approved for Medi-Cal benefits, it is crucial to note that those benefits are not a gift. Upon the recipient’s death, Medi-Cal will seek reimbursement for expenses paid on their behalf through the Medi-Cal Estate Recovery Program.
It's advisable for anyone aged 65 and above, especially those with significant care needs, to explore Medi-Cal options before an urgent situation arises. Consulting our office beforehand allows us to address timing, review Share of Cost considerations/income sources, and most importantly, safeguard assets to prevent repayment through the Estate Recovery Program.
GRILLED STEAK WITH CHIMICHURRI SAUCE
Savor the flavor with our mouthwatering grilled steak, paired perfectly with vibrant chimichurri sauce.
INGREDIENTS:
For the chimichurri sauce: • 1 cup fresh parsley, chopped • 2 cloves garlic, minced • Juice of 1 lemon
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2 lbs steak (flank, sirloin, or skirt steak) 2 tbsp olive oil Salt and pepper, to taste
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2 tbsp olive oil 1 tsp red pepper flakes Salt and pepper, to taste
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SOLUTION ON PAGE 2
DIRECTIONS:
1. Preheat grill to medium-high heat. 2. Rub the steak with the olive oil, salt, and pepper.
WHEN DOES A JOKE BECOME A DAD JOKE? WHEN IT BECOMES APPARENT.
3. Grill the steak for 4–5 minutes per side or until it reaches desired doneness. 4. Meanwhile, make the chimichurri sauce: In a small bowl, mix together the parsley, garlic, lemon juice, olive oil, red pepper flakes, and salt and pepper. 5. Let the steak rest for 5 minutes before slicing. 6. Serve the steak with the chimichurri sauce and enjoy!
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Mastering Financial Literacy Is Key to Financial Freedom page 1
Introducing Our Lead Trusts Administrator New Law Alert! page 2
2024 Changes to Medi-Cal Eligibility Grilled Steak With Chimichurri Sauce page 3
Tackle Spring-Cleaning With a Week- by-Week Plan page 4 YOUR 4-WEEK SPRING-CLEANING CALENDAR
SECOND WEEK: THE KITCHEN Clean the dishwasher filter first. Devote the next two days to getting the stove to sparkle, including ridding the vent of grease. Wipe down the countertops and the cabinets. Clean out the microwave and wipe down any other countertop appliances. Congratulations, week two is over! THIRD WEEK: THE BATHROOM You’ll want to begin by removing the grime from the showerhead and sanitizing the curtain. The curtain can be scrubbed and air-dried in the sun. For the toilets, get under the rim with a toilet brush and give the much-ignored back some love, too. Now that the toilet’s shining, it is the perfect opportunity to get the floor. Take a little extra time to get the baseboards. FOURTH WEEK: THE BEDROOM Clean the bedrooms from top to bottom. Now is a good time to wash your pillows and air-dry them. Bedroom ceiling fans can build up a lot of
Spring-cleaning can be overwhelming. From the kitchen counter to the ceiling fan, there’s a lot of ground to cover. But there’s a trick to make it easier: Breaking down the work into quick, doable tasks spread over four weeks. FIRST WEEK: THE LIVING ROOM The start of every journey begins with a single step, and that step is acquiring and prepping supplies. Wash out buckets, empty vacuum bags, throw microfiber cloths in the wash, clean mops, and shake out brooms. Next, it’s time to clean the light fixtures. Use a microfiber cloth to wipe away dust and debris. Then dunk the cloth in soapy water, wring it out, and scrub the light fixture covering the bulb until it shines — just make sure you turn the lights off first. Once you’ve finished the lights, head to the bookshelves. Dust the tops and wipe down the sides. Make sure to wipe down any pictures or framed art on the wall. Lastly, move the furniture and vacuum underneath.
gunk over the winter. An easy way to clean them is by spraying the inside of an old pillowcase with mild all-purpose cleaner, putting it over one blade at a time, and gently pulling as you wipe. Next, polish any wood furniture. Thoroughly clean the windows with glass cleaner or a homemade mixture of vinegar and water, and remember to clean the window tracks. Lastly, test the batteries in your smoke and carbon monoxide detectors.
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