Archived E-zines

This e-zine was originally sent on March 13, 2010.  It may have been edited somewhat from the version that was originally emailed, so be sure to sign up to make sure you are getting our e-zines fresh!

“The past does not define you, the present does.”

- Jillian Michaels

Hello,

As we work with families, we spend a good amount of time sorting through beneficiary decisions and attitudes about life, money and the values which parents seek to pass on.

But one of the more difficult tasks for me is when I meet with a family who doesn’t have the confidence they wish they would have about how their children would handle finances, down the line.

At the point of making these decisions, we can put into place a whole range of mechanisms which will ensure that financial assets are properly distributed, when the time does come.

But wouldn’t it be great if our children had the experience and self-control to handle money, starting at an early age?

That’s why I’ve put together some pointers for you (10 of them) which will help your family raise children who “get it” when it comes to money. This is a great article to forward along to your friends and family, I think–it’s an issue which too often goes neglected within families.

And, of course, I’d love your thoughts (as usual!)…

Aaron Miller’s

“Straight Talk” Personal Strategy

Teach Your Children Well About Money

As Americans try to spend less and go on a budget this provides an opportunity to teach the next generation financial principles they may never have seen in the prosperous years they have been alive. Here are ten principles for teaching children about money:

1. Talk about money . Every time money is involved, parents have a chance to teach their children the values and analysis behind their actions. Money should never be the primarily topic of discussion, but it is one of the most important topics through which we communicate our wisdom and values to our children. Every purchase, investment, or donation can be a time to teach your children something about your values.

2. Talk openly about money. Parent makes a mistake when they keep information from their children. The only way children learn what is a good deal and what is too expensive is by the experience of what their family earns and what items cost. Hiding this information robs children of the financial education they need.

3. Talk factually about money. Many parents have strong emotions about money based on their childhood experiences. These emotions are always transmitted to children. Instead of helping children, they can cripple children from growing to make sound financial decisions.

4. Require chores; pay for optional work. Everyone in the family has to help complete the work that needs to be done. If you want to pay your children, only pay them for optional work they can choose to do or not to do.

5. Provide children an allowance they can make real choices with. Talk about money is important, but children need real-world lab experience to understand the consequences of their decisions. Consider giving them an allowance large enough so that they can purchase some of their own needs. Then continue to give them honest advice, and help them ask the right questions to make wise decisions based on their values.

6. Help children prioritize purchases. Ask them if this purchase is better than other purchases they are considering making.

7. Help children comparison shop. Help them consider issues such as cost, quality, and convenience.

8. Require children to wait before making large purchases . Adults should wait at least a month whenever they are making a large purchase. Children shouldn’t be expected to wait that long. Here is a good rule of thumb: Children should be required to wait as many days as they are old in years before being allowed to make a large purchase (over a week’s allowance). There is always tomorrow and over half the time they won’t remember what attracted them to it in the first place. Developing this habit will help make them resistant to impulse buying.

9. Don’t use money as a punishment. Your priority should be helping to give your values to your children, not buy their outward behavior.

10. Don’t loan your children money! If their desired purchase is something they should be saving for, let them save for it. If you want to buy it for them for the value of the experience, buy it for them. The principles are “If they want it, they have to save for it. If you want them to have it, you will buy it for them.” Loaning your children money for items they want teaches them they aren’t responsible and they don’t have to prioritize.

Some may disagree with all of these admonitions–I don’t intend to become a “parenting guru” in my spare time–but I do hope that, at minimum, this will help you be thinking about how your wishes get passed down.

Wishing you all the best!

Aaron Miller

Miller Law Firm, PLLC
Your Life Is Our Life’s Work!
101 E. Park Blvd., Suite 600
Plano, Texas 75074
Connect via: Facebook Twitter LinkedIn

PS–If you are receiving this and are NOT a subscriber to our weekly “Straight Talk” Personal Strategy Email series, click here to sign up.

To ensure we don’t make the folks at the IRS ornery, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein. This message may contain confidential and/or privileged information. If you are not the addressee or authorized to receive this for the addressee, you must not use, copy, disclose, or take any action based on this message or any information herein. If you have received this message in error, please advise the sender immediately by reply e-mail and delete this message. PHEW!

This e-zine was originally sent on March 13, 2010.  It may have been edited somewhat from the version that was originally emailed, so be sure to sign up to make sure you are getting our e-zines fresh!

“The past does not define you, the present does.”

- Jillian Michaels

Hello,

As we work with families, we spend a good amount of time sorting through beneficiary decisions and attitudes about life, money and the values which parents seek to pass on.

But one of the more difficult tasks for me is when I meet with a family who doesn’t have the confidence they wish they would have about how their children would handle finances, down the line.

At the point of making these decisions, we can put into place a whole range of mechanisms which will ensure that financial assets are properly distributed, when the time does come.

But wouldn’t it be great if our children had the experience and self-control to handle money, starting at an early age?

That’s why I’ve put together some pointers for you (10 of them) which will help your family raise children who “get it” when it comes to money. This is a great article to forward along to your friends and family, I think–it’s an issue which too often goes neglected within families.

And, of course, I’d love your thoughts (as usual!)…

Aaron Miller’s

“Straight Talk” Personal Strategy

Teach Your Children Well About Money

As Americans try to spend less and go on a budget this provides an opportunity to teach the next generation financial principles they may never have seen in the prosperous years they have been alive. Here are ten principles for teaching children about money:

1. Talk about money . Every time money is involved, parents have a chance to teach their children the values and analysis behind their actions. Money should never be the primarily topic of discussion, but it is one of the most important topics through which we communicate our wisdom and values to our children. Every purchase, investment, or donation can be a time to teach your children something about your values.

2. Talk openly about money. Parent makes a mistake when they keep information from their children. The only way children learn what is a good deal and what is too expensive is by the experience of what their family earns and what items cost. Hiding this information robs children of the financial education they need.

3. Talk factually about money. Many parents have strong emotions about money based on their childhood experiences. These emotions are always transmitted to children. Instead of helping children, they can cripple children from growing to make sound financial decisions.

4. Require chores; pay for optional work. Everyone in the family has to help complete the work that needs to be done. If you want to pay your children, only pay them for optional work they can choose to do or not to do.

5. Provide children an allowance they can make real choices with. Talk about money is important, but children need real-world lab experience to understand the consequences of their decisions. Consider giving them an allowance large enough so that they can purchase some of their own needs. Then continue to give them honest advice, and help them ask the right questions to make wise decisions based on their values.

6. Help children prioritize purchases. Ask them if this purchase is better than other purchases they are considering making.

7. Help children comparison shop. Help them consider issues such as cost, quality, and convenience.

8. Require children to wait before making large purchases . Adults should wait at least a month whenever they are making a large purchase. Children shouldn’t be expected to wait that long. Here is a good rule of thumb: Children should be required to wait as many days as they are old in years before being allowed to make a large purchase (over a week’s allowance). There is always tomorrow and over half the time they won’t remember what attracted them to it in the first place. Developing this habit will help make them resistant to impulse buying.

9. Don’t use money as a punishment. Your priority should be helping to give your values to your children, not buy their outward behavior.

10. Don’t loan your children money! If their desired purchase is something they should be saving for, let them save for it. If you want to buy it for them for the value of the experience, buy it for them. The principles are “If they want it, they have to save for it. If you want them to have it, you will buy it for them.” Loaning your children money for items they want teaches them they aren’t responsible and they don’t have to prioritize.

Some may disagree with all of these admonitions–I don’t intend to become a “parenting guru” in my spare time–but I do hope that, at minimum, this will help you be thinking about how your wishes get passed down.

To your family’s wealth, health, and happiness!

Aaron Miller

Miller Law Firm, PLLC
Your Life Is Our Life’s Work!
101 E. Park Blvd., Suite 600
Plano, Texas 75074
Connect via: Facebook Twitter LinkedIn

PS–If you are receiving this and are NOT a subscriber to our weekly “Straight Talk” Personal Strategy Email series, click here to sign up.

To ensure we don’t make the folks at the IRS ornery, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein. This message may contain confidential and/or privileged information. If you are not the addressee or authorized to receive this for the addressee, you must not use, copy, disclose, or take any action based on this message or any information herein. If you have received this message in error, please advise the sender immediately by reply e-mail and delete this message. PHEW!

This e-zine was originally sent on February 19, 2010.  It may have been edited somewhat from the version that was originally emailed, so be sure to sign up to make sure you are getting our e-zines fresh!

“Regret for the things we did can be tempered by time; it is regret for the things we did not do that is inconsolable.”

- Sydney J Harris

Hello,

Wow, has this last week has really flown by for you too, or is it just me? Earlier the kids and I went to go see an Allen Americans hockey game. I’ve forgotten how much fun minor league hockey can be!

Back when we lived in Austin, I used to take Grace (who was around 5 at the time) to the Austin Ice Bats games a lot. We had a ton of fun watching the game and just hanging out. I got to teach her the national anthem and show her how to cover her heart when we sung it.  That was really cool for me.  She also learned how to keep her drink in her left hand so she didn’t shake people’s hands with a cold hand (at the meet-and-greets they would have with the players and other fans), and what a power play, icing, and a slap shot is.  You know, all the important stuff a 5 year old NEEDS to know.  At the games, I would watch her jump around in the bounce house between the periods and sometimes she just HAD to go there during the game (I guess she wasn’t there just for the hockey   ).  And we had a great time going around the rink talking with the friends we made there.

Of course, it was a little awkward at first when the fights broke out – “yes, dear – I know they shouldn’t be  fighting…the fans are cheering because they want our guy to win… …you do know that just ’cause they are fighting that you still shouldn’t hit your sisters, right? …. Good, because I don’t want to get in trouble with your mom….Yeah, it’s just part of hockey, so uhm, its okay for these guys to fight….I guess….uhm….Oh, hey, is that the peanut guy? You wanted some peanuts to go with that cotton candy, hot dog, coke, and popcorn I just fed you, right?” By the end of the season, she would just put on her ear protection and keep coloring while she waited for the crowd to stop yelling and sit back down.  Good times!

There were no fights or bouce houses at our Allen Americans game, but lots of great fans and good hockey.  We also got to see a guy in an Abe Lincoln costume (who dropped the ceremonial puck), a guy walking around the concourse in really tall stilts, and apparently there was a gorilla chasing a banana at one point  –  I wish I hadn’t missed the gorilla, but Grace saw it.  Anyway, there aren’t too many more games this season, so if you get a chance to head out there, Go! It is a great time. Just try not to sit next to the guy beating the drums the whole game – I’m hoping that was just when we were there.

This week, I’d like to follow up a little on what we talked about last week and touch on five critical documents every family must have. Read on, and send your feedback! And, of course, if you need help with any of this, that’s exactly what I’m here for!

Aaron Miller’s

“Straight Talk” Personal Strategy

Five Critical Documents Every Family Must Have

While some families have openly shared financial information with one another, other families consider those figures dark secrets. Having heard too many financial horror stories I recommend financial openness and suggest an annual review of these five documents as a model for others.

1)  A will

You need a will to direct the transfer of your assets after your death, no matter how “poor” you are. Seven out of ten people don’t have a will, but don’t take comfort in numbers. Six of the seven won’t read this article, and the other three families have finally made a priority of getting a will. Go do your will. The larger your estate, the more complicated the will may be. But it’s time and money well spent. Advance planning can save your loved ones time, frustration and money.

2)  A living will

You need a living will so that someone else can make decisions about your life if you can’t. It also states your preferences for life-prolonging procedures in the event of permanent illness or unconsciousness where your death is imminent. It is sometimes called a “durable medical power of attorney.” A living will ensures your wishes are followed without making your family guess.

3)  A power of attorney

You need a power of attorney to authorize someone to manage your finances if you are sick or disabled. You might consider using a financial planner who manages accounts so they continue to manage your assets even if you are incapacitated.

Even if you have an asset manager, however, you should still have a power of attorney to facilitate your other financial obligations if you are incapacitated.

4)  A directory of basic information

You need a directory of basic information for anyone who needs to take over handling your finances in an emergency. You should collect a list of all your assets (stocks, mutual funds, bonds, real estate, loans, 401ks, IRAs, etc.), where they are located (safe-deposit box, former employers, brokerage accounts, etc.), their approximate value, and the names of your professional advisers (tax advisers, lawyers, financial planner, investment counselors, trustees, etc.). Be sure to include the appropriate account numbers, phone numbers and contact information.

If you think this information is hard for you to pull together, imagine how difficult it would be for someone else who is asked to fill your shoes in an emergency!

5)  Yearly financial statements

You need a yearly collection of financial statements both for yourself and also for those helping you with financial planning.

Your yearly financial statements should include a net worth statement, an asset allocation analysis, the cost basis for all taxable investments, the past year’s performance, your current income and a copy of the first two pages of your tax return.

This exercise will take some time to complete the first time you do it. However, in subsequent years, the task will not only take less time, but you will be able to compare this year’s total with prior years. That way you can quickly see how you are progressing toward your goals.

Communicating honestly about your finances with your family and putting your estate in order passes on a legacy of foresight and financial wisdom that will help generations to come. And it’s never too late to start.

To your family’s wealth, health, and happiness!

Aaron Miller

Miller Law Firm, PLLC
Your Life Is Our Life’s Work!
101 E. Park Blvd., Suite 600
Plano, Texas 75074
Connect via: Facebook Twitter LinkedIn

PS–If you are receiving this and are NOT a subscriber to our weekly “Straight Talk” Personal Strategy Email series, click here to sign up.

To ensure we don’t make the folks at the IRS ornery, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein. This message may contain confidential and/or privileged information. If you are not the addressee or authorized to receive this for the addressee, you must not use, copy, disclose, or take any action based on this message or any information herein. If you have received this message in error, please advise the sender immediately by reply e-mail and delete this message. PHEW!

This e-zine was originally sent on January 29, 2010.  It may have been edited somewhat from the version that was originally emailed, so be sure to sign up to make sure you are getting our e-zines fresh!

“If you keep thinking about what you want to do or what you hope will happen, you don’t do it, and it won’t happen.”

- Desiderius Erasmus

Hi Aaron,

I hope you’ll allow me to be a proud dad for a minute. My youngest daughter (the six year old), got first place in first grade at her school’s science fair this week!  It was a project having to do with measuring different amounts of baking soda mixed with vinegar and how much it blew up a balloon.  Very fun!  She definitely gets her science gene from her mom — not me that’s for sure!

Well, I thought I’d talk a little this week about some changes in the estate planning laws.  You might have heard that the estate tax has been “repealed” for 2010.  While, this may be good news for a few families, something like 6,000 or so, but for the rest of us…

It’s not all rosy.

Read on to hear what I mean…

Aaron Miller’s

“Straight Talk” Personal Strategy

Married Couples Affected By New Estate Environment

Because of a Congressional failure to act before the end of 2009, there’s good news and bad news to report on the Estate Planning front.

The good news is there’s no Estate Tax if you die this year.  The bad news is, that you may owe significant capital gains taxes if a loved one dies this year and leaves you significant appreciated assets. If you have total assets of around $1 million or more (including face value of life insurance, retirement plans, home equity, etc.) you should make sure their estate plan is up to date.

Congress has had nine years to prevent this from happening, but has failed to act.

Under the provisions of a tax-cut bill enacted in 2001, the estate tax exemption has been gradually raised over the past eight years, while the tax rate on estates has been reduced.

For estates of those dying in 2009, only assets worth $3.5 million or more were subject to estate taxes, at a rate of 45 percent. But now, for the year 2010, the estate tax has disappeared entirely, only to be restored in 2011 at a rate of 55 percent on estates of $1 million or more, which is exactly where things stood before the 2001 change.

Many Couples At Risk

The new world of “no estate tax” places at particular risk certain couples who have built in “Credit Shelter” trust provisions (also called “Bypass Trust” or “Family Trust” provisions), which are designed to allow both spouses to take advantage of their estate tax exemptions.

These are common arrangements used in estate planning for married couples. With the estate tax gone, one possible problem is that the wording of some of these trusts could cause all assets to completely bypass the surviving spouse when the first spouse dies. For a more detailed explanation of this potential problem, see this blog posting:

http://www.ncestateplanningblog.com/2010/01/articles/estate-planning/the-estate-tax-is-gone-for-now-estate-plan-updates-are-imperative/

Everyone — Especially Married Couples — Should Have Their Estate Planning Reviewed ASAP.

Because of these tax changes, a review of your existing estate planning documents is essential.

Hope that helps!

To your family’s wealth, health, and happiness!

Aaron Miller

Miller Law Firm, PLLC
Your Life is Our Life’s Work
101 E. Park Blvd., Suite 600
Plano, Texas 75074
Connect via: Facebook Twitter LinkedIn

PS–If you are receiving this and are NOT a subscriber to our weekly “Straight Talk” Personal Strategy Email series, click here to sign up.

To ensure we don’t make the folks at the IRS ornery, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein. This message may contain confidential and/or privileged information. If you are not the addressee or authorized to receive this for the addressee, you must not use, copy, disclose, or take any action based on this message or any information herein. If you have received this message in error, please advise the sender immediately by reply e-mail and delete this message. PHEW!

This e-zine was originally sent on January 14, 2010.  It may have been edited somewhat from the version that was originally emailed, so be sure to sign up to make sure you are getting our e-zines fresh!

“The whole idea of motivation is a trap. Forget motivation.  Just do it. Exercise, lose weight, test your blood sugar, or whatever. Do it without motivation. And then, guess what?  After you start doing the thing, that’s when the motivation comes and makes it easy for you to keep on doing it.”

- John C. Maxwell

Hello,

This week my oldest daughter turned 12!  She and her mom are planning a mystery party, which should be a lot of fun for the kids.  Other than the party, I think she was most excited about getting to ride in the front seat (remember when that wasn’t such a big deal when we were kids – no air bags!).  I guess it won’t be too long until she’s sitting in the driver’s seat.  I don’t know if I’ll ever be ready for that.  For now though, I’ve got to remember to keep the junk out of the front seat so she has a place to sit!

Oops, I probably should have said this before — I’m not trying to frighten you. Yes, the people I mentioned in that subject line have passed on to a different place, but I’m not suggesting you’re next!

Anyway, what’s interesting about these celebrities is that each one of them made some major mistakes in their planning BEFORE tragedy struck…and it cost their loved ones dearly.

And, I thought you’d be interested to learn some of these “behind the celebrity” stories I ran across. They’re from a new book called Trial & Heirs by Andrew Mayoras, a probate litigator, and they make for interesting reading!

Let me know your thoughts!

Aaron Miller’s
“Straight Talk” Personal Strategy
Estate Planning Mistakes of the Rich & Famous

Florence “FloJo” Griffith Joyner

Mistake: Not telling your executor where to find your original documents.

When Olympic sprinter Florence Griffith Joyner died at 38, in 1998, her husband couldn’t find her original will, and failed to file it with the probate court within 30 days of her death, as required by California law. Joyner’s husband and mother took disputes, including whether Joyner promised her mother could live in their house the rest of her life, to court. Joyner never filed the original will, and the judge eventually appointed a third party to administer the estate.

Our Lesson: Make sure at least two people you trust know where to find your original will. To be safe, keep two copies, and leave the original in your bank safety deposit box, or in a safe here at our offices.

Doris Duke

Mistake: Bad choice of executor.

Tobacco heiress Doris Duke, who died in 1993 with a fortune estimated at $1.3 billion, named her butler as executor and as trustee for a huge charitable foundation. After the butler’s lifestyle and spending habits were called into question, he was removed from his duties by a probate judge, then reinstated by New York’s highest court. A settlement agreement created a board of trustees to manage the foundation.

Our Lesson: Don’t have the butler do it. Pick someone competent and trustworthy as your executor. And, of course, we can help you with that!

Princess Diana

Mistake: Relying on a “letter of wishes” to give away belongings.

After her tragic death in 1997, Princess Diana left a detailed will–naming her sister and mother as executors. She also wrote a separate “letter of wishes” asking her executors, at their discretion, to divide her belongings among her sons and her 17 godchildren. But instead of getting stuff worth an estimated 100,000 pounds, each godchild got only a trinket.

Our Lesson: Don’t rely on executors’ sense of duty; put bequests in your will or trust or in a signed, dated list.

Jimi Hendrix

Mistake: Never writing a will.

Music legend Jimi Hendrix died at age 27 in 1970 without a will. Under state law, his dad, Al, got everything, leaving his close brother Leon with nothing. Al built Hendrix’s musical legacy into an $80 million venture, but, in his own will, he cut out Leon and his family, in favor of his daughter through a later marriage.

Our Lesson: Even young rock stars aren’t immortal. Sign a will or living trust document.

Ted Williams

Mistake: Conflicting directions on burial wishes.

In his will, baseball legend Ted Williams said he wished to be cremated. But his two children from a second marriage produced a grease-stained note saying he wished to be put in “biostasis” after his death, and they froze his body after his death in 2002. It’s become a bit of a macabre joke in the sports community, unfortunately. His eldest daughter fought to have his body unfrozen and cremated, but gave up the fight when she ran out of money.

Our Lesson: If you change your mind about your burial wishes, change your will by adding a codicil, or writing a new one.

I hope these stories help you avoid becoming a celebrity cautionary tale!

To your family’s wealth, health, and happiness!

Aaron Miller

Miller Law Firm, PLLC
Your Life Is Our Life’s Work!
101 E. Park Blvd., Suite 600
Plano, Texas 75074
Connect via: Facebook Twitter LinkedIn

PS–If you are receiving this and are NOT a subscriber to our weekly “Straight Talk” Personal Strategy Email series, click here to sign up.

To ensure we don’t make the folks at the IRS ornery, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein. This message may contain confidential and/or privileged information. If you are not the addressee or authorized to receive this for the addressee, you must not use, copy, disclose, or take any action based on this message or any information herein. If you have received this message in error, please advise the sender immediately by reply e-mail and delete this message. PHEW!

This e-zine was originally sent on January 1, 2010.  It may have been edited somewhat from the version that was originally emailed, so be sure to sign up to make sure you are getting our e-zines fresh!

“Be miserable. Or motivate yourself. Whatever has to be done, it’s always your choice.”

- Wayne Dyer

Hi Collin County,

Happy New Year!

It’s a slow week around here, after Christmas.  Santa managed to find four(!) Zhu Zhu pets, so the younger two girls were very excited.  (Our oldest couldn’t have been bothered about them.)  The kids have torn through all the rest of their presents and are now working through those gift cards they’ve racked up.  My folks are down visiting my sister in College Station and we have my mother in law in town now.  When she came in this week, she said she felt like she was checking in to the Miller Hotel!  We sure do love do have our folks come to visit – I just wish we could talk them into living closer!

Believe it or not, there is quite a bit of talk right now about estate tax in some circles. The estate tax is set to expire at the end of this year, but that was only going to last for another year until it came back in 2010 at a much lower rate.  That is still the law right now [as of the time this e-zine originally went out], but no one thinks it is going to last – Congress just hasn’t gotten around to “fixing” it right now.  Here’s an article from two weeks ago about this confusing process from the WSJ:
http://online.wsj.com/article/SB126090367887892391.html

Not much has changed since then.

But no matter what Congress does or doesn’t do, it won’t matter for most people because Estate planning is MUCH more than avoiding the estate tax.

In my opinion, this is why so many regular families get taken by surprise when they least expect it–after all, their estate wouldn’t be subject to the estate tax.

But then they get socked with all kinds of other fees, maybe even placed in probate and their wishes aren’t honored by the courts.

All because they never went through the process with someone like us.

Now, most of our clients know this already, which is why this email is perfect to send to your friends and extended family. It’ll be a true gift–peace of mind!

So, in that vein, I’m continuing my series from a couple weeks ago and doing some “myth busting”. Read on…send your feedback…

Aaron Miller’s

“Straight Talk” Personal Strategy

Part 2: Common Myths About Estate Planning

A few weeks ago, I wrote about these common myths–still held by the majority of Americans.

In fact, as of this writing, it’s a fact that almost 60% of Americans don’t have a basic will, and that’s a big problem.

Much of the reason for this is because of misconceptions about estate planning, and I dealt with two already:

Myth 1. Only rich people prepare estate plans.

Myth 2. Everything goes to your spouse, if something happens.

Well, I’ve got three more for you to chew on, and dispense with.

Myth 3. After I create my will or living trust, there’s nothing else to think about.

Well, if you follow this line of thinking, it could lead to a lot of problems. For instance, once you set up a trust, you need to re-title the assets you want to transfer to the trust. Otherwise, the trust doesn’t help a thing.

On top of that, families need to periodically update their will or trust to reflect major life events, such as a divorce or the birth of a child. You’ll also want to revisit your estate plan if you move to another state.

In fact, it’s a good idea to meet with us every 3 years to make sure your plan is fully up-to-date. (Which, incidentally, we provide free to all of our clients. Ask us about that.)

Myth 4. If I have a will, my estate automatically won’t go through probate.

Well, again–that’s not the case. Probate is a  process in which a court determines whether a will is actually valid and ensures that relatives and creditors are notified. This process can take several months and drain money from your estate.

So here’s one way to avoid that entirely–create that living trust. Essentially, a living trust is a legal document you create which holds property (such as brokerage accounts and real estate). When you die or are incapacitated, the property is smoothly transferred to your beneficiaries. This transfer occurs outside of the probate process, which can save a TON of hassle.

Not everyone needs one of these documents, but it’s something which you can’t paint over with a broad brush. Which is why it’s important to walk with a competent guide on these matters.

By the way, if you own property in more than one state, a living trust is a no-brainer. Going through probate in multiple states can be a nightmare.

Another advantage to a living trust is privacy. A will is a public document, and anyone can come to the probate hearing to see if any fights break out. Living trusts aren’t published in any courthouse, so people can’t gain easy access to them. That’s quite nice.

Myth 5. I could be held responsible for a deceased parent’s debts.

No, you’re not responsible for credit card debts from your parents.

In general, children aren’t responsible for a deceased parent’s debts, and in some cases spouses are often exempt as well. Again…you can’t paint it with a broad brush. But as a general rule, the estate is responsible for paying debts. If there isn’t enough in the estate to cover the amount owed, the debts usually go unpaid.

Most of all, we’re here to help.

To your family’s wealth, health, and happiness!

Aaron Miller

Miller Law Firm, PLLC
Your Life is Our Life’s Work
101 E. Park Blvd., Suite 600
Plano, Texas 75074
Connect via: Facebook Twitter LinkedInn

PS–If you are receiving this and are NOT a subscriber to our weekly “Straight Talk” Personal Strategy Email series, click here to sign up.

To ensure we don’t make the folks at the IRS ornery, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein. This message may contain confidential and/or privileged information. If you are not the addressee or authorized to receive this for the addressee, you must not use, copy, disclose, or take any action based on this message or any information herein. If you have received this message in error, please advise the sender immediately by reply e-mail and delete this message. PHEW!

This e-zine was originally sent on December 17, 2009.  It may have been edited somewhat from the version that was originally emailed, so be sure to sign up to make sure you are getting our e-zines fresh!

“Carpe diem! Rejoice while you are alive; enjoy the day; live life to the fullest; make the most of what you have.  It is later than you think.”

- Horace

Hi Collin County Parents,

Around here, we’ve been getting ready for my folks’ visit. They came down from Fairbanks, Alaska, so while it has been cold around here to us, they are escaping -8 or worse weather and think it is pretty nice! (well, except for the wind).

Remember when I mentioned that we lost our Thanksgiving turkey leftovers because we were afraid the dog would get them; we put them in the oven and then promptly forgot about them?  Well, here’s why – my mom brought some moose jerky that she made (remember they live in Alaska) and we put it on the counter where I thought the dog couldn’t possibly get to it.  I was wrong.  We left to go eat dinner and when we came home, I discovered that Kayla had helped herself to a little extra dinner of her own.  There was nothing left except plastic bag bits scattered everywhere.  I think it was a little spicy for her because all her water was gone and she immediately drank all of what I put down for her.  Somehow I don’t think she learned her lesson though — although I think I have. I’m going to think twice before putting anything on the countery anywhere!  There is never a dull moment with that dog around.

Well, we have been getting more and more “good” news about the economy. Last week, the report on November consumer spending showed that as a country we’re starting to feel a bit more free (it was up). That’s a great thing–there are plenty of ripples to this good news which families will begin to feel. Some economists say that we’re already in “recovery”.

But no matter how much things turn around in the national picture, regular families can continue to wallow in debt and struggle–and sometimes, frankly, it’s their fault.

Now, the last thing I want to do is shame anyone about the kind of behavior which leads to this situation…so, instead, I’d like to address it in my Personal Strategy Note for the week. That way, you can hold it up as a “mirror” to your own family’s financial habits and make the changes necessary to avoid this kind of situation.

As always, making change away from these habits can be difficult–but we’re here to HELP, not make you feel badly about it. So call or email us, and let us know what we can do to walk more closely alongside you in the road to financial recovery…

Aaron Miller’s

“Straight Talk” Personal Strategy

How Families Never Achieve Financial Freedom

In my line of work, I get to conduct a real-time analysis of what creates wealth in the lives of regular families…and what drives it away.

In my experience, the financially-strapped typically…

* Spend money on things they don’t need: I’m sure we’ve all got one of those friends who just loves to spend money, and buy things just to say they have them.  The newest iPhone just came out? They buy it even though they already have an older version.   A new TV came out with a higher refresh rate than their current one? They buy one so they can say they have the newest and latest technology.

* Don’t know where their money is going: Far too often people who are broke find themselves short because they’ve never tracked their monthly cash flow and their small expenses are adding up to consume everything they bring in.  They really need to track their expenses for a month or two so that they can set up a plan.

* Like to blame their problems on outside forces: People don’t like to see themselves as the source of their problems. While people certainly have problems that aren’t caused by something they’ve done, far too often they will also try to shift blame when they should be looking at themselves.  They blame their friends, family and the government.  They believe that “the little guy just can’t get ahead”.

* They would rather have others think they are wealthy, than actually be wealthy: People who are always broke like to be seen as wealthy and successful, even if looking that way to others means that they’re actually forfeiting the possibility of being wealthy in reality.

* They don’t plan ahead: Money is short because they haven’t set up a family budget and a saving and spending plan.  If you set up a monthly cash flow forecast, and know exactly what you’re going to spend in what categories -they’ll do much better.  If you fail to plan you can plan to fail.

* They use credit habitually for “lifestyle” purchases: Delayed gratification isn’t something that they’ve heard of, and if they want something, they just put it on credit.  After all – it’s at a 0% interest rate for the first 3 months!   One purchase leads to another, and before they know it, they’ve got thousands in credit card debt!

* Always pay more than they have to: Often people who are broke have gotten there because they don’t know how to shop for a deal, negotiate or ask for a discount.  You can get a discount on just about anything – from electronics to health care.  Never pay more than you have to!

* Fall prey to lifestyle inflation and “keeping up with the Joneses”: Often people with higher incomes have problems with staying ahead in their budget as well because they fall prey to lifestyle inflation.  Instead of banking and saving raises, they raise their standard of living – buying a bigger, better house, a new car and a new wardrobe.  They feel like they have to keep up appearances with everyone in their neighborhood.

* They rely on others to fix their problems: We’ve probably all known someone who is always going to their parents, family or friends to bail them out.  They create a pile of debt, and then rely on the kindness of others to get them out of their bind.

* They forfeit future gains for fun today: These people often have a hard time visualizing how saving and hard work will pay off down the road, and instead live for the fun and pleasures of today.  They don’t realize how saving for tomorrow can improve their quality of life today!

Obviously, I’d like to help you move past these behaviors. You may not carry every one of these traits, but just one or two can get you into hot water.

To your family’s wealth, health, and happiness!

Aaron Miller

Miller Law Firm, PLLC
Your Life is Our Life’s Work
101 E. Park Blvd., Suite 600
Plano, Texas 75074
Connect via: Facebook Twitter LinkedIn

PS–If you are receiving this and are NOT a subscriber to our weekly “Straight Talk” Personal Strategy Email series, click here to sign up.

To ensure we don’t make the folks at the IRS ornery, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein. This message may contain confidential and/or privileged information. If you are not the addressee or authorized to receive this for the addressee, you must not use, copy, disclose, or take any action based on this message or any information herein. If you have received this message in error, please advise the sender immediately by reply e-mail and delete this message. PHEW!

This e-zine was originally sent on December 3, 2009.  It may have been edited somewhat from the version that was originally emailed, so be sure to sign up to make sure you are getting our e-zines fresh!

“If you don’t know where you are going, how can you expect to get there?”
- Basil S. Walsh

Hello Collin County Parent,

Well I hope your Thanksgiving was great! Mine sure was. I really enjoy getting to spend time with the family.

I think mentioned last week that I went to check the turkey and noticed that it was still frozen even though it had been sitting in the fridge for a week.  That’s what you get when you crank down the outside fridge over the summer, I guess. Thankfully, I was able to use some techniques I picked up from my restaurant days to quickly and safely defrost the bird in time.  Phew!

I smoked the turkey this year (and it was awesome if I do say so myself) and a good time was had by all.  Sadly though, we put the leftover turkey in the oven to keep it away from the dog while we were clearing the table and we forgot about it. Those same restaurant skills that helped me thaw the bird wouldn’t let us put it back in the fridge. Ah well. There are always Christmas leftovers to look forward to, right?

So how was Thanksgiving? Any family gaffes to share with the entire world? I’m kidding, of course.

(Seriously, though, send me an email and let us know how things are going with your family–we’d love to hear what’s been happening with you!)

This week I’d like to talk a little bit about some myths related to estate planning.

I would love your feedback, and this would be a great one to forward along to your friends (with our thanks!).

Aaron Miller’s
“Straight Talk” Personal Strategy
Part 1: Common Myths About Estate Planning

As of this writing, it’s a fact that almost 60% of Americans don’t have a basic will, and that’s a big problem.

One of the big reasons that most families don’t yet have this in place is because of some incorrect thinking about whether it’s right for them, or if it’s even necessary. And sure, some people just haven’t gotten around to creating a will or trust. Others think they don’t need an estate plan because they’re not rich. Some people don’t want to put it in place because when they do, it’s sending some sort of death wish into the universe (or some such).

Well, I’ll start by busting THAT myth: Preparing a plan for your succession will not speed your demise. Easy enough.

But here’s the problem–if you continue without an estate plan, you could leave a legacy of bad feelings and attorneys’ fees.

But let’s talk about some of the other more common misconceptions out there. I’ll start with two this week, and address three more a couple weeks from now.

1. Only rich people prepare estate plans.

Do you own ANYTHING? Because if so, you need a will. You see, a will allows you to designate who will receive your property should anything happen. Continuing without one ensures that your assets will be distributed under the terms of Texas’ “intestate succession” laws. That means your money and property could end up with family members you haven’t spoken to in years, instead of who you’d really like to see control your assets.

I won’t go into all of the different components of a will, trust, health care directive etc., because today I just want to emphasize that failing to plan is simply a decision to trust your assets to government bureaucrats.

Even if you think your situation is pretty straightforward, you may feel more comfortable hiring a lawyer to guide you through the process.

2. Everything goes to your spouse, if something happens.

Unfortunately, that’s not always the case. State law on this varies.  In fact, in most states, if you continue without a will (intestate), your inheritance will be divided among your spouse and your children. In New York, for example, when someone dies intestate, the spouse gets the first $50,000 of the estate and what’s left is divided 50-50 among the spouse and the children. You can imagine how this could create all kinds of problems.

But what about Texas?  Thankfully, here in Texas it doesn’t work like it does in New York.  But if you or your spouse has children from a prior marriage or outside of the marriage, things can get a little complicated and may not go like you want.  (And if you want to know more details on how this works for your specific situation, call Paula at 214-292-4225 to get on my calendar for your Family Wealth Planning Session and you’ll get the full scoop.)

I’ll send a few more in the weeks ahead, but I hope you can already see that things are not always as we “think”.

To your family’s wealth, health, and happiness!

Aaron Miller

(Now I’ve got to go finish defrosting that bird!)

Miller Law Firm, PLLC
Your Life is Our Life’s Work
101 E. Park Blvd., Suite 600
Plano, Texas 75074
Connect via: Facebook Twitter LinkedIn

PS–If you are receiving this and are NOT a subscriber to our weekly “Straight Talk” Personal Strategy Email series, click here to sign up.

To ensure we don’t make the folks at the IRS ornery, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein. This message may contain confidential and/or privileged information. If you are not the addressee or authorized to receive this for the addressee, you must not use, copy, disclose, or take any action based on this message or any information herein. If you have received this message in error, please advise the sender immediately by reply e-mail and delete this message. PHEW!

This e-zine was originally sent on November 19, 2009. It may have been edited somewhat from the version that was originally emailed, so be sure to sign up to make sure you are getting our e-zines fresh!

“The wisdom acquired with the passage of time is a useless gift unless you share it.”
- Esther Williams

Hi Collin County Parents,

Have you ever had one of those weekends where you were glad when Monday finally came, so you could go to work and relax?  That’s how last weekend was for me.

It kinda felt like I was juggling chainsaws with my hair on fire.  But it was all for the kids, honest!

You see, my oldest and youngest daughters were in a production of Snow White, and in addition to having to have rehearsal’s all week long, they performed the play FOUR times this weekend.  On top of that, my other daughter had a soccer game and a birthday party to attend (that involved a limo ride for the girls at the party). AND she had a school project (creating a game involving a “simple machine”) that we had to finish.  AND Wendy and I were scheduled to volunteer at church this weekend.  Phew!  I don’t think I was ever so glad to see Monday!

I mentioned my weekend to a friend whose youngest child just graduated from high school last year.  She told me how she missed those days and reminded me to enjoy the kiddos while they are young.  Sometimes we get so wrapped up in the running around that we miss that we are enjoying the time with the kids.  I’m doing my best not to forget to do that before it is too late.

While we are talking about what is really important, let’s really be straight, today.

There are only a few things that *really* last in life, and money isn’t one of them.

Yes, this is a cliché, true.  But step back for a moment and consider those things which you spend the MOST amount of time agonizing over, fretting about, etc. Probably not the things most precious, right?

So, in this week’s Personal Strategy Note, I’m going to talk about this a little, and how you can preserve the most important parts of who we really are.

Aaron Miller’s
“Straight Talk” Personal Strategy
Priceless Conversations – Protecting More Than Just Money

Too many times lawyers just focus on the financials, and neglect to help families identify, articulate and pass along their dreams, passions and hopes for their children and loved ones.

Yes, some families take the bull by the horns, and do this themselves, but it makes really good sense to get outside help in making absolutely sure that every base has been touched.

Specifically, your children and your loved ones should be able to have resources and tangible memories which help them answer these kinds of questions:

-    What dreams did they have for me?
-    How have they seen the world change around them, and how do they feel about it?
-    What kind of family were they hoping to create?
-    Were there any mistakes made which they’d like to see me avoid?
-    What activities were they most glad to have participated in?
-    How did they make decisions about what to do as a family?

There are more questions like this, of course, that you could cover…but the main point I want to make with you is this:

You just never know when these questions will be asked.

And, I hope, you put in place the right tools to make sure you’ve got the answers.

To your family’s wealth, health, and happiness!

Aaron Miller

Miller Law Firm, PLLC
Your Life is Our Life’s Work
101 E. Park Blvd., Suite 600
Plano, Texas 75074
Connect via: Facebook Twitter LinkedIn

PS–If you are receiving this and are NOT a subscriber to our weekly “Straight Talk” Personal Strategy Email series, click here to sign up.

To ensure we don’t make the folks at the IRS ornery, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein. This message may contain confidential and/or privileged information. If you are not the addressee or authorized to receive this for the addressee, you must not use, copy, disclose, or take any action based on this message or any information herein. If you have received this message in error, please advise the sender immediately by reply e-mail and delete this message. PHEW!

This e-zine was originally sent on November 6, 2009.  It may have been edited somewhat from the version that was originally emailed, so be sure to sign up to make sure you are getting our e-zines fresh!  Happy New Year!

No matter how hot the day, never park your motorcycle under a tree full of birds.
- God

Hello Collin County Parents,

Yes, the quote above was a lesson learned the hard (and messy!) way.  I certainly won’t be doing that again!!  Thankfully I happened to have some paper towels with me.  Sometimes God teaches you the lesson before hand, and sometimes after.  (And sometimes the lessons learned afterwards stick the best.)  This is one that definitely stuck.

Well, another Halloween came and went.  This year the girls dressed up as a Fairy Queen (not a fairy princess I was informed), a jellyfish, and Sleeping Beauty.  They had a total blast with about 20 kids from the neighborhood walking around collecting candy.  This was the first year the girls actually carved pumpkins too (usually they just painted them), which was really cool — except for the fact that they got moldy so fast!  I would have thought they’d last more than a couple of days, but maybe that was just us.

This week I ran across some great tips for something which is relevant to more and more folks so I thought I’d share…

Aaron Miller’s
“Straight Talk” Personal Strategy
The Perfect Home Office

These days, many of our friends work all or part of the time from home, making a home office a necessity. And while I have never proclaimed myself a “design guru”, here are some “real world” tips for creating the perfect home office…

Layout - This may seem an obvious one, but it’s quite a common mistake–make sure your space fits what you’re going to put there! Before you buy any new furniture, make sure you measure and plot where each piece will go, and don’t forget to account for electrical and cable outlets.

Furniture - The desk is obviously important. A desk that’s roughly 60-inches wide, 30-inches deep, and 29-inches high is not only conducive to work, but it’s highly functional in terms of storing the items you use regularly. Your chair should be comfortable, but its primary function should be to promote healthy posture. Good posture will facilitate strong mental focus and will help to alleviate back and neck pain.

Lighting - This part can really set the mood for productivity…or for annoyance. If you’re lucky enough to have a window in your office, this should serve as your primary light source during the day. Natural light is easy on the eyes and promotes physical energy as well as a good mood. It’s also free. Large lights like floor lamps and ceiling lights should have the ability to be dimmed. Also, make sure your desk lamp is equipped with a light bulb that’s easy on the eyes. These “soft” light bulbs can be found anywhere, from office supply stores to grocery stores.

Storage - Some obvious, and some not-so-obvious storage secrets:
- Closets are great for storage. Not only can they house filing cabinets, but they are also perfect for storing the items you don’t need to access on a regular basis. This helps to maximize the actual workspace of your office.
- Shelving is one of the most versatile options for storage. Shelves can be purchased cheaply and come in a variety of sizes. They are easily installed and take up zero floor space.
- Don’t forget about your garage. When it comes to older files or anything that is rarely accessed, a garage can provide ample storage space. Word to the wise, however, the garage can be a dirty place. Plan accordingly by storing paper items in boxes and wrapping equipment in protective plastic.
- Visit a store that’s dedicated to home organization. Nowadays it seems like nearly every mall has a store of this kind. You’d be surprised at some of the inexpensive, space-saving storage options available.

Wall Organizers - Use them. Dry erase boards, chalkboards, corkboards, and magnetic boards are fantastic tools for keeping clutter off your desk. They are inexpensive and available everywhere in a variety of sizes. There are even combination boards that provide countless options.

Cords - Have you ever tripped up on a tangled mess of electric cords? Me too. Never underestimate the importance of power strips as they provide the ability to plug multiple devices into one outlet. The better power strips also provide surge protection to the equipment that’s plugged into them. In addition, cord covers are a great way to not only hide cords but to keep them from becoming a tangled mess. They can be purchased quite cheaply at any electronics store.

Décor - Here’s where you can really make a difference. Certificates, diplomas, awards, trophies, and pictures not only complement an office, but they also help to personalize it. It’s also a great idea to put “triggers” on your wall which motivate, inspire and help you to maintain the proper mindset for creating wealth.

Follow these simple steps, and more organization, function, focus–and wealth-building could be right around the corner.

I hope this helps!

To your family’s wealth, health, and happiness!

Aaron Miller

Miller Law Firm, PLLC
Your Life is Our Life’s Work
101 E. Park Blvd., Suite 600
Plano, Texas 75074
Connect via: Facebook Twitter LinkedIn

PS–If you are receiving this and are NOT a subscriber to our weekly “Straight Talk” Personal Strategy Email series, click here to sign up.

To ensure we don’t make the folks at the IRS ornery, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein. This message may contain confidential and/or privileged information. If you are not the addressee or authorized to receive this for the addressee, you must not use, copy, disclose, or take any action based on this message or any information herein. If you have received this message in error, please advise the sender immediately by reply e-mail and delete this message. PHEW!

This e-zine was originally sent on October 22, 2009. It may have been edited somewhat from the version that was originally emailed, so be sure to sign up to make sure you are getting our e-zines fresh!

It’s always too soon to quit.
- Norman Vincent Peale

Hello, Aaron!

It has been a slow week around Casa de Miller.  My Dad was down from Fairbanks, Alaska on a business trip in the area and we got to hang out with him for awhile, which was a nice suprise.  Unfortunately, he caught some bug on the plane ride down, so he was out of commisson most of the time.  Thankfully, I seem to be the only one that caught it from him.

I’m really excited to announce that our first print newsletter is going out very soon.  [Make sure you are getting the print newsletter - sign up here.]  I’m excited about the newsletter, becuse it won’t be what you would expect from a law firm.  Kinda like this ezine.

Rather than cram in a dry review of the latest case or law that no one will care about — like other law firms do — we will give you relevant, interesting information. Things that are actually useful and that you will want to share with your friends. We talk about keys to your family’s financial freedom, simple strategies for more wealth, health, and happiness, and how to provide the very best for you and your family.  To be sure to get your copy, sign up at aaronmillerlaw.com/request-newsletter.

This week, I’d like to talk about some economic news.  No this recession isn’t over, but there is good news out there–and I LOVE sharing good news with you. However, I was recently reminded again about how often we can just *grasp* at every item of good news, and not recognize the underlying truth.

Saw this article: http://news.yahoo.com/s/ap/20091018/ap_on_bi_ge/us_investor_earnings_guide … and indeed, it’s hopeful.

Manufacturing is no longer the primary standard for measuring the health of our economy, but it’s one sign that things may be picking up. We’d all like to see things picking up in the economy around us.

But still… things aren’t that great. Unemployment is creeping towards 10% nationally, and we’ll have to wait for a few months to see what the third quarter numbers *really* were. Sure, I’ll still point to articles which can give you a shot in the arm of hope–because our mindset about these issues is often just as important as the underlying data. But we must be realists–while at the same time fortifying our hearts and minds from “noise” which will keep us in fear, and keep us from pursuing our dreams.

See, I refuse to be blind to reality.

Which, of course, is why we spend so much time around here to make sure that YOUR future plans are also rooted in reality–so you can make the best decisions possible for your family or your business.

And the straight talk for some of my clients, or their friends–is that times are tough. So, I thought I’d rip off some quick thoughts for you on finding additional sources of income, if you’re looking.

It’s the subject of this week’s Personal Strategy Note…feel free to send your thoughts or questions!

Aaron Miller’s
“Straight Talk” Personal Strategy
Finding Other Ways To Bring in Family Income

This economy certainly has a bunch of families looking for ways to “trim the fat”…well, to continue the metaphor, how about *adding* some “lean”?

You see, when trying to save money, eventually you’ll come to a point where you have cut as many expenses as you can and there are no additional steps you can take to free up money from your current income. The next step to saving more could be to look for other sources of income. These are a few common ways to make extra income with which I’ve seen many clients succeed.

* One of the most obvious has to be getting a second job. While this can eat into your free time, it’s an immediate way to bring in a dependable, set amount of income. You could try to make it more enjoyable by choosing something you’re interested in. For example, if you are an avid golfer, then work in a golf store. Not only will you enjoy the job more, you may have a discount that will benefit you as much as the paycheck.

* When you invest in dividend paying stocks, you can receive 3-6% annually in dividends from some of the top financial and utility stocks.

* Rental property can be a great form of income, as long as it’s “cash flow positive”, meaning that the rent you bring in more than covers all the expenses. You don’t want your only hope of making money to be on the future value of the property.

* Sell things around the house that you don’t use anymore. This could be done with a garage sale or online at www.Ebay.com, www.Kijiji.com or www.Craigslist.org. If you get comfortable with selling on these sites, you could even buy things at other garage sales that are undervalued and sell them online yourself. If you enjoy a certain hobby, like crafts or woodwork, you might be able to make something that you can then sell online.

* There are many opportunities to make money online if you like to write. You can either have your own blog or write on sites like www.HubPages.com or www.Suite101.com. Plus, if you have other “freelance” skills, a great site to find work is www.elance.com.

While not all of these ideas will make a lot of money, even bringing in an extra $100 a month to invest and earn 7% will give you extra savings of around $117,000 in 30 years!

To your family’s wealth, health, and happiness!

Aaron Miller

Miller Law Firm, PLLC
Your Life is Our Life’s Work
101 E. Park Blvd., Suite 600
Plano, Texas 75074
Connect via: Facebook Twitter LinkedIn

PS–If you are receiving this and are NOT a subscriber to our weekly “Straight Talk” Personal Strategy Email series, click here to sign up.

To ensure we don’t make the folks at the IRS ornery, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein. This message may contain confidential and/or privileged information. If you are not the addressee or authorized to receive this for the addressee, you must not use, copy, disclose, or take any action based on this message or any information herein. If you have received this message in error, please advise the sender immediately by reply e-mail and delete this message. PHEW!

This e-zine was originally sent on October 2, 2009.

+++++++++++++++++++++++
You are receiving this note because you are a client or friend of Aaron Miller.
+++++++++++++++++++++++
“The marvelous richness of human experience would lose something of rewarding joy if there were no limitations to overcome. The hilltop hour would not be half so wonderful if there were no dark valleys to traverse.”
- Helen Keller

Collin County Parents,

Determination!  That’s what my youngest daughter has.  Last Friday, she decided that one of her top teeth was loose (it really wasn’t), then she worked it so much that it was out before she went to bed.  Thankfully the tooth fairy happened to have some cash in my wallet.

Fast forward until Monday, where I was getting ready to take the kids to school in the morning and she strolls into our bedroom with something in her hand.  ”Look, Daddy!  I pulled out my tooth!”  Sure enough, she was missing her other top tooth.  Then, one day later, after she was put to bed, she pulled out yet another tooth! This time on the bottom.  Three teeth missing!  I better make sure, uh, I mean the tooth fairy better to make sure we have more cash on hand!

Well, a few weeks ago, I asked whether you were lying to yourself and living above your means.  Just to prove I’m complicated, I’m now going to make a few purchase suggestions if you ARE feeling financially secure.

Read on, and send me your feedback…

Aaron Miller’s
“Straight Talk” Personal Strategy
Nine Things To Consider Purchasing Before This Recession Ends

After months of steep decline, there is finally talk now that we may start seeing a recovery, even as soon as later in 2009.

That could mean that it’s NOW a good time to start considering making some purchases… before all the good deals end!

1. A House
Housing prices finally seem to be bottoming out in most regions. There are also some great buys available due to short sales and foreclosures, which accounted for 40%-45% of purchases in some months this year, according to the National Association of Realtors. Still-low interest rates (under 5% for a 30-year mortgage) and government incentives ($8,000 first-time home buyer’s credit–expires November 30th) aren’t bad either.

2. A Car
With the auto industry suffering, manufacturers are offering huge incentives on their swelling inventories of new cars. Buyers with good credit can get 0% financing on most types of cars and some cash rebates can be upward of $6,000. Don’t rule out a used car either: The 2009 Consumer Price Index shows a 10%+ decrease in used car prices from a year ago.

3. A Vacation
Need a break? Now’s the time to take one. According to Expedia.com research, average hotel prices in many desirable destinations have plummeted. For example, hotel prices in Las Vegas are down 34% from a year ago. Average Caribbean cruise prices have fallen 8% compared with 2008. Several travel agents also bragged about booking week-long Alaskan summer cruises for as low as $1,000 per person, including airfare and taxes.

4. Toys
Parents can breathe a sigh of relief: More affordable toys are on their way for the holidays. According to the Toy Industry Association, Inc., toy manufacturers are responding to the economic climate by developing low-cost toys. One toymaker, Wild Planet, has priced their entire 2009 line under $25. Look for lower-priced toys starting to hit stores later this fall.

5. A Laptop
Paul Ryder, vice president of consumer electronics for Amazon.com, says laptop prices have dropped–thanks to the interest in “netbooks” (much smaller versions of laptops, designed mostly for web-browsing). Although the Consumer Price Index does not break out laptop computers from others, it seems to broadly support this claim, with personal computer prices falling 13% from a year earlier.

6. Diamonds
Don’t wait for the economy to improve before popping the question. Diane Irvine, chief executive officer of leading online diamond retailer bluenile.com, says that the recession has quashed demand for diamonds, creating deals. According to Ken Gassman of the Jewelry Research Institute, prices for polished diamonds are down 14%, on average, from their highs last summer.

7. Women’s Clothing
According to the Consumer Price Index, women’s outerwear, shoes and accessories have all seen lower prices compared with a year ago. Recently, women have begun flocking to “value” retailers, according to Piper Jaffray retail clothing analyst Jeffrey Klinefelter. That means less expensive clothing stores can lower their prices through lower production costs, and more expensive clothing stores will be forced to have more sales and clearance racks.

8. A Television
Each year it seems as though TVs get cheaper and cheaper, but this year those decreases are starting to make larger flat-panel TVs far more affordable. The radio/television category in recent Consumer Price Indices was down 9% from a year ago, as more manufacturers get into the flat-panel business, driving prices down.

9. Furniture
With fewer people buying houses, fewer people are buying new furniture. Jim Sluzewski, a spokesman for Macy’s, says furniture demand across the industry has noticeably decreased over the past year. That’s driven many furniture retailers out of business, according to John Baugh, an analyst who covers the furniture industry at Stifel, Nicolaus & Co., Inc. Retailers still in the market have to respond to those liquidation sales with price-cuts and clearance items of their own. Baugh also noted that consumers with good credit can also often obtain very attractive financing.

So…if you’re feeling financially secure, this may be the time to start spending!

To you family’s wealth, health, and happiness!

Aaron ”tooth fairy” Miller

Miller Law Firm, PLLC
Your Life is Our Life’s Work
101 E. Park Blvd., Suite 600
Plano, Texas 75074
Connect via: Facebook Twitter LinkedIn

PS–If you are receiving this and are NOT a subscriber to our weekly “Straight Talk” Personal Strategy Email series, click here to sign up.

To ensure we don’t make the folks at the IRS ornery, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein. This message may contain confidential and/or privileged information. If you are not the addressee or authorized to receive this for the addressee, you must not use, copy, disclose, or take any action based on this message or any information herein. If you have received this message in error, please advise the sender immediately by reply e-mail and delete this message. PHEW!

This e-zine was originally sent on September 25, 2009.

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“Morale is when your hands and feet keep on working when your head says it can’t be done.”
- Benjamin Morrell

Hello, Collin County Parents!

I love the fall! The weather is finally not so beastly hot and there are a ton of festivals around town. (Not to mention hockey season is right around the corner!)  Last week we had the Plano Balloon Festival, which is always a blast. The kids always love the funnel cakes and turkey legs (now if I can only get Kaity to eat more than 5 bites before she is “full” and wants to dig into that funnel cake!) Next weekend we’ve got Murphy’s Maize Days on Saturday and Sunday at Murphy’s Municipal Complex. Murphy has really started doing a lot of fun activities in the last few years and I think it is promoting a real sense of community.

Well, with the fall starting, we certainly have been having some crazy weather! I hope you haven’t been flooded out! (And if it rains much longer, I’m going to have to start looking for gopher wood to build an ark!) I had a strange experience this week – during the electrical storms, I saw an exploding street light. Oddly enough, that was not my first. Three weeks ago my family and I saw another that exploded very shortly after we drove passed it. (I know we have electric personalities and all, but sheesh!) If you are curious, the light makes a weird blue glow and then shoots sparks on the ground – kinda like you would see in a movie. It was too wild!

Now before I get started on this week’s “Straight Talk” Personal Strategy, I want to introduce and welcome Paula Woolley to the Miller Law Firm. Paula is the firm’s Client Services Director. She will help answer quick questions, as well as schedule appointments with me. She’ll also be helping out with a lot of other projects that have been getting pushed off for far too long. So please help me welcome Paula!

In honor of Paula’s arrival, I’m making a SPECIAL OFFER. I’m giving away NO CHARGE Family Wealth Planning Sessions to the first 7 families that call 214-292-4225, and ask for Paula. [Sorry guys, this was for the e-zine subscribers only.  But you never know when this will be repeated, so it is a great reason to sign up for our e-zine!]

Well, this week, I’m going to put on my “personal coach” hat this week, and get a bit blunt about some personal financial habits which could be killing you. I’m taking a bit of a risk, as a lawyer, but I hope this is helpful. I know that these ideas help me.  I would love to hear your thoughts…

Aaron Miller’s
“Straight Talk” Personal Strategy
How Not To Lie To Yourself About Finances

Working with people over the years has given me a bit of a crash course in human behavior. Often, I’m floored by the generosity I see displayed by many people — even those without significant means.

Other times…well, I think that we all could use the reminder that our human flaws show up very clearly in our family’s finances. The fact is that we ALL lie to ourselves, from time to time, about what’s really happening in our wallets.

This habit of lying to ourselves threatens our financial stability. Instead of spending $5, we spend $20. Instead of recognizing that we *want* that new shirt, car, or fine dinner at a restaurant, we lie to ourselves until we are convinced that, for one reason or another, we *need* that new shirt, car, or fine dinner. The current credit crunch can partly be blamed on a nation full of people who convinced themselves that a $800,000 home was necessary–even though a $350,000 home was sufficient. We must learn to live within our income … and this means, we must stop lying!

So, I’ve compiled a short list of ideas on how to stop lying to ourselves and face the truth when making purchase decisions.

1. Have (and stick to) a budget. Is this purchase in my budget? For example, your family budgets a certain amount each month to spend on clothing. You’ve agreed that this amount is sufficient to meet your needs. So you set this amount before facing a purchase decision. If during the month you want to exceed the budget because Kohl’s is having a fantastic sale (or Fry’s if you’re me), then you are now lying to yourself. You aren’t saving money by exceeding your budget during a sale. In fact, now you have to dip into savings to pay for your overspending.

2. Set a per-purchase spending limit. A wise man said, “The four most caring words for those we love are ‘We can’t afford it.’” Take some time with your spouse to set what I call “What I can spend without having to ask my wife if it’s ok” spending limit. Some spouses have decided that neither one of them is allowed to spend more than $100 at any given time without calling and asking the other one if it’s okay (this does not apply to groceries). Let me tell you right now, these limits have stopped many from making a lot of unnecessary purchases.

3. Replace bad habits with enjoyable, inexpensive activities. Shopping or overspending is a habit that we have likely formed over years. Since our brains are programmed to react in a certain way in specific situations, any change is met by resistance. The existing habit is simply more comfortable and natural. To help change your behavior, replace the bad habit with another activity.

For example, instead of going to the mall to pass time, go to a local park with a soccer ball and spend some time with family or friends. Start or re-start a hobby. Your new hobby might even be a low cost home business where you make money!

4. Make sure that the reason you tell yourself you are making the purchase and the *actual* reason you are making the purchase are the same. Ask yourself, “Why am I really making this purchase?” Am I buying this dress for my wife because I love her and want to show my appreciation, or am I trying to prove to her and the world that I am a good provider? We lie to ourselves to cover our true motives. If the real reason you are making a purchase isn’t in-line with your principles and budget, then don’t buy it.

5. Take stock of and enjoy everything that you already have! Develop gratitude for what you already have in your life. Purchasing new things is often a sign of ingratitude for what life has already afforded us … or a sign that we feel deficient in some area.

Overcoming bad habits and addictions is a process that requires concerted effort. Face each day one at a time and stop lying to yourself! Don’t believe the story you’ve created in your mind that justifies unnecessary and financially harmful purchases.

To your family’s wealth, health, and happiness!

Aaron Miller

Miller Law Firm, PLLC
Estate Planning For Parents
101 E. Park Blvd., Suite 600
Plano, Texas 75074
Connect via: Facebook Twitter LinkedIn

PS–If you are receiving this and are NOT a subscriber to our weekly “Straight Talk” Personal Strategy Email series, click here to sign up.
To ensure we don’t make the folks at the IRS ornery, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein. This message may contain confidential and/or privileged information. If you are not the addressee or authorized to receive this for the addressee, you must not use, copy, disclose, or take any action based on this message or any information herein. If you have received this message in error, please advise the sender immediately by reply e-mail and delete this message. PHEW!

This e-zine was originally sent on September 11, 2009.

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“It we succeed without sacrifice, it’s because someone sacrificed for us.”
- Denis Waitley

Hi Collin County Parents,

I’m going to keep it short this week.  A very good friend was in the hospital for unexpected heart surgery.  Thankfully the surgery went well and he is going to be okay.  I thought that this week, I’d take a break from your regularly-scheduled family advice, and instead would pass this story that I recently heard and appreciated.  I hope you do too.

Aaron Miller’s
“Straight Talk” Personal Strategy
Thanks For Your Time

It had been some time since Jack had seen the old man. College, girls, career, and life itself got in the way. In fact, Jack moved clear across the country in pursuit of his dreams. There, in the rush of his busy life, Jack had little time to think about the past and often no time to spend with his wife and son. He was working on his future, and nothing could stop him.

Over the phone, his mother told him, “Mr. Belser died last night. The funeral is Wednesday.” Memories flashed through his mind like an old newsreel as he sat quietly remembering his childhood days.

“Jack, did you hear me?”

“Oh, sorry, Mom. Yes, I heard you. It’s been so long since I thought of him. I’m sorry, but I honestly thought he died years ago,” Jack said

“Well, he didn’t forget you. Every time I saw him he’d ask how you were doing. He’d reminisce about the many days you spent over ‘his side of the fence’ as he put it,” Mom told him.

“I loved that old house he lived in,” Jack said.

“You know, Jack, after your father died, Mr. Belser stepped in to make sure you had a man’s influence in your life,” she said

“He’s the one who taught me carpentry,” he said. “I wouldn’t be in this business if it weren’t for him. He spent a lot of time teaching me things he thought were important…Mom, I’ll be there for the funeral,” Jack said.

As busy as he was, he kept his word. Jack caught the next flight to his hometown. Mr. Belser’s funeral was small and uneventful. He had no children of his own, and most of his relatives had passed away.

The night before he had to return home, Jack and his Mom stopped by to see the old house next door one more time.

Standing in the doorway, Jack paused for a moment. It was like crossing over into another dimension, a leap through space and time The house was exactly as he remembered. Every step held memories. Every picture, every piece of furniture….Jack stopped suddenly.

“What’s wrong, Jack?” his Mom asked.

“The box is gone,” he said

“What box?” Mom asked.

“There was a small gold box that he kept locked on top of his desk. I must have asked him a thousand times what was inside. All he’d ever tell me was ‘the thing I value most,’” Jack said.

It was gone. Everything about the house was exactly how Jack remembered it, except for the box. He figured someone from the Belser family had taken it.

“Now I’ll never know what was so valuable to him,” Jack said. “I better get some sleep. I have an early flight home, Mom.”

It had been about two weeks since Mr. Belser died. Returning home from work one day Jack discovered a note in his mailbox. “Signature required on a package. No one at home. Please stop by the main post office within the next three days,” the note read.

Early the next day Jack retrieved the package. The small box was old and looked like it had been mailed a hundred years ago. The handwriting was difficult to read, but the return address caught his attention. “Mr. Harold Belser” it read. Jack took the box out to his car and ripped open the package. There inside was the gold box and an envelope. Jack’s hands shook as he read the note inside.

“Upon my death, please forward this box and its contents to Jack Bennett. It’s the thing I valued most in my life.” A small key was taped to the letter. His heart racing, as tears filling his eyes, Jack carefully unlocked the box. There inside he found a beautiful gold pocket watch.

Running his fingers slowly over the finely etched casing, he unlatched the cover. Inside he found these words engraved:

“Jack, Thanks for your time! -Harold Belser.”

“The thing he valued most was…my time”

Jack held the watch for a few minutes, then called his office and cleared his appointments for the next two days. “Why?” Janet, his assistant asked.

“I need some time to spend with my son,” he said.

“Oh, by the way, Janet, thanks for your time!”

“Life is not measured by the number of breaths we take but by the moments that take our breath away,”

If you have a great friend, take the time to let them know that they are great.

Send this letter to all the people you care about, if you do so, you will certainly brighten someone’s day and might change their perspective on life…for the better.

To everyone I send this: “Thanks for your time.”

To your family’s wealth, health, and happiness,

Aaron Miller

Miller Law Firm, PLLC
Estate Planning For Parents
101 E. Park Blvd., Suite 600
Plano, Texas 75074
Connect via: Facebook Twitter LinkedIn

PS–If you are receiving this and are NOT a subscriber to our weekly “Straight Talk” Personal Strategy Email series, click here to sign up.

To ensure we don’t make the folks at the IRS ornery, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein. This message may contain confidential and/or privileged information. If you are not the addressee or authorized to receive this for the addressee, you must not use, copy, disclose, or take any action based on this message or any information herein. If you have received this message in error, please advise the sender immediately by reply e-mail and delete this message. PHEW!

This e-zine was originally sent on August 28, 2009.

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You’ve got to say, I think that if I keep working at this and want it badly enough I can have it. It’s called perseverance.
- Lee Iacocca

Hello, Collin County Parents!

Well, I’m sure you’ve noticed the traffic on the roads increased this week.  I know I sure did.  It seems that every year about this time, the traffic suddenly triples, and that means one thing – school is back in session!  If you’ve seen my drive around like a maniac this week, it is because I’m wearing one of my many hats, that of morning taxi cab driver.  I’ve been taking the two youngest girls to elementary and then thirty minutes later dropping number 1 daughter off at middle school.  Sadly last year was the only year for all three girls to be at the same school.  So I get to do the split drop off for several more years!  Ah well.  Anyway, after the first-day-of-school chaos on Monday, I’m really looking forward to things calming down a little bit.  I’m sure you are too (even if you aren’t running kids to school)!

This week, I’d like to talk about how you can protect your family *different* way–with your credit. These days, it seems like that the possibilities for identity theft are endless…but the fix is quite simple–and you DON’T have to pay for a special service…

Read on, and send me your feedback.

Aaron Miller’s
“Straight Talk” Personal Strategy
Locking Down Your Credit

Identity theft is becoming all too common as personal information becomes easier to swipe. Internet sites all ask the same security verification questions. One site could easily collect your information and then try using it on others.

For example, a student filled out a credit card application outside a university football game with the promised bonus of a free T-shirt. (Incidentally, that’s exactly how I got my first credit card.  Go Longhorns!)  The scammers used all his information on a real credit card application but changed the mailing address. (Thankfully, the card I signed up with was legit.)  By the time the student realized his identity had been stolen, creditors were hounding him for hundreds of dollars of charges.

Having your identity stolen costs an average of $40 and 10 hours defending your name and cleaning up the mess. It happens to about 0.8% of the U.S. population each year. Even if your time is worth $100 an hour, the average loss to you is only about $8 annually. So clearly it’s not the actual monetary cost that bothers people. What’s really worrisome is the uncertain cost to clear it up, the vulnerability, and personal violation they feel.

Fortunately, there is a simple and easy way to acquire a full credit lockdown so no one can initiate changes to your credit without your permission. Your credit information is stored at three main credit bureaus: Experian, Trans Union and Equifax. At the end of 2003, Congress passed legislation that requires these bureaus to allow you to put a fraud alert on their credit reports. The alert only lasts 90 days, but during that time lenders have to verify your identity before they can issue a credit card in your name.

Since then, several companies have used this law to offer a renewal of the fraud alert every 90 days on your behalf. LifeLock is the best known among these services. The company went so far as publishing its CEO’s Social Security number and daring people to try and steal his identity.

Although LifeLock’s service is convenient, you can still duplicate their services by placing a credit security freeze on your own credit record. A credit freeze does everything a fraud alert does and more. First, it is permanent, not just for 90 days. Second, it prevents lenders from seeing your credit report unless you specifically grant them access. This strategy prevents identity thieves from getting new credit in your name even if they have every bit of your personal information.

If you do apply for additional credit, you will have to remove the freeze temporarily or give the specific party who wants to access your information your personal identification number (PIN).

If you plan on applying for additional credit cards or getting a new cell phone provider or cable package, a credit freeze may not be advisable. And those promotions linked to new credit card applications will no longer flood your mailbox. But these deals are never a way to build real wealth. Get the few credit cards you need, and don’t let any promotional offers suck you in.

Each credit bureau charges a onetime fee of about $10. If you have already been the victim of identity theft, the charge is waived. If you have relatives in other states, they may not be charged the fee regardless, because some states do not permit credit agencies to charge its customers for placing a security freeze. Unfortunately, Texas is not one of them.  If you’ve already established the credit you need a credit freeze is a good idea.. A freeze both reduces the frenzied marketing of additional credit opportunities and the potential harm of compromised personal information.

After a few minutes of effort and about $30 in payments, your credit should be locked for life. Here is how to accomplish securing your credit at each bureau:

* At Experian (888-397-3742), go to http://www.experian.com/consumer/security_freeze.html .
* At Trans Union (888-909-8872), go to https://annualcreditreport.transunion.com/fa/securityFreeze/landing to start the process.
* At Equifax (1-888-766-0008), you can put a lock on your credit by visiting https://www.freeze.equifax.com .

The process is not standardized across the three credit bureaus. Each uses a different methodology. But with a little effort, your credit will be safe and secure.

Each bureau will give you a PIN. They are likely to be all different. Don’t lose these! Trying to get a security freeze lifted when you have forgotten the PIN necessary to change your credit security is a catch-22 you don’t want to experience.

To your family’s wealth, health, and happiness!

Aaron Miller

Miller Law Firm, PLLC
101 E. Park Blvd., Suite 600
Plano, Texas 75074
Connect via: Facebook Twitter LinkedIn

PS–If you are receiving this and are NOT a subscriber to our weekly “Real World” Personal Strategy Email series, click here to sign up.

To ensure we don’t make the folks at the IRS ornery, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein. This message may contain confidential and/or privileged information. If you are not the addressee or authorized to receive this for the addressee, you must not use, copy, disclose, or take any action based on this message or any information herein. If you have received this message in error, please advise the sender immediately by reply e-mail and delete this message. PHEW!

This e-zine was originally sent on August 14, 2009.

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Your attitude is either the lock on or key to your door of success.
- Denis Waitley

Hey Collin County Parents,

“You can’t wear other people’s panties.  You have to wear your own.”

That was a lesson my oldest niece learned this week.  More on that in a minute!

This week was a blast! My brother-in-law had to go to a convention out of town and my sister didn’t want to be left alone with a two year old and twin three month olds.  (Gee, I can’t imagine why?!)  So she came up from College Station with my three little nieces to visit us for several days.  And let me tell you, people with multiples have a special place in Heaven!  That was the lesson I learned this week.  Wow!  I remember when my girls were infants how much work it was to keep them fed, changed, and put down to sleep at night.  I got to watch (and help as best I could) what it takes to do two at once.  That is more than just twice as hard! Just surviving the day is an accomplishment, so I really admire my sister and all the other mothers that have done it or are going through it.  You ladies are saints in my book!

Back to my oldest niece.  She is two years old and cute as a button.  She and my daughters just LOVE each other.  She looks up to them and wants to do what they do and dress like they do.  When she saw what one of my girls was wearing, she wanted to wear the same thing.  Her mom had to give her one of those great life lessons that only a mom can teach: you can’t wear someone else’s underwear, you can only wear your own.  Now my niece is very little and can take that lesson at face value – she can only wear her own clothes and not share with someone else.  Cool.  Lesson learned.  But as I thought about it, it seemed like this was a good metaphor for adults.  If you and I put our minds to it, we could probably come up with several different lessons that we could draw here.  But the first one that came to my mind was that no matter what someone else has, what they wear, or what they are doing, we have to live our own lives and not try to imitate someone else.  In other words, we shouldn’t try to wear someone else’s panties!  That can’t be it though – let me know what you came up with!

Since this summer is winding down and the kids go back to school in a couple of weeks, I got to thinking about the fun the family had on vacation in Washington, D.C. this summer.  Then that got me thinking about some of the coolest things we saw there–the Declaration of Independence, Constitution, Bill of Rights, Magna Carta, and the Articles of Confederation –all the foundational documents of democracy, all in the same building!

Interestingly, although we celebrate the signing of the Declaration of Independence on July 4th, did you know that it was actually approved on July 2nd, and most of the delegates didn’t even get around to signing it until August 2nd?  So, in a sense, rather than celebrating back on July 4th, we should have celebrated THIS month!

But, while John Adams expected Americans would celebrate July 2, the date actually printed on the publicized copies of the document was July 4th…so that’s why we celebrate it then.

A couple other facts you may not know about last month’s (or this month’s?) holiday…

* The first recorded use of the name “Independence Day” occurred in 1791.
* The U.S. Congress established Independence Day as an unpaid holiday for federal employees in 1870. They changed it to a federal paid holiday in 1931.

So…all of this about “independence” got me thinking about your *financial* independence, Aaron.  Are you on track for it?  Do you know what it means, or what it looks like when you have “arrived”?

I’ve got some thoughts for you about how to get there in this week’s Personal Strategy Note…

Aaron Miller’s
“Straight Talk” Personal Strategy
How To Achieve Financial Independence

With these financially crazy times, it’s easy to lose sight of why we’re doing this.  What is the goal?  What is it we’re trying to accomplish by earning wealth? For me – and for many others – the answer is Financial Independence.

What is financial independence?  Well, I would define financial independence as “having an income sufficient for your basic needs and comforts from sources other than paid employment”.  Financial independence implies freedom. It’s the condition of having saved enough money that you can do whatever you choose.  Whether you elect to keep working doesn’t matter – you have enough saved and invested to follow your dreams.

But is financial independence just a pipe dream?  Is it something only for the lucky and the strong?  No, it’s a goal that anyone can fulfill as long as they’re armed with some basic knowledge, as long as you make smart choices.

As I see it, there are four keys to accumulating wealth:

1. Start investing as early as possible. It takes significantly less money to accomplish what you want, and you have more time working for you.
2. Be determined to save on a regular basis. It is an easy way to accumulate wealth.
3. Begin investing with the largest possible sum you can. You will have more money working for you over a longer period of time.
4. Reach for the highest rate of return you believe you can safely receive on your money over time. Each additional percent is important. The higher the rate, the less money it takes to accomplish what you want.

Financial independence is built upon these four guidelines.

Confronting your financial challenges

In order to save money, you must fight to keep from spending it. I encourage you to set goals, to prioritize wants.  Since money can be spent only once, you need to decide which wants are most important.  To do this, it may be helpful to place a value on each of your wants.

So…here’s an exercise for the week: Pull out a piece of paper and list your wants.

These can range from a new house to a hot tub to a trip to London to a new blender for the kitchen.  Next to each item, write why you want it.  (You might want a hot tub, for example, because it would allow you to relax with family and friends.)

When you’ve finished, take another piece of paper and re-order the list based on how important each want is to you.  If a trip to London tops the list, are you still willing to delay it by spending $40/month for that gym membership you rarely use?

Confront this issue first (keeping in mind those four keys mentioned above), and I’ll be back with more thoughts for you next week.

Hope this helps!

To your familiy’s wealth, health, and happiness!

Aaron Miller

Miller Law Firm, PLLC
101 E. Park Blvd., Suite 600
Plano, Texas 75074
Connect via: Facebook Twitter LinkedIn

PS–If you are receiving this and are NOT a subscriber to our weekly “Straight Talk” Personal Strategy Email series, click here to sign up.

To ensure we don’t make the folks at the IRS ornery, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein. This message may contain confidential and/or privileged information. If you are not the addressee or authorized to receive this for the addressee, you must not use, copy, disclose, or take any action based on this message or any information herein. If you have received this message in error, please advise the sender immediately by reply e-mail and delete this message. PHEW!

This e-zine was originally sent on July 31, 2009

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You are receiving this note because you are a client or friend of Aaron Miller.
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“There are people who make things happen, there are people who watch things happen, and there are people who wonder what happened. To be successful, you need to be a person who makes things happen.”
- Jim Lovell

Hey Collin County Parents,

Who says nothing good comes from TV?

Last week, while my oldest daughter was visiting with her grandparents and exploring Mesa Verde, we had a (relatively) quiet week with our two younger girls. In fact, one day they were watching a Brady Bunch rerun – the one where Bobby and Cindy decided to try to break the world’s teeter totter record. Well, my two youngest girls decided they were going to have to break a record too. We don’t have a teeter totter, so they decided they were going to set the world’s record for not talking. Now I don’t know what the world’s record is – after all, aren’t there monks that have taken vows of silence and been quiet for years? – but the girls managed to stay quiet, absolutely no talking FOR 46 MINUTES!!!!! Unfortunately, they decided to do this while I was in the office, so I didn’t get to enjoy it, but my wife was LOVING IT! Those girls are too cute.

We are really having a great summer with them home, and I hope your summer is going well too.

This week, I’d like to share a great article from the Wall Street Journal that I recently came across.

Aaron Miller’s
“Straight Talk” Personal Strategy
Deciding if Your Kid Is Trust-Worthy

Adapted from ‘The Wall Street Journal Financial Guidebook for New Parents,’ by Stacey L. Bradford. Copyright 2009 by Dow Jones & Co. Inc. Published by Three Rivers Press, an imprint of the Crown Publishing Group.

Parenting is more than reading to your children or getting them to eat their vegetables. It’s also about securing their financial future. One way to do that is by drafting a trust and naming a trustee. In this excerpt from her new book “The Wall Street Journal Financial Guidebook for New Parents,” Stacey L. Bradford explains why parents may want to consider estate-planning tools beyond a will.

Here are a few questions to ask yourself to determine if a trust is right for your family:

Do you anticipate leaving your children more than a modest sum of money?

A trust may not be worth the effort if you think you’ll only be leaving a child (or children) $100,000 or less. On the other hand, if you’re leaving life insurance money to cover four years of school and you own a home, there’s a good chance a trust would make sense for you.

Do you want to have some say in how your children’s money is spent?

A trust allows you to restrict spending to basic support, including food, clothing, education and health care. This is something that can’t be done with a custodial account. If the custodian is a soft touch, he could end up lavishing your child with designer jeans and a fancy car, leaving very little left for the college years. Even worse, if the custodian is also the guardian, he could start writing himself large “support” checks to help cover his other expenses.

Would you prefer that your children not inherit the money when they turn 18 or 21?

If you think giving a high-school senior a large sum of cash is a recipe for disaster, then you should consider a trust. The ability to delay inheritance was the main draw for drafting a trust for Laurie and Greg Wetzel, a New York City couple in their mid-30s with three small children. Should something happen to both of them, they decided, their kids will each receive half of their inheritance at age 30, and the remaining amount when they reach 35. “Your 20s are such a transitional time that we don’t want our children to have significant financial decisions to make,” Ms. Wetzel says.

Do you want the money to be used for a college education?

If you specifically bought life insurance so that there would be enough money to help fund college in the event of your death, then you’ll definitely want to delay the age at which your kids inherit your money. Otherwise, your child could think a red Ferrari is a better investment than a crimson Harvard diploma.

Would you like your children to have recourse if their money is mismanaged?

One more benefit of a trust that you don’t get with a custodial account is that a trust is a legal contract; the trustee has an obligation to follow your directions and act in a reasonable and prudent manner. If the beneficiary feels the trustee spent the money frivolously, he can demand an accounting, and can sue for reimbursement if the trustee acted improperly with the funds. It may be pretty tough to prove illegal or improper actions with a trust, but just the threat of a possible lawsuit can keep someone in line.

To read the article in its entirety, go here: http://online.wsj.com/article/SB124397907698178821.html

I’ll leave these questions there, and will return in a few weeks to more. I hope they’re helpful…and feel free to forward this to your family and friends.

To your family’s wealth, health and happiness!

Aaron Miller

Miller Law Firm, PLLC
101 E. Park Blvd., Suite 600
Plano, Texas 75074
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