We’re pleased to feature a guest post from Tom Simmons, a partner with the Rapid City law firm of Gunderson, Palmer, Nelson & Ashmore, LLP.

There is a great deal of ruckus about the rights of our country’s elderly citizens to be free from abuse and exploitation.

The most recent cloud of dust was raised when the Elder Justice Act was being argued and considered by Congress.  Mickey Rooney, age 90 and the beloved Hollywood star of films like Boys Town, testified in March of this year before the Senate Aging committee.  Coincidentally, Rooney had to obtain a restraining order against his stepson on account of allegations that the stepson had been financially abusing his stepfather.

So what is elder abuse and what can or should the U.S. Congress do to eliminate it? Continue Reading »

After a long, wet spring, summer has finally arrived in the Black Hills. The scent of grilling hamburgers and the sound of lawnmowers fill the air in the evenings, the parks and bike path are busy, and the city pools are beginning to fill up with shrieking children.

If you like to swim, but don’t especially like sharing a pool with hordes of enthusiastic little splashers, this is the time of year you might start thinking wistful thoughts about how nice it would be to have your own private pool in your own back yard. Any time you wanted a quick dip, you could just head out the door with your towel. The only children in the water would be your own kids or grandkids, there strictly by invitation.

Maybe, you think, it would be a good idea to check with a couple of contractors and find out how much a pool would cost.

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We’re pleased to feature a guest post from David Kahler, President of Prudential Kahler Realtors

Does anyone have a crystal ball in looking at the real estate market? In the past, I would have told you there is no such thing when it comes to trying to forecast what our market is doing.  Last March, I was in a conference that introduced me to Absorption Ratios (AR)–and I found that crystal ball.

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Linda Lea M. Viken, a Rapid City family attorney and President of the American Academy of Matrimonial Lawyers, was recent quoted in The Wall Street Journal. The article focused on being prepared for a divorce, and how many couples are preparing before even saying “I do.”

It is always great to see local professionals getting recognition. Congratulations, Linda!

An unexpected trend has emerged due in large part to the economy. Adult children are asking to move back in with their aging parents, and the parents are saying “yes.” Most baby boomers do not have adequate savings, so the financial burdens of taking care of their adult children is taking its toll on their retirement savings.

In a recent study by TD Ameritrade, 57% of parents are willing to support their adult children even if it means taking away from their retirement savings, and 54% have had their adult children living with them for 3 months or longer. Continue Reading »

A couple of recent columns about how to define “rich” generated quite a bit of discussion. One thought-provoking email from a friend made me think about yet another aspect of defining rich: What does “getting rich” look like?

Sometimes it looks like a desk in a nice office with a business, medical, or law school diploma on the wall. To a small minority of wealthy people, it looks like an inheritance from Mom and Dad. More often than most of us might suspect, though, it looks like work boots, coveralls, or aprons.

In his email, my friend, a former college professor, pointed out what he called “the myth of The Job.” “If I just get a job all will be well. If I lose my job then I try to get the same job again and if I can’t get a job I go down the tubes.”

He also told this story:

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My friends around the country often refer to me as clandestinely working for the SD Chamber of Commerce.  Actually, there is nothing clandestine about my promotion of South Dakota’s low taxes, business friendly, low crime, and high quality lifestyle.  Many people are surprised to hear we have airports, Internet, and running water.  Actually, promoting South Dakota is very easy, and it’s just become easier. 

According to a survey done by the Mercatus Center of George Mason University, South Dakota rates as the second-freest state in the nation.  First is New Hampshire. South Dakota is ranked #1 on economic freedom and is top among the states in terms of fiscal policy, owing to its high fiscal decentralization for its size and its low levels of taxation (7.6 percent adjusted revenues as a percentage of personal income) and spending. The study says, “It might be hard to improve on South Dakota’s performance in this area.”  I couldn’t agree more!  To read the entire survey, click here.

I didn’t think it was personal, until last week.

Driving to an appointment, I was listening to Dave Ramsey’s radio talk show. He began talking about people who criticize him and how that used to bother him, but no more. He said, “After selling over three million books, I’ve decided if you criticize something I’ve written, you are the moron (laughing and giggling). I mean, what have you done?”

I almost drove off the road.

Most of Ramsey’s advice on cash flow and debt reduction is very good and extremely helpful to those that follow it. Unfortunately, following his advice on investments and withdrawal rates could be very harmful financially. In the past few years I’ve pointed that out more than once.

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I came across an interesting article today in the InvestmentNews on “How to save wealthy investors from themselves.”  The article lays out a solid argument that most investors, including those who work with an investment advisor, tend to make poor financial decisions.

IN interviewed a representative of Barclays Wealth who observed that while the financial services industry is aware of the high cost of their client’s emotional trading (a 20% under performance over a long term) the industry hadn’t found ways to help clients implement discipline in the face of market volatility.

Some of the options?  Put clients in illiquid assets that can’t easily be sold and use hedging strategies or insurance products to lessen volatility, even if the cost of those products will sacrifice some long-term gain.  Another is to evaluate the financial personality of the client to determine their emotional makeup. Continue Reading »

A few weeks ago in this column I asked those who’ve declared war on the rich to define “the rich.” I gave four examples of people that might be viewed as rich. Some were high income earners with little net worth and others were low income earners with significant net worth.

To answer who “the rich” are in this context, we must determine whether wealth is a function of income or net worth. While we could agree you are rich if you have a high income and a high net worth, are you rich if you only have a high income or because you have a high net worth?

Most people give this distinction little thought. To many Americans, you are rich if you have either a high income or a high net worth. In a Gallup poll conducted in January 2003, the respondents defined “rich” as earning over $120,000 a year or having a net worth of over $1,000,000.

Most financial professionals contend that becoming rich is not synonymous with having a high income, but is a function of acquiring assets. While having a high income can give a person more opportunity to acquire wealth, it’s not a prerequisite. It’s what people do with their income that determines whether they will ever become rich. If they spend all they make and put nothing aside in savings or investments, they most likely will never be rich.

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