The Southwest Kansas Register November 25, 2012 Page 9

(BPT) - FiNdiNg the Medicare cover-age that best fits their needs and their pocketbooks is challenging for many seniors. Health care plans make changes to their coverage. People’s health condi-tions change. Not keeping on top of these changes can mean problems. Suddenly seniors may find they don’t have needed coverage, their doctor no longer takes their plan, or they face steep medical or prescription drug costs. That’s why it’s essential to review Medicare coverage and individual needs each year, and to use the Medicare an-nual open enrollment period to make changes to coverage. Medicare an-nual open enrollment runs from Oct. 15 through Dec. 7, with new benefit choices effective the following Jan. 1. “getting started early is key,” says Mary dale Walters, senior vice president of the Allsup Medicare Advisor, a Medi-care plan selection service. “Choosing Medicare coverage is complicated, even when you have lots of information on the Web. It can be difficult to get current plan information and to get an apples-to-apples comparison of plans.” Walters offers these tips for seniors to manage and lower their health care costs.

1. Be an informed consumer. Millions of seniors, their families and caregivers will be pleased to know that for the third straight year the average basic Medicare prescription drug premiums will remain steady. Since enacted, the Affordable Care Act has helped more than 5.4 million people with Medicare save more than $4.1 billion in out-of-pocket prescription drug expenses. These are significant re-sults as the law closes the Medicare Part d donut hole coverage gap, according to the Centers for Medicare & Medicaid Services. Seniors can capitalize on those sav-ings by knowing exactly what they are paying for — shop around for better prescription prices and ask about costs. For additional savings, use generic medications. Take advantage of Medi-care preventive services, including many types of screenings, tests, shots, counsel-ing, training and supplies now offered without co-pays or other out-of-pocket costs.2. Ask for help. in addition to guidance on retirement, estate and long-term care planning, seniors can rely on profession-als to help them with health care choices. Walters points out this can include

By Leo BaBauta

An ongoing quest for me, and one that i am renewing this year, is to

eliminate all that is unnecessary from my life. Now, you might read this and think that i am cutting everything fun from my life, but that’s not true. Let me explain. The first question in this quest, of course, is what does “necessary” mean? We must first examine what things are necessary … and the first question in this examination is … necessary for

what? What is the true aim? My answer, which will be different than others, is “necessary for a happy life.” This definition, then, would include many things besides the basics of cloth-ing, shelter and food. i might not need a good relationship with my wife in order to survive, but it is necessary for me to be happy in life (i’ve found). Same thing with my kids. To be happy, i must develop a good relationship with them, make them happy, and spend time with

Financeocus on

A SpeciAl Section of the SouthweSt KanSaS RegiSteR

Jesus sat down opposite the place where the offerings were put and watched the crowd putting their money into the temple treasury.

Many rich people threw in large amounts. But a poor widow came and put in two very small copper coins, worth only a few cents. Calling his disciples to him, Jesus said, “Truly I tell you, this poor widow has put more into the treasury than all the others. They all gave out of their wealth; but she, out of her poverty, put in everything—all she had to live on.”

A financial section? In the South-west Kansas Register? The hope

is that this section will offer individu-als and families a bit of guidance when it comes to handling finances. Finan-cial struggle is one of the key ingredi-ents to divorce; it can be the primary factor for youth in deciding whether to go to college. And so on.... And in these troubled financial times, it can mean the difference be-tween settling comfortably into one’s later years, or struggling with financial burdens. For many, the struggle isn’t main-taining finances, because there are simply not enough finances to main-tain. A multitude of people are one health crisis away from financial ruin.

Thusly, maintaining healthy financ-es allows one to be of financial ser-vice to others, even if it is as simple and powerful as the widow’s mite. it allows people to offer their hearts to others who are suffering by offering financial donations. Even keeping the local parish viable is the responsibil-ity of the financial stewardship of its members. True wealth is measured by the love of Christ and those loved ones he has placed in your life. As such, perhaps another goal of this section may simply be to instill within readers who have a roof over their head, who can afford both medication and groceries, and who have loved ones in their life, just how lucky they truly are.

True wealth measured by Christ’s love

Medicare enrollment runs through Dec. 7Tips for seniors on managing health care costs

What is truly necessary? A guide to living frugal

Continued on Page 16 Continued on Page 16

-- Mark 12: 41-44

Page 10 November 25, 2012 The Southwest Kansas Register

Scripture day

Focus on Finance

By Leo BaBauta

For a few years, i went through tough financial times. I was getting further

and further into debt, not paying some of my bills (which then went to collectors) and always behind, even on payday. it took me awhile to step back and realize that this situation was all of my own making, due to my own choices and financial habits, and that it was possible to change. Today, things have gotten better, al-though i’m not out of the red yet. i have begun saving, i’ve paid off several small debts and am well on my way to paying off my credit card (which i’ve canceled), and hope to pay off my car by the end of the year. i plan to be debt free in a little over a year, with good prospects after that. i’m also planning for retirement, a little travel, and a simple house. Kiplinger magazine just posted a good ar-

ticle entitled, “Stop Living From Paycheck to Paycheck.”

First things first Kiplingers recommends starting by track-ing all of your spending on a daily basis, which is a typical recommendation from financial advisors and blogs, and is good advice. But mine is attempting to be practi-cal — i’ve been there, in the trenches, and i know that keeping track of daily spending can be difficult. I advise you to do it, but if you don’t, for whatever reason, don’t let that stop you from fixing your finances. My recommendation is that, whether or not you track your spending (and you should), at least do the following:

1Stop the bleeding. Stop using your credit and debit cards immediately. Cut them

up, or put them in the freezer in a ziploc bag filled with water, effectively freezing your

cards. Also stop taking other loans, either from banks or finance companies or friends or family. Stop getting into more debt.

2Start saving now. The next most impor-tant step you can take, in the beginning,

is to start a small savings account if you haven’t already. Begin depositing into it regularly, at least $100 per paycheck but more if you can. If you can’t find $100 then see the next step. Make it an automatic deposit, the first bill you pay each payday, because it is the most important! A savings account will help you smooth out your finances — when an emergency comes up, like your car breaking down or someone having to go to the hospital, you will have some cash to pay for that emergency, and you can use your regular paycheck for regular expenses.

3Look at discretionary spending. if you can’t find $100-$200 to save per pay-

check, then you need to cut some things from your spending. This is where tracking your spending comes in handy, but even if you don’t, you know some of the extras you spend on — cigarettes, coffee, snacks, candy, desserts, eating out, magazines, shopping for clothes or gadgets or toys or shoes, books, going out … these are just a few of the examples. i’m not saying you need to cut everything out, but if you can cut a few of them, or maybe just one at a time, that can add up. Then, take the money you didn’t spend on those discretionary items, and put that amount into savings each payday. increase this over time.

4Start a debt snowball to begin getting out of debt. if you haven’t read about

debt snowballs, they’re simple. List out your debts and arrange them in order from smallest balance at the top to largest at the bottom. Then focus on the debt at the top, putting as much as you can into it, even if it’s just $40-50 extra (more would be better). When that amount is paid off, cel-ebrate! Then take the total amount you were paying (say $70 minimum payment plus the $50 extra for a total of $120) and add that to the minimum payment of the next larg-est debt. Continue this process, with your extra amount snowballing as you go along, until you pay off all your debts. This could take several years, but it’s a very rewarding process, and very necessary.

Now that you’re out of the eR Those are the first, emergency steps to take. While you’re doing those steps, start on these:

1Make a budget. i know, it’s a dreaded word for most of us. But it’s not

that hard, and if you set it up right, it’s fairly simple. i recommend using a simple spreadsheet. List all your regular expenses (rent, car, utilities, internet, etc.) and their amounts, and then your variable expenses (groceries, gas, eating out, etc.), and then your irregular expenses (things like car maintenance or medical that might not come up every month, but break them into estimated monthly expenses — if you spend $600 a year on car maintenance, budget a $50 monthly expense). Now match that up against your income. The expenses should be less.

2Automate your bills. As much as pos-sible, try to get your bills to be paid

through automatic deduction. For those that can’t, use your bank’s online check system to make regular automatic payments. This way, all of your regular expenses in your budget are taken care of. Make sure that your savings is done the same way – auto-matic deduction.

3Save for your irregular expenses. Some call it a Freedom Account, but the key to

ensuring that you have smooth finances and that you stick to your budget is to take into account all your irregular expenses, such as insurance, car maintenance or repairs, gifts (think Christmas!), medical and other such things. List them out, estimate your annual spending, and begin saving for them each month. Again, if you spend $600 on car re-pairs, budget $50 a month for that expense, and put that amount in savings. You could set up different accounts for each expense in an online bank such as ING or Emigrant, or put it all in one account and use Money

How to stop living paycheck to paycheck

Continued on Page 16

The Southwest Kansas Register November 25, 2012 Page 11

Jeff Handlin, who took Doc Brenner to the History Day finals in Washington, d. C. and was a 3rd place winner back in 1991, stopped in to see doc & Carlotta . Jeff, his wife and two little daughters had a wonderful time. Jeff lives in denver.

Focus on Finance

(BPT) - if you receive one of the 6 mil-lion paper checks for your monthly Social Security or other federal benefit, the time has come to switch to the safety and con-venience of electronic payments. With less than one year until the March 1, 2013, deadline for all federal benefit recipients to switch from paper checks to electronic payments, a new U.S. depart-ment of the Treasury study has found over-whelming support for its recommended Direct Express(R) Debit MasterCard(R) card. According to a cardholder survey, 95 percent of individuals who use the direct Express(R) card to receive monthly Social Security payments are satisfied with the card, and 93 percent also report they are likely to recommend the card to others. “We hope that hearing about the ex-tremely high satisfaction with the direct Express(R) card will encourage check recipients to make the switch to the card or direct deposit as soon as possible,” says david Lebryk, commissioner of the Trea-sury department’s Financial Management Service. “This card helps senior citizens, people with disabilities and others who lack access to traditional banking services to pay bills, withdraw cash and make pur-chases without worrying about their paper checks being lost or stolen or paying check-cashing fees.”

easy and safe to use introduced in June 2008, the direct Express(R) card has helped more than 3 million Americans to safely and easily access their federal benefit payments. The card, which can be used with no or low fees, provides a more convenient way for all Americans to access their federal ben-efits, while also improving government ef-ficiency and delivering more than $1 billion in savings. Federal benefit recipients also can choose to have their benefit payments deposited directly into their bank or credit union account. The Treasury department published a final rule in December 2010 to gradually eliminate paper checks for federal benefit payments. Since May 1, 2011, anyone applying for new federal benefits, including Social Security, Supplemental Security income (SSi), Veterans Affairs, Railroad Retire-ment Board, Office of Personnel Manage-ment benefits and other non-tax payments, have had to choose direct deposit or a di-rect Express(R) card when they sign up for the benefit. For those who began receiving benefits earlier, March 1, 2013 is the final deadline, and all remaining federal benefit check recipients must start receiving their money electronically.

Learn more about electronic payments

The Treasury department’s go direct(R) public education campaign is working with more than 1,800 partner organizations nationwide to spread the message about the electronic payment rule and to educate federal benefit recipients about their op-tions. The campaign recently introduced a new public service announcement as well as a series of educational videos and print materials that explain how electronic payments work and how to use the direct Express(R) card. The videos and materials are available on the go direct campaign website at www.godirect.org. Federal benefit recipients can switch to electronic payments online at www.godirect.org or through the U.S. Treasury Electronic Payment Solution Center toll-free at 1-800-333-1795. it’s free to switch and takes less than 10 minutes.

The preceding information has been pro-vided by the U.S. Department of the Trea-sury, Financial Management Service. The cardholder survey was conducted by KRC Research and commissioned by MasterCard Worldwide on behalf of the Treasury Department’s Financial Manage-ment Service.

Social Security recipients embrace electronic payments; give high marks to Treasury-recommended prepaid card

Advertising indifferenceHave you noticed that there has

been a slew of commercials for the last year or so that strongly encour-age people to disengage themselves by peering into either a very tiny or very large box? One commercial presents a man walk-ing to work, narrowly avoiding being hit by cars as he stares into a tiny hand-held device which he uses to blow up aliens and/or enemy soldiers. “Now, you never have to stop play-ing,” the narrator bellows. Another advertisement has a father of two bragging to his children that he can now watch three television shows at once. Yet another boasts that you can bring all your TV shows and movies with you wherever you go. Hmmmm. it makes me wonder if these people really, truly appreciate 1: being with family 2: creating (everybody has a talent, skill, charism, etc.... it may be they just haven’t figured out what it is yet.) How many people let their talents pass them by because they’re busy play-ing video games or watching their dVR-recorded programs? 3: engaging in real, face to face conversation, appreciating the greatest of god’s gifts, the gifts of each other.

www.edwardjones.com Member SIPC

Decisions made in the past may no longer be what’s best for the future. To help keep everything up to date, Edward Jones offers a complimentary financial review.

A financial review is a great opportunity to sit face to face with an Edward Jones financial advisor and develop strategies to help keep your finances in line with your short- and long-term goals.

When it comes to your to-do list,put your future first.

To find out how to get your financial goals on track, call or visit today.

R.T. McElreath,AAMS®Financial Advisor.103 West 6thScott City, KS 67871620-872-3188

Lloyd Davis, CFP®Financial Advisor.210 E Frontview Suite BDodge City, KS 67801620-225-0651

Todd J ArmatysFinancial Advisor.1904 BroadwayGreat Bend, KS 67530620-793-5481

1-800-432-8249

1-888-825-0651

1-800-632-3188

Jim Armatys

www.edwardjones.com Member SIPC

Decisions made in the past may no longer be what’s best for the future. To help keep everything up to date, Edward Jones offers a complimentary financial review.

A financial review is a great opportunity to sit face to face with an Edward Jones financial advisor and develop strategies to help keep your finances in line with your short- and long-term goals.

When it comes to your to-do list,put your future first.

To find out how to get your financial goals on track, call or visit today.

R.T. McElreath,AAMS®Financial Advisor.103 West 6thScott City, KS 67871620-872-3188

Lloyd Davis, CFP®Financial Advisor.210 E Frontview Suite BDodge City, KS 67801620-225-0651

Todd J ArmatysFinancial Advisor.1904 BroadwayGreat Bend, KS 67530620-793-5481

Page 12 November 25, 2012 The Southwest Kansas Register

How I ended

By Leo BaBauta

Confession time: My name is Leo, and i’m a recovering creditcar-

daholic. When i was just starting out in the world of adulthood, i shied away from credit cards. My parents had had some troubles with them, so i had a bit of a phobia. in my early 20s, i caved in and got a card, simply to build credit. it only had a $500 limit, and i pledged to pay off the balance every month. i did this for a few years, but for one reason or another, eventually let the balance creep up until i could no longer pay the balance every year. i then paid it off and canceled the card, out of pure fear. i went without a card for a little while, and then came the bad days. i need to buy something important, and didn’t have the cash. i got a card with a $5,000 limit, and felt the fear creep back in. The first charge was well over $1,000. Then there were other large charges — expenses i wanted to

pay for, but didn’t have the cash. i tried to

pay as much as i could each month, but when i started having other

expenses, the credit card bill wasn’t a prior-ity. i could pay it later. Fast forward to a couple years ago: i could no longer afford to pay my minimum balance on my card. i had other bills that were also out of control. i canceled the card, and worked out a payment plan. i struggled with my other bills until the beginning of 2006, when i started getting things under control. But i still had a Mastercard debit card, and i used this to buy stuff over the internet. Since it wasn’t a credit card, that was OK, right? Today, i am scraping by, but here’s the cool thing: i don’t have a credit card at all. Not even the Mastercard debit card. i am paying off my debts (the card should be paid off this summer) and things are looking much rosier. My recommendation: if you have prob-lems paying off a card’s balance each month, and have a hard time resisting im-pulse purchases, cancel your credit card.

Today. They are a plague. This point can be debated ad naseum, so i’ll just say this: do what works for you, but be very careful with credit cards. They are dangerous, and have caused many financial wrecks for many families. The best policy for many people, and you may differ, is to go without a card for as long as possible. But how do i live without a credit card? Here’s how:1. i pay my bills online or through automatic deduction. it’s simple, convenient, and automatic. Hey presto!2. I use cash for everything else. Every-thing else? Pretty much. Once in awhile i’ll write a check, or use my debit card (it doesn’t have a credit card label on it, so i can’t use it online), but those occasions are rare. i withdraw cash for groceries, gas and “spending”. What about online purchases? Exacta-mundo! You’ve hit the nail on the head. One of the biggest dangers of credit cards these days is that they make purchases so darn easy. doing some research on how to pay off your debt? Hey, there’s a great book about it by dave Ramsey. One Click(tm) and it’s headed to my door. Credit cards allow you to buy stuff, anything really, without having to think about it. And that’s dangerous. So if I REALLY need to buy something online, i might ask a relative to order it for me, and give them cash. Obviously, this is inconvenient and you don’t want to do

this too often and wear out your welcome. Which is why it works. Before i canceled my Mastercard debit card last year (about four months ago), i bought stuff online at the rate of about two things a week. Not exactly a spending spree, but it adds up to a lot over the course of a year. in the last four months, i think i’ve ordered one item. A reduction of nearly 95% of my online discretionary spending. i could also pay using PayPal or similar methods, but i haven’t yet. The point is that it’s much harder for me to buy things online now (and to some extent, in the real world too), so i rarely ever do. While we might think that buying things online is necessary, in almost every case, it’s not. Buying online simply makes you spend more than you normally would. Take it from me, someone who is living evidence. Using cash has other benefits. I can see at a glance (looking in my envelopes for each cash spending category) how much i have left in that budget category. That’s hard to do when you’re using a credit card. Sure, you could check your balance online, but most people never do this. Sure, you could update Quicken or Money, so you know your available balance, but this is much harder to do, especially if you’re away from home, and so many people guesstimate their balance when they’re on the road, and sometimes don’t even bother to do that. With a credit card, you can worry about it later. At a high interest rate.

How I ended my love affair with the credit card

(BPT) - For all of the discussion around the importance of credit scores, it’s hard to know what’s true, what’s fiction, and what lies in between. While there are misperceptions and mis-understandings still lingering in the market-place, the good news is that overall knowl-edge about credit scoring is improving. A recent survey by the Consumer Federation of America (CFA) and VantageScore So-lutions, one of the two primary companies that generate credit scores, shows that consumers know they have more than one credit score, have a better understanding about the factors that affect credit scores, and have increased familiarity with how different kinds of companies and entities use credit scores. Consumers also have a good handle on some recent additions to federal laws re-garding when lenders are required to inform borrowers about their credit scores. “increases in consumer knowledge prob-ably reflect, in part, the increased public at-tention given to credit scores because of the new protections,” says Stephen Brobeck, executive director, CFA. “The improve-ments may also be related to increased efforts of financial educators, including our own educational website, creditscorequiz.org, to inform consumers about credit re-ports and scores.” However, despite the positive develop-ments, there’s room for improvement according to the CFA-VantageScore Solu-tions survey. Myth: Low credit scores don’t greatly affect how much you pay over the life of

the loan. Fact: Low scores can be costly. Only 29 percent of survey respondents were aware that on a $20,000, 60-month auto loan, a borrower with a low credit score is likely to pay at least $5,000 more than a borrower with a high credit score. Myth: Age and marital status are factors used in calculating credit scores. Fact: Over 50 percent of survey respon-dents incorrectly believed their age and marital status were factors used to calculate their credit scores. The only factors credit score models use are related to your use of credit, especially whether you make pay-ments on time. Myth: Multiple inquiries when applying for a consumer or mortgage loan will have a negative effect on your score. Fact: if multiple inquiries occur during a one-to two-week window, generally they will not lower your credit scores. Only 9 percent of respondents were aware of this, and 34 percent incorrectly believed that each inquiry will lower your score. Understanding credit scoring can be com-plex, but it’s in your best interest to get the facts straight. With a clear view of what’s true and false, it’s easier to set the course for a sound financial future. For more infor-mation about the myths and facts of credit, visit www.creditscorequiz.org, www.van-tagescore.com and www.consumerfed.org. These websites are free, do not display any advertising and do not collect any personal data. Both the online quiz and a correspond-ing brochure are also available in Spanish at www.creditscorequiz.org/Espanol.

Focus on Finance

Myth and fact: What you need to know about credit scores

The Southwest Kansas Register November 25, 2012 Page 13

Nov. 13 • 6:00pm @ Holy Family School, great Bend

(BPT) - Setting up an estate plan is a good investment for the future. But you can also be a careful steward of your financial assets now, with careful and organized planning as you go through the estate planning process. Estate planning is an important compo-nent of your overall financial plan, regard-less of your age, income or size of your estate. if you own property and have heirs, you need to think about estate planning. To do the job well, you’ll need the help of a team of professional accredited estate planners such as a certified public accoun-tant, a lawyer, insurance professionals and financial planners, and trust officers. Professional fees can add up if you don’t manage time well, so it’s important to prepare for every meeting with your estate planning team members. it’s a great time to think about how you can maximize the value of the time you spend with your estate planning team. The NAEPC offers this advice on how to have productive working relationships with your planners: • Before meeting with a professional, gather all your personal and financial

information, make lists of your current financial advisers, assets and liabilities, collect financial documents such as re-tirement plans, life insurance policies, property deeds, partnership and business agreements and your income tax returns for the past two years. • Write out your own personal goals, concerns and ideas. identify people whom you would like to have inherit your prop-erty when you die, and specify what you would like to leave each. Make note of any special needs or situations, such as a dependent child or a spouse whose disabil-ity will prevent him or her from working. identify people you would like to name as guardian for minor children, as well as an executor for your will. • Seek out the right professionals. You’ll find any number of people who profess to be estate planners, but NAEPC designees complete rigorous educational require-ments for estate planning and adhere to a strict code of ethics. To find an accredited estate planner, visit the association’s web-site, www.estateplanninganswers.org. • Bring your notes and all the informa-tion you’ve gathered with you to your

Making the most of your money when it comes to estate planning

Focus on Finance

“We think sometimes that poverty is only be-ing hungry, naked and homeless. The poverty of being unwanted, unloved and uncared for is the greatest poverty. We must start in our own homes to remedy this kind of poverty.”

-- Mother Teresa

By FatheR heRBeRt WeBeRCatholic News Service

i was invited to visit a couple whom i will call Terry and Nancy. As i drove up their

driveway, i saw two boats on trailers, ready to be taken to water. Terry came out to tell me how happy he was with the larger boat, his newest acquisition, which he was going to christen the following day. Once inside the house, the couple gave me a tour. Terry showed me the living room and activities area. There was a custom-built entertainment center that rivaled any i had seen. in another room he let me look at the latest in digital and wireless technologies. The gadgets were interesting and varied, and of high quality. As Terry demonstrated all of these items, Nancy looked on, remaining somewhat quiet. When she excused herself to go to the kitchen, Terry turned to me and said, “But, Father, i’m not happy.” it was one of the saddest statements i have ever heard, especially poignant in that he had just shown me all his exciting pos-sessions. The sadness was magnified when he added that his purchases were actually beyond his means. Perhaps when we hear the word “greed” we think of some tycoon who is gobbling up companies and closing down small mom-and-pop shops. That may, in fact, be greed. But so is what Terry was experiencing. The very definition of greed is that there

is an unhealthy desire for more and more possessions. For Terry, the many things he was able to purchase -- or at least make payments on -- seemed so important to him at the time. Yet, in stating his unhappiness, he clearly was admitting their failure to satisfy his craving. if a person’s needs are spiritual or emo-tional, material possessions will not be able to satisfy them. Often the very item that seems so important for our happiness, becomes one more empty promise that we are called to reject. greed has its roots in the coveting pro-hibited in the Tenth Commandment. As a capital sin, it can lead to other sins such as dishonesty, misuse of personal resources and distraction from both god and other persons. ironically, i have found that people can be guilty of greed even when they possess very little. That is, poor people also can have the inappropriate desire for material objects. One student in a high school confirmation class was not the least apologetic when he chose a well-known Wall Street tycoon as his hero. When asked to explain why, he sim-ply said, “Because he has whatever he wants.” This young student was from a hard-working family that always had the basics but not much more. Yet, his mind was

focused on money that he thought would afford him happiness. greed can exist in any society, but it seems often to reach epidemic proportions where there is rampant consumerism. Con-sequently, people have to find ways to avoid temptations to greed. in many cities, Sunday newspapers fea-ture some great advertisements. There are flyers from almost every store, announcing discounts on clothing, computers, cameras, televisions, kitchen appliances, and outdoor gear. Often the ads indicate that the sale will only last a day or two. Buyers must shop immediately! Companies have a right to promote their wares, and potential customers can use those 12-page glossy circulars to focus their shopping. At the same time, some people need to control any temptations to greed. i recall one woman who said that she and her husband had a pact. Both felt they were suckers for the “buy it now before this deal is gone” approach. So they helped each other put those advertisements in the recycle bin before they ever looked at them. Perhaps the best antidote to greed is an awareness of the true value of possessions and a thoughtful decision about how to make use of all items. in the United States Catholic Catechism for Adults, published by the U.S. bishops, greed is discussed with reference to steward-

ship of treasure. it notes that, when people admit that all material items are gifts from god on loan for use in building up god’s kingdom, they can then consciously choose how to use those possessions. Returning a percentage to god through charitable giv-ing also helps people maintain a mentality of non-greed. in the same vein, generous giving and sharing of one’s possessions can quell the powerful pull of greed. it takes practice, but it is possible to learn to give altruistically, thus helping to place the focus on other people rather than on things. Challenging greed requires work wher-ever the desire for something is beyond reason and where that desire takes control of one’s decision making. gradually, serious Christians learn not to let possessions take charge of their lives. it is then that they discover the great paradox: it is in letting go of possessions, in not in having them, that real happiness can be found.

The powerful pull of GREED

meeting. Being prepared can save you hours of billable time. discuss your overall goals and find out how each professional can help you meet them. Ask for a list of the specific documents he or she will prepare for you. • Realize that estate planning is an ongoing process. You should update your estate plan every few years or any time you experience a major life change, such as the birth of a child, marriage, divorce or death of a spouse or parent. • Finally, once you’ve prepared for your loved ones’ financial future, don’t forget

to take care of their emotional well-being. Estate plan documents are dry and technical, and they won’t communicate your emotions to those you leave behind. Consider writing a letter to your spouse and family express-ing your final thoughts and feelings. Keep the letter with key financial paperwork and make sure your loved ones know where to locate these items. To learn more about estate planning, visit the NAEPC Education Foundation’s public awareness website www.EstatePlanningAn-swers.org.

Often the very item that seems so important for our happiness, becomes one more empty promise that we are called to reject.

Page 14 November 25, 2012 The Southwest Kansas RegisterFocus on Finance

Editor’s Note: There are a wide variety of ways in which scammers try to steal from the most vulnerable. A simple rule is to never, ever purchase, give information to, or agree to meet with a person or organiza-tion that calls you on the telephone, comes to your door, or sends you an electronic notification. (BPT) - You’ve probably dreamed about what you’d do if you won the lottery - quit your job, build your dream home or even donate a large sum of money to your fa-vorite charity. The allure of a huge amount of money falling into your lap cannot be denied. Scammers know these dreams and feelings well, and prey on them, making lottery and sweepstakes scams one of the most prevalent types of scams out there, according to the Better Business Bureau. While your chances of winning the actual lottery may already be slim, you not only won’t win with scammers - you’ll likely lose money. These types of scams work in a number of ways, and all of them end with an un-suspecting victim losing. Here are three common ways scammers use the promise of big winnings to their advantage: • A scammer claim-ing to be associated with a government agency, a well-known celebrity or someone associated with a sweepstakes or lottery tells a victim he or she has won a large sum of money. The victim is told to send money to cover processing fees or taxes before receiving the prize. The victim then pays these “fees,” and never hears from the scammer again. • A scammer sends a victim a check or money order and claims it’s a prize. The victim is asked to deposit this money and send a smaller portion of money back to cover fees or taxes. The problem occurs when the victim deposits the check or money order and sends the scammer the money as directed before the check clears which can take weeks. Banks don’t always immediately identify the “winning” check as fake until it’s too late and the money has already be sent to the scammer. The victim is responsible to the bank for any used funds from the check. • A scammer emails or sends a victim information about a foreign lottery, or another alternative lottery or sweepstakes that offers better odds of winning than a

traditional lottery. The victim sends money to the scammer for a chance at winning, but the lottery or sweepstakes doesn’t actually exist. The common thread in all of these scams is they require victims to send money in advance to claim a prize, which is never the case with a legitimate lottery or sweep-stakes. “The No. 1 rule consumers need to remember to protect themselves from falling victim to this scam is to never, ever send money to claim a prize,” says Shelley Bernhardt, director of consumer protec-tion at Western Union, a leader in global payment services. Bernhardt offers these additional tips to avoid becoming a victim in a lottery or sweepstakes scam: • Never send money to pay for taxes or fees on lottery or prize winnings. Le-gitimate sweepstakes don’t require you to pay or buy something to enter or improve your chances of winning or to pay taxes

or processing fees to get your prize.

• Never play anything claiming to

be a foreign lottery. And this is not just because it might be a scam - it’s actually illegal to play a foreign lot-

tery. • O n l y s e n d

money to people you have met personally,

know and trust. • Never provide your banking or

any other sensitive personal information to an individual or business you don’t know, especially if they claim they need it in exchange for a prize. • Always wait to withdraw funds from your account until after a check or money order clears, which can take weeks. • if you suspect a scam, check out the company or individual who contacted you with law enforcement, the Better Business Bureau, the Federal Trade Commission (www.ftc.gov) or another trusted source. As a trusted method for sending money to family members and friends, Western Union encourages users of their services to be vigilant about scams and fraud. To learn about more ways you can protect yourself from fraud, visit www.westernunion.com/stopfraud. For more information and videos on how some of the most common check fraud scams work, visit www.consumerfed.org.

The lottery scam: Think you’ve won the lottery? Think again

Editor’s Note: Just hours prior to press time, the Stewardship Office noted that they had reached their goal of $150,000. Donations are still being gratefully accepted.

Give a dollar, get a dollar. The Catholic diocese of dodge City is

partnering with Catholic Extension So-ciety to offering a giving opportunity for the people of southwest Kansas.

The United States Catholic Extension office recently proposed a challenge grant of $50,000 to a limited number of mission dioceses, if they can match fund-raising efforts dollar for dollar.

in other words, in order to receive the grant, the diocese of dodge City would have to also raise $50,000. The grant money would be placed in a new endow-ment only for seminary education within the diocese of dodge City, to be used for current and future seminarians. The diocese completed the spring semester with three seminarians: Tylan Ricketts, Juan Salas, and Jacob Schneider. Education for each seminarian costs the diocese approximately $33,000 per year.

“The grants offered by Catholic Exten-sion are very competitive, and we wanted Catholic Extension to know we are serious about supporting our seminarians,” accord-ing to Director of Stewardship, Eric Hasel-horst. Counting on the generosity of the people of southwest Kansas, the diocese will raise $150,000, in order to receive the

grant of $50,000.According to the grant rules, the

$200,000 must be placed in an endow-ment, allowing the interest to be of finan-cial support to seminary education. People will be able to continue donating to the endowment long into the future, creating a nest egg for future seminarians.

Priestly ordinations are a strong focus of Bishop John Brungardt:

“it’s imperative that we support our seminarians. We must pray always that they will feel the love of our Compas-sionate Lord and of the people of god whom they will one day serve. We must also support them in this endeavor by providing financial help as we are able.”

Catholic Extension provides funding and resources to under-resourced dio-ceses and parishes in the United States through programs and services investing in people, infrastructure and ministries. This support is given based on need, passion and commitment to the growth of the Catholic faith. Since 1905, Catholic Extension has distributed nearly $500 million to communities across America.

To make a donation, send a check made out to the diocese of dodge City to: Seminary Endowment Challenge, c/o Eric Haselhorst, P.O. Box 137, Dodge City, Kansas, 67801, call Eric at (620) 227-1537, or, you can donate electroni-cally by going to www.dcdiocese.org/de-velopment.

Diocese offered challenge grant to support seminarian education“it’s imperative that we support our seminar-ians. We must pray always that they will feel the love of our Compassionate Lord and of the people of god whom they will one day serve. We must also support them in this endeavor by providing financial help as we are able.”

-- Bishop John B. Brungardt

s

s

s

SSSCHNEWEIS TAXAND ACCOUNTING

212 EAST FRONTVIEW, SUITE BDODGE CITY, KANSAS 67801

620-227-7754

The Southwest Kansas Register November 25, 2012 Page 15

Now that 2012 is drawing to a close, you may want to review

the progress you’ve made this past year in many areas of your life — in-cluding your financial situation. By going over your investment portfolio and other key areas related to your finances, you can learn what moves you may need to make in 2013 to stay on track toward your important objectives, such as college for your children, a comfortable retirement and the ability to leave the type of legacy you desire. To get a clear picture of where you are, consider asking yourself these questions: • Am i taking on too much risk? Although 2012 has generally been a pretty good year for investors, we’ve certainly seen periods of consider-able volatility. during these times, did you find yourself constantly fretting about big drops in your portfolio value? in fact, have you consistently experienced this type of worry throughout your years as an investor? if so, you might be taking on too much risk for your individual risk tolerance. Review your holdings to determine if you can lower your risk level without jeopardizing your overall investment strategy. • Am i investing too conserva-tively? Just as you can take on too much investment risk, you can also go to the other extreme by investing too conservatively. if your portfolio contains a preponderance of invest-ments that offer significant preserva-tion of principal but very little in the way of growth potential, you may be endangering your chances of ac-cumulating the resources you’ll need to achieve your long-term goals. • Am i contributing as much as i can afford to my retirement plans? if you have access to an employer-sponsored retirement plan, such as

a 401(k), 403(b) or 457(b), consider yourself fortunate. Your plan has the potential to grow on a tax-deferred basis, and you typically contribute pre-tax dollars — the more you put in, the lower your annual taxable income. Plus, your employer may match part of your contributions. So if you’ve been under-funding your retirement plan, ratchet up your funding in 2013. At the same time, you may still be eligible to contrib-ute to an iRA; if so, try to “max out” on it. A traditional iRA grows tax deferred while a Roth iRA can grow tax free, provided you meet certain conditions. • Am i adequately protecting my income — and my family? Over time, you’ll experience many chang-es in your life — marriage, children, new job, new home, etc. Most, if not all, of these changes will require you to make sure you have adequate life insurance in place to help guard your family’s future, should anything happen to you. Furthermore, to help replace your income should you be-come disabled, you may well need to purchase an adequate amount of disability income insurance. • do i need professional help? As the above questions indicate, maintaining control of your finan-cial situation can be challenging — especially if you try to do it all on your own. You might benefit from working with a financial profes-sional — someone who can analyze your situation objectively and make recommendations based on your risk tolerance, time horizon and specific goals. Before the clock runs out on 2012, take the time to ask yourself the above questions. The answers may well spur you to take positive action in 2013.

Focus on Finance

A gift annuity is an agreement between an individual and a qualified charitable organization or institution.

The donor transfers assets to the organization and receives fixed payments for the rest of his or her lifetime and/or the lifetime of another person, if desired.Are there tax benefits? Yes. Since a portion of your gift will be used for chari-table purposes, you are entitled to a federal (and perhaps state) income tax deduction in the year you make your gift. Part of each payment is tax-free for a period of years as well.Can I outlive my payments? One of the attractive features of the gift annuity is that you normally cannot outlive its benefits. The charitable recipient is obligated to make payments for as long as an annuitant (a recipient of payments) lives.Can I give securities rather than cash to set up a gift annuity? Yes. Often the tax benefits are even greater if the securi-ties have increased in value because you may avoid the tax on a portion of the capital gain in the property. if you give a low-yielding asset, you may be able to increase your income, since a gift annuity may pay more.How can I begin a gift annuity? A gift annuity can be created with a minimum of effort. The first step is to contact us for exact current benefits and a gift annuity proposal. For more information about gift annuities, contact John Ackerman, Director of Accounting Services, (620) 227-1534 (voice) or (620) 227-1545 (fax) or email jacker-man@dcdiocese.org . He will be happy to answer all of your questions.

Time for year-end review of your financial strategy?

By going over your invest-ment portfolio and other key areas related to your finances, you can learn what moves you may need to make in 2013 to stay on track toward your important objectives, such as college for your children, a comfortable retirement and the ability to leave the type of legacy you desire.

By MeLaNIe haRshBeRgeRFinancial Advisor, Edward Jones

What is a gift annuity?

Page 16 November 25, 2012 The Southwest Kansas RegisterFocus on Finance

them. But that doesn’t mean that anything i do with them counts as necessary. i can be happy with my children just by going to a free park — i don’t need to buy them things all the time, or go costly entertainment. Similarly, we need to eat, but we don’t need to eat junk food. True, you might say that sweets, or french fries, make you happy. Well, that’s the key to this whole exercise: do you really need something to be happy? And even more, do you need it on a daily basis, or can it be an occasional treat? Coffee and chocolate are two recent examples for me. i love both. A lot. But i am addicted to them (because of the caffeine), and that makes me want them more than i really need them to be happy. So i am trying to cut them out, at least for now. i think later, after i kick the habit, i can indulge in those things as a treat, once in awhile. Other things i can cut out (except as treats):• going to movies (i rarely do this anymore)• Sweets, like pastries or baked goods or candies (rarer now, but still a MAJOR temptation)• toys (gizmos and gadgets that are a lot of fun, but not neces-sary – like an mp3 player)•new books (i try to buy used now, or trade em)•eating out (have been trying to cut back, but still lapse more than i should) And some things that i need to think hard about:• cable internet (i have this at work — it’s nice at home, but i’m not sure if it’s necessary)• cell phone (I don’t NEED it too much — it’s convenient, but it’s rare that i really need it) On the whole, i’ve cut out a lot already, and i’m very happy with the simplicity i’ve created so far. i have a lot more to do, but it’s the process that i enjoy, not the end product.

From Page 9

A guide to living frugal

Medicare specialists such as Allsup or financial plan-ners who often consult Medicare experts. “Health care planning is a quality of life and a fi-nancial issue,” Walters says. ‘if you need assistance sorting through the overwhelming number of options, it’s important to know that help is out there for you — don’t be afraid to ask.’ grace Hercules used Allsup to research her Medi-care needs and found she could save more than $1,000 a year by switching drug plans. “i thought a mail-order prescription plan was best for me, but their specialists proved me wrong about this--and i am so happy,” she says. “People can probably do their own taxes, but when they pay a tax adviser they get better returns,” Her-cules adds. “it’s getting the mindset that good help is available. it’s really worth getting expert help and not having the aggravation.’3. Be proactive. Having known and been around seniors, Hercules says she is saddened that so many settle for high costs or keep the same Medicare plan year after year because of a lack of understanding. Just as seniors review their finances or taxes each year, Medicare annual enrollment is the ideal time to review health care coverage, Walters says. “it’s OK to admit it’s confusing and that help will be valuable. Look at all your Medicare options and take charge of your health care.” in addition to annual Medicare enrollment, special enrollment periods happen throughout the year for specific situations. For an evaluation of Medicare options, call an Allsup Medicare Advisor specialist at 866-521-7655, or go to medicare.allsup.com.

From Page 9

Tips on managing health care costs

or Quicken or a spreadsheet to keep track of each. Then, and here’s the key, when these expenses come up, use that money for those expenses! That way, you can use your regular budget for the stuff it’s meant for, not for these “unexpected” expenses.

4Use the envelope system for your variable ex-penses such as food and gas. This is optional,

but it’s a good tip. i’ve been using it myself, and it works like a charm. Let’s say you set aside three amounts in your budget each payday — one for gas, one for groceries, one for eating out. With-draw those amounts on payday, and put them in three separate envelopes. That way, you can easily track how much you have left for each of these expenses, and when you run out of money, you know it immediately. You don’t overspend in these categories. if you regularly run out too fast, you may need to rethink your budget.

5Start thinking about your goals, and planning for them. When do you want to retire? How often do

you want to travel? When do you want to buy that dream house? do you want to save for your kids’ college education? Think about what you want in life, and start planning to save for them, especially once you’ve done all the above. Once you’ve gotten beyond these steps, you should be past the paycheck-to-paycheck syn-drome. Now there’s a whole world of personal finance options available to you, including invest-ing your money for your goals. But getting past these first stages is important.

How to stop living paycheck to paycheckFrom Page 10

Personalized services to meet your needs•  Accounting Services

•  Investment Consulation

•  Estate and Financial Planning

•  Retirement Plan Administration

•  Income Tax Preparation

•  Management Consulting

•  Payroll Processing

•  Compilations

•  Quickbooks and other software support

 

620-225-6100 

www.smollbanning.com2410 Central Avenue

Dodge City, KS  67801

A little guidance and support can help make a big difference in many endeavors, including

planning for your future. A financial advisor can provide the assistance

you need to set strategies and take action toward your specific goals and aspirations.

Call your Waddell & Reed financial advisor today and ask about creating your personal financial plan.

Investing. With a plan.

Waddell & Reed, Inc. 16966 (11/12) Member SIPC

Paula Mueting, CRPC, CMFCFinancial AdvisorWaddell & Reed, Inc.2012B First AvenueDodge City, KS 67801620-225-5903 office620-225-5200 faxemail: pmueting@wradvisors.com

Diane Sauber, CMFC Financial AdvisorWaddell & Reed1516 Main St.Great Bend, KS 67530620-792-3601 office620-793-5585 faxemail: sauber@wradvisors.com

You’ll ReachHigherWith a

Trusted Advisor