FALL 2011 FALL 2011

your$™A magazine from WEA Trust Member Benefi ts

TM

weabenefi ts.com

your insuranceRenting? Protect your property.

your investmentsWhat’s in your portfolio?

your kioskEight ideas to build your child’s money skills.

Caring forand protecting elderly parents

}

Historically, we have announced our

guaranteed rate for the new year at the

WEAC convention in October. With

no convention scheduled this year,

eager participants have already been

inquiring about when and how we will be

communicating the 2012 rate to you.

For those who want to be fi rst in the

know, the guaranteed rate for 2012 will be

announced on October 31 at weabenefi ts.

com and also in our recorded message

when you call 1-800-279-4030.

3 YOUR ACCOUNT- Year-end distribution deadlines.

- New mutual funds are here.

- Review and update your nonelective account.

- New WEAccess will improve online experience.

4 YOUR STORY- Two members share their stories

about helping elderly parents.

6 YOUR INSURANCE- Renting? Renters insurance is an

economical way to protect your personal property.

4

6

In this issue we

salute Barb, Mary,

and all those who are

caring for the physical,

emotional, and/or

fi nancial needs of their

elderly parents.

Educators are

natural givers—in

tune with the needs of

others (family, friends,

students)—and often putting those needs

ahead of their own. So, I was thrilled to

learn that the fi nancial education, services,

and products we off er were helpful

resources as these two participants made

decisions about their fi nancial future.

If there’s one thing that comes through

loud and clear from their stories, it’s

the signifi cance of planning ahead—

everything from building our savings, to

considering future care options, to estate

planning. We are better able to care for

others if we take care of ourselves fi rst. To

be sure our children will thank us someday

and hopefully follow our lead.

Please use us as a resource. Whether you

are just starting your career or preparing

for retirement, we have knowledgeable

and caring staff who are here for you.

• • •

your$CONTENTS FALL 2011

{

8 YOUR INVESTMENTS- What’s in a mutual fund? We’ve

broken it down for you.

10 YOUR KIOSK- How to talk to your parents about

long-term care insurance.

- Tips for teaching kids about money.

president’s letterDave Kijek, President/CEO, WEA Trust Member Benefi ts

{

2 weabenefi ts.com

© 2011 WEA Member Benefi t Trust.All Rights Reserved.

™

Caring for parents: good reminder to plan ahead

10

weabenefi ts.com 3

{ your account

ACT 14: auto insurance law changes

Holiday ScheduleWe will be closed:

Thanksgiving—Nov. 24–25, 2011

Christmas—Dec. 23 & 26-27, 2011

New Year’s—Jan. 2, 2012

There is no fee to pay your

insurance policy premiums with ACH or payroll deduction.

In these challenging times, automatic payments can help with

budgeting and eliminate the need to pay a large sum all at once.

Did you know?

Heading south

for the winter?

Make sure we have your contact info. Give us a call at:

Personal Insurance1-800-279-4010

Retirement & Investments1-800-279-4030

Newly enacted legislation (Act 14)

includes insurance laws that will impact

all Wisconsin residents with auto and

umbrella policies. If you are a WEA P&C

policyholder, you will receive notifi cation

60 days prior to renewal explaining how the

changes aff ect your coverage.

A complete description of the changes

can be found at oci.wi.gov (search for Act

14) or go to weabenefi ts.com/act14.

IRA and 403(b) NewsYear-end distribution deadlinesLump-sum withdrawals

If you would like to take a lump-sum withdrawal from your WEA TSA Trust or WEAC IRA accounts before the end of 2011, your original written request form must be received (not postmarked) by us on or before December 16, 2011, for processing the following week. We cannot accept requests via fax. Forms received after December 16 will be processed the second week in January 2012.

403(b) and IRA exchanges/transfers/rollovers outExchanges, transfers, and rollovers require a two-week processing time.

Accurately completed paperwork (including approved TPA transaction autho-rization) received by December 9, 2011, will process by the end of December. This includes requests for IRA recharacterizations and conversions. Paper-work received after that time will process in January 2012.

Postdated checksPostdated IRA contribution checks are not accepted and will be returned.

We are not able to accept checks written and received this tax year (2011) for next tax year (2012). Please do not postdate your checks.

New mutual funds are here You should have recently received information regarding changes to the

investments available in the 403(b) and IRA programs. These changes are a result of an annual investment committee review and the Board of Trustees’ approval. For additional information or to view a prospectus, please visit our Web site at www.weabenefi ts.com or call 1-800-279-4030.

Nonelective, employer-paid contributionsIf you will be receiving nonelective, employer-paid contributions in your

403(b) account, it is important to review your account and update your future contribution allocations. Contributions will be defaulted into an age appropriate Vanguard Target Retirement Fund* if no contribution allocations are on fi le. Please call 1-800-279-4030, Ext. 8568 to review your allocations.*Target retirement funds invest in a mix of stock and bond funds that steadily become more conservative as they approach their target date. Target retirement funds are not guaranteed and may gain or lose value now and after their target date.

Avoid penalties! Watch your contribution limits…it’s year end! It’s up to the participant (not the employer) to pay attention to limits.

NEW and improved WEAccess coming in November! Participants will receive a letter about new login procedures.

Property and casualty insurance programs are underwritten by WEA Property & Casualty Insurance

Company. The terms and conditions of your coverage are exclusively controlled by your written policy.

Please refer to your policy for details.

4 weabenefi ts.com

{ your story

Dick Kasten is at the window

watching the lawn crew mow the

grass surrounding his fi rst fl oor

condo in Menomonee Falls. It’s a beautiful

setting. Th e living room windows look out

at a well tended garden bed with a backdrop

of undeveloped prairie and woods.

Th e condo is home to Dick and his

daughter Barb. Barb is among the 41% of

baby boomers who provide assistance to

aging parents. She is also among the 8%

who have a parent living with them (USA

Today/ABC News/Gallup Poll).

As the last baby boomers reach the age

of 50, it is expected that this group of

Americans will spend more years caring for

elderly parents than they spend raising their

own children.

With advances in medicine, individuals

are living longer than ever before. Th e

largest growing age group in the U.S.

is people in their 80s. Th e fortunate

increase in longevity comes with some

consequences. It means planning for more

years in retirement, and that’s going to

require more savings. It also means your

chances of having or being an elderly parent

that needs some assistance is pretty high.

Michelle Slawny, Sr. Financial Planner

from WEA Trust Member Benefi ts, says

about half of the Wisconsin public school

employees she creates plans for are helping

their parents in some way. “It’s a challenge.

Trying to save for retirement, getting

children launched, and caring for their

parents.”

Michelle emphasizes the importance

of not compromising your own fi nancial

security. “Utilize other resources to pay

for college and help your parents. If you

jeopardize your own fi nances now, you

risk putting yourself and your children in a

tough spot down the road.”

The turning pointDick is sharp. Despite some diffi culty

getting around, he looks great at 90 years

old. And, he thinks his current living

situation is wonderful. “I’ve got it made,”

he says. Barb explains that her dad came to

live with her 10 years ago after her mother

passed away. “It made sense economically,

and I just knew that I would take care of

him at some point, because I promised him

Caring for and protecting elderly parents

that he would never go to a nursing home.”

Dick was living in their family home—a

tri-level in Cudahy. Much larger than he

needed and too far away. “After Mom was

gone, I told him we had two years to get the

house sold.”

Barb is single, which made it an easy

decision, but she acknowledges some

adjustments were required. “I hadn’t lived

with anyone for years, so it took some

getting used to. But he’s one of the easiest

people to be around. He’s made me become

a more ‘fl exible’ person.”

“We have a beautiful relationship,”

Dick says. You can sense how much he

appreciates his daughter. “Th e most

diffi cult part is communication—trying

to understand each other. It’s not perfect,

but it’s just been a beautiful relationship.

I’m 90. If Barb wasn’t here, I’m not sure

where I’d be.”

“It was an adjustment for both of us,”

says Barb. She handles meals, fi nances,

household chores, doctor’s appointments,

medicine dispensing, and personal care.

“Everything that makes him feel okay

physically and emotionally.”

Maybe you’re not caring for elderly parents now, but you might be soon.Forty-one percent of baby boomers who have a living parent are helping take care of them with personal help, fi nancial assistance, or both.Members Barb Kasten and Mary Dobbe are among them.

55weabenefi ts.com

The retirement decisionUntil this year, Barb worked full time as

a middle school counselor in the Waukesha

school district. “I really loved it. I hadn’t

planned to retire until I turned 60, but it

just worked out that way.”

A couple years ago, Barb attended a

fi nancial seminar called Preparing for

Retirement presented by Michelle Slawny.

“After the seminar, I set up an appointment

for a Retirement Income Analysis. I wanted

to see where I was at fi nancially. She showed

me what I could expect if I retired at 58 and

60.”

Since then, a couple things transpired.

“Dad had several surgeries last November

and then with everything going on

politically…I called Michelle to see if 58

was still an option.” Fortunately, Barb

saved for retirement with a 403(b), which

gives her an additional source of retirement

income and helped her retire early.

Michelle suggests that with retirement

benefi ts of all kinds being eliminated or

reduced, public school employees will

need to rely more heavily on their personal

savings. “Anyone considering retirement

before age 62 needs to make saving a priority

if they want to achieve their fi nancial goal.”

No regrets“It was strange not going back to school

this year. On teachers’ fi rst day back, Dad

had an appointment near Butler school.

Afterward, I said ‘let’s drive by the school.’”

Barb seems surprised that she’s taken to

retirement as well as she has. “It’s given me

so much fl exibility. I can do things in the

evening with friends if I want. When I was

working I rarely went out in the evenings.

Th e days were so long for Dad.”

Knowing the diffi culty others go through

with fi nding care and managing everything

from a distance, makes Barb feel lucky.

“I’m very fortunate. I have friends who

are dealing with very tough issues as they

become more and more responsible for

their elderly parents, like Alzheimers,

independent vs. assisted living and nursing

home alternatives. Th ese are very diffi cult/

emotional issues.”

Getting your ducks in a rowCaring for your aging parents means

helping them plan for their future, and this

can be overwhelming. It’s a diffi cult subject

to raise. But waiting until after the need

becomes acute will only make important

decisions more diffi cult.

“After Mom passed away, we sought help

from an estate lawyer,” says Barb. Th ey had

his will drawn up, as well as a living will,

power of attorney, and power of healthcare.

“Th is not only gave us peace of mind but

also avoids having his estate go into probate

upon his death.”

Barb has also been realistic about

planning ahead for herself. When she was

in her early 40s, she took out a long-term

care insurance policy. “Being single, I want

to know that if I need assistance or nursing

home care, I will have some choice in where

I go and the type of care I receive.”

A strong partnershipBarb and Dick have been through a lot

together. “I think of it as a partnership,” says

Barb. Dick says again, “It’s not perfect, but

it’s just been a beautiful relationship,” Barb

chuckles as she tells how Dick still plays his

parental role. “He’ll say ‘Barb, don’t stay up

too late.’ I have to remind him I’m 58 years

old. He’s a special person. He’s given me as

much as I’ve given him, probably more.”

continued on page 9 Part 2: Mary’s story

Barb’s Tips• Reduce your worries while you’re away.

When Barb was working, she worried about Dick moving around the condo. “I

used to pack a cooler each morning with snacks, drinks, and lunch so he wouldn’t

have to go to the kitchen.”

• Take care of yourself physically and emotionally.Barb exercises most days and stays connected to friends. “Th e social outlets are

extremely important. I’m very fortunate that from day one, my friends have

included Dad. It’s just been great.”

• Collect key information for you and your parents.It is extremely important to have appropriate legal documents in place. “It gives

you peace of mind and makes you aware of your parent’s wishes.”

• Look at LTC insurance for you and your parents.Long-term care services are NOT covered by Medicare or health insurance. Long

term care insurance protects your assets and gives you fl exibility in how you

receive your care. “I was 47 when I took out my LTC policy. An early age, but the

premiums were something I could manage at the time. Th ose premiums increase if

the decision to take out LTC is made later in life.”

{MEMBER PROFILEBarb Kasten

was a special education teacher for eight years in Mequon. She received her master’s degree in counseling and worked at Homing and Butler Middle Schools in the Waukesha district for the

next 25 years. “Middle school is such a pivotal time for kids. It was very rewarding to be part of that. And, I worked with really wonderful people.”

Barb was among the 4,935 Wisconsin public school employees who retired this year. “The time was right for a number of reasons. And, fi nancially I knew it was an option.”

She enjoys spending time with friends, exercising, reading, gardening, and going to movies.

All investment advisory services are offered through WEA Financial Advisors, Inc.

weabenefi ts.comweabenefi ts.com6

Protect your stuff

Add up the value of your belongings,

and you’re probably looking at

thousands of dollars. Could you

aff ord to replace your property if it were

stolen or damaged during a fi re?

Renters insurance protects your personal

property against damage or loss and insures

you in case someone is injured while in

your apartment.

Your landlord’s policy does not cover your personal property

Th e homeowners or commercial

property insurance policy your landlord

carries insures the landlord’s property,

not yours. If a fi re or other disaster

destroys your possessions, you could

suff er a signifi cant fi nancial loss unless

you have renters insurance. A renters

insurance policy provides protection for

your personal property, such as furniture

or electronic equipment, in the event that

it is stolen or damaged as a result of fi re,

theft, or other unexpected circumstances. It

also covers “loss of use” or living expenses

due to having to live elsewhere while your

apartment is being restored following a fi re

or other damaging event.

Note: Consider scheduling your

computer for extra protection from loss and

damaging events like spills on the keyboard.

Deductibles do not apply to scheduled

items.

Liability protectionIn addition to personal property

coverage, renters insurance policies

also provide liability coverage. Liability

insurance provides coverage against a claim

or lawsuit for bodily injury or property

damage to others caused by an accident for

which you are found liable. Th is coverage

is worldwide, extending to incidents off

the rental premises.

Example: Someone slips on the

wet fl oor in your apartment kitchen and

breaks their arm or you hit someone with a

ball while golfi ng. Th ey want you to cover

their medical expenses, pain and suff ering,

and/or ongoing physical therapy. Th e

liability protection included in your renters

insurance policy (not your landlord’s

insurance) would cover you.

What else should you look for in a renters insurance policy?

An important factor to consider when

shopping for renters insurance is “actual

cash value” vs. “replacement cost” coverage.

Renters Renters InsuranceInsurance

The average two bedroom apartment has over $20,000 worth of belongings that are not covered by a landlord’s policy.

Kids in college?Kids in college?Your dependent children away at

college may be covered under your homeowners or renters insurance policy. Check with your insurance company. There may be restric-tions such as the age of the college student or whether they live in on-campus housing.

Insured with us?Whether your dependent child

is living in a dorm or renting an apartment while attending college, they are covered by your Member Benefi ts homeowners policy (up to 10% of the personal property limit in your policy—subject to deduct-ibles and coverages in your policy). So, if you have $100,000 in personal property coverage, then each stu-dent living away from home has the equivalent of $10,000 worth of coverage.

{ your insurance

weabenefi ts.com 7weabenefi ts.com

Calculate the coverage you need

Ideally, you want enough renters insurance to replace your personal possessions in the event of a total loss. You can calcu-late how much coverage you need by calculating the value of your personal possessions.

Compile an inventory of your belongings. Make note of the original cost of each item. Attach receipts if available. Total the amounts for a rough idea of how much coverage you need.

TIP: Using a video camera or photos will provide details that a written description can’t capture.

TIP: Use our online worksheet to help you organize your infor-mation. Go to weabenefi ts.com/inventory and click on the link to Personal Property Home Inventory Worksheet.

Make several copies of your inventory. Keep one copy for yourself and leave another copy with a family member, neighbor, or at some other location—such as a safe deposit box—for safe-keeping.

“Depending on the amount of coverage and the deductible, a typical renters insurance policy with Member Benefi ts starts at $6–$7 per month.” - Kelly Behnke, Personal Insurance Consultant at WEA Trust Member Benefi ts

Actual cash value coverage reimburses

you for the cost of the personal property

at the time it was lost or stolen, minus the

deductible. Th is means that depreciation

will be factored in to determine what the

insurance company will pay you. For

example, if your laptop is stolen from your

apartment fi ve years after it was purchased,

you would be reimbursed for the current

value of the laptop, not what it would cost

to replace it.

Replacement cost coverage, on the other

hand, will reimburse the full value of the

new laptop.

MythMyth“Personal belongings “Personal belongings stolen out of my car stolen out of my car are covered through are covered through my auto insurance.”my auto insurance.”

Note: A renter’s insurance policy from

Member Benefi ts comes with replacement

cost coverage.

Renters insurance is inexpensive

Renters insurance is a very economical

way to protect the investment you have in

your personal belongings.

Depending on the amount of coverage

and the deductible, a typical renters

insurance policy with Member Benefi ts

starts at $6–$7 per month.

Even if you feel your possessions are

fairly modest, losing even one big-ticket

item or a lot of smaller possessions at once

could be fi nancially devastating. Unless

you have enough money saved to replace

everything you own—clothes, furniture,

computer, entertainment system, etc.—

renters insurance is defi nitely worth the

cost.

Personal property is insured through your renters insurance policy, not your auto insurance.

Member Benefi ts homeown-ers and renters insurance cov-ers personal property anywhere in the world up to the personal property limit shown on your declaration page, subject to your deductible.

Property and casualty insurance programs are underwritten by WEA Property & Casualty Insurance Company. The terms and conditions of your coverage are exclusively controlled by your written policy. Please refer to your policy for details.

WHAT’S IN YOUR PORTFOLIO?

When it comes to saving for

retirement, there are three things

you can do to improve the end

result: Work longer, save more, or increase

the return on your investments.

Many don’t want to work longer and/or

are not able to save more, so let’s consider

the third option—increasing the return

from your investments.

To illustrate how improving your

rate of return can impact your account

balance, let’s pretend that you have a goal

to accumulate $500,000 by the age of 62.

If you start saving at age 25 and earn an

average annual return of 5% each year, you

will need to save $390 per month to meet

your goal. However, if you earn an annual

return of 8% each year, you will only need

to save $184 per month. Of course earning

8% per year is more appealing, but how do

you achieve a higher rate?

The answer: stocksOver the long term, stocks have

historically outperformed all other

investments. (Th e sidebar shows how

portfolios with diff erent percentages of

stocks have done over time.) But often

people are afraid of making a mistake or are

concerned about market volatility. So, they

avoid stock investments and settle for lower

returns from lower risk investments.

According to Scott Th omas, Assistant

Retirement Consultant, playing it too safe

might not be the best strategy. “Th ere are

three things you need to account for when

saving for retirement: increased longevity,

reduced employer-based retirement

benefi ts, and infl ation. Including stocks

in your portfolio may help overcome these

obstacles and ensure that you have enough

money in retirement.”

Basic trainingLearning the basics about how to evaluate

an investment and build a diversifi ed

portfi olio can empower you to take control

of your fi nancial future and potentially

improve your bottom line. Which stocks

you choose and how much you allocate to

stocks is the key to managing your risk.

Mix it upA diversifi ed portfolio is less risky than

a portfolio that is concentrated in one or a

few investments.

You’ve heard the saying, “Don’t put all

your eggs in one basket.” Th is is the basic

idea behind diversifi cation. Putting your

money in diff erent types of investments can

help you achieve a more consistent long-

term performance than you would likely

achieve if you put it all in a single type of

investment. In theory, when certain types

of investments are declining in value, other

types are gaining value.

“Th e question you need to ask yourself

is ‘Am I willing to take on a little more risk

for better long-term returns?’” says Scott.

Member Benefi ts off ers 20 diff erent mutual

funds—investing in varying degrees of

stock—in our 403(b) and IRA programs.

Together with our Guaranteed Investment,

these mutual funds give participants the

fl exibility needed to manage risk and build

a diversifi ed portfolio to help improve the

end result.

What to look forEvaluating funds may seem complex, but

Scott suggests there are just four key things

to look at when comparing funds.

1. Fund class/fund strategy: Make sure

you compare apples to apples. Large-cap to

large-cap, mid-cap to mid-cap, etc.

2. Expenses: Know the annual percent

charged for managing the fund and

compare it to funds in its peer group.

3. Risk/Return profi le: Identify the risk

and return characteristics based on all types

of available investments.

4. Morningstar™ ranking for 5-year risk and 5-year return: Th is assessment

compares the risk and return of a fund to

similar funds.

For help assessing the funds available

in our programs by these four criteria, go

to weabenefi ts.com/assessfunds or call a

retirement consultant at 1-800-279-4030.

Including stocks in your asset allocation may boost your long-term returns and pad your nest egg.

8 weabenefi ts.com

Stocks in this example are represented by the Stan-dard & Poor’s 500®, which is an unmanaged group of securities and considered to be representative of the stock market in general. Bonds are represented by the fi ve-year U.S. government bond. An investment cannot be made directly in an index. The data as-sumes reinvestment of income and does not account for taxes or transaction costs. Keep in mind that mutual fund investments are not guaranteed and may gain or lose value. Past performance is no guar-antee for future results. Future performance may be lower or higher than past performance. Before investing in any mutual fund, call WEA Trust Member Benefi ts at 1-800-279-4030 to request a prospectus. We advise you to read it carefully and consider the fund’s investment objectives, risks, and charges and expenses carefully before investing. The prospectus contains this and other information about the invest-ment company. The 403(b) retirement plan is offered by the WEA TSA Trust. TSA program securities of-fered through WEA Investment Services, Inc., mem-ber FINRA. The Trustee for the WEAC IRA program is First Business Trust & Investments.

9.9%

9.1%

8.1%

6.8%

5.4%

50% 50%

100%100%

25% 75%25% 75%

75% 25%75% 25%

100%100%

9.9%

9.1%

8.1%

6.8%

5.4%

Average annual returns (1926-2010)

• Stocks • Bonds

{ your investments

weabenefi ts.com 9

Take care of you, tooMary knows she also has to take care

of her own fi nancial future, which looked

brighter before the recent political upheaval.

Like Barb, Mary had taken advantage

of Member Benefi its’ fi nancial planning

services off ered by Michelle Slawny. “Th e

last time I met with Michelle, she showed

me exactly what impact my share of WRS

and health insurance would have on my

take-home pay. It wasn’t as bad as I thought

because it’s taken out pre-tax.”

Mary has also attended numerous

fi nancial seminars and thinks she’ll be able

to manage the plan Michelle helped her

with. It includes continuing to contribute

to her 403(b) savings account. “My

experiences with Member Benefi ts really

helped with planning for my mother’s

health and fi nancal needs, as well as my

own.”

Her next fi nancial move will be to reduce

her expenses by selling her mother’s house.

“I told her it was time. It’s never easy to let

go. She collected so many things over the

years. Deciding what to keep will be hard.”

continued from page 5

Part 2: Mary’s story

After her father died 19 years ago,

Mary Dobbe started spending

more time helping her mother

Bernadine, now 77. “Her vision is bad.

I’ve been taking care of all of her bills

and mail because she just can’t see to do

it.” Bernadine has diabetic retinopathy,

a degenerative eye disease that can cause

severe vision loss or blindness.

Until last fall, Bernadine was living alone

in the family home. Mary lived two blocks

away, so there was plenty of checking in.

But even then, there were worries. “I

discovered she wasn’t taking her pills unless

I was with her. Same thing with eating. I’d

ask her what she had for dinner and she’d

say ‘Oh, a little of this and that.’”

Collecting key documentsLast summer, Mary felt compelled to get

a Power of Attorney for Finances and Health

Care for her mom. “I just felt I needed to

get it done.” Th en, a series of unfortunate

events ended with Bernadine in a nursing

home. “Having those documents in place

made all the diff erence.”

A fi nancial power of attorney allows

you to write checks, pay bills, change

investments, and attend to other fi nancial

matters on behalf of your parents. However,

this legal document needs to be created

before a parent becomes incapacitated.

“I couldn’t even cancel her cable account

without it.”

Mary has also contributed fi nancially to

her mother’s care over the years. Her name

is on the deed to the house (along with her

brother’s), and she continues to pay taxes,

utilities, and such.

Finding helpWhen it was obvious Bernadine would

not return home, Mary worried about

how they would pay for the nursing home.

Bernadine did not have long-term care

insurance nor the personal assets to cover

it. Mary sought help at the county level

and social workers helped them fi le for

assistance with the state.

Often, caregivers of elderly parents are

unaware of the help that may be available

in his or her community. Don’t leave these

resources unexplored. Take the time to make

some phone calls and ask a lot of questions.

Th ere are people and organizations out

there that can help you take care of your

parent(s).

Protecting parents from scamsMary worries less about her getting

meals or her medications now that she

has constant care. And, she has improved

socially. But a suspicious phone call last

summer put her on alert.

“While I was on vacation, Mom called.

She was upset.” Bernadine received a call

from a lady who knew she was diabetic and

talked about her sugar-testing meter. By

the end of the conversation, Bernadine had

given the woman information including

her birth date. “Th e caller had also asked

for her social security number, but thank

goodness Mom doesn’t know it.”

Mary has no idea whether the call was a

scam or not, but the idea that they asked for

personal information is worrisome.

Take care, buyer beware Bernadine is not alone. One out of every

fi ve older Americans has been sold an

inappropriate investment, paid excessive

fees for a fi nancial product or service, or

has been a victim of fraud or identity theft,

according to a 2010 study by the Investor

Protection Trust. In fact, seniors lost nearly

$3 billion last year to fi nancial predators.

Th ose looking to take advantage of the

elderly use many tactics to get the sale. Th ey

entice with free off ers, play on people’s fears

and exploit their loneliness.

Educate your parents about what

information should be protected and

take precautions like shredding bills and

statements before disposing of them.

In addition, be aware of fi nancial products

on the market that could jeopardize their

fi nancial security. Strongly encourage

your parents to let you help evaluate any

products they are interested in purchasing.

{MEMBER PROFILEMary Dobbe is an early childhood teacher in the Waupaca school district.

Rule of thumbWhen considering any fi nancial product, make sure you understand:

• The overall product features.

• The tax implications for the investor and benefi ciaries.

• The projected rates of return and the certainty of those rates.

• The liquidity of the investment.

• (For annuity products) the age the annuitant must reach before being eligible to receive regular annuitized payments without penalty.

• All of the fees and costs associated with that product.

One out of every fi ve older Americans has been sold an inappropriate investment, paid excessive fees for a fi nancial product or service, or has been a victim of fraud or identity theft.

10 weabenefi ts.com

{ your kiosk

How to talk with your parents about LTC insuranceMany people who have raised the topic of long-term care insurance (LTCi) to their parents—or other aging relatives—may be able to relate to these all-too-typical responses: Below are suggestions to help you have a different type of conversation—and a better outcome.

Invite them to a personal online LTCi seminar.WEA Trust Member Benefi ts sponsors personal online

seminars in the comfort of your home. One of our LTCi

specialists will walk everyone through an informative

presentation that covers the basics of long-term care and what

to look for in a policy, and can also answer general questions

about medical conditions and estimate monthly policy costs.

WEA Trust Member Benefi ts is sponsoring the protection

of long-term care insurance because we believe it’s important

to anyone who wants to take personal responsibility for their

fi nancial future and quality of life.

Register for an online seminar at weabenefi ts.com/calendar or call 888-247-5905 for more information.

Long-term care insurance products are underwritten by multiple LTC insurers. Program administered by LTCi Marketing Administrators, (LiMA)

Do NOT use the words “long-term care” early in the conversation.

For many people, the words long-term care equal nursing home. Th is

is because LTCi in its early years (less than 40 years ago) was primarily

designed as nursing home insurance. Although this is no longer the case,

don’t run the risk of closing the door to this important conversation.

Take a more positive approach that shows you share their desire for

independence and quality of life.

Express the hope that they remain in their home the rest of their lives.

When asked where they would prefer to receive extended personal care,

most people will choose the familiarity and comfort of their own homes.

Today’s LTCi policies recognize this fact and are designed to pay for

home health care. When a policyholder qualifi es for benefi ts, (ie, needs

help with activities of daily living such as dressing, bathing, etc.), the

policy will pay for home health aides to provide such services along with

transportation, housekeeping, shopping and more. Some policies will

even pay cash to relatives and friends who assist with informal care needs.

Focus on independence, quality of life, and peace of mind

Emphasize that you want to protect their ability to have choices about

where and how they receive the care they need. Once they understand

this, tell them that only LTCi is designed to provide this protection.

Medicare won’t pay for extended personal care (nor will the best health

insurance policy), and Medicaid is not something most people should

be considering. In fact, the sad reality is that many people end up on

Medicaid after they’ve spent through their personal assets and savings–

something they had worked hard their entire lives to avoid.

Look into LTCi sooner rather than later.Th ere are three important reasons to take action sooner than later:

• LTC insurance is underwritten, which means they must be in

reasonably good health when applying.

• An LTC event can happen at any time, because no one knows when

one might take a serious fall, suff er a stroke, or develop a disqualifying

medical condition.

• Th e premiums are age-based, so the younger the applicant, the lower

the premiums over the lifetime of the policy.

“Are you worried that we’ll spend

your inheritance?”

“Are you saying we’re not capable of staying in our

home?”y

ble ur “Are you

trying to put me/us in a nursing

home?”

weabenefi ts.com

{KIDS & MONEY

11

New SeminarThe Basics of Budgeting and Saving WorkshopAs Wisconsin public school employees adjust to reduced take- home pay, having a written budget is more important than ever. A budget gives you control over your fi nances. It empowers you to set and reach fi nancial goals, helps you manage day-to-day fi nances, and prepares for the unexpected. A budget also gives you permission to spend and allows you to set the course for your fi nancial future.

You will learn:• The benefi ts of a written budget.• How to create a working budget.• How to evaluate your income and

read your pay stub.• How to categorize and reduce your

expenses.• Tips for managing your debt.• Why saving for your future is

necessary and possible, even now.

Check our seminar schedule at weabenefi ts.com/calendar for an offering near you.

What are you teaching your kids about money? Well before they start

school, children develop attitudes that could infl uence a lifetime of

fi nancial behavior. Parents can infl uence even very young children for

a lifetime by demonstrating sound money management. In addition,

talking to your children about money can help them build a sense of

fi nancial awareness and fi nancial responsibility. Here are some ways

you can teach your kids about money.

Play games that teach money concepts.Board games such as Monopoly and Life can be a fun way for children to learn about money. An added bonus: the whole family can play together.

Take your child shopping.Going to the grocery store can be very educational if you take the time to turn it into a learning activity. Tell your child what your budget is, share what is on your list, and talk about the decisions you make in order to stay within your budget. Explain how coupons can help you save money.

Give an allowance.School-age children can earn an allowance by helping out with chores. Earning an allowance gives children hands-on experience with managing their money.

Encourage saving.There are different kinds of saving: saving in order to buy a particular item, saving for an emergency, and saving to build up future fi nancial security. Try to teach your child to designate a portion of their money to different types of saving.

Teach generosity.Have a discussion about charity and encourage your child to pledge a portion of their allownace to the charity of their choice.

Open an account.Go with your child to your local credit union and open up an account. Explain that the money in the account will grow because of interest paid by the credit union.

Use cash.Whenever possible, pay with cash to demonstrate the physical exchange of money for goods and services. The prevalence of paying with plastic can be confusing for younger children. Take time to explain how the credit union and ATM card work.

Set a good example.How you handle money will have an impact on your children’s money management skills. Don’t spend more than you earn, create a budget and stick to it, keep credit card debt in check, and save for the future.

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Member$aving Tips

Plan now for a garden next year. You’ll eat healthier and reduce your grocery bill (and maybe your waistline) Get back to freezing and canning your excess produce and you can extend the savings through the year.

Organize a swap event with your colleagues or neighbors. Unwanted, unneeded, or outgrown items can fi nd a new home through an organized exchange at work or in your community.

Jeanne MeaseRetired, Denmark School District

PRESORTEDSTANDARD

US POSTAGEPAID

MADISON WIPERMIT NO 2750

PO Box 7893, Madison, WI 53707-7893

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Rolling over is easyRolling over is easy and it may save you more money than you realize.

Work with one of our Retirement Consultants to:

1. Evaluate your current provider. They’ll look at what you’re currently paying in fees, discuss your investments, and help you determine if a move is right for you. If it’s not, they’ll tell you that, too.

2. Prepare paperwork.Brenda, Ana, or N’Kenza will pre-fi ll the necessary forms and mail them out to you for your completion.

3. Monitor the transfer process. Our transfer specialists will work with the releasing company to ensure funds are processed in a timely manner. They’ll even participate in a conference call with your current provider.

We accept ttrollovers from

a variety of retirement

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The 403(b) retirement plan is offered by the WEA TSA Trust. TSA program securities offered through WEA Investment Services, Inc., member FINRA. The Trustee for the WEAC IRA program is First Business Trust & Investments.

Ana, Ext. 2239

Brenda, Ext. 3300

N’Kenza(Milwaukee area)

Call 414-259-1990,

Ext. 1133

Call us at 1-800-279-4030

Call

Open to family members. Remember, your spouse, parents, parents-in-law, and children can also participate in our IRA program.