Caring for Mom’s Nest Egg

Lillian was having problems paying bills on time and managing her life’s paperwork. She worried about it constantly, but didn’t want her grown children to know—after all, they had their own families to tend to and didn’t live close by. Since her early 70s she’d noticed her memory slipping, but after Joe her husband of 53 years passed a few years ago, life had become stressful. Joe had done everything around the house, including the bill paying. By her 76th birthday, Lillian was still in fairly good shape physically. She stayed active and tended to her dietary needs. However, her short term memory issues worsened so that some bills were paid late. Developing cataracts made close-up work difficult and bill paying a frustration.

After an honest and loving conversation between Lillian and her adult children about these struggles, the decision was made to engage a Daily Money Manager (DMM).

birds nestNot exclusively for seniors, DMMs have been in demand by the wealthy for generations. As the population aged and it became the norm for children to leave the hometowns they grew up in, daily money management filled a growing need. The computer age and the increase in fraud, especially scams that prey on seniors, called for a stronger degree of financial oversight for seniors. Whether living at home or in senior housing, elders without that oversight might see their nest egg gone.

Daily Money Managers provide services that are highly customized to their client’s needs. Nowadays, clients have their bills sent directly to the DMM company, which scrutinizes them for accuracy then pays them out of the client’s checking account. If anything irregular appears on a bill, they verify the payment with the client beforehand.

Had Lillian engaged with DLMoneyMatter’s DMM division, she would now be enjoying her retirement free from the worries of managing her daily financial affairs—and her children would have the peace of mind that Mom is safe from late fees, fraud, and daily money worries. If you have a Lillian in your life, or know someone who does, please forward this email or refer them to us for a free, no-obligation quote on Daily Money Management services with us.

Tax Cut Plan—Risk or Reward?

What small business owner wouldn’t want to wake up one morning with a tax rate of 15%? Sounds risky? Naysayers forecast the move could add $3 to $5 trillion to the federal deficit, while supporters forecast that it will stimulate economic growth that will offset a short term revenue decline. They remind us that we sustained economic growth around 4.5% in the 1960s and early ’70s. Considering that we have a unique and unprecedented businessman in the White House, this could be America’s opportunity to do it again.

It’s prudent to discuss the pros and cons. As Mary Ritter Beard, an early activist of labor and women’s rights, once said, “Action without study is fatal. Study without action is futile.”

In the investment world there’s a term: risk averse. The term describes investors who, when faced with two investments with a similar expected return but different risks, will prefer the one with the lower risk. Small business owners take risks daily. Mark Zuckerberg once told a group of young entrepreneurs, “In a world that’s changing really quickly, the only strategy that is guaranteed to fail is not taking risks.” Bill Gates was not risk averse; he dropped out of college to start Microsoft.

Naysayers of the tax cut plan are risk averse: it’s safe to cite all the reasons why an innovative solution to a problem won’t work. Supporters of the plan are gamblers, betting on human nature and the American spirit. Should the tax stimulus pass, we think things could get worse before they get better. But they will get better because Americans are brimming with optimism regarding the economy. I believe it was Helen Keller who said “Optimism is the faith that leads to achievement.”