SUNDAY, JANUARY 19, 2014 | SECTION E

Explore E2 Editor: Jessica Kosowski [email protected] Prime Time E3 508-236-0331 LIVING WELL Nearly destroyed by wind and killer waves more than 100 Are you years ago, the coastal island of Galveston provides some ... ready to retire? How economic TTexas-siexas-sizzee ffunun and life events affect savings

ecent research from various sources has un- R covered an upsetting trend in financial planning in America: Many Americans nearing retirement are under- prepared. But less studied are the reasons why Americans are so ill-equipped to fund this major life stage. What events have trans- pired to make retirement fi- nancially bur- densome even for those who have long KELLY FOX planned their PHOTOS BY ROGER FASTESON / F0R THE SUN CHRONICLE MONEY The nostalgically-named Historic Pleasure Pier opened in May 2012 after a multi-million dollar renovation. There’s a 100-foot fer- MATTERS exit from the workplace? ris wheel, a vertical-lift steel coaster, a 200-foot swing tower, midway games, live entertainment, three water playgrounds, restaurants and shops. A recent survey done by Ameriprise Financial of re- BY LINDA FASTESON l FOR THE SUN CHRONICLE tired and working Ameri- cans ages 50-70 unveiled that the overwhelming majori- e were on an island with gentle breez- American Revolution, it’s said that buried treasure ty (90 percent) has experi- es and shimmering water with the lyrics was left behind when Jean Lafitte’s pirate colony enced some economic or life event that has had a finan- of the 1969 Glen Campbell hit “Galves- was run out of town in 1814. ton”W dancing in our heads. We heard the “sea winds Sweet scented Jamaican flowers a merchant cial impact on their retire- ment savings goals. The aver- blowing” and watched the “sea waves crashing” and shipped here for his wife in 1841 are now so abun- age respondent experienced “sea birds flying in the sun,” all on this Texas is- dant that Galveston is known as the City of Ole- four of these events, which range from derailers that are land in the . anders. The port’s cruise passenger traffic is the beyond their control such as With 32 miles of beaches and average temper- fourth highest in America. the effects of the recession, atures of 57 degrees in winter and 81 degrees in Once the largest cotton exporter in the world, to family and lifestyle choic- summer — and the sweet scent of oleanders waft- Galveston was so successful as a shipping and fi- es that have lasting finan- cial consequences. In the end, ing through the air — Galveston is a year-round nancial center that the street known as The Strand these events set respondents treasure, including the holidays. was called the Wall Street of the Southwest. back $117,000 on average. In Named for Spanish colonial governor Bernardo fact, nearly two in five of the respondents (37 percent) expe- de Gálvez, who helped defeat the British during the SEE EXPLORE, PAGE E4 ̈ rienced five or more unantici- pated events costing them ap- proximately $144,000. Sites to be seen The most commonly cit- Clockwise, from right: The Galveston ed derailer, which nearly two- Railroad Museum has one of the largest thirds (63 percent) of survey restored railroad collections in the US, participants report experienc- including over 40 locomotives and ing, is low interest rates that other rail vehicles from when rails shaped impacted the growth of their the nation. The Galvez & Spa cele- retirement assets. More than brated its 100th anniversary in 2011 with half (55 percent) say the re- an $11 million renovation. The historic cession significantly lowered exterior and splendor of the Queen of the their retirement savings due Gulf was retained and luxurious amenities to market declines, and one- were added. Its Hall of History tells third (33 percent) of respon- its colorful story including famous guests dents convey that their home like Presidents Franklin D. Roosevelt, equity is not going to help as Dwight Eisenhower, Lyndon Johnson and much as anticipated for re- Richard Nixon. The First National Bank tirement. Other common de- of Galveston has been restored and is railers include supporting a used to exhibit works of Galveston artists. grown child or grandchild (23 percent), pension plans that are not worth as much as planned or have been discon- tinued (23 percent) and bad investments (22 percent). It’s impossible to predict which events may happen in the future that could derail your retirement plans, but there are ways to help lessen the impact of unexpected de- railers. Here are a few: ̈ Save as much as you can. Nearly three in five (57 per- cent) survey respondents say they wish they’d started sav- ing earlier. Saving systemat- ically into a 401(k) and other investments as early and of- ten as possible is a great way to prepare for retirement over the long-term. Calculate what you think you’ll need for var- ious expenses in retirement

SEE FOX, PAGE E4 ̈

Resolve to make estate planning decisions this year

t’s that time of year when many one pointing toward the past, the oth- to improve their lives. sume all your property will go to your of us firmly resolve to go back to er toward the future. Here are some suggestions of at- spouse, for example, whereas part of I the gym, lose those extra pounds For procrastinators, a new year tainable estate planning goals for the it may go to an estranged child from or get organized. offers a perfect opportunity to shake coming year: your prior marriage. If you have a New Year’s resolutions date back off indecision. Forty-five percent of will, but it is very old, you should ask Make a will to the Babylonians and stem from Americans make New Year’s resolu- yourself if major life changes — like our deep human need for hopeful tions, but only eight percent succeed. Over two-thirds of Americans marriages, divorces, deaths, or births new beginnings. The Roman god Ja- The main reason for failure: People don’t have a will. If you die without of new children or grandchildren — ROBERT nus, for whom January was named, choose too grand a goal, instead of a will, your property may go to peo- DESCHENE was aptly depicted with two faces, aiming for realistic, achievable steps ple you never intended. You may as- SEE DESCHENE, PAGE E4 ̈ E4 The Sun Chronicle ࡯ Sunday, January 19, 2014 FROM THE COVER ࡯ LIVING WELL FOX: Road to retirement has potholes, save money now

FROM PAGE E1

and save accordingly. If possi- ble, save even more than you think you’ll need. Consider set- ting aside bonuses or tax re- turns into retirement savings, and increase your contributions to your employer-sponsored re- tirement plan as you near re- tirement. If you’re nearing re- tirement and coming up short, determine how you may spend less and save or perhaps work longer. ̈ Make a budget. Making a budget and sticking to it can be helpful in making day-to-day spending decisions. One-third (33 percent) of survey respondents admit they wish ROGER FASTESON / FOR THE SUN CHRONICLE they would’ve spent less cash on Moody Mansion is filled with the furnishings and personal effects of a family that built one of the largest fortunes in America. extra expenses like eating out and vacations. Though some of these activities can be success- EXPLORE: Galveston one of top tourist destinations in Texas fully integrated into your over- all financial plan, being prudent FROM PAGE E1 with your money is sometimes a matter of making trade-offs now This jewel of Texas at one to help avoid having to make time was the state’s largest them the future. city and first to have amenities ̈ Maintain an emergency fund. like gas lights, electricity, tele- You’ve likely experienced a phones, electric street cars, a financial event — such as an un- post office, an opera house and expected car repair or medi- a hospital. cal bill — in which you relied on Then in 1900, the Great Storm your emergency savings. After struck with 15-foot waves and you leave the workforce, main- over 100 mph winds. It demol- taining an emergency fund is ished a third of the city and perhaps even more important, killed more than 6,000 people — yet only 33 percent of respon- one of every six residents. dents are extremely or very The seawall was expanded, confident they can afford such and dredged sand was used to an expense in retirement. Unex- raise the city 8 feet and slope it pected events are inevitable, but to the bay. you can prepare for bumps in The grand Hotel Galvez, the road before and during re- Queen of the Gulf, opened in tirement by factoring them into 1911, and when the causeway your financial plan and keeping was completed in 1912, trendset- cash on hand. ting tourists came in droves to ̈ Purchase the right kind and this seaside resort. amount of insurance. Galveston has the largest Half of retirees and pre-retir- concentration of Victorian iron- ROGER FASTESON / FOR THE SUN CHRONICLE ees who experienced the death front commercial architecture One of the best places to spot dolphins and seabirds is around Galveston’s shrimp boats. of a spouse or a disability had in America. And, sculptures adequate insurance coverage made from hurricane-damaged ids, family raft rides and a riv- and were able to maintain their trees adorn many yards in the er system. This world’s-first lifestyle — but half did not. Con- East End Historical District. convertible water park can be sider disability, life and long The East End’s grandest opened or enclosed for year- term care possibilities and be mansion is Bishop’s Palace. round enjoyment. thorough in doing your home- Built between 1886 and 1892 for Board a World War II subma- work before choosing which railroad magnate Walter Gresh- rine and Navy destroyer at Sea kinds and how much coverage am, it became the home of Bish- Wolf Park. you need. Also, determine a op Byrne. The American Insti- The Lone Star Flight Muse- plan to cover healthcare costs if tute of Architects named it one um is home to the Texas Avia- you plan to retire before you’re of the 100 most important build- tion Hall of Fame and one of the eligible for Medicare coverage. ings in America. finest collections of restored air- ̈ Seek help to develop a writ- Moody Mansion was pur- craft and aviation exhibits in ten plan. chased for $20,000 after the the world. There may be wisdom in Great Storm by W.L. Moody, And, there’s dining. seeking professional help. Of named one of the 10 wealthiest Try the East End’s family- those surveyed who have a fi- men in America by Time Mag- owned Sunflower Bakery & Ca- nancial advisor, nearly three azine. The furnishings of this fé’s homemade breads, pastries out of four (74 percent) report family that built a fortune on and tomato basil soup. they have a written financial cotton, banking, ranching, in- It’s Greek family recipes, plan, compared with 39 percent surance and remain. steamed clams, Texas oysters, of those without financial ad- And, there are other attrac- and friendly service at Olympia visors. Having a written plan tions. ROGER FASTESON / FOR THE SUN CHRONICLE The Grill at Pier 21. There’s a in place may promote financial Step aboard a retired and re- Not to be missed is the 242-acre , a destination in itself that dockside patio and Fridays and stability in retirement; those furbished rig and learn about is easily recognized by its three pyramids, including this Aquarium pyramid. Saturday night, authentic belly who are confident that they can drilling and oil and gas produc- dancing. afford essential expenses in re- tion at the unique Ocean Star revelers. midway games, live entertain- Southern Living Magazine tirement are likely to have writ- Offshore Drilling Rig & Museum More boutiques, art galler- ment, water playgrounds, res- named the Hotel Galvez’s Sun- ten financial plans (66 per- on Pier 19. ies, and eateries are found in taurants, and shops. day champagne extravaganza cent vs. 59 percent). Further- The Texas Seaport Museum the trendy Historic Arts and En- The 242-acre Moody Gardens the Best Brunch in Texas. The more, those who say they have features the port’s commerce tertainment District. Its Grand is easily recognized by its three Rooftop Bar of its sister prop- had a smooth road to retirement and immigration and the re- 1894 Opera House survived hur- pyramids. erty, the Tremont House, has are more likely to have writ- stored 1877 tall ship Elissa that ricanes to be one of America’s Explore sea life and go be- a great view of the harbor and ten financial plans in place than transported Texas cotton to Eu- finest historical theaters and hind-the-scenes for an unforget- historic downtown area. those who characterize their ropean mills. the Official Opera House of Tex- table Penguin Encounter at the For Southern comfort food, journey as bumpy (65 percent Train enthusiasts head for as. Aquarium Pyramid. Solve mys- the unpretentious Miller’s, next vs. 55 percent). the Museum The Hotel Galvez & Spa cele- teries of science at the Discov- to the Hotel Galvez, serves all- in the Art Deco Union Depot. brated its 100th anniversary in ery Pyramid, and spot free- day breakfast and a $9.49 lunch KELLY FOX, MBA is a Certified It’s one of the largest restored 2011 with an $11 million renova- roaming monkeys, exotic birds, special. Financial Planner Practitioner railroad collections in America. tion. and other tropical wonders in Gaido’s Seafood Restaurant, and a Certified Divorce Financial The Galveston Island Histor- the 10-story Rainforest Pyra- a fourth-generation family res- Analyst. She has been in practice offers shopping, dining, gallery ic Pleasure Pier opened in May mid, recently given a $25 mil- taurant, is where locals cele- since 1994 and is affiliated with browsing, and events like Art- 2012 after a multimillion dollar lion redesign. brate special occasions with Ameriprise Financial, working Walk, Dickens on the Strand, renovation. There’s a 100-foot Schlitterbahn Waterpark’s Gulf Coast seafood and pecan from her office in Plainville. and Mardi Gras! Galveston Ferris wheel, a vertical-lift steel attractions include uphill wa- pie — named the best in Texas Contact her at 508-695-2336 draws more than a half-million coaster, a 200-foot swing tower, ter coasters, whitewater rap- by Texas Monthly magazine. or [email protected].

DESCHENE: New Year’s resolution should include estate planning decisions

FROM PAGE E1 and your family will not need to child who cannot handle money ly when you die. You must also judge will, and he or she cannot sell your home after your death wisely? If so, a trust can protect plan who will make your person- know what your children need as make your will obsolete. to pay off a Medicaid lien. Start your legacy from being wasted or al, medical and financial deci- well as you. Unfortunately, many the five-year clock ticking now, diverted outside your family. sions if you become incapacitated couples delay seeing legal advice Plan for long-term care before Congress decides to enact before death. If you do not sign because they cannot agree be- Get organized Most of us will need some a 10-year look-back. these relatively simple legal doc- forehand who would be the best long-term nursing home-lev- Take a few hours to orga- uments while you are competent, guardians, but an attorney can Consider a trust el care during our lifetimes, and nize your planning documents in- your family will be forced to go help you talk through the vari- that can quickly eat up all the as- If you have a will, your prop- to a binder, and tell your fami- to court to get the right to make ous factors that need to be con- sets we wanted to leave our fam- erty will pass to your beneficia- ly where you are storing it. This your decisions. sidered, and facilitate your deci- ily. This year, look into the avail- ries with no strings attached. can be one of the best and most If your family cannot agree, sion-making. ability and cost of long-term care So consider whether your fami- loving legacies you leave your an ugly court battle may ensue. insurance. If that is not an op- ly might be better off if you leave family, who will not be left to ROBERT DESCHENE is an attorney Name guardians tion, at least consider putting them property in trust. Do you scramble to find your will, trust practicing estate and elder law your home in a Medicaid Trust at want to make sure your proper- or other documents when they If you have minor chil- planning from Deschene Law least five years before you might ty does not end up going to your are needed. dren, please do not delay nam- Office in North Attleboro. Contact need nursing home care. This child’s ex-spouse in the event of ing guardians to raise your chil- him at 508-316-3853, by email Plan for incapacity trust guarantees you the right to a divorce, rather than to your dren if you should die before they at [email protected], or live in your house until you die, grandchildren? Or do you have a A will takes legal effect on- reach adulthood. If you do not, a online at deschenelaw.com.