Brace yourself, because this blog post could hurt a little.

Let me start here: I’m writing this on Monday morning (Halloween), and the Occupy Wall Street folks are freezing their little tails off. The Northeast just got slammed with a snowstorm, and it’s not quite as fun as it used to be to hang out in Zucotti Park and hold protest signs.

Now, say what you will about these protesters (and there’s plenty to say), but one thing they’re certainly correct about is that higher education costs are a huge problem.

Tuition costs (not to mention living expenses) have been outpacing inflation for a long time (for example, see this chart, from actual data, and from even just two years ago: http://satyagraha.files.wordpress.com/2009/07/inflation-factors-2.jpg ) … so, plainly, something will have to give here.

But here at Team Rowel, we have to live in the Real World — which means we approach the world according to how it *is* … not according how we WISH it would be.

And if you have children, that means it’s, um, time to start saving. Here’s what I mean…

Rowel Manasan’s
"Straight Talk" Personal Strategy
The Expanding Higher Education Bubble
According to the most recent College Board Annual Survey of Colleges, the sticker price of a college education keeps rising, faster than the price of groceries, health care and almost everything else in the basket of goods used to determine the Consumer Price Index (CPI). In the last 10 years, in-state tuition and fees at public four-year colleges increased 5.6% annually on top of a CPI growth of 2%. The average estimated total expenses for most public in-state four-year students (depending on the state) vary in the astounding range of $65,000 to $90,000.

One last thing: I’m not a stocks advisor, but–I do NOT recommend prepaid college tuition plans. At best, they tend to match college inflation, and if used at an out-of-state institution, returns are based on money market rates, which are abysmally low right now.  Even worse … who knows? This bubble may just burst, and you don’t want to have locked into a tuition which might fall through the floor on its own some years from now.

There was a recent "Freakonomics" podcast about the folly of prediction. Fascinating stuff — and (predictably) one of the most valuable conclusions? The experts are usually wrong.

When you study how experts make opinions and, more importantly, the characteristics of those who make GOOD predictions, what you learn is that effective forecasting requires the ability to engage in constructive self-criticism.

And that’s, incidentally, what it takes to make real and lasting changes to your financial world. You can be real dogmatic about the course you’re currently taking — and wake up five years later only to realize that maybe (just maybe) you should have switched jobs, or changed that investment strategy.

My point? Don’t be bull-headed about your finances … and maybe it’s time to make a change.

Now … all that aside, I’ve observed some child tantrums recently in the checkout line. And far be it from me to make specific judgments, but it HAS got me thinking about the pressure many parents face when it comes to loving and lavishing their children … and balancing it with the desire to curb consumerism in them.

So I thought I’d weigh in on a few things which might spark ideas. I know — this isn’t a normal topic for an estate planning attorney to address. But we see it as our role to come alongside families and individuals where the rubber meets the road: how their estates and their money actually affect the daily lives of their heirs and their family. I happen to think it’s part of what makes us effective … because we care about ALL of the implications for your financial decisions.

I know that every family has its own rhythm and pattern, and I’m no "parenting expert". It’s risky for me to write about this stuff. But I do hope you understand — these are ideas to spark your thinking.

Rowel Manasan’s
"Straight Talk" Personal Strategy
3 Gift-Giving Ideas To Curb Materialism In Children
First off, I’d like to say, again, that I’m not an expert in these matters — but I’ve had many conversations with wise clients who have shared a thing or two over the years. I have clients, with great material means, who have children that remain "unspoiled", and don’t carry an expectant spirit.

3) Share Pertinent Financial Details
Children should be protected from adult concerns. But  that doesn’t mean that they should be blissfully ignorant about how money works. In fact, we owe it to our children to properly explain where the family’s money comes from, how it gets into the bank account, and how expenses and budgets work. With a little explanation about how your family’s budget is structured, you may be able to hold back the tide of consumerism.

Again, they don’t need to feel a pinch — but they SHOULD know that gifts and items have a monetary value, and don’t just get plucked from the shelves without cost.

These are just ideas to start with. It’s extremely hard to curb the allure of consumerism in our culture. But in my opinion, it’s a fight that every parent should consider waging in today’s society of overspending and consumer debt.

Again, every family has their own approach … but I do hope that you’ve thought yours through.

It’s been a great start to the fall for me–how about you? Are you still able to take a break in this always-busy season?

Every year, despite the challenges and intensity of managing a law practice, I find it ESSENTIAL to get away and re-charge. I really do think that we can all get so bogged down working IN our jobs and businesses … that we don’t ever really have a chance to think ON them–and where we’re headed.

So, as much as I’d like to completely unplug from my work–I’ll tell you, I just can’t! Helping families is my passion, and I get some incredible satisfaction from helping you sleep better at night, knowing that your future (and your present!) is secure.

Which is why I wanted to give you some thoughts on a mechanism which we often handle on behalf of our clients, for your rumination. Let us know if we can help! (888) 285-0508 (or shoot me a quick email).

Rowel Manasan’s
"Straight Talk" Personal Strategy
Going Beyond the Will
Parenting is more than reading to your children or getting them to eat their vegetables. It’s also about securing their financial future. One way to do that is by drafting a trust and naming a trustee.

Do you want to set up a way for your children to hold mismanagement of funds accountable?
One more benefit of a trust that you don’t get with a custodial account is that a trust is a legal contract; the trustee has an obligation to follow your directions and act in a reasonable and prudent manner. If the beneficiary feels the trustee spent the money frivolously, he can demand an accounting, and can sue for reimbursement if the trustee acted improperly with the funds. It may be pretty tough to prove illegal or improper actions with a trust, but just the threat of a possible lawsuit can keep someone in line.

Enough has been written, by now, of Steve Jobs, that my two cents seems a bit stale. But I would like to say this: Steve Jobs made the business of being in business "cool" again. Those old enough to remember can hearken back to the early 80’s, when Lee Iacocca was the leading biz figure. And his contribution? An effectively-managed government bailout of Chrysler. (editor–sounds familiar.)

Then Jobs burst onto the scene with the Apple Macintosh, and Silicon Valley millionaires jumped to the forefront. Guys in their 20’s, with style, making great products which the masses loved. Suddenly, business was no longer the realm of backroom cigar-smoked pinstripes. Oh, and those products sure are great.

And it wouldn’t have happened without a Wall Street IPO in 1980 when Apple raised $101 million. I wonder how the wall street protesters would feel about that?

As an estate-planning lawyer, I should also point out how smart he seemed to be with his affairs. Reuters reported that Jobs used living trusts. Real estate records in California show that in March, 2009, which was about two months after Jobs took his second leave of absence from Apple, Jobs and his wife transferred three real estate properties into two different trusts.  This means he funded those trusts with that real estate — which is usually an extremely wise move.

Not surprising, of course. And, with the well-reported complications of Jobs’ personal family history, it’s probable that he made a very clear estate plan, divvying up his multi-billion dollar estate among children with different mothers. [(You and I won't know all the details, thanks to Jobs' wise planning choices, keeping these sensitive details out of the public eye during this difficult time for his family.)

Have you made the wise moves with your estate plan? [If we've taken care of this for you, then of course you have--though we still encourage a regular mutual review of your plan.] Let us know if you want to talk it over, or to have us take a good hard look at things for you.

Moving on, I recently received a request to devote an article to self-made identity protection. There’s great information out there, so I won’t go too long — but a lawyer *should* probably weigh in here… especially because this is a problem which is rapidly escalating among those in our older generation.

Rowel Manasan’s
"Straight Talk" Personal Strategy
Common-Sense Identity-Theft Protection For Families
Sure, commonly-advertised services for regular families can seem like an easy button. But the problem is that most of these products are unnecessary or ineffective, or they duplicate things you can do yourself–for free.

There. I said it would be short, sweet, and full of common sense. As usual, I hope!

I wrote last week about the hidden financial mistakes which even some of our wealthiest clients fall into. Thanks for your kind feedback!

So, I’m back with a few more cautions, gleaned from my years working directly with family finances, and hopefully some advice which isn’t the "same old, same old". My goal is to, perhaps, help you think about how you’re handling your finances a little differently. People don’t often talk about the psychology behind financial issues … and it can hurt you.

This hasn’t been an exhaustive list, but I do hope it’s been helpful.

Rowel Manasan’s
"Straight Talk" Personal Strategy
More Hidden Financial Mistakes … And How To Fix Them
As I wrote last week, you pay your bills on time. You try to save as much as you can. You even follow the advice which you read in books and hear on the radio about how to keep your finances in check.

You can also take advantage of this inherent tendency to do what’s approved by others to affect positive behavior. For example, let’s say you trying to pay off debt. Tell your 3 closest friends, make an informal contract, sign your name at the bottom, and then email it to them. The pain you would incur from breaking that contract is high relative to the pain of breaking your behavior if you went about it alone.

Don’t forget — we’re only a phone call or email away, and our consistent question for you is this: "What more could we do for you to help?"