2012 has come to a close with enough worrisome news to keep us up at night.

The country is still headed for the so-called “fiscal cliff.” Proposed solutions to the financial mess have only highlighted the fierce political divisions that linger between “us” and “them,” with compelling opinions being voiced by each side.

Predictably, the presidential election did nothing to bring us together – but then it rarely does. Approximately 47.5 percent of the popular votes were cast for the losing candidate, so nearly half of U.S. citizens are bound to feel disillusioned and cynical at best and intensely angry and resentful at worst.

And with the balance of congressional power virtually unchanged, most people hold out little hope for significant forward momentum or positive change. You know the drill.
Elsewhere, the Middle East still is teetering atop an enduring and dangerous powder keg with a short fuse, the threat of terrorism is continuing to create long lines of passengers in stocking feet at airport security checkpoints, the ice caps are melting at an alarming rate, and, well, you can fill in the remaining blanks.

In other words, it’s hard to find a lot to celebrate in the new year. But guess what. If you look beyond the mainstream media, past the fear-mongering headlines that compete for our eyes and ears – and sponsorship dollars – you’ll discover that there are things to celebrate. These things remind us that regular people are still out there performing random acts of kindness and having a positive impact. Here are just a couple of recent stories that might serve as a hopeful reminder:

We’ve all been stunned by graphic videos of police brutality caught on ubiquitous camera phones. But then there is New York City officer Larry DePrimo. Unbeknownst to him, he was also caught on camera, and shocked when the video went viral. There he was, crouched down on a dark street, caught red-handed, placing new warm socks and shoes on the feet of a presumed homeless man, having just purchased them for the man in a nearby store.

And there was the unidentified wealthy Missouri man, posing as “Secret Santa,” handing out $100 bills to many people who had lost everything to Hurricane Sandy. His total giveaway goal for the holiday season: $100,000.

It’s not hard to find “pay it forward” stories, where one act of generosity gets passed on and begins to multiply exponentially. These reports are all over the Internet; all you have to do is look for them. I’m not suggesting that positive thinking is going to stop climate change, end wars, feed and clothe the world, or stabilize the world’s economy. But I keep remembering the things my grandmother told me as I was growing up: walk on the “sunny side of the street” and “look for the silver lining.” These are not just empty platitudes.

For years, experts have been telling us that the thoughts we focus the most attention on are the ones most likely to become self-fulfilling prophecies. Fear is a powerful force, and dwelling on negative thoughts has a way of blocking entry to the very answers being sought, whether they concern money management, business operations or economic survival.

Optimism is as contagious as pessimism, only with much better results. We all need reminders that the human spirit is alive and well. Got a sunny outlook? Pass it on!

Judith McGee is the chairwoman and CEO of McGee Wealth Management Inc., an independent registered investment adviser. She is a co-branch manager of, and offers securities through, Raymond James Financial Services Inc. in Portland. Contact her at 503-597-2222 or judith@mcgeewm.com. Any opinions expressed are not necessarily shared by RJFS or Raymond James. Information herein is from sources believed to be reliable, but accuracy and completeness cannot be guaranteed.

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If you thought shopping for those perfect holiday gifts for the kids and Uncle Fred was stressful, try shopping for Medicare. Without some thoughtful guidelines, that year-end exercise could be even more stressful – especially because experts say that not shopping around could cost people money.

Rising health care costs are a big concern for all of us, but they pose a bigger threat to both the physical and financial health of retirees or people who are approaching retirement. Because so many people are confused about where to begin, here are a few guidelines.

Medicare’s annual open enrollment period lasts through Dec. 7. It invites more than 50 million people, mostly seniors, to enter the complex world of Medicare health insurance – parts A, B, C and D, drug formularies, coinsurance, changing co-pays and deductible rules, and an expanding assortment of change related to health care reform.

Faced with such daunting decisions, it’s little wonder that so many seniors simply stick to their existing coverage rather than research and possibly find and switch to something more suitable. This inaction is often the result of inertia, procrastination or even fear.

Whatever the reason, it’s important to remember that just because a health care plan was a good fit in 2012, it may not be the most appropriate choice in 2013. Re-evaluating coverage annually can make the difference of hundreds of dollars in out-of-pocket costs.

While the Medicare Advantage plans project moderate increases for 2013 (visit www.aarp.org), prescription drug plans could leave a sting with seven of the top 10 stand-alone drug plans raising premiums by double digits. Even though there are new prescription drug plans coming into the market that offer lower premiums, it’s up to the consumer to be proactive when making comparisons.

Consumers also must look beyond the premiums and read the “proverbial fine print.” The ancient Romans had a phrase for it: “Caveat emptor” (“Buyer beware!”). Pay attention to the details. What are the restrictions? Does the plan limit you to one month’s supply at a time? If so, you’ll face a co-payment every time you order. Does the plan require that the insurer get approval before a particular medication is covered?

Take note of the co-pays and deductibles, as well as plan formularies – the long list of drugs covered under the plan. Beware of new plans that start with low “teaser” prices to lure you in, only to raise them incrementally. Some of the cheaper plans can even limit pharmacy choices.

On a positive note, the so-called “doughnut hole” in drug coverage, which is set to shrink gradually until it’s eventually terminated in 2020, will be slightly reduced in 2013. Specifically, in 2012 consumers got half off for branded drugs and 14 percent coverage of generics. In 2013 the new rates will be 52.5 percent off for branded drugs and 21 percent coverage of generics.

The new offerings of 2013 Part D prescription drug coverage and private insurers’ Medicare Advantage plans are now posted on the Medicare website, including rankings on quality-of-care and patient satisfaction measures.

On the website, plug in the member’s Medicare number. Visitors are prompted to enter a list of the various drug names along with the prescribed dosage. The site will then display:

• a list of possible plans
• estimated plan costs
• premiums and deductibles
• a list of drugs covered
• customer satisfaction ratings

To make things even more complex, it’s estimated that nearly 80 percent of citizens underestimate their health care costs in retirement. It might be worthwhile to sit down with a financial adviser and ask for a comprehensive evaluation. There’s no need to try and navigate these waters alone.

Judith McGee is the chairwoman and CEO of McGee Wealth Management Inc., an independent registered investment adviser. She is a co-branch manager of, and offers securities through, Raymond James Financial Services Inc. in Portland. Contact her at 503-597-2222 or judith@mcgeewm.com. Any opinions expressed are not necessarily shared by RJFS or Raymond James. Information herein is from sources believed to be reliable, but accuracy and completeness cannot be guaranteed.

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Regardless of political poll results, media pundits’ comments, and the candidates’ occasional bouts of an unpredictable condition known as “foot-in-mouth,” the winner of the 2012 presidential election still is anybody’s guess. The speculation is about how investments and the market in general might fare depending on the final outcome.

Judging from the latest plethora of research on this topic – much of it contradictory – it’s clear that financial issues are a key concern among most American voters. We’re watching intently to see what solutions each candidate proposes – especially on those issues most closely related to our own financial situation.

Following is some food for thought.

A report from Bank of America/Merrill Lynch equity analysts speculates, compares and opines on how certain economic sectors might fare under a Romney presidency, versus Obama. Here are a few brief highlights:

Managed care and related health industries

Romney: Repealing “Obamacare” would remove incentives for moving health insurance enrollment to exchanges, thus preventing margin compression for Medicare providers. Hospital stocks could suffer because balancing the budget by spending reductions could directly impact hospitals.

Obama: “Obamacare” could be a negative for Medicare providers, but an expansion of Medicaid would benefit those providers. Hospitals could benefit because the expanded insurance provides money for emergency services now administered at no cost to the uninsured.

Transportation

Romney: A softening of regulations could benefit the rail and trucking industry.

Obama: Unionized less-than-truckload carriers may benefit if pension reform legislation were passed.

Defense

While Republicans may lean more toward defense spending than Democrats, the opinion of this report is that both candidates would likely cut spending because of the government’s “austere fiscal reality.”

Bond market

At a posting at Forbes, we found some opinions regarding the bond market. In 2013, taxes are slated to rise on ordinary income (bond interest) and dividends to over 43 percent for high tax brackets. Obama supports these changes while Romney wants to lower taxes on ordinary income to 25 percent to keep the dividend rate at 15 percent.

Conclusion

Obama: Good for municipal bond prices

Romney: Good for corporate bond prices; bad for municipal bond prices

While elections do have an impact on the markets, it’s important to dispense with the myth that the political party in power can significantly affect the market. Over the past century, no matter which party has been at the helm, there has been no discernible or consistent impact on U.S. equity markets.

Since 1900, under a Democratic administration, the average return for the Dow Jones industrial average has been around 8.5 percent. For Republicans, the number has been around 6 percent (dividends are not factored in). When those averages are adjusted for market volatility, the numbers are statistically the same. Therefore, in spite of beliefs to the contrary, the party affiliation of the president has had no consistent influence on stock market performance.

There is much at stake in the coming four years; a lot of decisions must be made and actions must happen before the country and the economy can regain even footing. Judging by the inactions, the stalling, and the less-than-stellar track record of our current Congress, it’s a huge stretch to believe that this next election will provide any near-term remedies for our problems.
People seeking direction for their portfolios should speak with a good financial adviser, and perform their own research. Also, keep an eye on the news as things continue to unfold. Then, even after the election results are in, pay close attention during the first 100 days of the new Congress and watch for progress to determine what the future might bring.

Judith McGee is the chairwoman and CEO of McGee Wealth Management Inc., an independent registered investment adviser. She is a co-branch manager of, and offers securities through, Raymond James Financial Services Inc. in Portland. Contact her at 503-597-2222 or judith@mcgeewm.com. Any opinions expressed are not necessarily shared by RJFS or Raymond James. Information herein is from sources believed to be reliable, but accuracy and completeness cannot be guaranteed.

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Developing a new website is akin to having a baby; it’s a mixture of joyous anticipation and utter agony. I hope the agony of our web design project vanishes like my own memories of childbirth, and only the joys remain. Hurray! Our baby is here, alive and well. Check it out at .

Even though we’re a wealth management company, the same website design principles apply to every business and industry. For those who either don’t have a business website or one that works effectively, a quick Google search will provide links to web design companies that specialize in working with the construction/building industry.

To be prepared with the right questions and expectations, here are a few tips:

The attention span test

The first rule is to make the site user-friendly. With so much competition in the online world, potential customers have more choices to read and less time to do so. And most importantly, they have shorter attention spans.

If website visitors can’t figure out who a company is and what it represents in the first few seconds, chances are good that they will be lost. In addition to a logo, the company name and a brief overview, the home page should include a tagline that punctuates what the company is all about. One example would be: “Building the Next Big Thing.”

Keep it simple

A website’s design and layout says a lot about a company and its services. It’s not just the information written about itself, but also the level of organization. It gives a preview of what it might be like working with the company.

It is already assumed that one knows the business, so speak in straight-forward terms and avoid using professional jargon.

Users scan webpages for clues that let them know they can find what they are looking for. Use clear headings and subheadings, break the content into easy-to-consume bites, and use bullet points where appropriate.

People will stay on a site longer when they can locate desired information quickly. I get so frustrated when I’m looking for a phone number, email or physical address and can’t find readily find it.

Use visuals effectively

Colorful, quick-loading photographs add an attractive touch to the site and break up the text content. Short video clips can be an added benefit, but keep in mind that visitors may not be coming to the site for entertainment; they want to learn as much about the company and its services as easily as possible. It’s OK to include a short information video, but avoid attaching a big, splashy front-page flash video that prevents users from clicking past it.

Don’t complicate navigation

Keep navigation simple and intuitive. Provide a consistent format throughout by labeling links with predictable cues. Website visitors should have no question about where they are or where they are going, and they should know exactly what to expect when they click on a link. It’s called following the scent.

Be accessible

Include a call to action, whether it’s a “Contact us” or “Sign up for our newsletter.” Then be sure that someone is readily available to follow up on online inquiries.

Don’t forget SEO

Search engine optimization is an important part of website strategy. This means including legitimate keywords and topics within the page content that are related to the business. If done correctly, this can help increase new business inquiries.

A business website is a vital marketing tool. It’s the face that is presented to the online world and what every company wants potential customers to visit. After all, why else would a company have its web address printed on every single piece of material available about its business? Like a baby, our new website is a living thing. It will continue to grow, change and demand our attention.

Judith McGee is the chairwoman and CEO of McGee Wealth Management Inc., an independent registered investment adviser. She is a co-branch manager of, and offers securities through, Raymond James Financial Services Inc. in Portland. Contact her at 503-597-2222 or judith@mcgeewm.com. Any opinions expressed are not necessarily shared by RJFS or Raymond James.

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I’ve been in the securities business for some time. Ironically, there was a time when I thought it might be better called “the insecurities business.”

As a wealth manager, trust is the foundation of my business – trust, confidentiality and privacy. The information I gather in order to help guide clients through financial decisions will be held in strictest confidence. There are operations policies, security systems and firewalls intended to help provide a sense of security.

But lately, I’ve been pondering a different kind of security. Have you given any thought to how much freedom and personal privacy we Americans have willingly forfeited in the name of security?

Yes, I understand the need to protect the nation from those who wish to usurp our way of life, and we’ve all learned to live with the inconvenience of the Transportation Security Administration. Yet it’s the more subtle and silent erosion of our personal privacy that concerns me.

Recently I read an essay about why going cashless is good for banks, but not necessarily good for consumers. Shawndra Hill, a Wharton operations and information management professor, noted that “privacy concerns over banks’ or retailers’ ability to obtain purchase or personal information is one of the main reasons that consumers are resistant to going cashless. Many people … do not want to have every move documented.”

Nevertheless, for many people the convenience of going cashless, like using smartphones for direct purchases, trumps the need for privacy. Banks and credit card companies capitalize on this perceived convenience. Less foot traffic to banks means less staff to pay, and some banks even penalize you for making in-person transactions by imposing a teller fee.

Of course, people who venture online relinquish their privacy. Online behavior is tracked so that ads fit profiles. Now credit card companies are developing a technology that monitors card transactions in brick-and-mortar stores so that they can target users online. Swipe a card at a fast food chain and expect a fitness club ad to pop up on a website.

Google’s company credo used to be “Do no evil.” But today, it tracks IP addresses, stores every search people make, and is guilty of some serious privacy breaches.

Last year, a privacy official in Germany confiscated the vehicle hard drives from Google’s “Street View” program. In addition to taking 360-degree photos of houses, they were downloading sensitive data, including emails and passwords from open WiFi networks.

Then there is the under-construction Utah Data Center, more formally known as the First Intelligence Community Comprehensive National Cyber-security Initiative Data Center. It will have 1 million square feet of more technology and data storage than one can begin to imagine, and the exact purpose of it is still not clear.

But many people continue to brush these issues off with, “I have nothing to hide, so why should I care?”

Daniel J. Solove, research professor of law at George Washington University, addresses this in his book “Nothing to Hide: The False Tradeoff Between Privacy and Security.” He notes that the “nothing to hide argument” stems from a faulty premise that privacy is about hiding a wrong. Yet surveillance can inhibit such lawful activities as free speech, free association and other First Amendment rights essential for democracy.

Regardless of where you stand on the issue of security versus privacy, remember that better informed people can make better choices to protect their privacy. For starters, there is a search engine that uses Google technology, but does not record an IP address or keep any records of searches. And there are free applications to block those unwanted and intrusive Web ads.

We have the right to conduct research and protect our privacy. Let’s exercise it.

Judith McGee is the chairwoman and CEO of McGee Wealth Management Inc., an independent registered investment adviser. She is a co-branch manager of, and offers securities through, Raymond James Financial Services Inc. in Portland. Contact her at 503-597-2222 or judith@mcgeewm.com. Information herein is from sources believed to be reliable, but accuracy and completeness cannot be guaranteed.

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Independence Day is one of my favorite holidays. We put red, white and blue lights on our Bluewater open bow boat and watched the fireworks from the water. It was an amazing sight.

But when do you celebrate your Financial Independence Day?

The term “financial independence” generally refers to having enough income, resources and personal wealth to maintain a desired lifestyle without needing to actively work. It means that one’s assets are generating more income than expenses, with a little left over. It also could mean learning to spend wisely and living within one’s means.

Today, it’s “in” to be frugal, and since the Great Recession it’s even gauche to display too much wealth. Surely no one would think it’s cool to wear a Krugerrand gold necklace in public.

What’s your definition of personal financial independence? Is it a number, or an income stream? Does the goal of financial independence seem to be moving further away with time? Do you see yourself working a little longer than you had imagined?

If you’re approaching retirement, your financial health will depend on how well you’ve planned and how well you’ve executed the plan. If you’re still in your early earning years, the time to start planning is now.

So, where do you go for advice? You don’t have to look very far to find lists with titles like: “Ten steps to financial independence,” “Nine suggestions for attaining financial independence,” “Eight ways to declare financial freedom” or “Seven keys to achieving financial independence.”

You get the picture. There’s usually something worthwhile and practical in those lists; however, to borrow a sports analogy, they don’t always cover all the bases.

Here’s a little more sports speak: Winning teams and coaches know the importance of playing offense and defense; they know their game plan and when to put both into action depending on the situation. This same strategy can apply to your personal finances.

Achieving financial independence takes careful planning and a balance between defensive and offensive tactics. In short, it requires discipline and communication with team members.

Offensive planning means taking certain calculated risks and including strategies that help build and manage wealth.

An important phrase to remember is that “part of what you earn is yours to keep.” Always contribute everything possible to retirement plans and pre-tax savings. This is “dollar-cost-averaging.” It helps moderate the market risk, averaging the cost of stock market investments. Don’t try to time the market, but follow a consistent asset allocation in accordance with one’s temperament.

Defensive planning includes strategies that help preserve and transfer wealth. In money management, these might be strategies for asset allocation or portfolio risk management – like hedging strategies or stops to help mitigate the risk of stock losses – something that is best done with professional guidance. Of course, it also includes the obvious: insurance – for property, casualty and liability, disability and life and so forth.

Becoming financially independent and amassing wealth takes time; it’s a slow process. Do the simple things. Control spending, maximize retirement accounts, keep debt low and focus on building net worth. Don’t avoid all risk, but rather consider how much would be tolerable. Avoid speculation because it rarely results in great returns. Measure results and refresh financial plans annually.

The most important element to building wealth is establishing specific financial goals and frequently measuring results. Create a plan – a road map to success.

This plan is a collaborative process between you and your advisers. It’s a story of how to get from where you are now, in terms of assets and potential, to where you want to be.

Begin with a financial game plan using both offensive and defensive strategies. Then embark on a journey to Financial Independence Day.

Judith McGee is the chairwoman and CEO of McGee Wealth Management Inc., an independent registered investment adviser. She is a co-branch manager of, and offers securities through, Raymond James Financial Services Inc. in Portland. Contact her at 503-597-2222 or judith@mcgeenet.com.

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People have their own concepts and opinions about money, riches and wealth. Early perceptions come from observations of parents’ relationships to money. In school years, folks learn to mentally separate the “rich kids” from the “not-so-rich,” all while measuring where they fit into the picture.

The media continues to feed our concepts of wealth and money by endlessly focusing on that which divides our society, whether in terms of politics or economics. Being too wealthy equates to being out of touch; being too poor equates to wanting a free handout. Both camps are missing the point.

The terms money and wealth may appear to mean the same thing. But while many people emphasize the importance of having an abundance of money, few understand the meaning of true wealth.

Someone once asked Warren Buffett how he would describe the difference between getting rich and being wealthy?” His answer was short and to the point: “People seeking riches never have enough. Wealth is a state of mind. Wealthy people always have enough.”

So, what is a “wealthy state of mind?” It begins with the understanding that true wealth is having a sense of abundance – one that we experience rather than possess. Obviously, having enough money to provide a roof over our heads, secure sufficient food and clothing and other basic essentials, and raise healthy and happy families frees us from a lot of anxiety.

But what most enlightened people consider as wealth has nothing to do with money.

Seeking true wealth may mean seeking deeper relationships, more personal growth, or ways to create more meaning in life. Achieving true wealth means possessing the ability to enjoy the small, ordinary pleasures of life. Each precious, present moment can be enjoyed.

To be wealthy is to be in life and to appreciate all aspects of it. It’s to be self-aware, live with purpose, and be committed not only to one’s own happiness but to helping others find theirs. True wealth is an inner condition of being.

A list of true wealth assets would likely include family, friends, education, talents, experience, connection to community, self-esteem, the ability to help others, and good health (with some luck and good sense). All of these wealth assets contribute to an overall personal sense of well-being. It also includes the ability to earn more money.

People who strive to simply accumulate more money than they could ever spend are caught in a perpetually fearful “poverty state of mind.” Sadly, they will never have enough because their entire identity is tied to what they have, not to who they truly are in each present moment – a realization they have not discovered. To them, accumulating more money is simply gaining power to accumulate more things.

But for people like Buffett, wealth can be used to better the commonwealth and make a real difference in the world. Sometimes it might take a serious, life-threatening situation or a personal economic collapse to make them stop and ask, “How many cars can I drive at the same time? How many roofs can I sleep under at once? How many bottles of expensive wine can I consume in one sitting? Do I really need all this? How much is enough?”

For years I’ve been planning with people and helping them achieve their goals and manage their finances. My life has been dedicated to making their lives richer experiences. I strive to help people make wise choices to invest and preserve their assets.

Yes, it’s about money, but it’s also about mentoring families, supporting the community and embracing the tenets of true wealth. I believe that the phrase “count your blessings” is more than just an empty platitude. It’s a philosophy to live by.

Judith McGee is the chairwoman and CEO of McGee Wealth Management Inc., an independent registered investment adviser. She is a co-branch manager of, and offers securities through, Raymond James Financial Services Inc. in Portland. Contact her at 503-597-2222 or judith@mcgeenet.com.

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Aging baby boomers are retiring in bunches in every state and in every country. The protests in Greece, France and the United States are evidence that the social welfare experiments are unsustainable. Societies simply can’t afford to pile up debt for inflated benefits for the masses.

Voters in France and Greece have rejected austerity and elected to give power to Socialists. As a result, tax hikes will be levied and people will hope for a no-pain solution to their economic woes.

French President Francois Hollande wants to raise the country’s top tax rate to 75 percent; presently, it’s 45 percent. France also has a wealth tax of 0.5 percent and a value added tax of 21.2 percent. In all of Europe, only Germany has resisted bailouts and pushed spending cuts.

You may be wondering what this has to do with l businesses in Oregon or Southwest Washington. Surely, our tax system is not nearly so punitive.

But Oregonians, including small businesses, are increasingly being taxed. The state has raised fees on everything from vehicles to fishing licenses. The fuel tax, for example, went up by 25 percent just two years ago.

Most Oregonians have not protested loudly enough over the many fee increases and the effects of Measures 66 and 67. These fee increases are spread over a wide range of services that are not necessarily paid together, so it’s akin to “death by a thousand cuts.” Some citizens have voted with their feet and moved their primary residence and office addresses to more tax-friendly states.

On May 6, the Associated Press reported findings from the Small Business & Entrepreneurship Council, a group that lobbies on behalf of small companies in regard to tax-related issues and others. It ranked U.S. states and the District of Columbia, according to how individuals and companies are taxed.

The study (www.dailyherald.com/article/20120506/business/705069957/) compared state taxes on income, capital gains, property, sales, gas and Internet access. Estate taxes also were considered. While Arizona, Michigan and others were easing their state taxes, Oregon was cited for raising taxes on small businesses in a time of financial stress.

On May 5, 80 activists representing labor and community groups met in Portland to discuss the region’s budget crisis and to fight austerity measures. Portland, just like governments all over Europe, has embraced austerity programs. The attendees, some of whom were victims of the budget cuts, claimed that cuts alone wouldn’t solve the shortfall dilemma.

Many options were discussed, including a statewide ballot measure to “tax the rich to fund education and social services.” But what about the obvious solution: growing small businesses?

Doing so would result in more jobs … and more taxable revenue. The increased revenues from small businesses would stem further cuts in public services, education, health care, housing, transportation, jobs and safety net services. It seems like a rational solution to governmental budget needs.

The May ballots were filled with new property tax measures with local governments hoping to patch some of their holes. And Multnomah County leaders plan to ask voters in November to approve a permanent tax rate increase to stabilize funding for a new library district.

Oregon is not expected to have full job recovery until 2014. Revenues from personal income tax collections are expected to be moderate, but strong enough to offset the losses from corporate income tax revenues and flat lottery transfers. Growth in small businesses could be the key to boosting the Oregon economy.

Judith McGee is the chairwoman and CEO of McGee Wealth Management Inc., an independent registered investment adviser. She is a co-branch manager of, and offers securities through, Raymond James Financial Services Inc. in Portland. Contact her at 503-597-2222 or judith@mcgeenet.com. Views expressed are not necessarily those of Raymond James.

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Many families struggle with estate planning: How and when should they leave money to their children, and how much?

It’s the perennial balancing act. Will money spoil them, or stunt their own personal growth, or will it give them the boost they need to get started? I’m reminded of my favorite quote by George Clooney’s character in “The Descendants.” He references Warren Buffett when he says, “Give your kids enough money to do something, but not enough to do nothing.”

There is something to be said about earning your own way, being self-made. Some parents fear that if they give too much money to children too early, they’ll quit school, buy fast cars or drop out to live the “good life.” It’s a nightmare scenario for anyone who has worked hard to build financial security for themselves and their families.

Oregon estate and legacy planning attorney Eden Rose Brown has a unique way of encouraging families to draft estate documents that guide and reward children for embracing values their parents support. She suggests writing a document called “Our Family Philosophy” in which parents describe their history, values, hopes and dreams. One couple described the following values:

1. Treat others as you would like to be treated.
2. Embrace and respect cultural differences and the values, feelings and opinions of others no matter their backgrounds.

They included a vision for how the children should participate in supporting the environment, and encouraged them to support several charities through a donor-advised fund that they set up with a community foundation. They have even created ongoing funding for that purpose.

Brown does not encourage using wills as the foundation of one’s estate plan; she feels that living trusts best serve most families. In her opinion, the trust document establishes a lifelong strategy that works while the trust-maker is able, disabled and even after death. With estate documents in place that preplan any financial or health situation, individuals can avoid courtroom intrusion into their affairs and maximize family control.

Another example of a family philosophy letter addresses almost everything imaginable: religion, marriage, family reputation, work ethic, appreciation, humanity, humility, etc. In this case, the dad wanted to be remembered for more than his money. He reflected, “It is very difficult figuring out how to live your one and only life. You’ll make mistakes, but learn from them. I pray each of you lives to experience the joy that comes from raising your children, as I have from each of you.”

I’ve always encouraged people to write “love letters” and leave them with their estate documents. It’s a way to leave meaningful reminders of the special things, the memories maybe only two people shared. Love letters can make an emotional difference and soften the loss.

People who elect to leave an inheritance to children or other beneficiaries should consider leaving those assets in a personal asset protection lifetime trust with customized distribution guidelines.

Many attorneys are drafting plans with 1950s technology. Planning in the 21st century has changed the concept of stepped ages for distribution to children. Most documents say “at my child’s age 25, 30 and 35, they are to receive one-third of the trust and all children are treated equally.”

However, all children are not equal. They don’t have the same maturity, talents, interests or capabilities. One may even have dependencies or special needs. Include customized trust distribution language that rewards the values and behavior that parents want to encourage.

For example: My trustee shall consider giving assistance to my child for the following:

• Home and family – first wedding and honeymoon; down payment on a home; replacement of lost wages while full-time work is being sought; adoption; and child care expenses.
• Career and business – seed money to start a business; professional advice; equipment and training.
• Education – preparatory courses to gain entrance to a degree program; accredited college, university or trade school education that leads to employment or career.
• Health and medical: a disabled child’s quality of life; therapy; medical insurance premiums; and medical bills not covered by insurance.
• Life enrichment: reasonable expenses for family vacations and support for family members to participate in family gatherings.

The list above can be broadly expanded. It gives guidance to the trustee to pay for specific things; provides asset protection against predators, creditors, lawsuits and divorce; and does not simply force money out on attaining a specific age. In the 21st century, Brown says, estate planners can help families inspire and encourage their children to use their trust money in more meaningful ways.

Judith McGee is the chairwoman and CEO of McGee Financial Strategies Inc., an independent registered investment adviser. She is a co-branch manager of, and offers securities through, Raymond James Financial Services Inc. in Portland. Contact her at 503-597-2222 or judith@mcgeenet.com. Eden Rose Brown is not affiliated with Raymond James.

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Some things never change. For nearly six decades, the deadline for filing income taxes has been midnight on April 15 (unless, of course, it is a weekend day or a taxpayer has filed for an extension).

But in this modern, digital age some things have changed. For instance, there are new ways to file tax returns. Today, tax preparers are relying more on their mobile apps and new devices for importing data.

There are numerous products and services available that make it easy to e-file returns. Following are some of them:

TurboTax

This has been around awhile, but did you know that you can use it to import data from approximately 400,000 financial institutions and employers? You can even file 1040EZ forms using an iPhone or Android device.

Enrolled agents and CPAs are available to field questions via the “Ask a Tax Expert” chat and phone lines, and a live community database includes thousands of answers. Also, TaxCaster is an app that estimates a refund.

TaxAct

This is fully functional and compatible with an iPad. 1040EZ filers need only scan their W-2s with an iPad or a smartphone to instantly beam the forms straight to the IRS. Use a smartphone to monitor the status of a refund.

For people facing more complex tax issues or confusion about some of the tax code jargon, TaxAct comes with a full glossary, as well as tax tips and a checklist to aid organization.

H&R Block

It’s certainly not a new name, but H&R Block has stepped into the digital age by building its “Tax Answers” online community where people can receive one free answer to a tax question. The company also has blogs and video podcasts created by The H&R Block Tax Institute. Of course, people can still pick up the phone and get answers personally … but that will cost money.

H&R Block is even now doing the social media thing. People who ask a question on the company’s Facebook page or on Twitter can get an answer within about eight minutes, according to the company. It also offers a video conferencing service.

CompleteTax

The newest kid on the block is an online software product offering three levels of service: basic, deluxe and premium. CompleteTax posts useful FAQs and form information.

In the event of an audit, each of the above services provides some type of tool to help handle routine IRS correspondence. And they all provide a level of free tech support via online live chat or email. Most can import your previous filings from other tax services and provide free e-files of simple 1040 and 1040EZ forms.

But the prices will vary. Filers with an adjusted gross income of $57,000 or less are eligible to use online tax software for free via the IRS’ free-file program. If the free programs won’t work for you, shop around online for something that suits your needs.

Look for online consumer reviews. After an exceptionally great or excruciatingly horrendous experience, what is the first thing people want to do? They want to tell somebody! With social media, the word can be spread far and wide and fast. So check online for customer feedback before making a decision.

These are just a few samples of tax tools available today. With so many offerings, don’t merely settle for the first one. But as competition forces better service and raises the bar on the level of expertise expected from advisers, it makes a lot of sense to consider using one of these new services to prepare tax returns.

Judith McGee is the chairwoman and CEO of McGee Financial Strategies Inc., an independent registered investment adviser. She is a co-branch manager of, and offers securities through, Raymond James Financial Services Inc. in Portland. Contact her at 503-597-2222 or judith@mcgeenet.com.

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