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Yahoo
2 days ago
- Business
- Yahoo
7 lessons I learned about end-of-life planning when my mother died, as a financial advisor
Melissa Shaw became her mother's primary caregiver after a sudden terminal cancer diagnosis. Shaw, a financial advisor, learned crucial lessons about end-of-life planning and caregiving. Her biggest lessons include the importance of Medigap, healthcare proxies, and life insurance. This as-told-to essay is based on a conversation with Melissa Shaw, a 46-year-old financial advisor in Palo Alto, California. It has been edited for length and clarity. I've been a financial advisor since 2011 and have worked at Teachers Insurance and Annuity Association of America, or TIAA, as a wealth management advisor for over seven years. I help clients with estate and incapacity planning, but I encountered completely different issues when my own mother became terminally ill and I became her primary caregiver in October 2024. Her diagnosis was sudden. Doctors found stage four cancer that had metastasized to her back, causing a fracture. Within weeks, my family moved her from Las Vegas to Northern California to be closer to me. She died by the end of December — it was a two-month ordeal. Becoming her caregiver was emotionally intense Initially, she seemed fine, but she declined rapidly. It was shocking and unexpected. I visited the hospital daily and took on the bulk of decision-making responsibilities. Thankfully, TIAA offers generous caregiver benefits and flexibility, and I had savings to help cover unexpected costs. I've learned many valuable lessons through this experience about end-of-life planning. 1. Medicare supplemental plans are essential Since enrolling in Medicare at the age of 65, my mom opted for a Medigap (Medicare Supplement Insurance) plan instead of a Medicare Advantage plan, and that decision proved vital. Her Medigap plan covered 20% of medical costs that original Medicare didn't, including any doctor or procedure approved by Medicare, without referrals or prior authorizations. Every doctor she saw was relieved she had it. If you or a loved one is approaching 65 — especially with ongoing health issues — I strongly recommend researching Medigap options during the Medigap Open Enrollment Period, when insurers can't deny coverage or charge more due to pre-existing conditions. 2. Assign a designated healthcare decision-maker ASAP My mom didn't assign a designated decision-maker, and I couldn't make health decisions for her. When her health rapidly declined in the last three weeks of her life, she became barely cognizant and luckily was able to manage a scribbled signature for a necessary procedure. I started to prepare a POA and healthcare proxy, but by the time it was ready, she was no longer mentally competent enough to sign it. She signed an advanced directive form with the hospital when she started the cancer treatment, which allowed me to make some decisions on her behalf. I learned how imperative it is to name a health proxy at any age. 3. Banking may not be easily accessible After she died, we were unable to access her bank account funds for 45 days due to a waiting period intended to protect creditors. Luckily, she had a term life insurance policy that paid out quickly to help cover immediate expenses. Additionally, she didn't name a beneficiary for the bank accounts, which is a common mistake. Many assume that checking accounts don't need beneficiaries, but even modest balances may end up in probate, which can be a significant hassle. Also, the bank was unable to share her transaction history, so I had no way of knowing which bills had already been paid. 4. Sign up for life insurance We received her life insurance proceeds quickly; all that was required was a death certificate. Clients may want to consider insurance as a liquidity measure at death to cover immediate expenses, such as funeral costs and bills. 5. Prepare for end-of-life costs I was surprised by how expensive it is to bury someone. We were quoted up to $25,000 for burial plots in California. Even cremation, which we chose, came to around $23,000 after including the niche (a final resting spot to house cremated remains) and the funeral. Prepaying or researching in advance can prevent financial issues. 6. Prepare for the difficulties of caretaking I spent many nights in the hospital with my mom. Her condition changed from day to day; it was an emotional roller coaster. Balancing work, caregiving, and my own emotional health was difficult. I'm married, and my kids were 5 and 7 years old. I wasn't seeing them regularly during the two months she was sick. Luckily, TIAA offered eight weeks of caregiver leave. Many caregivers only have access to unpaid leave through the Family Medical Leave Act (FMLA), so it's important to plan for potential income loss. If you can take paid leave, do it, because it's tough to balance the emotional toll it takes. 7. Wills aren't everything Wills are essential for securing guardianship and expressing personal wishes, but they don't guarantee that all your assets will be transferred correctly. Retirement accounts, such as IRAs or 403(b)s, are typically passed by beneficiary designations, rather than through wills or trusts. Many other assets are passed via trusts. You should work with both a financial advisor and an estate attorney to discuss your needs. I did the best I could, but if I could do things differently, I would've taken an official leave from work to focus solely on caring for my mother. Read the original article on Business Insider
Business Insider
2 days ago
- Health
- Business Insider
7 lessons I learned about end-of-life planning when my mother died, as a financial advisor
This as-told-to essay is based on a conversation with Melissa Shaw, a 46-year-old financial advisor in Palo Alto, California. It has been edited for length and clarity. I've been a financial advisor since 2011 and have worked at Teachers Insurance and Annuity Association of America, or TIAA, as a wealth management advisor for over seven years. I help clients with estate and incapacity planning, but I encountered completely different issues when my own mother became terminally ill and I became her primary caregiver in October 2024. Her diagnosis was sudden. Doctors found stage four cancer that had metastasized to her back, causing a fracture. Within weeks, my family moved her from Las Vegas to Northern California to be closer to me. She died by the end of December — it was a two-month ordeal. Becoming her caregiver was emotionally intense Initially, she seemed fine, but she declined rapidly. It was shocking and unexpected. I visited the hospital daily and took on the bulk of decision-making responsibilities. Thankfully, TIAA offers generous caregiver benefits and flexibility, and I had savings to help cover unexpected costs. I've learned many valuable lessons through this experience about end-of-life planning. 1. Medicare supplemental plans are essential Since enrolling in Medicare at the age of 65, my mom opted for a Medigap (Medicare Supplement Insurance) plan instead of a Medicare Advantage plan, and that decision proved vital. Her Medigap plan covered 20% of medical costs that original Medicare didn't, including any doctor or procedure approved by Medicare, without referrals or prior authorizations. Every doctor she saw was relieved she had it. If you or a loved one is approaching 65 — especially with ongoing health issues — I strongly recommend researching Medigap options during the Medigap Open Enrollment Period, when insurers can't deny coverage or charge more due to pre-existing conditions. 2. Assign a designated healthcare decision-maker ASAP My mom didn't assign a designated decision-maker, and I couldn't make health decisions for her. When her health rapidly declined in the last three weeks of her life, she became barely cognizant and luckily was able to manage a scribbled signature for a necessary procedure. I started to prepare a POA and healthcare proxy, but by the time it was ready, she was no longer mentally competent enough to sign it. She signed an advanced directive form with the hospital when she started the cancer treatment, which allowed me to make some decisions on her behalf. I learned how imperative it is to name a health proxy at any age. 3. Banking may not be easily accessible After she died, we were unable to access her bank account funds for 45 days due to a waiting period intended to protect creditors. Luckily, she had a term life insurance policy that paid out quickly to help cover immediate expenses. Additionally, she didn't name a beneficiary for the bank accounts, which is a common mistake. Many assume that checking accounts don't need beneficiaries, but even modest balances may end up in probate, which can be a significant hassle. Also, the bank was unable to share her transaction history, so I had no way of knowing which bills had already been paid. 4. Sign up for life insurance We received her life insurance proceeds quickly; all that was required was a death certificate. Clients may want to consider insurance as a liquidity measure at death to cover immediate expenses, such as funeral costs and bills. 5. Prepare for end-of-life costs I was surprised by how expensive it is to bury someone. We were quoted up to $25,000 for burial plots in California. Even cremation, which we chose, came to around $23,000 after including the niche (a final resting spot to house cremated remains) and the funeral. Prepaying or researching in advance can prevent financial issues. 6. Prepare for the difficulties of caretaking I spent many nights in the hospital with my mom. Her condition changed from day to day; it was an emotional roller coaster. Balancing work, caregiving, and my own emotional health was difficult. I'm married, and my kids were 5 and 7 years old. I wasn't seeing them regularly during the two months she was sick. Luckily, TIAA offered eight weeks of caregiver leave. Many caregivers only have access to unpaid leave through the Family Medical Leave Act (FMLA), so it's important to plan for potential income loss. If you can take paid leave, do it, because it's tough to balance the emotional toll it takes. 7. Wills aren't everything Wills are essential for securing guardianship and expressing personal wishes, but they don't guarantee that all your assets will be transferred correctly. Retirement accounts, such as IRAs or 403(b)s, are typically passed by beneficiary designations, rather than through wills or trusts. Many other assets are passed via trusts. You should work with both a financial advisor and an estate attorney to discuss your needs. I did the best I could, but if I could do things differently, I would've taken an official leave from work to focus solely on caring for my mother.
Forbes
14-07-2025
- Business
- Forbes
Rethinking Wealth And Inclusion In Financial Planning
How Empathy and Innovation Can Close the Retirement Gap, Breaking Barriers to Retirement Security for Every American A picture taken on December 7, 2021 in Istanbul shows US dollars banknotes. - Turkey's annual ... More inflation rate jumped over 20 percent in November, official data showed on December 3, 2021, after a currency crisis last month in which the Turkish lira hit record lows against the dollar. (Photo by Ozan KOSE / AFP) (Photo by OZAN KOSE/AFP via Getty Images)When it comes to building wealth and security in America, too many families — especially those living paycheck to paycheck — are left out of the conversation. For low-income households, retirement planning often feels like a distant luxury, and the pathways to financial empowerment can seem inaccessible. In this candid Forbes Q&A, I speak to Thasunda Brown Duckett, President and CEO of TIAA and one of just two Black women to helm a Fortune 500 company currently, to discuss the systemic barriers that keep millions from building a secure future and to share actionable strategies for closing the retirement gap. Our conversation offers insights and practical advice for individuals, organizations, and policymakers committed to making retirement security a reality for all Americans. Q: In my work with low-income families through the Magnolia Mother's Trust, I often hear that retirement planning feels like a luxury they can't afford. How do we change this mindset and make retirement security accessible for all income levels? A: When we talk about retirement security for low-income families, particularly those living in poverty, we have to acknowledge a fundamental challenge: our retirement system is built around earned income and workplace benefits. The majority of low-income Americans lack access to workplace retirement plans. So this isn't just about saving more — it's about addressing systemic barriers. We need innovative policy solutions that help all Americans build financial security, whether through expanded access to retirement plans for small businesses, state-sponsored programs or other approaches that recognize different economic realities. Q: Financial know-how has traditionally been a privilege of those who are in higher income brackets. From your perspective, what role should financial education play in closing economic gaps, and how early should it start?" A: Financial education isn't just for those with wealth — today's technology helps make it more accessible to everyone. What matters is starting early with practical moments: discussing grocery prices with children or opening their first savings account, which research shows correlates with college attendance. 29 states now require financial education for graduation. But education alone isn't enough. We also need policies that make saving easier and more accessible. Q: When I speak with young people, especially those just graduating college, retirement often feels too far away to prioritize. You've spoken about the power of compounding — can you break down why starting to save early is so crucial, even if it's just a small amount? A: Your first paycheck is your first opportunity to invest in your future self. I tell young people one word they need to know: compounding. When you start that first job, you're making more than you did before — so start saving before you get used to spending that money. And if you are working at a company that offers a retirement match, take full advantage. Because otherwise, that's free money you're leaving on the table. Q: What are the biggest challenges and opportunities that your clients face in the current economic climate, especially regarding inflation and retirement security? A: Today's economic headwinds — from inflation to market volatility — create real challenges for retirement savers. But here's what's most important and where I see the opportunity for our clients: stay the course with your retirement contributions and ensure part of your allocation includes protection through guaranteed lifetime income. This is a good time to meet with your financial advisor, review your portfolio, and reaffirm your long-term strategy. Because while market volatility isn't new — it's how you respond that matters. It's important to maintain a long-term perspective and stay invested. Q: What specific strategies is TIAA using to promote financial inclusion and close the wealth gap, particularly for underserved communities? A: Let me share what we're doing to make retirement security accessible to everyone. With 57 million Americans lacking access to workplace retirement plans, we're advocating for policies that help more employers offer these benefits. We're working to make saving automatic through features like auto-enrollment, which can increase participation rates from 60% to over 90%. And crucially, we're ensuring guaranteed lifetime income is available in retirement plans. Because this isn't just about saving — it's about making sure people can retire with dignity and not outlive their savings. LOS ANGELES, CALIFORNIA - NOVEMBER 15: President/CEO of TIAA Thasunda Brown Duckett speaks onstage ... More during the 'My Leadership Journey' discussion during The Range Rover Leadership Summit at the Academy Museum of Motion Pictures on November 15, 2021 in Los Angeles, California. (Photo byfor Jaguar Land Rover) Q: As a champion of financial empowerment, what initiatives are you most proud of, and what impact have you seen so far? A: What I'm most proud of is seeing the retirement security movement gain real momentum at scale, with unprecedented bipartisan support and public-private partnerships driving change. That's why we launched our Retirement Bill of Rights initiative — because solving the retirement crisis requires all of us working together. We're seeing concrete progress: more employers offering workplace plans, increased adoption of auto-enrollment features, and growing recognition that guaranteed lifetime income is essential. This isn't about individual programs — it's about transforming the retirement system to work for all Americans. Q: Can you share actionable advice for organizations seeking to build more equitable and inclusive cultures? A: Building inclusive organizations isn't just about initiatives — it's about creating environments where people can thrive long-term. Research shows companies with inclusive cultures see higher retention rates and stronger employee engagement. When people feel they can bring their authentic selves to work and share diverse perspectives, they're more likely to stay, grow, and build financial security. That's why at TIAA our Business Resource Groups — which are employee networks organized around shared identities or experiences — are so powerful. They're not just support systems; they foster intellectual curiosity and innovation while creating pathways for career growth and long-term success. Q: How did your upbringing and early career experiences influence your leadership style and vision? A: Growing up, my family was long on love but short on money. My parents taught me grit and perseverance — showing me that obstacles are opportunities to grow stronger. But what truly shaped my leadership style was seeing my parents and our community working incredibly hard, sometimes still coming up short. That taught me real empathy — not the soft kind, but the kind that drives you to truly see people, connect with their potential, and fight on their behalf. For me, leadership isn't just about personal success — it's about creating connections that help others unlock their own potential. Q: What does 'human capital transformation' mean to you, and how is TIAA preparing for the future of work? A: Human capital transformation means creating a workplace ready for tomorrow's opportunities. It's about being at the forefront of meeting our clients' needs while taking our culture forward. At TIAA, we're transforming how we operate with a focus on modernization that excites and engages our people. I'm particularly proud of our Guild Network, where thousands of employees are embracing new skills and technologies. Because true transformation happens when mindset and technology work together to fuel curiosity, growth, and opportunity. This is how we prepare our employees for today while building for tomorrow. Q: Beyond your executive roles, you serve on several influential boards. How do these experiences inform your leadership at TIAA and your broader vision for social impact? A: Board service, from public companies to startups to nonprofits, fuels my intellectual curiosity about how different people and organizations solve complex challenges. I'm constantly learning from diverse thinkers and different approaches to problem-solving. These varied perspectives and conversations strengthen my leadership muscle daily, depositing new insights into my skill set that make me a better CEO at TIAA. Q: How do you advise individuals who do not have a culture of planning for retirement to get started? How can you make planning and saving for the future seem possible when you barely get by financially? A: When you're living paycheck to paycheck, the message 'just save more' isn't helpful. Money is emotional, and retirement planning can feel overwhelming when you're focused on getting by today. But let's take the judgment out of it and just get started. Maybe it's asking your HR department about retirement benefits you might not know about. Maybe it's learning about budgeting from free online resources. Maybe it's setting up a small automatic transfer each payday. Start where you are — even small amounts matter. Small steps today can create meaningful security tomorrow. The key is taking that first step. Q: I did a TED Talk about redefining wealth to come up with a more inclusive version that applies to communities often left out of the conversation. So I'd like to ask you, how do you define wealth? A: Wealth isn't just about money or hitting a certain number. True wealth is about joy — enriching your life in meaningful ways. It's about security — having confidence in your future. Most importantly, it's about legacy — not just the financial assets you pass on, but the knowledge you've accumulated, the lessons you've learned, and how you use them to impact others. Just like financial wealth requires both accumulation and distribution, life's wealth comes from gathering experiences and sharing them forward.
Zawya
14-07-2025
- Business
- Zawya
Global asset manager Nuveen expects to grow Middle East AUM up to $10bln
The US-based investment manager Nuveen, which opened its first Middle East office at Abu Dhabi Global Market (ADGM) last year and currently manages between $3 billion and $5 billion in the region, expects its assets under management (AUM) in the region to double over the next three years. Nuveen is a $1.3 trillion asset management firm owned by the US teachers pension fund, TIAA, and is active in both private and public markets. In an interview with Zawya, Fadi Khoury, Head of Middle East at Nuveen, said alternative credit is a key area of focus at Nuveen. Rather than concentrating on a single asset class, the investment company is building capabilities across three main strategies: private credit, energy infrastructure credit, and real estate debt. Of these, private credit—specifically direct lending—is key, followed by energy infrastructure credit and collateralized loan obligations (CLOs) Real estate debt and asset-backed lending represent a smaller, "but still important, part of our platform", he said. Partnering for growth Nuveen has initiated a partnership with a GCC-based sovereign wealth fund that is primarily focused on alternative credit. It is aiming to build similar relationships with regional institutional investors. 'We have the capability and the know-how, we'll definitely be looking to replicate that with other sovereign wealth funds.' 'As part of TIAA, Nuveen manages a $350 billion general account, which gives us an understanding of the needs of asset owners,' said Khoury. 'What sets Nuveen apart is our dual identity: we are both an asset manager and an asset owner.' This alignment, he said, allows them to engage with partners not just as managers of capital, but as peers who share similar long-term objectives. Setting up in Abu Dhabi's financial centre gives the investment manager access to around $2 trillion of funds held by sovereign wealth funds, pension funds, family offices, and key financial institutions. According to Khoury, who has been in the region for 18 years, over the past decade institutional investors in the Middle East have been steadily increasing their allocations to private markets. 'Initially, private equity dominated these allocations. However, over the last 5–10 years, and especially in the past five, alternative credit has emerged as a core allocation.' Nuveen has onboarded three institutional investors into its collateralised loan obligation (CLO) strategies. 'While I can't share specific figures due to confidentiality, I can say that interest is growing. CLOs were once considered niche, but they are becoming more mainstream as regional investors become more sophisticated,' he said. At the moment, Nuveen's expertise in energy infrastructure credit has been primarily focused on projects in the US, with some exposure in Europe. The company hasn't yet extended this strategy to the Middle East, 'not due to a lack of opportunity, but because our current platform and teams are not yet established in the region for this specific area', he added. Within Nuveen's current strategy, approximately 70% of energy infrastructure credit supports renewable energy and digital infrastructure—including projects tied to AI, electrification, and digital transformation. 'While we're not yet active in this space in the Middle East, we see strong potential as regional projects grow in scale and complexity,' Khoury said. (Writing by Brinda Darasha; editing by Seban Scaria)
Yahoo
02-07-2025
- Business
- Yahoo
Why Bobby Bonilla's $30 million retirement deal wasn't as sweet as people think
Happy Bobby Bonilla Day? Yes, it's the day on which, once a year, sports fans and others go online and write about the supposedly amazing retirement deal that star third baseman Bonilla got when he left the New York Mets 25 years ago. My wife and I have $7,000 a month in pensions and Social Security, plus $140,000 cash. Can we afford to retire? 'Finance makes me break out in hives': I inherited $240K from my parents. Do I pay off my $258K mortgage and give up my job? I'm a stay-at-home mom. Do I take a part-time job to spend more time with my kids — or get a job for six figures? The last holdout bears are Democrats, these strategists say. Their capitulation could fuel the next leg higher for stocks. This income fund pays more than a bank account while keeping price volatility low Bonilla passed up a one-off $5.9 million payment in 2000 and opted for a deferred deal that would pay him $30 million over 25 years. That's meant a $1.2 million check on July 1 every year since 2011. Bonilla earns more than many active baseball players — the league minimum salary this season is $760,000 — even though he's now 62 and hasn't swung a bat professionally since 2001. Steve Cohen, the SEC-acquainted hedge-fund manager who now owns the Mets, has even talked about making 'Bobby Bonilla Day' some kind of thing at Citi Field. I got a press release on Monday from TIAA, the financial-services organization, calling Bonilla's deal 'legendary.' Trouble is, Bonilla's deal isn't quite as spectacular as many people seem to think. And it looks worse every year. The first thing to recognize is that Bonilla locked himself into a payment schedule that made no allowance whatsoever for consumer-price inflation over the life of the contract. Every year he gets $1.2 million, no matter what happens to prices in the economy. This year's check is already worth a third less, in purchasing power terms, than the one he got in 2011. If inflation averages just 2.3% a year for the next decade, as the bond market predicts, his final annual payout will have barely 50% of the purchasing power of the first one. Ouch. And Bonilla has been lucky. When he locked himself into this deal a quarter-century ago, it was just before inflation began plunging to its lowest levels since the Great Depression. In the first decade after Bonilla retired, prices rose by an average of just 2.5% a year. In the second decade they rose by just 1.7% a year. The stock and bond markets had no idea this was coming. Only recently have investors been reminded of how rare this is. Inflation averaged 5% a year in the 1980s and more than 7% in the 1970s. If something like that had happened after 2000, Bonilla would have been hosed. He would have found himself locked into a fixed-income deal with no way out. Bonilla was only 37 when he took this deal. Why he was locking himself into an annuity at that age is anyone's guess. Overall, when you look at the money he gave up and the money he's received since, Bonilla's deal has given him an internal rate of return of 8% a year. That's pretty good. It's nowhere near spectacular. Actually, Bonilla's smartest move would probably have been to take the $5.9 million when it was offered to him and to invest the money in real estate. U.S. house prices have risen about 5% a year on average since then, according to the Case-Shiller National Index, and that's just the gain from house-price appreciation: Landlords have earned at least the same again from rents. He'd have earned nearly 10% a year from New York City real estate. That's based on the price data for the city, from Case-Shiller, and rental yields, courtesy of real-estate firm CBRE. Many publicly traded residential real-estate investment trusts on the New York Stock Exchange have earned annualized returns of 10% to 13% a year since Bonilla signed his deal in early 2000. And that's factoring in the catastrophic plunge during the financial crisis. Meanwhile, over that period the Vanguard Total U.S. Stock Market Index Fund VTSMX has earned an average annual return of almost exactly 8%, while Vanguard Global Equity Fund VHGEX has earned more than 8.5% a year. Even many investment-grade corporate bonds were paying 8% or better back in 2000. Bonilla's really great financial moves were the deals he signed in the 1990s, starting with a five-year contract with the Mets worth about $70 million in today's money. The retirement deal he struck in 2000 has been no great shakes by comparison: an 8% return, and a big gamble on inflation. Spectacular? Hardly. Read on: Cristiano Ronaldo's new $700 million contract reportedly includes private jets and 16 personal staff. Here's how that compares with perks for other top athletes and CEOs. 'I do all the yard work, cooking and cleaning': I live with my daughter and her lazy boyfriend. She wants me to buy her house. Do I say yes? 'I'm single': At 70, I have $500,000 in stocks and $220,000 in savings. How do I invest my $130,000 windfall? A sputtering jobs market is now a top risk for stocks and bonds in the second half of 2025 My mother, 89, keeps getting her credit card scammed. She gets a new one — and it happens again. What's going on? Why out-of-favor Apple holds the key to tech stocks in the coming weeks Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
