Seniors learn tips on estates

By Rolf Boone | The Olympian • Published October 12, 2008

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OLYMPIA – Wall Street's roller-coaster week has resulted in a modest amount of investor panic, but there are ways for seasoned and new investors to weather tough economic times, an estate planner told residents of a west Olympia retirement community Saturday.

Other advice

•Avoid debt and pay cash

•Stop impulse buying

•Set low-level spending boundaries

•Avoid emotional shopping

•Avoid being a slave to debt

•Keep two to three months' worth of cash reserves for unexpected circumstances

•Consolidate bills

•Use credit cards only for emergencies

Source: Estate planner Gary Van Landingham

Families can get economic help

Families hit hardest by the recent economic downturn can find help as part of the Family Resource Fair hosted by the Volunteer Center of Lewis, Mason and Thurston Counties. The free event will be from 1 to 4 p.m. Oct. 25 at The Olympia Center, 222 Columbia St. N.W., Olympia.

Families have access to social service agencies such as the Thurston County Food Bank. There also will be free children's activities including pumpkin painting.

The center will focus on the value of family volunteering during the event, with the kick-off of a Family Volunteering Challenge that asks local families to volunteer five hours between now and National Family Volunteer Day on Nov. 22.

To receive a free Family Volunteering Kit and sign up, e-mail sara@volunteer.ws or call 360-741-2625.

About a dozen residents of Capital Place gathered to hear Tacoma estate planner Gary Van Landingham talk about managing debt, short and long-term investing and long-term health care, among other topics.

Older investors should have zero tolerance for risk, and people who are 65 or 70 years old should not be invested in the stock market, Van Landingham said.

Rather, their money should be placed in more conservative investments, such as tax-free municipal bonds, which are issued by local governments to raise money for city projects.

Another option is to put some money in a savings account, for example, and wait for the stock market to improve, he said.

"It's going to come back," Van Landingham said.

The past 30 days have been rough for Wall Street.

Since Lehman Brothers filed for Chapter 11 bankruptcy protection Sept. 15, the Dow Jones Industrial Average has recorded a net loss of 2,466.02 points. In that same period, which did include some stock market gains, the Dow Jones fell more than 300 points on 10 occasions.

"The challenge right now for some senior citizens is to manage their emotions," Van Landingham said.

Capital Place resident Gordon Brackett, 87, said he doesn't have an estate problem but attended the seminar out of curiosity. Still, he said he has been paying a lot of attention to Wall Street's ups and downs.

Memories of depression

Brackett, who was born in 1921 and grew up in the Midwest, can remember the Great Depression of the 1930s.

He described it as "terrible," a time when his parents lost their house. He also recalled paying five cents for a gallon of skim milk and the same price to go to see a movie, an activity people took part in to take their minds off of their difficulties.

Brackett said that now, he is concerned about the future for young people.

The model portfolio for a young investor should include real estate and equity investments, such as investing in stable companies that pay cash dividends, Van Landingham said.

If it was a sound investment portfolio to begin with, they should check it regularly in a down market but shouldn't sell it because the market will improve, he said.

"If (the investment portfolio is) not in the market, it's not worth a dime," Van Landingham said.

Rolf Boone is a reporter for The Olympian. He can be reached at 360-754-5403 or rboone@theolympian.com.