It Really IS All About You…….and a little bit about us!

You know how much I love writing my Blog about all of you, and I look forward to many more years of great client stories!   That said, frequently you ask for updates about us as well, so I thought it would be fun this summer to visit with the Team here at Ballou Plum and chat a bit about what’s new in OUR lives!  We’ll start with our biggest news, first.

Our very bright Financial Planning Associate, Laura Malinowski (soon to be Laura Knolle), and her husband, John, enjoyed a romantic wedding and honeymoon in Kauai this past May. Here’s a great picture of them together (adorable!) on their special day!  Laura is also very busy in her last semester at Golden Gate University, finishing up her Master’s in Financial Planning and Taxation with an emphasis in Estate Planning this August.   She’s looking forward to weekends of play and not study!

John and Laura on their wedding day!

Busy and beloved, our Operations Manager, Debi Murphy, finished her degree as well!  In June, she graduated Cum Laude from Cal East Bay with her Bachelors in Liberal Studies and a minor in California Studies.  Debi is our inspiration on so many levels, as she had to abandon college in her younger years to support her family, help put her husband and daughter through their college studies and support their goals and ambitions, but never lost sight of the importance of a degree and education for herself. Here she is in her full graduation regalia!  We are SO proud of her!!!  Later this month, Debi and her husband, Pastor Kevin Murphy, will be heading to Honduras with a group from their church to spend a week working at the Children’s Rescue Mission (www.crmission.org) in Tuepasenti.  They are making a huge and positive impact on the lives of so many who live without things you and I take for granted.



Debi graduates with Honors!

Our hard working, multi-tasking Chief Investment Officer, Sid Ean, and his wife, Sophon, welcomed their second son late last year.  Here’s a picture of Parker (now three and proud big brother) with adorable baby Liam, and proud Dad.   Sid is embarking on studying for his CFA this year, so he’ll be a busy man between family, work and burning the midnight oil over text books. And they still want that daughter, so, we are looking forward to more little Eans in the future!

Parker and Liam visiting Dad at work

Ever patient, detail oriented, and always empathetic, Ballou Plum’s Client Services Manager, Mark Young, is a lifelong student.  Before joining us he was already well underway on obtaining his CERTIFIED FINANCIAL PLANNER™ designation.  This summer he’s finishing up the last coursework for that designation and then he will sit for the exam in the fall.  He continues to have a passion for sports, especially golf, and is looking forward to scuba diving in Cozumel in August.

Mark, high above the shores of Lake Michigan at Arcadia Bluffs

The calm and loving voice of Ballou Plum, Cristina Holloway, continues to wear many hats here at Ballou Plum.  She is a woman of many talents from helping you with appointments and paperwork, to becoming our event planner extraordinaire!  Those of you who attended our Shred party recently met her terrific son, Brent, the youngest of her three sons.  Cristina loves traveling, biking and spending every free moment outdoors.  

Cristina and Benny enjoying a beautiful day at Tumalo Falls near Bend, OR

Super sharp and very fun, Rene’ Trujillo, the true and quintessential soccer mom (attended UCSF on a soccer scholarship), has been a great addition to our team.  With an extensive background in portfolio management, she has been a perfect fit as Research Assistant in Team Research.   Full-time Mom with two busy youngsters and part-time with Ballou Plum, here’s a picture of her, her husband Craig, and their two adorable children Jameson and Zeke.

Hanging around with Rene' and her family!

Meredith Ballou, our newest addition, joins us part time this summer, as a “junior” Client Services Coordinator.   As my daughter, she’s helped us out over the years somewhat informally, and now we are really happy to have her join us as an official Team member.  Passionate about providing great customer service, she’ll be serving us in the much needed role of internal general office support. 

Meredith in her Tigger ears at her favorite place, Disneyland!

Marilyn and I continue to feel honored to be here for you.  This fall, Marilyn will be traveling to India in November. You know her love of adventure and travel --- so there’s no telling what’s next!  Here’s a picture of her and her husband, Todd, enjoying the great outdoors in their EarthRoamer (learn more about EarthRoamers at www.earthroamer.com).

Marilyn and Todd enjoying a trip in their EarthRoamer

And last, but hopefully not least, I want to thank you so much for your many kindnesses and good wishes while my husband battled a very invasive cancer this year.  Having your understanding along with a great Team here at Ballou Plum enabled me to cut back my hours a bit to focus on my husband’s health issues.  So far the news is excellent:  he appears to be cancer free!   And on a fun note, my son, Nicholas, has decided to try his hand at touring as a tennis pro.  He and his doubles partner are already doing well.  If you would like to see him play in the Bay Area, he’ll be in the Moraga Country Club tournament this August 6^th – 11^th. 

John and Lynn enjoying date night!

So, whew!   That’s it from us!  Aren’t you glad you asked!?!?  ;-)

Wishing you a very fun and hopefully relaxing summer!  Big hugs from all of us to all of you!  

Miriam Hospodar ---- Wisdom, Joy and SO Much Talent!

As I write this, I’m jealous of you. Why? Because you are about to discover Miriam (“Mimi”) Hospodar, not only a truly unique and mind-bendingly talented artist, but even better, one of the kindest and most generous souls you could ever find. Her work is joyful, colorful and visually delightful --- its own complete botanical garden exploding with life and promise. The way she embraces color --- in fact every piece of work is a fascinating study in the smart and limitless uses of color --- and has such control over her subject, will make you think differently about how illustrations can vibrate from the page and tell a complex story all in a very compact space.

So that should be enough, right? That should be the totality of her unique story --- ah, but that’s where you’d be wrong because in addition to these talents, there is so much more to learn and love about her. I’m going to get out of the way of her story and let her tell you all about her remarkable life as artist, author, teacher and student of the world.

Miriam "Mimi" Hospodar, 1999

Mimi, even though we’ve only been working together just over a year or so, I feel as if we’ve known each other a long time.  Perhaps it’s due to our “coming of age” in the sixties and both being children of that amazing time and generation.  You were my northern California counterpart that I’ve just recently met!  Growing up in the Bay Area during those incredible and historic moments must have been inspirational for you, especially as an artist.  I’d love it if you would share your thoughts on those years and how they shaped you.

I was nine years old in 1960 and turned nineteen in 1970, so I came of age during the 1960s. The Civil Rights Movement was at my door; my middle school in Berkeley was the first school in the USA that voluntarily took steps to racially integrate. The Free Speech Movement took place while I was in middle school and the U.C. Berkeley Chancellor’s son was a classmate. In high school, every boy I knew was going to be drafted for the Vietnam War as soon as he turned eighteen. Therefore, involvement with anti-war activities had great urgency and personal importance.

So-called “psychedelic” art was decorating everything in San Francisco from underground newspapers to fabrics and fashions. People awoke San Francisco’s then-crumbling, low-rent Victorian houses by festooning them with exuberant colors and designs. My art was greatly influenced by the marvelous posters for the Fillmore Auditorium, Winterland and Avalon Ballroom. I studied the Art Nouveau artists from whom the poster artists drew inspiration. I copied their lettering styles and embraced their sense of freedom with color and imagery. I was also inspired by the fashion trend of vintage clothing that could be picked up for a song at thrift shops. The beauty of the ubiquitous arts, crafts and fabrics from India especially caught my eye; years later I majored in Indian art history at Oakland University, and received a BFA from California College of the Arts. I also spent two wonderful years studying with a Tibetan thangka painter, Pema Wangyal of Dolpo. All these experiences informed my painting style.

Cacao Deity, 2004

From what you’ve told me, your entire family has always been very artistically inclined from musicians, to writers, to artists, as well as collectors of art. What fields did your parents pursue professionally? Did your family worry about you pursuing a career in the arts, wanting you to find a more traditional profession? Were they concerned about the difficulty associated with choosing a tough field to break into financially?

My father was a mechanical engineer who took up metal sculpture in retirement. My mother, a clinical psychologist, did ceramics and worked in copper. After she retired, she became a prolific painter. They collected folk and primitive art from New Guinea, Africa and Mexico. My brother is a Celtic fiddler and a sea chantey singer. My godfather, with whom I am very close, was a painter who worked with Richard Diebenkorn, David Park and Elmer Bischoff.

My parents wanted me to become an artist. However, I don’t think they considered the professional challenges of such a life too carefully! I actually have had three careers, two of which I received a significant amount of training for. I am a visual artist with a BFA and also a BA in Art History, a certified teacher of the Transcendental Meditation Program and the published author of three books and many magazine articles. However, none of these has proved a lucrative career path. I have frequently had to take “day jobs” to provide the majority of my income.

Mimi, you are probably the hippest, coolest woman I’ve ever met! You have this amazing vibe and vibrancy about you that’s hard to explain. Tell us about your early influences that set you on your incredible and creative path.

Quite simply, I have to create in order to be happy. I think that it is a blessing and a curse that one is born with. Fortunately, I had parents who encouraged me to draw and paint, to write and to pursue other creative projects. The greatest influence on my creative life is my practice of Transcendental Meditation. I learned in 1970 when I had just turned nineteen, and trained to become a teacher of the technique three years later. I have never missed a day. It helps keep me centered and stokes the creative fires. I have never experienced artist’s or writer’s block, and it has helped me access deeper wells of inspiration.


Healing Angel, 2012

Where have you traveled and lived over your life? What were some of the most interesting places and how did you come to be there? Where might you want to return to visit or newly see?

When young, I traveled with my family to Navajo and Hopi reservations, and to the Anasazi archeological sites in Arizona, and many times to Mexico. I was fascinated by the arts and crafts of Oaxaca, and by the sites of the ancient Aztec, Mayan and Toltec civilizations. As an adult, I lived in France and Switzerland for three years, and spent a year each in the Philippines, Taiwan and India with the Transcendental Meditation organization. I returned to India to travel on my own for four months, and have also traveled in Italy. I would love to go to Chicago, New Orleans and Mississippi for the blues music, and to spend a few months in Venice, painting and exploring. It is the most improbable, romantic city I have ever seen.

You’ve also met a lot of fascinating people. Any stories you’d like to share? I especially love the one about you meeting Richie Havens, who sadly, recently passed away.

Richie Havens was a dear friend, whom I met when I was writing a book about the social significance of sixties music. He told me about his wish to give concerts for peace in Israel and Egypt after Anwar Sadat made his historic trip to Israel. Havens was not able to receive permission to visit both countries on one passport. However, for the first time ever, Israel permitted an Egyptian film crew to enter the country and film his Israeli concert. Havens said that his beloved late grandmother had always wanted to visit the Holy Land. When he first set foot on Israeli soil he said aloud, “Well Grandma, we made it!”

Mimi with Richie Havens, 2007

Donovan is a fascinating and serious poet and student of poetry. He created a series of artworks to illustrate the poems of the ancient Greek poet, Sappho. He studied the Beat poets, and once did a low-key concert tour of historic California coffee houses frequented by them.

Bob Weir of The Grateful Dead recounted the countless hours he spent listening to very early rock ‘n roll records, and talked excitedly about the difference between “rock” music and “rock ‘n roll”. His assistant told me that it was the best interview he had ever heard Weir give.

Ellis Amburn, Jack Kerouac’s last editor, expounded on Kerouac’s love of rock ‘n roll and his fondness for Elvis. He encouraged me to visit Kerouac’s grave site. I am not one much for cemeteries, but when I was in Lowell, Massachusetts, I sought out Kerouac’s final resting place. Indeed, it has a powerful vibration. I brought some sand from a California beach that Kerouac wrote about to sprinkle around the grave. Also, like many other writers, I left a pen.

How have you evolved as an artist most recently? What are you currently pursuing and most passionate about? What inspires you?

I think that evolution as an artist simply comes from putting in the hours. When one has long stretches of time in which to create, new and unexpected ideas emerge. I have decided to devote the remainder of my artistic life to creating healing paintings. Some are personal for individuals, and others are more universal. I recently painted a guardian angel for a friend who is recuperating from breast cancer surgery and chemo. I also recently finished a painting to help heal broken hearts. Right now I am working on a celestial “garden of the gods.” The imagery comes from my inner vision, but I will often research what I “see.” For instance, the painting for healing broken hearts features symbols of transformation and renewal, such as butterflies, a phoenix, dragonflies and spring blossoms. I looked at many images of these subjects before creating my own.

Healing for Broken Hearts, 2013

You have been working over many years on an extremely interesting biography. I know you’ve put it on the back burner for now, but can you tell us about the expansive subject matter and how you might change the way you tell these incredible histories and stories?

I worked for about four years on a book about sixties music and how it reflected the values of the time. It takes place mostly in the San Francisco Bay Area. I wove into it a lot of autobiographical material, as I was deeply involved in music from childhood on. From folk music to rock, blues and jazz, the music of the time reflected the politics, art, gender roles, spirituality, health and ecology issues, racial issues etc. that were in upheaval and in which exciting experimentation were occurring. I interviewed a variety of important figures, primarily musicians, but also underground radio personalities, social figures such as Wavy Gravy, artists and writers. My favorite story took place when I was fifteen years old, and Bob Dylan passed out in my lap!

What was most important to me was to tell the story about the significant and lasting changes that were initiated during the time, not just the “sex drugs and rock ‘n roll” stereotype of a bunch of stoned people with impractical ideals. Awareness of ecology and sustainability, organic food, gay rights, women’s rights, civil rights, important artistic movements, spiritual awareness and many other important societal changes and advances had deep roots in the sixties. I used music to show the expression of these values. Unfortunately, the book did not find a home with a publisher, as the general consensus was that there are too many books about the sixties already. One editor asked me, after reading the proposal, “Where are the sex and drugs?”

In addition, I have three published books, including two cookbooks, The Age of Enlightenment Cookbook (Arco, 1981) and Heaven’s Banquet (Plume, 2001) and a book about Italian street painting that I co-authored, Asphalt Renaissance (Sterling, 2011).

"Heavan's Banquet," 2001

Another thing to admire about you is your approach to being charitable. You really believe that charity begins at home with family and friends, with those who are close to our hearts, rather than in donating to the more traditional charitable organizations. How did you come to feel this way? What do you do to express that belief and act on those core values?

Although society generally acknowledges “the arts,” the actual artists are not supported well, even though they are often very well educated, experienced and work extremely hard at what they do. They often subsist on low-paying, part-time jobs without any benefits. They have accrued virtually no retirement income. These worthy people have no safety nets to cover accidents, catastrophic illnesses and unexpected expenses, nor do many of them have health insurance.

I prefer to give money directly to artists in need, rather than funnel it through organizations and foundations. It can be used immediately, I know exactly who the money is going to, and the artists do not have to go through any daunting application process. If I feel that the gift will affect our relationship, I send it anonymously by mailing a certified check (Thank you Lynn and Marilyn for figuring out that maneuver!). Even if the amount of money will not solve a problem 100%, it serves to encourage and uplift the artist. It has been a very fulfilling way of giving, and much appreciated by a valuable segment of society that does not get many breaks.

What are your current challenges as an artist in these economic times, and how do you address and tackle them? What do you see as your next professional steps?

Visual art is an elective expense that fewer people participate in during challenging economic times. I continue to show my paintings in galleries. However, I also sell much less costly giclée prints, fantastically true-to-life computer reproductions done with archival inks on watercolor paper. Lately I have been producing high quality greeting cards of my paintings.

I am currently looking for an artist’s representative, who will do a much better job of marketing than I!

I think a lot of our readers will want to view your work and perhaps be in touch with you. May I give out your website address? And how should they reach out to you?

My website is www.miriamhospodar.com and my email is scribblescribbler@gmail.com I’d love to hear from anyone reading your blog!

Poster for the Santa Barbara Blues Society, 2012

Rena Snyder --- Life Lived Fully and with Flourish!

Writing a Blog featuring all of you is a humbling experience. Not only am I transported back in time within each unique client’s relationship, but I am also treated to the opportunity of peeking into clients’ own points of view and visions for our mutual futures. When I prepared my questions for Rena, I had a lot of “ah ha!” moments. First, meeting her a couple of decades ago, a very busy and full life, and now the joy of watching her enjoy the benefits of her many years of hard work and sacrifice for her family. Personally, it is so very rewarding to know that she chose us to be with her for this journey.

Rena shares her life as a hard working woman professional in human resources during a time of huge change within that industry and the coming of age of women in what had been a traditionally exclusive male environment. She shares with us the love and care she brought as caregiver and care manager for her beloved parents. And she shares with us her new life as retiree ---- one that was well planned and incredibly well deserved. Enjoy Rena’s journey!


Rena at Yosemite Lake, 2013

Rena, lucky me, we’ve known each other and worked together quite a long time. When we first met, you were employed full time as an HR Director for Northern Telecom and pursuing tennis avidly! Since that time, much has changed in the field of human resources (HR) as well as your own life. Focusing on the business path first, it occurs to me in retrospect that your career path seems to parallel so much of what was evolving in the field of human resources. What originally lead to your interest in HR? And how did your career path change in that field during your working life? And, in retrospect, do you feel it was the right field for you? If you had a "do over," what might you do differently?

While working a number of years as an executive secretary to corporate managers and CEO’s, I was privy to many critical personnel (as it was known then) issues. I was drawn to the complexity of the problems and realized these decisions were affecting people’s lives. I decided to take courses in HR management and soon had to make a decision regarding my career. At that time, you had to start at the bottom in HR and work your way up. So I took the plunge (including a deep cut in salary) and applied and was hired for an entry level HR position.

I continued studying HR, Psychology and Business Law and was always looking for opportunities at work to take on more to expand my knowledge and get hands-on experience. HR careers usually followed that path. I applied and was hired for positions with increasing levels of responsibility in all the specialty areas of HR until I was able to assume the role of a generalist management position. I continued to rise in the management ranks and relocated three times (Dallas, Nashville, back to California).

The HR department was considered an administrative function until the late 80’s and then began to migrate to an integral part of business decision-making and elevated to other functions within organizations. It was very rewarding to be part of forming business strategies – since people are the key asset to any organization. HR was definitely the right field for me. I had the opportunity to positively impact many lives (employees and their families).

I would say I was a “good corporate citizen” and a workaholic and in retrospect I would have tempered my work life and put more emphasis into my personal life.


Rena participating in a corporate team building wilderness event

You were one of the first to embrace the idea of outsourcing not only the day to day payroll functionality but so much of what HR also involves, allowing companies to leverage their resources in such a way that they could focus on their core capabilities. This was hugely helpful to our small company as we grew and you really opened my eyes to the notion of staying focused on what we do best. How do you think that movement has changed our business environment today? How do you see this important area continuing to evolve?

As companies experience the extremes of growth and decline, the basic infrastructure of HR stays pretty much the same. Especially in decline, other than hiring and training, most other programs must remain in effect. As a result, cutting costs in the HR function is difficult. We started looking for resources outside the company that could be utilized in these peaks and valleys. When we were forced to downsize HR, we utilized temporary personnel to fill spikes in workloads.

Continuing to look at cost-cutting and overhead, I discovered Professional Employer Organizations (PEOs). Companies can outsource all or part of their HR function. In simple terms, many companies can utilize the services of one HR function. Each company pays just a portion for the HR services.  Outsourcing has continued in all business functions, with providers all over the world. It allows organizations of any size to let their employees concentrate on accomplishing business goals.


Rena and her Father, circa 1975

Let’s switch gears here a bit and talk about your parents. Everyone should have an amazing daughter just like you! First for your father, and then very soon after on behalf of your mother, you became everything from care manager to care giver, bookkeeper to trustee, and all the roles in-between. Through all that you battled your own health challenges, too. Where did the knowledge, the courage and the strength come from?

First I had to come to terms with my own health condition. My parents were too fragile to cope with my health problems. I fought breast cancer without telling them. But I had great support of some close friends and golf (my mental and physical therapy). I learned so much about myself and what I was capable of accomplishing. I learned to question everything and push back when a “red flag” surfaced. I realized two basic truths: The problem is what it is—and—you do what you have to do to get through the situation. Once I accepted that I couldn’t change the diagnosis, I charged forward to manage the process.

Even with my own health issues under control, there was no way I was prepared for all the issues related to caring for my parents. In addition, my parents both remarried and so I took responsibility for matters relating to them. Slowly over a period of several years, they each had medical problems that affected their quality of life. I researched and asked a lot of questions until I got enough information to make difficult decisions.

What lessons could be shared with others reading this Blog who are facing similar paths with their loved ones?

Having a Will and Living Trust is not enough. In fact, I didn’t even see my parent’s documents until they passed away. I knew they had a DNR (do not resuscitate) authorization and I had a vague idea of what was in the documents. But we had never discussed their wishes if they became incapacitated. I was angry that I was forced to make difficult decisions about medical, living conditions, finance, legal issues. For each question I had to decide what was in the best interest of my parents. Sometimes they did not like the solution and it broke my heart they were unhappy. But they were safe and well cared for.

Although it is uncomfortable, talk to your loved ones while they can articulate their desires. Parents place too heavy a burden on their children of trying to second guess their life ending wishes. Because of the aging population, there is much more information and services available. Ask trusted friends and advisors about proven solutions to similar problems.

It is essential to have experienced and competent advisors to deal with medical, finance, taxation and estate law. I ended up changing doctors and an estate attorney because I didn’t feel they served the best interests of my parents.


Teeing off in Manzanillo, Mexico

Always the talented and exuberant athlete, as your body has changed, you have not been one to put on the whiney face and give up on staying healthy! First tennis, then golf, now ballroom dancing! Tell us about these pursuits and some of the interesting travel you’ve done as a golf enthusiast.

In my twenties I got interested in sports and learned tennis. For thirty years I played in leagues, was captain of teams and organized many events. Tennis started taking a toll on my body. When I started working part-time in 2001, I decided to hang up my racquet and take up golf. What a challenge – on the golf course you have to concentrate on so many aspects of the game. It has provided me with the greatest outlet for the stress and frustration when I was dealing with my own medical issues and caring for my parents. I played tennis in many places (Australia, Bahamas, Tahiti) and now I am adding golf to my travels to Mexico, Utah and all over California.


Rena getting her ballroom on!

And ballroom dancing! Wow! How did you decide to put on those dancing shoes and super cool outfits and get out there and boogie? You look amazing, by the way!!!

My father taught me how to dance at an early age. I have always loved music and the energy generated in dancing. Last year I decided to look into ballroom dancing. I love it – very stimulating. Like golf, when I am dancing I don’t think of anything else and it’s a great workout. I didn’t have any dresses so I had to invest in a few “flowy” outfits.

Rena enjoying beloved pets, Chuy and Ziggy

You and many clients are migrating to Rossmoor or similar retirement communities (being the trend setter you are, you of course, were one of our first clients to do so!). You actually moved there when you were much younger than most residents. Tell us what drew you to this special place. Are you glad you made the move?

Moving to Rossmoor was the best decision for me. 2008 was the worst year of my life. My father and mother passed away within six months. My part-time job was relocated to Houston. I suddenly lost hearing in one ear. I decided it was time to retire, sell my townehouse and simplify my life.

Rossmoor was very attractive to me from my first visit. It has so much to offer—great location, affordable housing, beautiful surroundings, golf courses, many social clubs and amenities. In four years the demographics have changed considerably with the influx of the baby boomers. A lot of these people still work full or part-time and so the events and activities are changing to accommodate this age group. I don’t consider Rossmoor a “retirement community.” It is an Active Senior Community!

For others thinking of making a similar move, what would you recommend they do to research their best future home? Would you have done anything differently?

Do your homework – consider all aspects of your life. You must have your finances in order and know what you can afford. Then the fun part starts: start making lists of must haves, would like to have and what you can live without. This goes for location, weather, type of house/condo, amenities, and proximity to healthcare, shopping, transportation (in case you don’t want to drive), your hobbies and interests --- everything you can think of!

Then go exploring in the wider area you want to live and check out communities so you do some comparisons. I looked all over the East Bay, but decided Walnut Creek was a great central location. Eventually, you will be able to narrow things down to a city and community that suits you. And, if you are not absolutely sure, consider renting for a while.

I did all of this, in addition to looking at forty places in Rossmoor. I was just about to rent a place when my condominium came on the market. I knew immediately it was the right place for me, met my realtor, made an offer, and deal was completed in two days.

What’s next Rena? Warn me now so I can keep up!!!

Right now I am concentrating on lowering my golf handicap, moving into the intermediate/advanced ballroom dancing level, playing Mah Jong, Mexico in February, cruise to Alaska in July, and short golf trips in California.

Readers often have questions for our featured Blog guests. If they would like to reach out to you, what’s the best way?

They can email me at snyderrenas@gmail.com.



Rena enjoying an ATV ride in Yosemite



A Discussion with Marilyn Plum Regarding Higher Medicare Costs and Taxes for High Income Earners

February 28th Edition

This year we’ve decided to take our Blog, It Really IS All About You! in a slightly different direction by broadening its scope. While we will continue to feature our remarkable clients and their fascinating lives, we are also going to include financial planning and wealth management content. By staying true to our theme, but broadening our scope, we hope this current content will be invaluable to you.

This month, we launch into this new direction with Marilyn Plum’s excellent commentary on Medicare costs and planning ideas.

If you are nearing Medicare age, on Medicare, or have high earned or unearned income, this information will be especially pertinent. Our goal is to explain current Medicare costs, penalties and how to control or avoid them. We will also cover the new taxes on high income that affect taxpayers of all ages.

So, Marilyn, thank you so much for agreeing to help us forge new territory with our well received Blog.  Before we go further, let’s review Medicare basics so that we are all using the same terminology.

Marilyn: Great idea. Here are the Medicare basics as provided by the U.S. Social Security Administration:

Medicare Part A - Hospital Insurance: Part A is paid for by a portion of Social Security tax. It helps pay for inpatient hospital care, limited skilled nursing care, hospice and other services.

Medicare Part B - Medical Insurance: Part B is paid for by the monthly premiums of people enrolled and by general funds from the U.S. Treasury. It helps pay for doctors' fees, outpatient hospital visits and other medical services and supplies that are not covered by Part A.

Medicare Part C - Medicare Advantage: Plans allow you to choose to receive all your health care services through a provider organization. These plans may help lower your costs of receiving medical services, or you may get extra benefits for an additional monthly fee. You must have both Parts A and B to enroll in Part C.

Medicare Part D - Prescription Drug Coverage: Is voluntary and the costs are paid for by the monthly premiums of enrollees and Medicare.

So, we know that Medicare starts at the age of 65, but what do we need to do?

Marilyn: It can be very confusing, not just when enrolling for the first time, but any time that you might want to make changes in your coverage. What actions you should take as you approach age 65 will depend on your current situation. Here are the three possible scenarios:

1) If you are approaching age 65, start early to make your Medicare coverage decisions. If you are turning age 65 and not on Social Security, you need to sign up for Medicare within a 7 month window starting 3 months before the month that you turn 65, including the month you turn 65, and ending 3 months after you turn 65.

2) If you are already receiving Social Security benefits, you will automatically be signed up for Part A and Part B starting on the first day of the month you turn 65. You then need to add on a Medigap or Advantage Plan and Part D.

3) If you or a spouse are still working at age 65 and have employer health coverage, contact your benefits department to learn about how your coverage works with Medicare. This includes federal or state employment, but not military service.

• Note that if you are on COBRA or a retiree health plan, you are not considered covered by insurance based on current employment. You must sign up for Medicare when you are first eligible at the age of 65 or face penalties.

We’ve all heard tales about Medicare penalties if we don’t sign up in time. Can you walk us through the key issues we should be paying attention to?

Marilyn: First, penalties for late enrollment are significant and those penalties apply to your premium for as long as you have Medicare. Your Part B monthly premium can have an add-on penalty of 10% for each full year that you should have been enrolled and were not.

Second, know that Part D prescription drug plans are available to everyone on Medicare. Part D plans are separate from other coverage and are run by private insurers, like your Medigap provider, or are included in Medicare Advantage Plans (HMOs, PPOs). Even if you don’t take any prescription medications now, elect to join the plan with the lowest amount of coverage so you are at least enrolled. Penalties apply if you do not sign up for a Part D plan when you are first eligible, or if you go for 63 days or more in a row without a Medicare drug plan or other creditable coverage. The late enrollment penalty is 1% of the “national base beneficiary premium” ($31.17 in 2013) times the number of full, uncovered months that you were eligible, but not covered by a drug plan. Again, this penalty is permanent and will continue as long as you are on Medicare.

Why are there penalties? Like any insurance plan, Medicare does not want you to come to them only when you are sick or needing prescription coverage. In other words, the insurance provider needs to collect your premiums while you are healthy to help pay for your care later when you are not, so they can stay financially viable.

What happens if I’m a high income taxpayer? How is that defined, and what additional Medicare costs would a high income taxpayer experience?

Marilyn: Let’s walk through the important points:

1) Higher costs for your Medicare: Shall we call it means testing? Your cost for Medicare is based on your modified adjusted gross income (MAGI) which is your adjusted gross income plus your tax-exempt interest income. (Yes, your municipal bond income is added back in for this calculation!) This is called Income Related Medicare Adjustment Amount or IRMAA. The amount that you pay can change each year, not only due to increased costs of the Medicare premium itself (a 5% increase from 2012 to 2013), but also based on changes in your income.

2) If your income is lower now than the year that they are basing your premiums on (currently 2011), you can contact Medicare at (800) 772-1213 to appeal based on certain criteria, like retirement.

3) The current premium for Medicare Part B is $104.90 if your income is $85,000 or less. The following table shows the income related extra cost in addition to the base Medicare premiums for 2013:

      IRMAA costs from Medicare.gov

How can we benefit from this information, Marilyn?

Marilyn: Two important ways:

1) You may be able to control your income to stay in a lower cost range.

2) This additional health care cost needs to be taken into consideration in your long-range financial independence planning.

The new Medicare taxes on earned and unearned income related to the Patient Protection and Affordable Care Act begin this year, in 2013, and are creating a bit of planning havoc due to their complexity. Can you please walk us through the key issues we need to pay attention to?

Marilyn: Here are two critical areas you need to understand:

1) New Medicare tax on earned income

This is an additional tax on wages, compensation or self-employment income that exceeds the threshold income amounts. The tax is 0.9% and applies to:

Filing Status and Threshold Amounts

Single - $200,000
Married filing jointly - $250,000
Married filing separately - $125,000
Head of Household - $200,000
Qualifying widow(er) with dependent child - $200,000

Examples of how this tax is calculated can be found on the IRS website.

2) New Medicare tax that applies to investment income of high income taxpayers 

The trigger for this tax occurs if your Modified Adjusted Gross Income (MAGI) exceeds the threshold amounts of $200,000 if you are single or $250,000 for married couples. This 3.8% tax will apply to the lesser of:

a)  net investment income or

b)  the excess investment income (if any) of adjusted gross income (AGI) over the $200,000 or $250,000 threshold amounts.  

This law defines investment income as interest, dividends, capital gains, taxable portion of annuity payments, passive income, royalties and net rental income. Tax-exempt interest is not included. Capital losses are still netted against capital gains for this calculation.

This tax is very confusing and has been widely misinterpreted. One of the points of confusion is regarding the sale of a primary residence. If you meet the primary residence holding period, you still get the capital gains exemption of $250,000 for a single person or $500,000 for a married couple. If your gain exceeds these amounts and your income exceeds the threshold amounts, the excess gain is included in MAGI and can be subject to this tax.

Okay --- this is really helpful and a whole lot of information! Let’s do a summary of the key points for our readers.

Marilyn: Here are three key points to remember:

1) When signing up for Medicare, get good advice and make sure that you sign up on time and include Part D coverage.

2) For high income earners, there may be opportunities to control income

3) Be aware that these new taxes are in place for your long-range planning and budgeting purposes.

We are sure there will be further clarification on new taxes and, of course, Congress is still at work.

Do you have any resources to recommend for those who have more Medicare questions they’d like answered?

Marilyn: In addition to consulting with your own trusted advisors, we have found these resources to be particularly helpful:

Medicare
1-800-MEDICARE (1-800-633-4227)
TTY 1 877 486 2048
www.medicare.gov

Health Insurance Counseling and Advocacy Program (HICAP) for Contra Costa County

HICAP offers free local group presentations and individual counseling on Medicare and supplemental plans to help you determine the right coverage for your needs. They are independent and do not represent any insurance company.

(800) 510-2020 or from a cell phone (925) 229-8434
www.cchicap.org.

The Henry J. Kaiser Family Foundation
http://www.kff.org

Marilyn, many thanks for taking a huge and complex subject and really breaking it down for us in ways that are understandable. We encourage you to call us with any specific questions you may have pertinent to your own or a loved one’s situation.

We’ll revisit this complex topic with Marilyn in future Blogs as well. If you’d like to reach out to Marilyn directly, you can reach her at marilyn@ballouplum.com or (925) 83-2201.

Thanks for reading!

Janice Wien and her Persistent Pursuit of a Meaningful Life!



Janice Wien

Small blessings happen during life in such soft and quiet ways, that it’s often not until many years later that you realize the true gift that you’ve been handed. For me, one such gift was having wonderful neighbor Janice Wien living next door during my early days in the Bay Area. Two Jewish girls transplanted to Berkeley for work and romance, we quickly bonded over our mutual love of plants (especially roses), gardens, great food, cats and books.

Fast forward about 30 years, and my blessing continues as Janice shares with us her endless thirst for knowledge and finding life’s passions. When I chat with folks who tell me they wish for a more meaningful life, I tell them about Janice. When I hear whining about how it’s too late to go down a new path, I remind them that many choose new paths at all points in life, and it’s never to late to seek more nourishing pursuits. I hope you enjoy reading about our client and my friend, Janice Wien. Be prepared to be inspired!

Janice, you and I first met as neighbors in Berkeley. I think it was our mutual love of gardening and trips to local nurseries that first brought us together --- so many plants, so little time! Tell us a bit about where you grew up, your education up to that point, and how you landed in Berkeley? What were you doing professionally, and personally, at that time in your life?

Let’s see, when Lynn and I met I was working in the accounting department at the San Francisco Symphony. I had been at UC Santa Barbara four years earlier but bailed after about 2 ½ years. I had racked up what then seemed to be a fortune in school loans. Since I was an English major, I had no idea how I’d pay back my loans, I panicked and dropped out. So began my 30 year journey to finish my B.A. I had been working for my dad’s accounting firm since I was fourteen so even though I didn’t love accounting, it was easy to fall back on those skills as a way to support myself.

I ended up in Berkeley because many of my friends had transferred from UCSB to UC Berkeley, and I just followed them. My boyfriend and I decided to move in together and rented the house next door to Lynn. I began my first forays into gardening, since then a life-long love, and learned so much from her.

As I got to know you better, I learned of your love for travel, and also your fascination with Israel as well as Hebrew studies, and your deep interest in Judaism --- it’s studies and culture. It would be great if you could share with us where this life-long interest --- perhaps passion? --- for Judaism began, how it evolved for you, and the many paths you’ve pursued personally and professionally in its pursuit.

I grew up in Los Angeles as a “cultural” or secular Jew and had no experience with religious Judaism. It wasn’t until I moved to Berkeley and discovered the Lehrhaus Judaica that I was able to approach Judaism in a way that was comfortable and meaningful for me, namely academically. I began studying Judaism, American Jewish and Israeli history and culture, and Hebrew at the Lehrhaus and I continue to study to this day. I am especially interested in Jewish fiction from the U.S., Europe, and Israel.

I’d been bitten by the travel bug during my first trip to Europe right after high school. The combination of my passion for travel and my deep interest in Judaism led to four trips to Israel, including two extended visits to study – once for an ulpan (intensive language program) at Hebrew University and once at the Pardes Institute of Jewish Studies, a modern orthodox yeshiva where men and women study traditional texts together.


Janice takes London's Hyde Park by storm!

A couple of years after we first met, my fledging business, Ballou Financial Group, was growing and I needed help. Lucky for me, you became the company’s first employee! Considering what a terrible “boss” I made, it’s a miracle you stayed my friend --- not to mention client --- all these years! But things changed for you, and you and Eric moved to Petaluma where you helped your then husband run his firm. Tell us about that business and what your role was in the company.

It took me a long time to work up the courage to leave the SF Symphony, but working for BFG was the perfect opportunity to move forward with my career. I’ve carried the top-notch organizational skills I learned while working with Lynn to my subsequent jobs and my personal life. Those skills were especially useful when I began working with my ex-husband. He had started a business, ETA, selling and supporting Great Plains accounting software. I began just “helping out” around the office -- organizing, paying bills, helping him interview his first employees, etc. – and as the business grew, I ended up working as the controller.

At some point you realized that the field of accounting and office administration as a life–time profession could not possibly satisfy your soul enough. You were looking for something that could become your own cause and calling --- a career that could sustain you for many years not just financially --- though that is certainly very important --- but most important for you, intellectually. So, what did you do to embark upon this professional quest? And what happened next?

Although I was pretty good at accounting, I never found the work fulfilling and spent many years feeling stuck. While I was with ETA, I had the opportunity to work part-time for a little while, so I took a series of classes at the Alumnae Resource Center in San Francisco (now the Bay Area Career Center) to try to find a new career. As a result, I did informational interviews with people in several fields and was most drawn to working in a library. I took a library skills class at Santa Rosa Junior College (SRJC) and also volunteered for a couple of months in the archives department at the Sonoma State University Library. I loved all of it! However, I needed to go back to work full-time so I started interviewing for another accounting position. After an interview for an accounting job with the SRJC Foundation, I stopped by to visit the instructor of my library skills class. One thing led to another, and I ended up doing an informal interview on the spot for a part-time temporary job in Periodicals. I walked out of the library with the strangest feeling – that when you truly want something, the universe just might provide the opportunity. I got that job, but since I needed full-time work, I also took a part-time accounting job in Petaluma. At that point, I decided I would do anything to get my foot in the door at the JC’s library, so for several months I spent my lunches driving from one job to the other each day. My manager had a hunch I’d be good at cataloging, given the detail orientation and accuracy I brought from my work in accounting, and she encouraged me to apply for a cataloging technician position. It took me two years to get a full-time permanent position but it was worth sticking with it.

I worked at SRJC library for ten years. All this time, I was slowly working toward finishing my B.A. through Excelsior College, an external degree program out of New York. As long as I met their requirements, I could take classes at any accredited college. I started going to college in 1974, received credits from seven colleges, and finally finished my B.A. in Liberal Arts in 2005 with emphases in English Literature and Jewish Studies. I took a break for a year during which I had the crazy idea to go for my master’s degree in library science. I loved working in a library, and it just seemed like the natural next step.

This all came about for you during a time of life when most would be settling into their career path, working up the ladder --- certainly not thinking about a mid-life complete change in career orientation! How did your circle of colleagues, friends and family react to the news? Did you feel pressured to “stick it out” in the field you were already in? Did you have mentors who championed your cause and helped you?


Janice on Abbey Road.  Can you hear the Beatles?

For the most part, my friends were very supportive of my decision to change careers and go to graduate school. They knew I had been unhappy in accounting for several years and that I wasn’t interested in advancing my career in that field. They weren’t thrilled with my decision to move to Illinois and were happy when I decided to do the distance program instead. However, once I started grad school, I had to go underground and didn’t see friends very often anyway. It was a grueling three years. When I wasn’t working, I was reading, writing papers, working on projects, and studying for exams. My employers were also supportive, letting me adjust my schedule so I could take live online classes once a week in the middle of the day from my desk.

I had an amazing mentor. The SRJC librarian who taught my first library skills class and helped me get the library technician job at the JC, was behind me every step of the way. He brainstormed and strategized with me, encouraged me, and wrote letters of recommendation. He was also a fantastic librarian. His intelligence, humor, and dedication to the college’s students were truly inspiring. When I was in my twenties, I also had a special role model – a cousin who worked as a legal secretary for many years. She was in her fifties when she decided to go to law school. After she passed the bar, she worked for a non-profit organization that represented seniors. Through her, I realized people could achieve their goals at any age, even late bloomers like me.

A major professional reorientation such as this does not come for free, right? And this isn’t a short-term program of study for a small designation! What was involved financially, and how many years did this take? Did you just “go for it” and quit working? Or did you work while attending school?

I was accepted in the on-campus program at the University of Illinois at Urbana-Champaign but at the last minute decided to switch to their distance program. It’s easy to pick up and move when you’re in your twenties, but not so much in your fifties. I owned a condo, had a great job, was paying into the PERS retirement system, and had just met my boyfriend. Sometimes life is all about compromise. Because I needed to work full-time, it took me three years to complete the program rather than one (for those crazy overachievers) or two (most common) years. I missed out on the chance to work as a graduate assistant in U of I’s superb library and on all of the networking opportunities one has when they’re part of the program’s on-campus community. However, one of the requirements of the program was to attend on-campus sessions once a semester. I was still able to meet my cohort members and instructors and spend some time at that incredible university.

In the end, my masters cost me about $32,000. The cost would have been $40,000, but I received an Institute of Museum and Library Services Grant for Librarians Serving Community-Based Higher Education. To pay for the program, I “borrowed” money I had set aside for retirement with the hope that an MSLIS would allow me to increase my earnings, and I’d be able to put that money back. About a year into the program, job prospects for librarians started looking bad, but I tried not to panic and stuck with it. Miraculously, I was able to find a job with a good salary and great upside potential at well-funded library, so I’m slowly and systematically repaying my savings. However, there were also intangible costs -- three years of very little sleep, no personal life, and a dramatic increase in grey hair. I’ve been catching up on sleep and fun and found a great colorist in L.A., so things are working out just fine!

So, my friend, life comes full circle and you are now back in the L.A. area, in fact working for the Santa Monica Library! How did you find this position? What work do you do for the library? And what’s it like leaving NorCal and replanting yourself in SoCal?

I found my job as a cataloging librarian at Santa Monica Public Library through one of the many librarian listservs. It took me a year and a half to find the position. The job market for public and academic librarians has been hit hard by the sluggish economy. The competition for jobs is fierce. Newly minted librarians compete with experienced librarians who have lost their jobs due to budget cuts or who have been forced to delay retirement. Our professors and advisors told us that the more flexible we were about location, the easier it would be to find that first position. I was reluctantly looking at jobs in Kentucky, Arizona, and even Winnepeg. However, something told me I might end up back in Los Angeles. I’d spent years saying I would never move back, but I guess we all have our price! To be honest, I didn’t think I would get the job at SMPL and treated the interviews as “practice.” I was shocked when they offered me the job. L.A. or not, there was no way I could turn down such a plum position. The hardest part of moving forward with my career was leaving the Bay Area. Nightmarish traffic aside, L.A. has turned out to be a lot more fun than we expected. Even so, we still intend to come back to NorCal, even if we have to wait until we retire.

You and your partner, Dave, have gone through more than just a professional move. Uprooting two households in Northern California for a complete relocation to the L.A. area was more involved than just calling a moving company! Walk us through the planning for this major life event and lessons learned.


Ah, family life:  two braniacs on the couch with their dueling laptops!

In addition to the sadness of saying goodbye to the Bay Area, the move was challenging in other ways. Suddenly I had a little over a month to turn my life upside down and move to another city. I was moving from a two bedroom condo and David, my boyfriend, was moving from a 3 bedroom house. We knew we could only afford a two bedroom apartment, so we had to get rid of an unfathomable amount of stuff! Through networking with family and friends, we found a short-term rental in North Hollywood in a house that was a borderline teardown and spent two months going through possessions (most of which David had in storage until the move) and making countless runs to Goodwill. Our temporary living situation also allowed us to take our time and find an amazing 1937 duplex in a great neighborhood. It also took three months to find a tenant for my condo, so between fixing up my condo to rent out, no rental income, and the move, I felt like I was hemorrhaging money. All this while I was trying to master my first professional position in a new career. In the end, things worked out for the best once again. The major lesson learned here is do not hang onto stuff you don’t need! Start reading “It’s All Too Much” by Peter Walsh now! Then read it again before you move.

Tell us about more your field, Library Sciences. What is your particular area of interest now and how might that evolve?

Library science is a dynamic field. Librarians have often been the first to adopt new technologies, and that continues to be a challenge in a good way. Social media, e-resources, and digital preservation are just a few examples of current issues with which the profession is grappling. On the flip side, an unfortunate challenge is libraries and librarians have to prove their relevancy to administrators and tax payers in the face of successive budget cuts. Personally, as much as I love cataloging, my goal is to branch out and broaden my skill set by gaining experience on the “public” side of the library. I have an opportunity to work at our Information desk and hope to move toward working at the Reference desk as well. As I work toward getting over my shyness working with the public, I would love to eventually go back to working at a community college doing reference and information literacy instruction. I deeply believe in the mission of community colleges and have seen what a difference instructors and librarians have made in the lives of their students. I went into this profession with the hope I could also make a contribution to enhancing the lives of others.

You have always embraced technology, Janice, even in the short while we worked together it changed the tenor of our firm. How is your field being impacted by technology? And what do you think of the notion that paper books will soon be a thing of the past with all of us going totally digital? What does this mean for the future of Library Science?

People often ask me why we still need libraries and aren’t books going away. Given the circulation statistics at our library (1.5 million visitors and 1.8 million items checked out in 2010/11), I don’t see libraries or books going away anytime soon. Anecdotally, many people still love reading books they can hold, smell, and page through. Sure, some people prefer their Nooks and Kindles. I bought a Nook last year because I refuse to buy (and move) another book unless it’s special enough to have a physical copy. Dave and I often borrow e-books from the library to read on our Nooks. There’s also the issue of the “digital divide” – namely there are still many people who cannot afford to own a computer or e-reader. Many of these people rely on the public computers at libraries to search for jobs, do research, read and write emails, etc. They also rely on libraries for books they cannot afford to buy. That said, we are seeing a move toward e-resources. Personally, my job is becoming less about the traditional cataloging of “items in hand” and more about loading large batches of electronic books, audiobooks, and journals and then maintaining these large databases of information. The library’s Web presence (including mobile applications) is also critical, so web skills are important for some library positions. These days, many if not most libraries connect with their patrons through Facebook, Twitter, Pinterest – you name it, so one needs to be comfortable using social media. At SMPL, I’m involved in a project to create a citywide intranet and am learning how to use a collaborative software application called Sharepoint. Of course Library Science is still about helping people find, evaluate, and use information, but it is also about keeping up with the technologies that allow us to do that in what will hopefully be better and more efficient ways.

What advice would you give to those readers who might be contemplating a complete and major career change mid-life? What might you have done differently and what do you think went very well?

For those contemplating a major career change mid-life, I would encourage you to go for it! Yes, a change like this comes with a fairly high financial and emotional price, but life is short. If you have the opportunity, grab it and make it happen. Do whatever you need to do to pursue your life’s work. Of course we can only do things when we’re ready, but coming from this late bloomer, I recommend you try to get yourself there sooner than later. That said, remember it’s never too late! From my own experience, I was continually amazed that when I was acting from a place of personal truth, things would seem to magically fall into place. I know a big part of that was just being able to recognize and seize opportunities as they came along.

Also, remember to rely on the help and support of friends and family. I have been fortunate to have Lynn as my friend as well as my financial advisor all these years. She has been there to give me support and solid advice through all of the major events of my life – my marriage, my divorce, buying my condo; going to graduate school and changing careers was just the most recent episode! I’d like to tell her I’m going to settle down and just sock away money for my retirement, but knowing me, she’d better not hold her breath.

Any other thoughts you’d like to share with us? If readers would like to chat with you, what’s the best way to reach you?

I’d be happy to offer support and encouragement to any of Lynn’s clients who are considering similar seismic shifts in their lives. The best way to reach me is at my personal email address: zeldaw8@gmail.com.


New additions to the family!

Janice, never one to shy away from a challenge, was kind enough to work on this Blog while mothering her two latest family additions, feral kittens rescued in the L.A. area.  Seymour and Marley, the newest small blessings, are keeping her and Dave hopping!   Don’t hesitate to reach out to Janice, just to say “hi” if nothing else.  And if you need a librarian extraordinaire --- well --- knowing Janice you don’t have to live in Santa Monica to piqué her interest and receive great advice.  Now MY challenge will be keeping up with her!   Thanks, Janice!  You never cease to motivate and encourage those around you, including me!