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Privacy-Loving Singer Adele Quietly Announces the End of Her Marriage

Unlike many celebrities who lead their entire lives in public, singer Adele has kept most of her life, including her child, private. The announcement that her marriage was ending, was a stunner to all.

Over this past Easter weekend, the singer Adele’s representative shared the news that Adele and her husband Simon Konecki are ending their marriage. The Cheat Sheet reports that curious minds want to know “The Real Reason Adele Is Ending Her 7-Year Marriage To Simon Konecki.”

The rep’s statement was simple and straightforward. It said “Adele and her partner have separated. They are committed to raising their son together lovingly. As always, they ask for privacy. There will be no further comment.”

According to several media sources, it’s thought that the couple didn’t sign a prenup, when they married in 2011. If they opt to file for divorce in the state of California, since that’s where they own property and Konecki’s business has a base of operations, he may be entitled to as much as 50% of Adele’s earnings.

They had much in common in the beginning. However, eventually, they just grew apart. She became an international star, and he was content with being in the background. As she got bigger, her time was taken up with worldwide tours, and they just grew apart.

Adele has appeared not to care much about money. In 2016, she told Vanity Fair, “I don’t come from money. It’s not that important a part of my life.”

However, because she and Konecki have been married for seven years, half of her earnings since 2012 could be at stake, especially if no prenup was signed. A prenuptial contract is a written agreement between two people who are about to marry that sets out the terms of possession of assets, treatment of future earnings, control of the property of each and potential division, if the marriage later ends in divorce.

Experts say that what was made during the marriage will probably be divided on an equal basis.

Since both Adele and Konecki are extremely low-key and focused on their son, there’s little evidence that their divorce will turn acrimonious.

An insider told People, “Adele’s son is everything to her. Her whole life revolves around him. I just can’t see her divorce getting messy, because she’s so careful when it comes to her son. She’s always five steps ahead, in terms of how a decision will affect him.”

In other words, don’t expect too much drama from Adele, who will likely guard her divorce as fiercely as she has her marriage and son.

Reference: Cheat Sheet (April 24, 2019) “The Real Reason Adele Is Ending Her 7-Year Marriage To Simon Konecki”

Does Marriage Later in Life Mean Smaller Retirement Savings?

Our social patterns are changing, with millennials deciding to get married later in life. How different are they from boomers, when it comes to retirement savings? This deep dive explains.

Interesting research from the well-regarded Boston College’s Center for Retirement Research has taken a long-term and in-depth look at what happens to American’s contributions to their 401(k) plan, before and after marriage. It offers an interesting look at two generations who are usually considered vastly different.

“Millennials marry later than previous generations. Since marriage is a major life milestone that often marks a line between youth and adulthood, a logical question is how this delay affects retirement saving,” the report states.

Think Advisor says in its April article, “Do People Save More in Their 401(k)s After They Marry?” that at age 30, only 41% of millennials were married, compared with 59% for the late baby boomers.

The report looked at data from the Survey of Income and Program Participation linked to W-2 records on defined contribution plan deferrals, to determine the extent to which marriage affects retirement savings.

The results of the analysis show that people increase both their participation in and their contributions to 401(k) plans after marriage.

In terms of participation, men respond a bit more after marriage than women. The research shows that men have lower participation rates than women before marriage, but they wind up at the same level once married.

After marriage, women increase their contribution rate by an average of 0.8%, compared to only 0.3% for men, according to the research.

Following these results, the research then looks at what this means, if the trend toward later marriage continues. To do this, the research looks at how much retirement wealth accrued in 401(k) plans by age 65 would have been impacted, if men and women married later than they do now.

The analysis assumes a five-year delay in marriage, which is based on the approximate increase that occurred between baby boomers and millennials.

The analysis finds that the effect of delay, while statistically significant in the regression, is small—a 3.1% decline in accumulated assets for men and a 3.4% decline for women.

Therefore, for all the differences between millennials and boomers, it would appear that both groups share an understanding of the importance of saving for retirement.

Reference: Think Advisor (April 23, 2019) “Do People Save More in Their 401(k)s After They Marry?”

Newly Discovered Type of Dementia: LATE

There are several different types of dementia. A new type of this disease has been revealed that may actually be more common than Alzheimer’s, at least among older adults.

This newly discovered form of dementia often has the same symptoms of Alzheimer’s disease, but progresses more slowly and has a different impact on the brain. This disease often occurs at the same time as Alzheimer’s, and when the two occur at the same time, the cognitive decline is far swifter than either type of dementia alone.

CNN’s article, “Doctors newly define another type of dementia, sometimes mistaken for Alzheimer's,” says that in developing the recent report for Brain, the international team of authors is hoping to spur research and treatments for a disease that tends to affect people over 80 and "has an expanding but under-recognized impact on public health," according to the paper.

The evidence has been growing for years. There are reports of patients who didn't quite fit the mold for known types of dementia, such as Alzheimer's. Experts say that heterogeneity has complicated dementia research, including Alzheimer's, because it hasn't always been clear what the root cause was and if doctors were treating the right thing.

The acronym LATE stands for Limbic-Predominant Age-Related TDP-43 Encephalopathy. The full name refers to the area in the brain most likely to be impacted and the protein at the center of it all.

More than ten years ago, doctors first linked the TDP protein to amyotrophic lateral sclerosis, otherwise known as ALS or Lou Gehrig's disease. It was also linked to another type of dementia, called frontotemporal lobar degeneration.

Based on autopsy studies, the new paper estimates that between 20 and 50% of people over 80 will have brain changes associated with LATE. The prevalence increases with age.

New guidelines could have an impact on Alzheimer's research, as experts say some high-profile drug trials may have suffered as a result of some patients having unidentified LATE—and thus not responding to treatment.

Advances in testing had already proven that some patients in these trials lacked "the telltale signs of Alzheimer's.”

Scientists are hoping that research with large, diverse groups of patients may be able to help understand and address the disease, now that it has been defined.

Reference: CNN (April 30, 2019) “Doctors newly define another type of dementia, sometimes mistaken for Alzheimer's”

Should You Add a “Baby-Nup” to Your Estate Planning Documents?

There are many who don’t believe in pre- or post-nuptial agreements. That’s all well and fine, until a divorce is imminent, and emotions take over what should be a legal and financial discussion. Would a baby-nup really help new parents?

Social changes always spark debate, and changes in parenting are no exception. The discussion of whether soon-to-be parents need to map out their parenting journey with a baby-nup has many on both sides of the argument all fired up.

MSN’s article, “Would you sign a 'baby-nup'? New trend sees expectant parents drawing up contracts to agree how they'll divide childcare and chores,” explains that the concept involves signing an agreement to split up chores fairly between the two parents before the child is born and agree on custody arrangements, if the couple winds up divorcing.

Parade magazine interviewed a couple, Julie Hochheiser Ilkovich and Daniel Ilkovich, who had a series of meetings ahead of their daughter's birth to detail some of the tasks in their future.

They decided “what they wanted to try to keep about their lives (date nights, gym time, etc.) and how they would make it all work, including who would also handle chores, as well as day-to-day things like pediatrician appointments and Amazon orders.” After two years, every morning and every evening is designated to one or the other parent.

Some on social media were quick to say it seemed like a great idea. Another commented “It sounds good in theory. However, many circumstances could change, by the time you have a baby or get divorced.”

Others said that parenting should be done equally without the need for a contract stipulating the conditions. As a result, there doesn’t need to be a document to divide up responsibilities.

Another commented: “Oh for goodness sake!! Babies are really not that difficult, if you're doing it right!”

Other parents were quick to point out that it's difficult to predict the realities of parenthood, until after the child is born. The responsibilities were often unequal at times.

One person said that until you've lived it, it's hard to know who will need extra support and that sometimes one partner will need to carry the other.

Another writer added, “It's called being a parent. Either embrace every good, bad, wonderful and annoying thing that comes with it, or don't have kids.”

If you consider a ‘baby-nup’ in the same conversation as you do a pre-nup, you might want to do so while you are having your estate plan prepared. All new parents should be sure to have an estate plan in place to protect each other and their children. Your last will and testament includes information about who you would want to raise your children, if something should happen to both parents. That is more important than a heated discussion about who has Thursday nights off from parenting. Speak with an estate planning attorney to create a plan for your new family.

Reference: MSN (April 29, 2019) “Would you sign a 'baby-nup'? New trend sees expectant parents drawing up contracts to agree how they'll divide childcare and chores”

SECURE and Consumers First Act Headed for a May Vote

The headlines indicate that the concerns of seniors and personal finance are in the spotlight on Capitol Hill. Will the bills become law, and what will their impacts be?

The Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019 is making its way through the legislative process, with Majority Leader Steny Hoyer, Maryland (D), sending a “Dear Colleague” letter, informing his peers that it is his intention to bring the bill to the House floor in May.

Think Advisor’s recent article, “SECURE Act to Get House Vote in May,” explains that the SECURE Act passed the House Ways and Means Committee on April 2. There’s been action on a companion bill—the Retirement Enhancement and Savings Act (RESA) of 2019. That legislation has yet to be scheduled by the Senate Finance Committee.

In discussing the actions taken during the first 100 days of the 116th Congress, Representative Hoyer said that the House will soon take up H.R. 9, the Climate Action Now Act, “to affirm the principles of the Paris Climate Agreement, in spite of President Trump’s pledge to withdraw the United States.”

Hoyer signaled that a vote on the SECURE Act would follow “over the coming work period,” and noted that with the flood insurance program set to expire at the end of May, “I expect the House to take action to address that as well.”

Hoyer said in the next few weeks, “as committees continue to markup legislation, the House will also take up legislation to strengthen the Affordable Care Act and to address rising prescription drug costs.”

Another possibility for consideration in May by the full House is Financial Services Committee Chairwoman Maxine Waters’ Consumers First Act, H.R. 1500. That bill passed out of that committee on March 28. Waters’ bill is aimed at reversing the damage done to the Consumer Financial Protection Bureau, under former acting director Mick Mulvaney.

The Senior Security Act of 2019 would require the SEC to create a Senior Investor Taskforce. That bill could be up for a House vote very soon. The House docket also has a resolution on Supporting the Protection of Elders Through Financial Literacy.

The legislation echoes laws that have been passed in numerous counties and states throughout America concerning the growing problem of elder financial abuse. In this case, the bill includes a provision requiring law enforcement and regulatory agencies to work together to understand and detect elder fraud and scams. Education and cooperation among law enforcement, financial institutions, regulatory agencies and private sector organizations are necessary to effectively combat elder financial exploitation.

Reference: Think Advisor (April 29, 2019) “SECURE Act to Get House Vote in May”

Two Key Legal Documents For Singles of Any Age

Having a living will and a power of attorney for healthcare will allow a designated person to make decisions on your behalf, when you are unable to communicate your wishes. This may be more important for a single person than someone with a spouse.

What would happen if a single person became so sick, that they were taken to the hospital in an unconscious state and were unable to express their wishes for health care? This is the scenario that having the correct estate plans in place is designed to avoid. According to the article “2 Estate-Planning Tools That Singles Should Consider” from Morningstar, having a living will or advance medical directive in place expresses your wishes for whether or not to be given life-sustaining treatment.

This document, prepared and signed when you are of sound mind, provides you the opportunity to declare whether or not you want to be removed from life supporting measures, if you become terminally ill and incapacitated.

Like a living will, a durable power of attorney for healthcare is a legal document that names an agent to make healthcare decisions for you, if you are unable to make them yourself.

A durable power of attorney for healthcare can provide your instructions in circumstances in which you’re not necessarily terminally ill, but you are incapacitated.

When selecting an agent, find a person you trust enough to act on your behalf when you’re unable. Let this person know exactly how you feel about blood transfusions, organ transplants, disclosure of your medical information and other sensitive topics that may arise if you’re incapacitated.

A power of attorney eliminates any confusion, especially if this person is someone other than your spouse. Your doctors will know exactly who the decision-maker is among your relatives and friends.

These two documents aren't all that comprise a fully comprehensive estate plan. Singles should regularly make certain that the beneficiary designations on their checking and retirement accounts are up to date.

You should also consider your life insurance needs, especially if you have children and/or a mortgage.

It is also important to understand that a living will doesn’t address the issues of a will. A will ensures that your property is distributed after your death in accordance with your wishes. Ask for help from an experienced estate planning attorney.

Having these two documents in place will ensure that in a health care emergency, your wishes will be followed. The names of the documents and the powers they convey do vary slightly from state to state, so it will be best to speak with an estate planning attorney in your state who can create these documents for your protection.

Reference: Morningstar (April 23, 2019) “2 Estate-Planning Tools That Singles Should Consider”

Have You Overlooked Company Benefit Plan Designations in Your Estate Plan?

See if you remember this: you started at your new job with a meeting with HR. You signed a lot of paperwork, agreeing with corporate policies and acknowledging receipt of the company handbook. You also named a person or persons to be your beneficiary on a few different employee benefit offerings: life insurance, a stock purchase plan and a 401(k) plan.

Now, fast-forward to today. Do you remember who you named as your beneficiaries? If you remember, are they still the same people who you want to receive these benefits? This is a common problem, says Forbes in the recent article, “Company Benefit Plan Designations Can Lead To A Huge Estate Planning Blunder.”

These company benefits that have likely grown over the years, are still going to the people who you named so long ago, regardless of what is contained in your will.

Assets that have a form of joint or survivor ownership or have named beneficiaries, pass on to heirs by law and they aren’t part of your probated estate. This usually applies to homes, bank and investment accounts, life insurance, retirement plans, and corporate asset accumulation plans. In other words, these are all the plans and accounts where you originally named beneficiaries, but probably haven’t changed those beneficiaries since your first day of work.

When you started your job, you probably named your spouse as your primary beneficiary. If you named a contingency beneficiary, it was probably your children. The secondary designation is probably not something to which you gave a lot of thought. However, if your spouse predeceases you, and if your plans designated your children as contingent beneficiaries, they would inherit all your company benefit plans at once, or upon reaching majority of age 18 or 21.

You may prefer that your children inherit this sizable asset in a more controlled manner. If that is the case, you’ll want to review these designations in conjunction and also consider how they align with your estate plan. Speak with your estate planning attorney about your work benefits and how they can be passed to your heirs in the way you wish, whether that is all at once or in a gradual progression.  Don’t forget to update your documents at work.

Reference: Forbes (April 22, 2019) “Company Benefit Plan Designations Can Lead To A Huge Estate Planning Blunder”

Generous Community Members Make Green Bay Foundation a Powerhouse

Through a planned giving donation from one couple’s estate and a second donation from an anonymous donor, this community foundation is positioned to do a great deal of good in the coming years.

With two donations totaling more than more than $21 million, the Greater Green Bay Community Foundation (GGBCF) has acknowledged the generosity of donors who support its mission to provide impactful grants for nonprofit organizations and collaborative leadership around critical community initiatives.

One of the two donations came from the estate of Ron C. and Pauline P. Heim and is the largest donation GGBCF has ever received. The couple’s planned gift is worth $16.5 million. The Foundation says the money will provide more than $800,000 per year to more than 30 nonprofit organizations. Fox 11 News’ recent article, “Two donations total more than $21 million to Greater Green Bay Foundation” reports that the causes to be supported, range from animal welfare and police K-9 units to the environment, education, hunger and helping the homeless.

"I think it’s indicative of what we see many days here at the foundation," said GGBCF President Dennis Buehler. "It doesn’t matter if it’s a 10 or 100-dollar gift to a local organization or something like this, every single dollar is so important."

“We are humbled by the generosity of the Heims’ gift to our community,” Dennis Buehler, president and CEO of the Greater Green Bay Community Foundation, said in a news release. “Through careful planning with their estate attorney, they ensured the impact of their gift will be felt today, as well as by every future generation of this community.”

According to Pauline Heim's obituary, the couple founded the industrial coating company Trowelon, Inc. He passed away in 1992, and his wife died in January 2018.

"It really just warms your heart to the generosity that people have," said Buehler.

A second donation to the foundation worth about $5 million was given anonymously. The funds are unrestricted, so the foundation can use them to support whichever causes it chooses.

“It’s important to be forward thinking with any unrestricted gift,” Mark Radtke, Greater Green Bay Community Foundation board chair, said in a news release. “And we embrace the enormous responsibility that comes with it to ensure the gift makes the greatest impact possible.”

"When you get in the day to day of that work it can be really hard to look towards the future so when you have visionary donors who are thinking along those lines and looking to support organizations is just a fantastic opportunity," said Amber Paluch, the community engagement president.

GGBCF has awarded nearly $9 million in grants to local nonprofit organizations, which include schools, local youth organizations, family engagement nights, public health and other community-centered organizations.

Reference: Fox 11 News (April 23, 2019) “Two donations total more than $21 million to Greater Green Bay Foundation”

What Are the Benefits of a 401(k)?

We hear a lot about the importance of having the right mix of large and small caps, domestic and international, bonds and other investments, to create a strong and stable investment portfolio. The same thing is true, when it comes to tax diversification in your retirement accounts.

When most Americans are accumulating their retirement savings, they use a 401(k) plan or a similar plan that also decreases their taxable income. The downside, which seems so far away when you are preparing for retirement, is that when you do start taking withdrawals, you have to pay taxes on that income. There is a way to switch that around, if you meet the criteria.

CNBC’s recent article, “A Roth 401(k) offers tax advantages. Here's how it works” says that more employers are offering another option for your retirement savings—a Roth 401(k). When you contribute to a Roth 401(k), the contribution won't lower your taxable income today. However, when you withdraw money in the future, like a Roth IRA, it's tax-free. A Roth 401(k) lets you save much more than a Roth IRA. You can only contribute $6,000 to a Roth IRA, and if you're age 50 or older, you can make an additional catch-up contribution of $1,000.

401(k) plans are more liberal with what you can save. The limit is $19,000 a year to a 401(k) in 2019, and Roth 401(k) plans share that limit. If you are over age 50, you can save an additional $6,000. However, the amount you earn also makes a difference. Roth IRAs have an income cap. You can't contribute to a Roth IRA, if you earn more than $203,000.

The biggest negative with a Roth 401(k) is how contributions might affect your tax liabilities today. If you earn $100,000 a year and save $19,000 to a traditional 401(k), your taxable income would be only $81,000. However, by contrast, if you make the same $19,000 contribution to a Roth 401(k), you'll still have taxable income of $100,000.

There are no tax consequences when you take money out of a Roth 401(k), when you're 59½ and you meet the five-year rule. However, if you take a similar distribution from a traditional 401(k) plan, the money you withdraw is subject to ordinary income tax.

There are also required minimum distributions (RMDs). Roth 401(k) account owners have to take the RMD at age 70½. This is not for Roth IRA owners. Therefore, you may want to roll your Roth 401(k) account over to a Roth IRA account, before you turn 70½.

Whatever kind of retirement savings plan your employer offers, don’t miss out. Both traditional IRAs and Roth offer a chance to save through automatic payroll deductions. If you work for a company with a matching program, that’s free money. You might want to consider splitting your contributions 50/50 to take advantage of the tax-free growth, without giving up all of the advantages of pre-tax savings.

Reference: CNBC (April 23, 2019) “A Roth 401(k) offers tax advantages. Here's how it works”

“Golden Child” Maddox Said to Be Angelina Jolie’s Sole Heir

Talk about playing favorites! If these accounts are true, then only one of Angelina and Brad Pitt’s six children will inherit all of Angelina’s wealth.

As reported by the Hollywood News Daily in its article, “Angelina Jolie Plans To Leave Son Maddox Millions Ignoring Other 5 Children Per ‘Radar,’” Angelina Jolie is rewarding her son Maddox for standing by her, during what has become a lengthy and public divorce from Brad Pitt. Only Maddox will inherit her $116 million-dollar fortune.

Apparently, she wasn’t happy that only one out of her six children totally sided with her in the couple’s divorce. Others close to the Jolie/Pitt family say that Brad is upset with Jolie for leaving the other children out and treating Maddox as her “Golden Child.”

“Brad is in an absolute fury and fit to be tied over Angie’s moves!” revealed the insider. “It finally seemed like they were reaching some kind of compromise with the divorce. But he’s been blindsided by this mess over Maddox.”

In September of 2016, the story surfaced that Jolie decided to file for divorce from Pitt, after becoming increasingly worried about his parenting methods. The news reportedly followed a nasty encounter between Brad, Angie and Maddox that put the family through one of the nastiest celebrity divorce and custody battles in recent memory.

Jolie claimed that Pitt allegedly attacked Maddox during the fight. An investigation was made by the Los Angeles County Department of Children and Family Services, but no charges were filed. However, according to a family friend Brad remains very upset by the entire situation and especially angry with Angelina for not setting the record straight.

Brad feels that his other children are getting short-changed, and he won’t permit it, the friend says.

Brad Pitt is angry that Jolie would treat their children so differently, cutting out Pax, Zahara, Shiloh, and 10-year-old twins Knox and Vivienne. Leaving it all to Maddox, is just wrong in Brad’s view.

“Maddox took his mother’s side in the divorce, and now she’s made him the head of her movie empire,” said the insider.

“He’s her golden boy, but Brad feels someone needs to remind her that she has five other children!”

Given the couple’s past history of going toe-to-toe over the welfare of their children, it’s likely that this is one divorce that won’t be resolved privately or quickly.

Reference: Hollywood News Daily (April 24, 2019) “Angelina Jolie Plans To Leave Son Maddox Millions Ignoring Other 5 Children Per ‘Radar’”