Wednesday, November 04, 2015

How to Teach Kids to Save When Interest Rates are Low

I was thinking about how I started learning to save money when I was a kid. At some point, my parents opened a savings account in my name, and I had a nice little bank book. No ATMs back then-- you had to bring your bank book to the teller, who would record your transactions in it. When I got money as a gift, or from my first babysitting jobs, some of it went into that savings account. 

I understood how savings accounts worked: you put money in the bank and the bank paid you interest. I was a kid in the late 1970s/ early 1980s when interest rates were high-- as far as I can remember, my savings account earned about 8%, and knowing that I could be paid 8 cents a year for every dollar in my account was actually meaningful to me-- I was earning money just for letting it sit there!

8% savings account interest seems outlandish today, and I wondered if my memory was correct. I think I am right-- the prime rate back then was between 10% and 21.5%! Today it is only 3.25%, where it has been since 2008. The average interest rate on a savings account today is only a fraction of a percentage point.  You might see a teaser rate of 1% or so, touted as if it's the best thing ever, but it will only be for a limited time, and only for opening a new account. 

So how do you get a kid to see the value of saving if you have to tell them that they will only get a fraction of a penny for every dollar they put away? You could try to teach them about investing in the stock market instead, and I do believe there is value in that, but it is a lot more complicated, and involves so much more risk. 

I would love to hear from readers with kids abut how they've handled this with their own families!

Monday, October 05, 2015

Smartphone Plans and Paying Full Price for an Unlocked iPhone 6S

For a long time, my cell phone bill hasn't been a major part of my personal finance decision making. I've had an iPhone 4S for almost 4 years, on the minimum AT&T phone/data plan, with my contract long over. I was paying something like $0.10 per text message, because I texted so rarely that it seemed like a better deal than the $4.99 a month it would have cost me for unlimited messages. So I thought I was doing the right thing, financially speaking. 

The problem is that the world of smartphone billing plans has totally changed in the last year or two. Suddenly everyone is acknowledging the true costs behind those contract plans, and there are new options that un-hide the hidden costs that were formerly buried. Because my 2-year contract was long over but I was still paying the same price, I was actually over-paying for my phone. 
Several months ago, I dug into the AT&T website and discovered that I was able to easily switch my plan to one where I got more data, and unlimited text messages, and my monthly bill decreased by about $30! I felt very foolish for not having discovered this sooner, but I then continued on my merry way with my little iPhone 4S.

As you might have heard some whispered rumors about, if you talk to an exclusive set of people who are super-in-the-know, Apple just released the iPhone 6S and 6S Plus. (I know, you are totally shocked because you hadn't heard this news ANYWHERE!) I was disappointed when the iPhone 5 and 5S came out, and even more disappointed when the iPhone 6 came out because I don't like their more elongated/larger shapes. I've always liked small phones. But I am finding that small screens are a little harder on my eyes, and my iPhone 4S is starting to feel quite sluggish and losing its battery life, so I decided that the release of the 6S was my time to buy a new phone.

At first, I still had financial virtue as my main goal, and I figured I would just buy an iPhone 6 after its price dropped. But the more I thought about the 6S, the more I leaned towards getting the most current model, for some of its new features. But I'm really not sure how I'll cope with that larger size. There have been some rumors saying that the iPhone 7 release in 2016 might go back to offering a smaller size, so I decided to look at ways of buying a new phone that would allow me to upgrade a year from now. It's not a smart financial choice to buy a new expensive phone every year, but I use my phone a lot, so there is value in having one I enjoy using.

I'm happy with AT&T, so I looked at their plans first. The AT&T Next plans allow you to spread the cost of the phone over different time periods, with trade-in and upgrade allowed partway through. If I wanted a new phone in a year, I'd choose the AT&Next 20 plan. What surprised me is that all of AT&T's Next plans work out to be cheaper than signing up for a 2 year contract-- not because of the phone pricing itself, but because they give you a "discount" on your phone service if you're on the Next plan-- aka they charge you more for phone service if you are on a contract. It's weird-- I would think they would want to lock people in and get that $300 upfront payment for the device instead of spreading it all out. 

Then I looked at Apple's newly announced Upgrade Program-- it's actually a hair cheaper than AT&T's comparable plan, you get to trade in for a new phone after a year, and they throw in Apple Care so you have some extra coverage if you damage your phone. I take good care of my phone and have never had a cracked or broken screen, but I did worry a bit that I might be fumbling with the larger 6S size, so perhaps there would be more value than usual to an insurance plan. BUT... it actually doesn't save you that much money on a cracked screen. You still have to pay $99-- without Apple Care it's $149.

I also started thinking about how all these new variations of phone purchase plans serve another psychological purpose-- they just want you to get used to the idea that paying $750 for an iPhone is normal and necessary, and that you WILL pay that much, one way or another. That is almost as much as Apple's entry-level laptop computers cost! Back when I bought my first cellphone around 1999-2000, I would never have dreamed of paying the full $600 or $700 my (admittedly high-end) phone would have cost. When that phone was stolen, I bought another unlocked used one on eBay rather than cough up for a new one while I was still under contract. Back then, there was no option to pay less in service charges of course... and the idea of an additional data plan was nowhere on my radar either. It's just a different world now, and we are all so used to doing so much with our phones, it's become a whole different calculation of cost vs. value.

So I looked into paying full price for an unlocked iPhone, and sure enough, it works out to be the cheapest option. Obviously, I am very lucky to be in the position to be able to afford to pay the full cost up front without having to spread it out or pay interest on a credit card balance-- that's not an option for everyone. Here's why it works-- all the other upgrade plans are based on you trading in your old phone, which has value. If you get to keep your old phone, and can pass it on to another family member or friend, or sell it, it significantly changes the net cost of ownership. The remaining cost of the phone that AT&T absorbs after you trade it in is most likely a lot less than you'd get if you sold it, and far less that your friend or family member would pay for a new phone.

I made a spreadsheet for myself to figure all this out:

And after seeing the numbers on my spreadsheet, I ran down to the Apple store! I am now the mostly happy owner of a shiny new iPhone 6S, paid for in full. It's a pleasure to use and I do like the larger screen, but it still feels awkwardly large and slippery and one-handed use is nowhere near as easy as with a smaller phone. We'll see if I want to keep it or move on to whatever the next thing is a year from now!

Wednesday, August 26, 2015

Yowza, the Stock Market!

Normally I'm a very hands-off investor. I go for long periods without paying much attention while my various holdings drift up and down in value-- hopefully, mostly up! But in the last year or so, I've been putting more cash into the market, and paying a bit more attention. This is largely because I've had more cash to invest-- my own savings and the proceeds from selling my condo, and more recently, my mother's trusts.
I continue to mostly invest in a mix mutual funds, some just index funds and some with other mixes of assets-- nothing really sector-specialized, just some bond funds and others that are supposed to maximize dividend income. Then I have a few stocks that I've bought a few shares of here and there.

The last couple of days have been one of those times where I can't really sit by and ignore what's going on. I've been checking the S&P 500 multiple times throughout the day. As mentioned in the posts about my mom, I now have to worry that she'll think I'm mis-managing her money if the markets go down, and they've gone down a LOT in the past few days! I can handle seeing my own net worth plunge by $60,000 or more in the space of a few days, but that's nothing compared to dealing with my mother! :)
For my own investments, I'm trying to be strategic and cool-headed, so as Monday's big plunge was happening, I moved $25,000 into my E*Trade account so I'd be ready to act if it seemed like I could take advantage of buying low. At the end of the day, I thought things were down enough that it made sense to do some bargain-hunting, so I invested all the $25k. Tuesday morning, the markets opened higher and I was feeling like a genius! But as the day progressed on Tuesday, I began to wish that I'd waited another day as the markets ended up closing down even further. Oh well! Maybe not so genius after all...

I still try to keep an eye on the long term. I didn't sell off anything after the 2008 crash and my investments mostly recovered. I've had some things do very well in the last few years. But it's a bit depressing to see those gains wiped out again, and I do wonder what's in store for the next few years. A lot of people are saying stocks are generally over-valued, and I'm pretty exposed to that through a lot of my mutual funds. But interestingly, my individual stock picks don't seem particularly over-valued, at least not after Tuesday's close. I have shares in Ford, Bristol-Myers Squibb, Kroger, Xerox and KKR. The P/E ratios on these are mostly pretty reasonable-- all under 15 except Kroger at 18 and BMY at 54! BMY is up 113% from when I bought it in 2011, so I'm thinking I may sell it now. Kroger is up 197% from when I bought it so it's tempting to sell that one too. Whenever I've bought individual stocks, I've tried to find things that had a low P/E ratio and projected earnings that would suggest the price could rise-- that approach has worked well for me. Xerox was bought based on advice from a friend, the one time I've ever acted on that sort of stock tip-- that approach definitely did not work for me! Xerox has been down pretty much ever since.
I also like it when stocks pay dividends-- I figured out that I've reinvested almost $30,000 worth of dividends on my main E*Trade portfolio over the years. KKR is something I just purchased this week because the P/E ratio was very low and dividend quite high. I've never invested in a private equity company, or any sort of financial services company-- my other stock picking rule having been that I choose companies whose businesses seem more tangible and familiar to me. My most detailed knowledge of KKR has been from reading Barbarians at the Gate-- a fascinating book which I highly recommend, though it's not exactly flattering to KKR. So this pick goes a little against my grain but these private equity guys always seem to be raking it in like bandits, and I'm willing to try to ride along a bit!

Here's the current holdings in my main E*Trade portfolio if you want to follow along... this doesn't include a smaller Roth IRA portfolio or my 401K.

Symbol Qty
BMY 30  
BRLIX 3,082.075  
BRSIX 605.537  
BVEFX 277.961  
F 300  
ICENX 875.547  
KKR 200  
KR 200  
NOSIX 383.203  
PFODX 602.65  
PGNDX 674.272  
POMIX 427.673  
PONDX 1,000.777  
PRGTX 361.533  
RYTRX 326.781  
SFLNX 2,268.278  
SFSNX 601.965  
TINRX 604.23  
TRVLX 137.817  
VDIGX 437.085  
VEIEX 396.939  
VNYTX 787.866  
VWELX 1,155.685  
VWINX 1,129.674  
XRX 75  

Monday, August 24, 2015

More on Being a Trustee

Ok, so we left off with the big package of legal documents arriving for me to sign.
First, there was the irrevocable trust document. This spelled out that my mother was putting $350,000 in this trust and waiving all rights and title to the principal forever. It names me as trustee, and talks about various ways I’m allowed to make decisions about investing the money. It says I have to distribute net income quarterly to my mother, and provide a full accounting of the trust’s transactions annually. There’s also a lot of stuff about how a the trustee can be changed later if necessary, and what happens if I die, etc. It names my sister and me as the beneficiaries and that the principal will be paid to us equally after my mother’s death.
Then there’s the revocable trust. This money still belongs to my mother during her lifetime, but I am the trustee managing it. My sister and I are the beneficiaries after she dies. This trust is just to simplify things and avoid probate when my mother dies. But it’s also a very good thing to have a trustee in control so that my mother can’t just spend all the money without consulting someone else. This may become awkward in the future if my mother wants to spend money and I don’t think she should.
The final documents in the package were my mother’s last will and testament, and a durable power of attorney authorizing me to act as her agent. The will will cover any property of hers that is not held in the name of the revocable trust. If those assets are less than $25,000, then it goes through a “simple probate” process that is easier than for a larger estate. So we’re supposed to keep my mother’s assets under her own name at less than $25,000 but of course she had last minute cold feet about putting the full amount she’d intended into the revocable trust, so she actually has more like $40,000 in her own account— or at least she did when this all happened. Who knows how much of it she’s spent by now! I keep reminding her that the revocable trust funds can be paid out to her any time but she still doesn’t want to transfer her extra cash. I asked a couple of times then decided to let it go for a while as she seemed to be starting to think I was being morbid about it!
The final item in the package was two checks from my mother’s account, one for $350,000 made out to the irrevocable trust (“The [Madame X’s Mom] Irrevocable Trust of 2015”) and one for $100,000 made out to the revocable trust “The [Madame X’s Mom] Trust of 2015.”

The irrevocable trust has its own tax ID number, which the lawyer also sent to me a few days later. Once I had that, I went to the bank to set up checking accounts for each trust. It took about an hour and a half to do all the set-up paperwork at the bank— they had to fax the documents to their legal department to make sure everything was in order, in addition to all the usual account paperwork.  But once that irrevocable trust check was deposited, it started the clock ticking for Medicaid’s 5-year look-back period, in the event that my mother ever needs to apply for it.

After the checks cleared and I’d received new checkbooks in the name of each trust, I opened a Vanguard account for each trust. I picked a variety of mutual funds, including some that have the goal of maximizing dividend income. I did put some of the money in funds that seek growth and have higher levels of risk, but I steered away from the riskiest ones, and also put some money into lower-risk bond funds. I do want to make the principal grow, but I also want to make sure the investments generate some income for my mom. I am a little worried about how the first few months will go— it’s unfortunate that the stock market has taken some plunges exactly after I invested this money, so my returns are somewhat negative so far. I personally am a pretty calm investor— I always try to look at the long term and not panic during down times, but I’m worried about how this will appear to my mom and anyone else whom she might tell. If I say “ok, mom, I took $450,000 of your money and invested it, and all I have to show is a $5,000 loss after 6 months,” she may just think I don’t know what I’m doing, regardless of whether I point out that the entire market is down, and that any other financial advisor would have been likely to have similar results. I am kind of wishing I’d weighted the portfolio even more towards the bond funds vs. the others, given that the stock market was at historic highs when I was putting all this money in. Perhaps that is what a professional advisor would have counseled… but perhaps not, and I have to keep reminding myself, and my mom if necessary, that we’re still ahead by a percentage point or two just by not having to pay someone else’s fees to manage the money.

There will be more to talk about in the coming months, as I figure out whether and when to distribute income to my mother, how to deal with tax issues for the trust, and other questions. I’ll keep you posted!

Monday, July 20, 2015

My Mother's Estate Planning: In Madame X She Trusts!

This past week, I've had to learn a few things about trusts. I'm now officially a trustee!

The whole trust issue first came up after my dad had surgery for brain cancer. We'd managed to get him to a lawyer to quickly draw up a will for the first time on an emergency basis just before his surgery. A couple of months later, he and my mom went back to a lawyer to revise the estate planning, along with my sister, and me on a conference call. The lawyer advised them to put most of their assets in a revocable trust and he drew up some documents to that effect. What I later found out, though, was that they had never actually retitled any of their accounts in the name of the trust, so it was essentially a useless exercise.

For those who don't understand what I mean, here's an version of an explanation I found online somewhere that helped me explain it. Think of a trust as an empty box. Your lawyer draws up documents that create that box. But then you have to put things in the box-- by transferring the deed to your house, or by changing the name on your bank accounts, or opening new bank accounts in the name of the trust and transferring money into those accounts.

After my dad died, my mother went back to the lawyer, and I think they set up another trust, this time just in her name. And again, no assets were ever put in the trust! I was kind of hands-off about my mother's dwindling finances at that point, as I just found it too upsetting.

So the latest trip back to the lawyer was after my mother sold her house. She had proceeds from the sale of a little over $500,000, from which some capital gains would be due, since they'd originally bought it for something like $25,000. (This calculation of capital gains exemptions on real estate would be an interesting thing to delve into in another post someday!)

At this point, that money is all my mother has. She has spent all the other money that my father left. But she had gotten it into her head that my father intended for my sister and me to inherit the house, or at least some of the money from its sale. I personally never heard him say anything of the kind-- he always seemed quite aware that he'd barely be able to stay afloat while living in that house, yet he didn't want to move, and somehow I don't think he ever really thought of us as a family where inheritances would be a very relevant issue! And knowing my mother's financial habits, I certainly didn't expect there would ever be much left to inherit once she was gone.

My sister, however, seemed to think an inheritance would be a rather nice thing to have, and I can't really blame her. She thought our dad would have liked to leave something to his grandchildren. And more pressingly, she and her husband always seem to have a little more debt than they'd like. I know they paid off some credit card debt when they refinanced their house. But somehow they still have two mortgages. And then they bought a boat! They want their kids to have a really fun family life that would be very different from how my sister and I grew up, under a cloud of worry that we couldn't afford to do anything. Unfortunately, she and her husband sometimes seem to be under a cloud of worry about debt! My sister does some occasional part-time work but is has mostly been a stay at home mom for years, so they're living on one income.

So my mom decides she wants to give us about $350,000 out of the house proceeds, to be split evenly. Her lawyer said the best way to do that was to put it in an irrevocable trust so she'd have the income from it while she's alive and the principal would go to us after her death. This idea worried me, because if my mother needed to go into a nursing home, there would be a 5-year lookback period before she could qualify for medicare, and my sister and I would have to come up with whatever her income didn't cover. I personally could afford to do that if I had to, especially if I knew I'd be reimbursed for $175,000 of expenses after my mother died. But my sister would not be able to afford it.

So I thought my mom should just keep her money to pay for her own needs, although I did worry that she would just spend it all on ridiculous things-- she seems to be one of these people who see money as a hot potato to be gotten rid of when you have it! If my mom frittered away all her cash, then I'd be stuck paying for her nursing home anyway. It's not that I don't want to care for my mother, but it makes me incredibly angry that I shouldn't have to-- if my mom and dad had both made wiser financial decisions years ago, they could have lived very comfortably and taken care of all their needs without endangering my own ability to fund my retirement. If I end up being broke when I'm older, it will be my niece and nephew feeling guilty and burdened about taking care of me, and I don't want to lay that on them.

My sister's idea for protecting my mom's money was that she should just give it to us as a gift, with the understanding that it would be there for her if she needed it. I was willing to go with that except that I thought it would look really dodgy, as if we were taking advantage of our mother. And again, I could afford to just invest that money and not use it. My sister was thinking she'd use it to pay off their second mortgage, "to help them get on a more stable footing," and that if my mother needed her money, they'd just take out a home equity loan to give it back to her. I value my relationship with my sister-- I don't want to be judgmental with her, knowing that kids are a big expense I don't have, but I thought that whole plan was a REALLY BAD IDEA!

Here's the plan that we ended up with: the lawyer drafted an irrevocable trust with a provision that the principal could be used in the case of a dire medical emergency. $350,000 went into that trust. For the rest of my mother's cash, he set up a revocable trust, and a will to cover whatever isn't in that trust. She's supposed to keep her non-trust assets below $25,000 so it's covered by simple probate, and avoids some of the usual probate process. (Or something like that, I may not be getting the terminology right here.)

The thing with trusts is that you have to have a trustee. That person or institution his responsible for carrying out the terms of the trust and has the fiduciary duty to manage the assets appropriately. My mother's first lawyer insisted that this duty had to be carried out by a financial institution and brought someone in from a local bank to offer her services. I did not like this idea. I did not see why we should have a bank investing our money when it seemed perfectly reasonable to just do it myself with some low cost mutual funds. I did some research online and became even more convinced that the fees a trust company would charge didn't make sense for the amount of money we'd be investing. I also felt that money should be invested in a relatively conservative way to preserve capital, so we'd be trading potentially lower returns in a good year for lesser losses in a bad year-- this meant losing 1-2% in fees really didn't make sense. My mom's first lawyer retired and another partner took over. Maybe he was less old-fashioned about whether a girl could capably handle such things, but he agreed that I could handle being the trustee myself. So a big packet of legal documents arrived for me to sign: the irrevocable trust with my mom as the grantor, me as the trustee and my sister and me as benfeciaries; the revocable trust with my mom as grantor and me as trustee and my sister and me as beneficiaries; and a power of attorney allowing me to act on my mother's behalf.

This is getting to be a long post so I'll follow up soon with a part 2 detailing what else I've learned about my new duties as a trustee... stay tuned!

Her income monthly from Social Security and my father's pension is about $3000.

Monday, June 15, 2015


When I was waiting to close on my newly-constructed condo, I jokingly called myself "homeless" for a few months because I had to stay with relatives and sublet apartments after moving out of my own rental apartment. My property was mostly in storage and I was living out of a couple of suitcases and garbage bags full of linens. "Home" for me has for many years been defined as my own apartment in NYC, where I live. But sometimes I catch myself referring to "home" in the sense of the home where I grew up. My hometown.
The older I got, the less I'd say that. My parents bought the house I grew up in when I was 9 months old. I had the same bedroom all to myself for my entire childhood. And in the many years since, when I'd come home to visit, I would almost always stay in that room. The few times when I didn't, when for some reason I slept in my parents' room, or my sister's room, always seemed a bit strange. Even when my mother renovated and redecorated and got rid of so much stuff after my dad died, that house was still "home" in some way, though the removal of so many of the books and personal items and furnishings that I'd grown up with made it seem weirdly sterile and anonymous.
But now the house has been sold, and all that is left of it is about $500,000 in my mother's bank account. I last visited about 6 weeks before she closed, and found myself wandering around the house, taking photos of odd things like certain doorknobs and some child-height coat pegs that my father had made for the back hall when we were kids. I felt less sentimental about it than I would have expected, though. The house had become a source of stress, mainly because of my mother's compulsion to overspend on it, resulting in a complete drain of the savings my father had left when he died. (To be fair, that's not the only thing my mother spent money on, as she was also putting a lot towards my grandmother's nursing home care.)
At the end, my mother felt like the house was dragging her down too. She knew she couldn't keep up with the expenses of maintaining it, let alone doing any more improvements. It played out exactly as I had told her it would, that if she spent a lot on renovations, she would have to sell the house within a few years because she'd be broke, and the cost of the renovations would not be recouped in her selling price. She could have done a few minor cosmetic things and a much less elaborate bathroom renovation and still ended up with the exact same selling price.
Anyway, it's good that the house is sold and she got a decent price for it. Now the stressful conversations between my mother and sister and me are all about what do do with the money. My mother has this idea in her head that my father wanted my sister and me to have an inheritance. She also "doesn't want Medicaid to take the money" if she goes into a nursing home. She's not that old, and her health is relatively OK. My sister and I are just worried that cash seems to slip through her fingers like water. I think what we'll end up doing is that my mom will give us some money, and we'll each save it to use on her behalf later if necessary, though my sister is also tempted to use the money to pay off a second mortgage. I think I've also talked my mother into letting me set up an investment account for her so that whatever money she keeps will earn her more than the miniscule interest of a savings account or CD. Psychologically, this may also help in terms of her thinking she can't really spend it-- we'll see! I'm thinking of a Vanguard account with a conservative blend of funds.

I felt bad that my work schedule didn't allow me to go back to the house one more time and help with the last of my mother's packing and moving. Maybe it would have cemented the reality of the situation a bit more-- as it is, I keep wondering if the next time I go up there to visit, I'll automatically drive to my mother's old house without thinking, rather than my sister's. The other thing I'll really miss is being able to walk to a beach about half a mile away. It was always a quiet refuge, a good place to escape from family stress. But as much as I feel sad about not having that family home, I feel worse for my mother, who truly is homeless now, and feels a lot of insecurity about where she'll end up. She'll stay with my sister a bit, and then go to live in my grandmother's house-- another money pit that we are hoping doesn't turn into her next renovation project! After my grandmother dies, she'll have to figure out where to go next. Another topic for another post, another day...

Wednesday, April 29, 2015

Mom is Selling Her House!

Fingers crossed that this works out, but as I write this, my mom has accepted an offer for her house. This is exciting and sad and scary. If all goes well, it will keep her from wasting all her income on maintaining a single family house. She spent thousands of dollars this past winter just on snow removal! But it does worry me a little about turning her biggest asset into cash, as cash has a way of slipping through my mother's fingers very quickly. At one point she talked about putting a lot of the proceeds in trust for me and my sister, but I am not sure if she still plans to do that. If she doesn't, I do worry that she'll start blowing a lot of cash on moving expenses, storage expenses, buying new stuff, decorating whatever new place she moves into, etc.
And it's sad to think that my childhood home won't be part of our family life anymore. It's the only home I ever knew, as I was only 9 months old when my parents bought the house. My father once said he had figured it would be a starter home, and that they'd someday move to a bigger house, but the day when he felt he could afford it never arrived.
But in some ways, the house I fondly remember is already gone. Since my father died, my mother has thrown out so many things and changed so much about the house. To me, it has barely a trace of personality or identity to it any more. It smells like floor polish, paint fumes and scented candles now, not like oriental rugs and books. It will be strange not to have a home base in my old town, though. I've always loved going back during the summer, when I could walk a half mile down to a beach where I could take an icy-cold swim, or just walk and sit and think. My mother might move back there someday, but in the near future, she'll move to my grandmother's house so she can help take care of her, and after that, she may end up wanting to live closer to my sister. My sister's house will be where I go when I say I'm going "home" to visit my family. I guess that's how it goes, this shifting over the years as you become less centered on your parents and more centered on the next generation. My niece and nephew are now their own little people, with such distinctive personalities. It hit me the other day that I only have a few more years before they vanish into the black hole of teenagerdom. I have to spend as much time as possible with them now while they are still kids, and then wait a while until they emerge into adulthood-- perhaps that is a bleak view, but I'm trying to prepare myself for a few years where they'll be uncommunicative and think I'm a big nerd rather than their fun, wacky aunt!
Here's the funny thing-- my mother copied both of the kids on her email to my sister and me about her house sale! I asked her why, especially as she was telling us not to tell anyone until the deal was done, and I thought the kids would be the most likely to blab. It turns out they watch some of those real estate TV shows, so they've been quite interested in my mother's whole process, and she trusts them not to tell.
Let's hope there is more news to tell soon!