Month: June 2015

Leaving Assets to Minor Children

Minor Children as Beneficiaries

No parent wants to think about leaving their minor children behind in the event of a tragedy; however, because terrible things do happen, it is better to be prepared. Estate planning ensures that your children will be taken care of in the event of your death. Estate planning also ensures that you are in control of the decisions regarding your child’s future. If you fail to plan, a stranger, who does not know anything about your children, will make the decision for you.

Naming a legal guardian is not sufficient to handle the financial aspect of an inheritance. Most parents believe that if they name a guardian for their children in their Will, this will be sufficient to provide for their children after their death. However, a guardian does not have access to your child’s inheritance.

Making Awkward Financial Discussions Easier for Everyone

Making Awkward Financial Discussions Easier for Everyone

Do you have someone in your life such as a spouse, a parent, your child or a close friend that is making unwise financial decisions that are destructive or unproductive? Most of us have someone like this in our lives. We want to help that person achieve financial well-being but we do not know where to begin. It may seem impossible to help them get on a good, solid financial track without appearing condescending or judgmental. It is not our intent to put our loved ones on the defensive or to make them feel inadequate but we cannot stand by and watch them continue to make their financial situation worse.

Two Key Financial Concepts You Need to Teach

If you can impart any financial wisdom to your loved ones, there are two key concepts you should try to teach them. Through these two concepts, you can help them understand wise money management and key financial principles.

Living within your financial means allows you to have more money for high-priority purchases and discretionary spending; and, Having discipline to correct your bad money behaviors and habits leads to financial security.

Learning to Live Within Your Financial Means Usually Corrects Bad Behavior

Inherited IRA – How Do I Protect This Valuable Asset?

Inherited IRA – How Do I Protect This Valuable Asset?

The composition of a probate estate has changed over the past few decades. Just 40 years ago, the family home was the most valuable asset most parents left to their children. Today is much different. It has become rare to see a young couple purchase a home, put down roots and stay in that home for 40, 50 or 60 years. We live in a transient society where our jobs and lives require us to move several times before our retirement. Therefore, the concept of the family home being the bulk of an inheritance is outdated.

Individual Retirement Accounts (IRA) and other forms of retirement accounts have become one of the largest assets parents are leaving to their children. As individuals plan for retirement much earlier than before, IRAs have been growing and increasing in value for decades before the person reaches retirement age. By the age of 70.5 when an individual is able to withdraw these funds without penalties, the IRA may very well be the most valuable asset the individual owns.

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