When planning your estate, you want to be sure that you give your attorney your complete financial picture. One way to do this is to calculate your net worth. Doing this on an annual basis will also give you an idea of the financial progress you have made over the year. All that’s needed to do this is information on the assets you own and the liabilities you owe. Step I: List all your assets Start with your big assets, such as your home, your cars, boats, rental properties and raw land. … [Read more...] about Estate Planning Basics: Calculating Your Net Worth
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Common Estate Planning Mistakes
Estate planning might not sound like the most exciting way to spend your time, but it is definitely one of the most beneficial. Planning your estate ensures that your assets are distributed correctly after you’re gone. Without the explicit instructions a plan would contain, a state-appointed representative will be given the responsibility of distributing your assets as they deem fit. But before you begin trying to plan your own estate, there are some things you should know. One of the most … [Read more...] about Common Estate Planning Mistakes
What is a 403(b)?
A 403(b) plan is an employer-sponsored retirement savings account that’s for employees of public schools, 501(c)(3) charities, and other tax-exempt organizations. It’s very similar to a 401(k), which is the better-known type of retirement account available to employees of for-profit companies. Sometimes 403(b) plans are called tax sheltered annuities (TSA’s) or tax deferred annuities (TDA’s). As an employee, a 403(b) plan offers you several advantages for saving for retirement. When you … [Read more...] about What is a 403(b)?
A Different Kind of Retirement Planning
Chances are you’ve spent a lot of your working life dreaming about retirement. You’ve been diligent in putting a financial plan in place so that you’d be able to retire in comfort. But, have you thought about what your day-to-day life will look like once you retire? Retirement is a huge lifestyle change – your time is suddenly your own, instead of being dictated by the demands of your career. As much as you’ve been looking forward to it, the sudden end to your old routine can be really … [Read more...] about A Different Kind of Retirement Planning
Wondering When to Start Social Security? Consider This
The vast majority of American workers are eligible for social security. For most people, 10 years of work means that you and your spouse will be able to count on payments from social security as part of your retirement income. But when should you start collecting benefits? The Social Security Administration determines your “full retirement age” based on the year you were born. For example, if you were born between 1946 and 1954, then your full retirement age is 66. Everyone is eligible to … [Read more...] about Wondering When to Start Social Security? Consider This
Borrowing From Your 401(k)
Although many employers have programs that let employees to take out loans on their 401(k) plans, there are often a number of different rules governing the loan so it is important to be aware of what those rules are. The first thing to remember is that it is, in fact, a loan and you’ll be required to pay back whatever you withdraw. Often, that payment will be deducted directly from your paycheck. There are also limits on how much can borrow, which is usually about half of what you have … [Read more...] about Borrowing From Your 401(k)
What Happens if You Don't Have a Will?
We all know how important it is to create a Will, but what happens if we don’t? Where will your assets go? How will your estate be divided? All fair questions – and here’s the answer: if you die without a Will, your estate will be distributed according to what is known as intestacy or “succession” laws. And if that happens, it probably won’t be done in the way you might have liked. Intestacy law basically is a law that determines who has a right to inherit in the case where there is no … [Read more...] about What Happens if You Don't Have a Will?
What's the Difference Between A Revocable and Irrevocable Trust?
The main difference between a revocable trust and an irrevocable trust is the amount of control the settlor (the person establishing the trust) retains after the trust is created. When you establish a revocable trust, you keep the power to make changes to it, or to completely do away with it and take back the trust property, at any time. This gives you a lot of flexibility, but because you retain full control over the trust, for financial purposes, you’re treated like you still own the trust … [Read more...] about What's the Difference Between A Revocable and Irrevocable Trust?
Where Should You Keep Your Estate Planning Documents?
So, your estate planning documents are all drawn up and signed, and you’re wondering where the best place to keep them is. The most important thing is to keep them in a place where they’ll be safe and where your close family or your executor or trustee can get to them quickly should the need arise. Your first option is one that a lot of people use: a safe deposit box. This will keep your documents safe, but it might not make them as accessible as they need to be. If the box is in your name … [Read more...] about Where Should You Keep Your Estate Planning Documents?
Planning Ahead For Your Final Arrangements
Making plans for your own funeral might seem a little morbid, but it can be one of the biggest gifts you give to your loved ones. In the event of your death, you can save your family members the confusion, anxiety, and expense that go along with making last-minute final arrangements. A lot of people include their wishes for their final arrangements in their Wills, but this is a bad idea. Most of the time, your Will is not found – let alone read – until after the funeral is over. The best … [Read more...] about Planning Ahead For Your Final Arrangements
