Divorce is not only a strain on your emotional well-being but also your financial well-being. Many times we only focus on the emotional aspect of the split however, it is important to consider the long-term implications. Additionally, your financial rights are dictated by the state you live in. California is a community property state therefore assets will legally be split 50/50 unless a prenuptial agreement exists.
In today’s world relationships are complicated – with second marriages or children from previous relationships things can get even more complicated. In either situation, a legal agreement can assist you as a couple in clearly outlining your wishes and which assets are considered separate property.
Marriage is not just roses, chocolates and diamonds. Marriage is a business relationship that needs thorough discussion and often times compromises. When couples plan for possible scenarios in the future, everyone involved is protected and feels secure. There are several ways that couples can ensure healthy financial decisions pre and post nuptial.
New couples are busy enjoying learning about each other and sharing parts of their lives with one another. Very often an important aspect of sharing a life that gets ignored is discussing your values surrounding financial matters. Things such as financial goals to credit card debt can bring a host of challenges to the relationship. Having open conversations about navigating each partner’s financial situation as well as their feelings on various financial matters is key to helping you build a strong financial foundation in your relationship.
Retirement is just over the horizon and while most people have making ends meet during that period on their minds there is another extremely important part of aging that should be explored. Medicare! There is a 7-month initial enrollment period that begins 3 months before you turn 65, the month you turn 65 and 3 months after you turn 65. If you do not sign up during that window of time you will be penalized for late enrollment, which comes in the form of higher premiums (typically a 10% increase premiums).
Many believe that their money is locked in when you are a participant in a 401(k) or profit sharing plan through an employer where you are a participating and current employee. However, certain qualifying events allow employees to access their vested balance to either withdraw and/or roll over money from those accounts and still continue to contribute.
Earlier this month, we discussed dollar-cost averaging as a strategy for investing which can offer you a higher average rate of return over the long-term and a seamless means of investing each month without too much pain for your wallet. Today, we will discuss the best way that you can achieve this strategy through the concept called “Pay Yourself First”.
The fires burning in California and the recent hurricanes on the East Coast have begged the question: how can one disaster-proof their financial house? Often times when a disaster strikes, the last thing on our mind is to snag those important papers—our primary concern is always our life and the lives of our loved ones. But when the dust settles and the rebuild begins, those important papers are going to form the foundation of how quickly you can get your life back on track.
What happens to your Retirement account if you pass away? Retirement accounts offer an advantage in the way they can be passed to your beneficiaries without a costly Trust or extensive Probate of your estate. A beneficiary designation allows you to allocate your hard earned savings to your loved ones in any manner you choose. But, there are pitfalls that should be avoided when designating beneficiaries.
What happens to all of the wealth you have accumulated after you pass away? That is Estate Planning—making a plan ahead of time to decide who will benefit from all you accumulated during your life. This concept has recently been highlighted by the passing of a music icon. Ms. Aretha Franklin passed away without having a will or a trust in place, meaning her estate and its beneficiaries will be decided through the public probate process. This can be lengthy and costly to an estate.