Prenuptial Agreements Are Designed To Protect Both Parties In A Marriage

Category: Finance, Financial Planning.

Little is more thrilling than starting a new relationship. As the relationship grows and matures, thoughts of a future together begin to develop.

The raising heart, and the all, the light chest around general high of finding a new love are all feelings we have each experienced. This can then lead to the excitement of wedding planning, and house buying, family planning. But, when is the right time in a relationship to bring up the prenuptial agreement discussion? But, those looking toward marriage, and all of the joys associated with it, need to also be sure to protect themselves financially with a prenuptial agreement. Is it ever too early, or too late in a relationship to have this conversation? Of course, broaching the prenup subject shouldn t take place on the first date, and probably not even within the first few months.

And when the discussion does take place, what topics should the couple address? Neither of you should be even thinking about marriage this early in a relationship. In fact, most experts agree that a prenuptial discussion should take place before a couple ever gets engaged. As the relationship progresses, and it becomes, however exclusive and more serious, it is important to have this conversation as early as possible. In this way, the couple can be very clear with each other about where they each stand in their prenuptial beliefs. Having the prenuptial agreement discussion after becoming engaged is potentially far more awkward than having the discussion beforehand.

At this points difference in beliefs can be discussed and, worked out before, hopefully the couple decides to become engaged. After becoming engaged, having a prenuptial agreement almost seems more like an ultimatum of" Now that we are engaged, you need to agree to this before we get married. " Having the conversation before becoming engaged, is less threatening, however, as it is simply a discussion on your individual beliefs. Discovering that you can t agree on having a prenuptial agreement after you have become engaged and announced it to the whole family and to all of your friends can be devastating. Furthermore, having the prenuptial agreement before becoming engaged can help determine whether or not is possible for the relationship to move in that direction. For couples who are serious about their relationship and who feel it is ready to move to a higher level, this discussion should be one that takes places open and honestly. Obviously, a prenuptial agreement conversation is not going to be a romantic one.

When it does take place, it is important for both parties to be candid about what they want and expect from a prenuptial agreement. And, a full fledge discussion about who gets what and how doesn t need to take place at this stage of the relationship, though the subject should be touched upon. Prenuptial agreements are designed to protect both parties in a marriage. Despite its lack of romance, a discussion about prenuptial agreements is a necessity. They help protect both current and future assets. When this happens, all love is thrown out the window and it is a matter of every man for himself.

And though the couple may feel their relationship is solid and will be everlasting, hard truth is, the cold that approximately 50% of marriages end in divorce. A man or woman who has worked hard to gain an education, develop a lucrative career, or build a successful business can lose it all simply because he or she was too blinded by love to have a conversation about having a prenuptial agreement. It is a risk not worth taking and two people who truly love each other will want to be sure that they are each protected later.

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The Interest Rate Will Change Your Mortgage Interest Payment Each Month

Category: Finance, Financial Planning.

When you decide to buy a home, getting the best possible loan is important.

How you can keep your monthly mortgage payments down? It can save you thousands of dollars. These are the different components of the loan that can affect your monthly mortgage payments. The rest of the price is how much you will finance with the lender. Down Payment: The down payment is how much cash you will put down up front. For example, if the purchase price is$ 300, and you are, 000 putting 20% down, that means you will be putting down$ 60, 000, and the loan amount will then be$ 240, 00The more money you can put down, the lower your monthly payment will be.

Also, you usually get a better interest rate when you put down at least 20% , so that helps out as well. Basically, the less you finance, the less will be amortized over the life of your loan. Loan Life: The number of years the loan will be amortized over affects the monthly payments. Typically, the longest term is 30 years. The longer the life of the loan, the less you pay each month because it is spread out over a longer term. Of course, the longer the term, the more total interest you will pay, so be sure to weigh that in as well.

This is the rate they are charging you for borrowing the money. Interest Rate: One major variable that will differ between lenders is the interest rate. The interest rate will change your mortgage interest payment each month. For a$ 240, the payment including, 000 loan just principal and interest at 5% would be$ 1, 51At 0% , it is$ 1, 59A$ 80 difference per month does not sound like a lot, but over 30 years, that is$ 28, 80 Property Taxes: Property taxes are added into your monthly cost of owning a home either by escrowing it with the lender or by you saving to pay it at the end of the year. The higher the rate, the more your payment. The area where your property is located will influence this more than anything.

Insurance Rate: Similarly, the higher the insurance rate, the more you will pay per month. The higher the tax rate and higher the appraisal values, the more dollar amount you will pay each month. This is mostly affects houses that are in special insurance areas that need more coverage, like flood zones or hurricane areas. If you get some insanely low interest rate from one lender that seems completely out of whack from the other quotes, this might be because they are quoting you a rate with points. Points: Points are paid by the Borrower in order to buy down the interest rate. A point is equal to 1% of the loan amount, and you pay this point as part of your closing costs. Buying down your rate will lower your monthly payment.

So for example, with a loan for$ 240, one point would, 000 be$ 2, 400 and that point might buy your interest rate of 5% down to 25% .

Therefore, Boomers Can Deliver Forth A Tangible Expression Of Their Legacy Many Years Into The Future

Category: Finance, Financial Planning.

A new market opportunity in the bequeathed market has emerged as Baby Boomers seek to establish a strong legacy in the eyes of their loved ones.

Although the exact monetary size of the inherited amounts may be in question, it s clear that legacy building will be big businesses. Currently it is estimated that by the year 2052, Baby Boomers will inherit$ 46 trillion from their parents. In the now landmark Allianz Life Insurance Company legacy study, 77 percent of Baby Boomers said values and life lessons are the most important inheritance. The Four Legacy Pillars: In a July 2005 Wall Street Journal Article, entitled, "When We re All 64" it s noted that" Boomers have a stronger need than their parents and grandparents to leave a legacy, and it s going to be a very big business" according to David Wolfe, a leading marketing consultant focusing on Baby Boomer consumer behavior. For those who wish to go beyond bequeathing money across the generations to sharing what s personally important to them, the" Send It Forward" market will fulfill that purpose. The new market focus of the" Send It Forward" market is being driven by the financial services industry in an attempt to develop a more personal approach to financial planning.

Legacy pillars are particularly in line with the possibilities of the" Send It Forward" market especially when considering the number of ways that exist to be remembered and leave a legacy. The" Four Pillars" emphasizes four areas of legacy planning: ) Values and life lessons, ) Instructions and wished to be fulfilled, ) Personal possessions of emotional value, and) Financial assets or real estate. Send It Forward Market: Today s Baby Boomers are more empowered than ever in the area of legacy planning because in this information age with three simple pieces of information( a person s full name, date of birth and the last 4 digits of a social security number) , a person can be easily located anywhere within the continental US. Such as an ethical will letter detailing their hopes, wishes and dreams or a journal with their life s story. Therefore, Boomers can deliver forth a tangible expression of their legacy many years into the future. The" Send It Forward" market will let loved ones communicate with generations forward in time.

This new" Send It Forward" market will speak to the universal need to remember and be remembered and address Boomers need to redefine the legacy process within their lifetimes. New marketing opportunities will present themselves through the" Send It Forward" market as Boomers give their loved ones legacy letters and journals, flowers, occasion cards, trips or jewelry in the future and in a way that is personal and sentimental.

These Will Only Give Back A Small Amount Of Interest

Category: Finance, Financial Planning.

Few families pass on actual knowledge about wealth building to their children.

Accountant and financial advisor, Dr. Negative feelings of poverty and scarcity can last for generations. Joseph Simini says, "Most people are illiterate about finance. If you want to become financially independent, you can' t depend on someone else to do that for you. Finance isn' t all that tough. You have to do it yourself with knowledge. " Dr. He manages family owned investments and advises people on the subject of financial independence.

Simini started out in life in a poor immigrant family and learned the basics of creating personal wealth from his father's teachings and the school of hard knocks. He offers practical advice on how to become financially literate and financially independent: Buy Your Own Home: It is important to buy your own home because with a small amount of money, and a lot of someone else's money, you can get started. Eventually, you are going to own the building, leading to tax benefits. Instead of paying rent and making your landlord wealthy, you will be paying into your own mortgage. Deduct Property Taxes and Mortgage Interest: These items can be deducted from your regular income and that is a big savings. Save 10 Percent of Your Income: Fill out a budget categorizing all your bills and when they should be paid. Most people just use their standard deduction, but by adding the property tax deduction and the mortgage interest deduction, you can increase your deduction by thousands of dollars.

At the top of the list of bills to be paid, put your own name. Nobody can help you, but you. Pay yourself first. Make a List of Necessities: Make a list of the necessities that you need to live: rent, clothes, mortgage, food, etc. Decide if you really need all the things you are spending your money on. After this, make a list of the discretionary things.

Are they necessary? These are the financial questions you need to answer. Can you cut back? Take Advantage of Compound Interest: One of the most important fundamentals of wealth building is compound interest. Compound interest is the interest added to the principle, and then the interest rate is on the new amount of money. Instead of giving you a nice return, compound interest will give you a sensational return. Each year it becomes a little more.

All of these wealth building strategies require awareness and a change in habits. After years of compounding interest, it becomes a tremendously larger amount of money than if it were only simple interest. Change your attitude about money. Read financial magazines, the business section of the paper, and financial magazines. Change your financial habits. Know what money can do for you.

Put your skills and talents to work for you. Look beyond just employment income. Create additional streams of income teaching or selling the hobbies you are already interested in. You have to go out and build income of your own. This additional income will give more opportunities for saving and paying the bills. Avoid putting your money into cash. These will only give back a small amount of interest.

That includes: a bank account, and bonds, notes. They are the worst things to invest in. Do your homework, researching all the information available about investing in stocks. The stock market has the potential for incredible wealth building if you learn the rules of the game. Become stock literate to protect your investment in the stock market. Do not get caught up in limited thinking. Find advisors and take responsibility for your own choices about your own money.

Expand a little bit and take some different actions to benefit yourself financially. Get yourself started onto the road of financial success by becoming financially literate. This is the foundation of building financial independence. Once you learn the financial principles and practices pass them on to your children. Knowing about money is as important as knowing the ABC's in today's world. Get your children involved in the basic skills of finances and building wealth. Financial literacy will lead you to additional wealth building techniques.

You will be able to come up with a plan that will take you from paying someone else, to becoming the person who other people are paying.

Not Having Savings Often Leads To Debt Spending

Category: Finance, Financial Planning.

Saving Money is the key to financial freedom. Inside many people simply feel that life is for living now, not for sometime never in the future and anyway they already contribute to a 401k.

Unfortunately, talk about savings and most people's eyes start to glaze over. This is a big mistake and many people make it. Retirement planning is important but it is not the only or the most important reason for saving. Believing that savings are only about retirement. The benefits of saving are often hard to value when it all seems so far away in the future. Not having savings often leads to debt spending.

Here is the reality- people with savings have choices. Debtors are owned by their creditors, chained to their jobs to obtain money to cover debts. For those with savings, there are no such financial worries, just choices and that is what financial freedom really is. If they fail, they know they face a world of financial pain and money worries. It is the ability to make choices unrestricted by financial constraints. Living free of debt and with savings is a financial state that enables you to live life to its fullest potential.

Saving is as much about living fully now as it is about future financial security. It is the key to financial freedom and prosperity. Let me tell you now- anyone who truly desires to live this way without debt and with savings to fall back on, can. Even now I can hear many readers of this article complaining that it is all very well talking about savings but in the real world it's a struggle to make ends meet and saving money is just not realistic. It is a simple life choice. Research has shown that the ability to save bears no relation to disposable income.

The amount of income you have is not important. Equal results can be obtained across all income brackets- which means that you can do it- if you want to. It is amazing how simply taking the time to re- examine and adjust your life patterns can not only result in big financial savings but also wonderful life improvements. Simple changes in behavior and spending habits can reap huge savings, often accompanied by an improved life- style. The ultimate goal of this process is to stop living in debt- no more credit card debt, no debt of any kind other than maybe a mortgage. Making financial choices that prioritize your financial well- being over short- term gratification is part of the positive process of change needed by all who choose this road to financial success.

To achieve this you need to leave behind the" buy now, pay later" ethos and replace it with a philosophy of only spending what you can afford on things you really want and need. Savings can be divided up into three basic types. Short- term savings are to cover anticipated expenditure such as insurances, mortgage payments etc, house maintenance. Long- term retirement saving, this is usually a one- way street into something like a 401( k) where there are tax perks and penalties for early withdrawal. Predict and budget for these in your personal budget. This is money saved that is accessible within 3 months. Medium- term uncommitted saving is sometimes referred to as a" Freedom Account" .

Use this for unexpected contingencies and to give you the freedom to dip into the fund to pursue life goals. Remember, there is no point in saving if you have debt( exclude your mortgage) , pay off your debt, keep paying down debt and don' t stop paying off debt until there is no more debt and then start building your savings. This is your contingency money against disaster and your ticket to your dreams.

Also, Your Joint Tenancy With Another Person May Prevent Your Children From Inheriting Such Joint Assets

Category: Finance, Financial Planning.

If you are a woman, and have assets, are financially secure that you expect to pass on to people you love and care for, you must make a suitable estate plan.

Whether you are in a relationship, or are considering getting married, or are already married, you need to protect your assets within your lifetime against any threat to their security. It is vitally important to be aware of your rights and take appropriate steps to protect and ensure the disposal/ distribution of your assets according to your wishes when you pass away. Consider a few situations: your boyfriend wants you to have a joint checking account with him. Or, your husband wants his estate to go to charity. Or, your ex- husband does not want you to have any part of his retirement funds. Do you know how to protect yourself in such situations?

Though not exhaustive, it will serve as a guide in planning for your estate. Here we provide an insight into the pros and cons of such issues and answer some related questions. Whether you are married or a co- habiting single woman, you need to understand that you risk losing your assets if you co- mingle them with anyone else. As a result, your assets risk being attached or seized to pay off the debts of your joint tenant, even though you have no liability or connection with his debts. Joint assets create joint tenancy, where each tenant has complete rights and authority over the entire joint assets. Also, your joint tenancy with another person may prevent your children from inheriting such joint assets. In addition, you would be well advised to seek professional help before you consider going in for joint ownership of any of your assets with a non- spouse.

So, you need to think carefully before you open any joint accounts or acquire any property jointly. You have a legal right to a certain portion of the property of your spouse. It means that even if your spouse wants to disinherit you, he cannot do so. This is known as an elective share. The exact extent of the elective share differs from state to state. Plus, you also have protection with respect to the retirement funds of your husband. Some states mandate a fifty percent share.

The law presumes that in the event of your husband predeceasing you, you are the beneficiary of his retirement plan. This order assigns a portion of your ex- husband retirement distributions, in proportion to the amount of contributions that he made to his retirement funds, during the period of your marriage. Even when you divorce, you are vested with a portion of your husband retirement funds subject to a QDRO( Qualified Domestic Relations Order) being included in your divorce agreement. However, you have a right to waive this through a spousal waiver document while in the marriage. Pre- nuptial agreements are a growing trend nowadays. But again, it would be advisable to seek legal counsel before signing any such document. If you have substantial assets and children from an earlier marriage whom you want financially protected, a prenuptial agreement before a remarriage would give your better control over such situations.

If there is a common lawyer or if one party does not have any counsel at all, the agreement may be invalid. For a valid pre- nuptial agreement, each party should have a separate lawyer. You must also consult an estate- planning attorney about Advanced Directives, which are documents that are related to your health care wishes. There is also something known as a durable power of attorney for health care. These include a living will, which is a document meant for doctors or healthcare professionals about the life prolonging care you may or may not wish to have, if you happen to reach a vegetative state or are stricken by a terminal illness. This allows you to appoint a person to make medical decisions on your behalf if you happen to reach a state wherein you are unable to make such decisions yourself, whether at the end or at any other time of your life.

You can also discuss forming various types of trusts. You can have one or both, the living will and the durable power of attorney, at the same time. Consult your attorney and take the steps that will ensure both your welfare as well as of those you love and care for.