If a Family Member Dies, Which Debts Will You Be Responsible For?

If a Family Member Dies, Which Debts Will You Be Responsible For?

Vance Cariaga  Mon, July 24, 2023

One thing to know about debt is that it doesn’t go away — even after the death of the person holding it. When someone dies, their debts and assets typically pass to their estate, according to the Consumer Financial Protection Bureau (CFPB). The estate is responsible for paying any unpaid debts.  If there is no money or property left, then under most circumstances the debt will not be paid. As a general rule, no one else — including family members — is required to pay the debts of someone who died, according to the CFPB. That’s not always the case, however.

In some cases, surviving family members might be responsible for paying certain debts of the deceased. This largely depends on the type of debt and where you live. For example, shared debts might fall on the shoulders of survivors in the following scenarios:

You were joint account owners.

You borrowed the money as a co-signer.

You are a surviving spouse and live in a community property state where spouses share responsibility for certain marital debts.

Your state has “necessaries statutes” that make parents and spouses responsible for certain necessary costs such as healthcare.

In community property states, spouses are “considered joint owners of nearly all assets and debts acquired in marriage,” according to a 2022 blog on the Experian website. The vast majority of states use a different “common law” model that allows spouses to own property individually. The type of law your state follows dictates how property is divided upon divorce or death.

Experian lists only nine community property states: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin. Three states — California, Nevada and Washington — also have community property law for domestic partnerships that might not involve marriage.

To continue reading, please go to the original article here:

https://finance.yahoo.com/news/family-member-dies-debts-responsible-121502138.html

The Dark Side of Money

The Dark Side of Money

Jacob Schroeder  Jul 24, 2023

What we can learn from the ways money brings out the worst in us

Last year, the YouTuber Mr. Beast posted a Twitter poll that revealed an evilness lurking in our relationship with money.

As you can see, almost half the respondents said “Yes.” Yes, to the death of a person – who could be a devoted parent, an innocent child, the world’s leading cancer researcher, or Tom Hanks – for $10,000, about the worth of a used Honda.

It’s proof that money has power. The power to take our lives – with diligent saving and patient investing – to great heights. But also the power to lead us to some dark places.

Perhaps, that’s where the best financial lessons lie.

When discussing how dark experiences acted as life’s greatest teacher, endurance athlete and former Navy SEAL David Goggins said: “There are no answers in the light… knowledge comes from the muck.”

The same rings true for money; financial knowledge often comes from unfortunate events — job loss, market crashes, bankruptcy, fraud, et al. Most finance books and articles tell us we deserve financial success. Less frequent are those that help people identify their own toxic relationships with money as a route to personal growth. Fortunately, we can learn from the experiences of others.

For instance, I’ll briefly tell you why I don’t gamble. It’s not that I think gambling is a waste of money (which I do), or that I think the “games” are boring (which I do), or that I think of casinos as pitiful dungeons soiled with the stench of stale cigarette smoke and desperation (which I also do). It’s because it reminds me of the tragic death of a family.

When I was 18, my best friend called me one day to tell me that a family had been found murdered in their home nearby. This was a quiet, upper-class neighborhood where such tragedies never happened. Out of shock, we drove by the family’s once comfortable home that now resembled the set of a cop show with telltale props and extras – yellow tape, detectives, reporters, coroners.

It turned out the killer was the father. He had been a successful businessman who started to gamble and gamble some more, and then he started to lose and lose some more, until he inevitably lost almost everything. Distraught and at rock bottom, he decided to cash in the last thing he had left, the lives of his family and his own.

The experience taught me how a potentially big financial windfall could influence our psyche, like a siren call toward the rocks and cliffs of financial ruin. And at times, much worse.

I don’t believe money is not inherently evil. But research shows that it can trigger the worst parts of our nature if we let it.

The surprising thing? Unfortunate consequences can arise through both financial strain and abundance. Go too far in either direction, and you end up in the same miserable place.

So, when does money transform from an illusory store of value to an accessory to evil? How do we keep it from ruling over us?

How does this relate to our own financial lives?

Humans may have an inherent sensitivity to fairness, which explains why inequality can feel so stressful and damaging.

Consider a video of an experiment with two capuchin monkeys, our distant relatives often used in psychological tests as human stunt doubles. The capuchins perform the task of giving the experimenter a rock in exchange for a slice of cucumber.

To continue reading, please go to the original article here:

https://rootofall.substack.com/p/the-dark-side-of-money?utm_source=substack&utm_medium=email

https://www.youtube.com/watch?v=meiU6TxysCg

First Year of Retirement: 7 Money Moves You Absolutely Must Make

First Year of Retirement: 7 Money Moves You Absolutely Must Make

July 13, 2023 By Nicole Spector GoBankingRates

If you’re near retirement or fresh in it, it’s critical to understand how to manage your financial life, and how it differs from when you were making a salary. To do this, you should make these seven money moves in your first year of retirement — per the suggestions of experts. 

Start Tracking Your Expenses

Hopefully, you’ve already made a strict budget and have been tracking expenses leading up to your retirement. Now is the time to really pay attention.

“Take the first few months of your retirement to diligently track your expenses, so you understand where your money is going, and how much you need a month,” said Mark Henry, founder and CEO of Alloy Wealth Management. “It will likely be much different than your pre-retirement expenses, especially if you move. There may be places you can cut back and others where you want to splurge a little more.”

Secure Healthcare Coverage

You may have already sorted out your healthcare coverage, but if not, you need to figure that out sooner than later.

“If you are not eligible for Medicare yet and your employer does not offer continued access to healthcare coverage, you will need to look into alternative options,” said Larry Roby, president and CEO of SFA Wealth Management. “For example, you may use the Health Insurance Marketplace to find a new insurance plan or you might qualify for Medicaid coverage. No matter which route you go, it’s important to get your healthcare coverage in order. Otherwise, you may be one emergency away from depleting your retirement income savings.” 

Make Sure Your Retirement Money Is Allocated Properly

To continue reading, please go to the original article here:

https://www.gobankingrates.com/retirement/planning/first-year-of-retirement-money-moves-you-absolutely-must-make/?utm_term=incontent_link_3&utm_campaign=1238055&utm_source=yahoo.com&utm_content=9&utm_medium=rss

The Math That Explains Why Lifestyle Inflation is a Wealth Killer

The Math That Explains Why Lifestyle Inflation is a Wealth Killer

Lifestyle Inflation Is A Wealth Killer  By Zach  January 24 2019 Four Pillar Freedom

Investopedia defines lifestyle inflation as:

 Lifestyle inflation refers to increasing one’s spending when income goes up. Lifestyle inflation tends to continue each time someone gets a raise, making it perpetually difficult to get out of debt, save for retirement or meet other big-picture financial goals. Lifestyle inflation is what causes people to get stuck in the rat race of working just to pay the bills.

 Two of the most common reasons for lifestyle inflation include:

​​The desire to impress peers and flaunt your success. After that big pay raise or promotion, it’s common to upgrade your house, car, wardrobe, dining habits, etc. to show your peers how well you’re doing in life.

​The feeling of “I worked hard so I deserve this.” After all that time spent studying in the library or putting in extra hours at the office, it’s common to feel that you “deserve” to treat yourself with your increased income.

No matter what you believe is the true reason (or combination of reasons) for lifestyle inflation, one fact remains undeniable: lifestyle inflation is a wealth killer.

 Here’s the math that explains why.

 The Math That Explains Why Lifestyle Inflation is a Wealth Killer

Consider our friend Bob. In his first year out of college, Bob has a net worth of $0, a yearly income of $35,000, and yearly expenses of $30,000.

Let’s assume Bob is able to increase his income by 6% each year while only increasing his expenses by 2% each year.

Here is how Bob’s net worth will grow over the course of 20 years:

To continue reading, please go to the original article here:

https://fourpillarfreedom.com/the-math-that-explains-why-lifestyle-inflation-is-a-wealth-killer/

4 Best Money Lessons From Elon Musk

4 Best Money Lessons From Elon Musk

July 10, 2023 By Yaёl Bizouati-Kennedy

Paris: 2023 Elon Musk Vivatech, France - 16 Jun 2023JEANNE ACCORSINI / SIPA / Shutterstock.com

Elon Musk — still the world’s richest man, with a $243 billion net worth as of July 10, according to the Bloomberg Billionaires Index — is at the helm of several companies. From Tesla to SpaceX, and from Neuralink to The Boring Company — and most recently, Twitter — Musk is no stranger to controversy and is known for speaking his mind.  Not everything Elon Musk has done, financially speaking, has been exemplary. However, Musk’s best money moves are at the center of many commentaries, however, and four follow.

PayPal: An Early Mind for Bold Investing

Musk founded X.com, later named PayPal, and sold it to eBay for $1.4 billion in 2002, according to The Wall Street Journal. He collected $100 million from the deal.

“One of Elon’s best financial moves was placing most of his net worth into Paypal, at a time where the ‘.com’ world was seriously taking off,” said Sebastian Jania, owner of Ontario Property Buyers.

Upon successful growth of this company, he sold it and was paid handsomely — but instead of cashing out of the “entrepreneurship game” and living on the proceeds, he recycled his money into three more businesses which also took off as successes, said Jania.

“This was a very wise decision as he was able to take his successes in the tech industry and diversify across solar, automotive, and space industries. This move protected him in case the tech industry or other industries would crash.”

Musk Reinvests Profits Into his Visions

Elon Musk has made billions of dollars from his ventures but doesn’t all profits on lavish lifestyles or frivolous things, said Anna Koval, co-founder and CMO at Tarotoo.

“Instead, he reinvests his profits into his vision of making humanity a multi-planetary species and advancing clean energy and transportation. This shows his passion, dedication, and long-term thinking, which are essential for any successful entrepreneur.”

https://www.gobankingrates.com/money/wealth/4-best-money-lessons-from-elon-musk/?utm_term=incontent_link_3&utm_campaign=1237686&utm_source=yahoo.com&utm_content=6&utm_medium=rss

8 Ways To Alleviate Your Retirement Anxiety by Fixing Your Finances

8 Ways To Alleviate Your Retirement Anxiety by Fixing Your Finances

Cameron Huddleston   Fri, July 21, 2023

If you’re stressed about your retirement plans, it’s probably for a good reason. With economic uncertainty, rising living costs and the ever-changing landscape of retirement benefits, ensuring a comfortable and secure future can feel overwhelming. If you’ve woken up in the middle of the night thinking about your finances, you’re not alone. A recent survey conducted by Allianz Life Insurance found that “61% of Americans say they are more afraid of running out of money than they are of death.”

Still, worrying about your money problems won’t make them go away. In fact, it can cause more stress and lead you to make mistakes, said Scott Bishop, partner and managing director at Presidio Wealth Partners.

When you’re drowning in financial uncertainty, it’s time to take stock and make a plan. To rest easier at night, you should try to understand what it is exactly that you’re afraid of. This will empower you to get your finances on track and stop worrying about money. Read on to identify which of the following fears is troubling you.

1. You’re Afraid That You Don’t Understand Your Money Situation

The first step to take to stop worrying about money is to identify your assets — house, investments, savings — and your liabilities, or debts, said Michael F. Kay, a certified financial planner and founder of Financial Life Focus. Once you know what you have and what you owe, you can identify your biggest problem and assess what needs to change. For most people, it’s too little savings and too much debt, he said.

“Before you can stop worrying, you need to know where you stand financially,” Bishop said. “The best way to do that is to get a handle on or snapshot of your current situation.”

2. You’re Worried That You Don’t Know Where Your Money Is Going

To continue reading, please go to the original article here:

https://finance.yahoo.com/news/8-ways-alleviate-retirement-anxiety-170002929.html

7 Costliest Mistakes People Make When Planning Vacations

I’m a Travel Agent: 7 Costliest Mistakes People Make When Planning Vacations

June 5, 2023 By Jacob Wade

It’s vacation season!

With summer in full swing for most of the U.S., you might be putting the finishing touches on your vacation plans. Or you might be planning a winter getaway for later this year. Either way, before you take off on an epic road trip or fly to a desirable destination for some rest and relaxation, you might want to make sure you avoid making these massive travel mistakes.

We tapped Greg Johnson — expert world traveler, travel blogger at ClubThrifty.com and owner of Travel Blue Book Travel Agency — to share his insights on the costliest mistakes travelers make when planning vacations.

Not Planning Ahead

Failing to plan is planning to fail. Having a plan in place can help alleviate travel headaches and save you money at the same time.

“Most travelers book their vacations a few months before traveling,” Johnson said. “By that time, availability is usually low — which causes prices to rise. Depending on the trip, this can increase your costs substantially. 

“To get the best deals, consider booking your trip as early as possible. Prices for flights, resorts and cruises are typically near their lowest when they first become available. By booking 11 to 12 months in advance, you can literally save thousands.”

Being Inflexible With Dates and Destinations

Flexibility is key to saving money while traveling.

“One of the best ways to save on travel is to be flexible with your dates and destinations,” Johnson said. “If you don’t know exactly where you want to go, consider choosing your destination based on the price of flights. Likewise, being able to fly on a Tuesday could save you big money compared to flying on a Friday. The same goes for resorts and cruises.”

He also said, “Do a little price shopping and play with dates before committing to specific travel dates, hotels or cruises. It’s not always possible, but being a little flexible can go a long way.”

Traveling During Peak Times

Peak travel means high prices, period. Johnson advises against it, if possible. “If you can avoid peak travel season, do it. Traveling during shoulder seasons and off-peak times can save you up to 50% on the cost of your trip. Plus, you won’t have to fight as many crowds, which can make your trip much more enjoyable.”

Using a Mobile Phone Without an International Plan

Staying connected when traveling overseas can be costly.

“When you are traveling internationally, be sure that your mobile phone plan offers coverage at your destination before using it,” Johnson said. “Not doing so can be an enormously costly mistake, potentially costing you thousands.

“If you already have an international phone plan, make sure that the country you are traveling to is covered under your plan. If you don’t, call your mobile company and inquire about adding one during your trip.”

Johnson also said, “Cruisers should be sure to turn off their data when not docked in port, as many international plans don’t cover you while sailing in international waters. You could easily rack up thousands of dollars in accidental bills if you’re not careful. We like to flip our phones to airplane mode and use the ship’s Wi-Fi throughout the cruise instead.”

To continue reading, please go to the original article here:

https://www.gobankingrates.com/saving-money/travel/travel-agent-costliest-mistakes-people-make-planning-vacations/?utm_term=related_link_3&utm_campaign=1237686&utm_source=yahoo.com&utm_content=5&utm_medium=rss

Fed Launches New Payments System That Lets You Send Money In Seconds

Fed Launches New Payments System That Lets You Send Money In Seconds

Jennifer Schonberger·Senior Reporter  Thu, July 20, 2023

The Federal Reserve Thursday officially launched its long-awaited instant payment service FedNow, which allows consumers and businesses to send and receive money in seconds.  The system lets Americans pay for groceries instantly, businesses pay their suppliers, or people pay each other. It will be available 24 hours a day, every day of the year, with full access to funds immediately.

FedNow isn’t offered directly to individuals and businesses, but it will serve as the basis of infrastructure for instant payments by linking banks. Transactions occur between bank accounts and enable funds to be transferred from a sender’s bank account to a receiver’s bank account immediately.

The limit per customer credit transaction will be $500,000, but the initial setting of the transaction limit will be $100,000. The money can move from consumer to consumer, from consumers to businesses, or from business to business.

"The Federal Reserve built the FedNow Service to help make everyday payments over the coming years faster and more convenient," said Federal Reserve Chair Jerome Powell.

"Over time, as more banks choose to use this new tool, the benefits to individuals and businesses will include enabling a person to immediately receive a paycheck, or a company to instantly access funds when an invoice is paid."

Federal Reserve Chairman Jerome Powell speaks during a meeting at the Spain's Central Bank in Madrid, Spain, Thursday, June 29, 2023. Federal Reserve Chair Jerome Powell says the central bank may have to tighten its oversight of the American financial system after the failure of three large U.S. banks this spring. (AP Photo/Manu Fernandez)

FedNow is different from apps like Venmo, which require holding balances in the app rather than sending and receiving money directly to or from your bank account. And it isn’t instantaneous.

"Consumers might also have the impression that sending money through Venmo is instant, but Venmo doesn’t do real-time settlement," said Rusiru Gunasena, SVP of RTP Product Management and Strategy at The Clearing House. "There’s no money in hand in your wallet. There’s a lot of gymnastics behind the scenes needed to settle the payment, and thus [it's] not true real-time payment."

FedNow is also different from traditional payment rails of check, ACH, and wire services. ACH transfers are electronic bank-to-bank money transfers processed through the Automated Clearing House network.

The service launches with the participation of 35 banks of different sizes, including JPMorgan and Wells Fargo as well as credit unions.

To continue reading, please go to the original article here:

https://finance.yahoo.com/news/fed-launches-new-payments-system-that-lets-you-send-money-in-seconds-140305052.html

The Economics of Happiness By John Robbins of Baskin-Robbins

The Economics of Happiness By John Robbins  of Baskin-Robbins 

Research is clear: Money doesn’t buy happiness, reports best-selling author John Robbins. So why do we continue to think that it does?

By John Robbins  of Baskin-Robbins   JULY 20, 2010

When I was 21, I told my father that I didn’t want to work with him any longer at the ice cream company he co-founded, Baskin-Robbins, and I didn’t want to depend on his financial achievements. I did not want to have a trust fund or any other access to or dependence on his money. I wanted to discover and live my own values, and I knew that I wasn’t strong enough to do that if I remained tethered, even a little, to my father’s fortune.

I left Baskin-Robbins and the money my father had made selling ice cream because I didn’t want to live a life of affluence based on a product that could harm people’s health. I also recoiled at the idea of inheriting a life of privilege while so many others had to struggle for their basic livelihood.

I didn’t take the steps I did because I thought money is bad. On the contrary, I believe money is good and important. Without it, it’s impossible to thrive in the modern world and difficult even to survive. But money isn’t a god. It’s something to use. Not something to crave or to worship, and certainly not something that should rule our lives.

There seem to be two schools of thought about the relationship between money and happiness: On the one hand, there are those who say money isn’t that important. “You can only become truly accomplished at something you love,” writes Maya Angelou. “Don’t make money your goal. Instead, pursue the things you love doing, and then do them so well that people can’t take their eyes off you.”

In her camp is the environmental advocate John Muir, who once said that he was better off than the billionaire E. H. Harriman. “I have all the money I want,” Muir explained, “and he hasn’t.”

On the other hand, there are those who say that money is essential, and that there is something spiritually pretentious and elitist about pretending otherwise. It’s not the love of money that is the root of all evil, they would say, but the lack of money.

Maybe money can’t directly buy happiness, but it certainly can buy lots of things that contribute tremendously to happiness. While it is possible to be happy with less, it is far easier to be happy with more. They would argue that those who believe money is not important have probably never watched their children go hungry.

I believe there is truth in both camps. Up to a certain point, money is vital to happiness for almost everyone. It can buy food, clothing, and housing and provide for other basic needs. Once a person’s basic needs are met, though, money takes on a different meaning.

For a family barely scraping by, $500 could be the difference between paying the rent or being evicted—between having a place to sleep and being homeless. To someone more affluent, $500 might simply mean a few hours spent shopping for clothes, or that much more financial security and increased savings.

But what does science tell us about the relationship between money and happiness?

To continue reading, please go to the original article here:

https://greatergood.berkeley.edu/article/item/the_economics_of_happiness/

If You Aren’t Saving for These 7 Things, You Will Regret It

If You Aren’t Saving for These 7 Things, You Will Regret It

Andrew Lisa  Thu, July 20, 2023

Whether they do it or not, everyone knows they’re supposed to save money. But it’s easier to squirrel away cash when you know what you’re saving it for. The terms “savings” and even “emergency fund” are too broad to count as achievable goals. The trick is to segment your savings targets into individual must-have pots of money on the side.

These are the things to save for today so you’re not stuck wishing you had tomorrow.

Vacations — Or Your Little Luxury of Choice  First, focus on the truly important stuff and dedicate at least some of your savings to the things that make life worth living.

“Life’s milestones are not all practical and responsible,” said Samantha Hawrylack, a personal finance expert, retirement mentor and co-founder of the personal finance site How To FIRE. “Vacations are also important and should be saved for, but it’s better to wait a few years until your vacation fund is fully funded rather than going into debt for an expensive tropical holiday today.”

If trips to the beach aren’t your thing, save for dinners out, renting a sports car for a weekend or whatever makes you feel alive.

Bouts of Unemployment

While vacations are vital to life quality, you’ll regret taking one before you save enough to survive the involuntary vacation from work that might be just around the corner.

“Navigating through periods of unemployment can be a daunting experience,” said Tim Schmidt, founder of IRA Investing. “I remember a time when I had to close down one of my early businesses due to market changes. However, having a safety net made the transition less stressful and allowed me to bounce back quicker than I’d have done otherwise.”

Retirement

To continue reading, please go to the original article here:

https://www.yahoo.com/finance/news/aren-t-saving-7-things-120040298.html

If Money Could Talk

If Money Could Talk

By Greg Habstritt
 A Powerful Perspective You’ve Never Heard Before –  "If Money Could Talk" 
Most people think they know me.   They don’t. 

I am not what most people think I am. I am not the paper in your wallet, or the coins that jingle in your purse. I am not quietly sitting in your bank account, hoping to be used one day.

You cannot see me, feel me or touch me. I am an idea. I am energy. 

I’m neither good nor evil. I am only what you decide that I am, and I fulfill the role that you create for me. 

 I don’t care how smart you are, where you live, what you do, or where you come from.  All I care about is your energy. 
Your energy decides what thoughts you have, and therefore your thoughts will determine the relationship you have with me. 
I have very simple needs, and simple rules.  I am infinite. 

I have no limits, except for those you place on me with your mind. There is no limit to the energy in the world, and because I am simply energy, I cannot be restricted or controlled. 
I crave abundance. 
I am attracted to those who think without restrictions, who like to think big. When you believe there is enough of me to go around, I am naturally magnetized by that thinking. 
I despise scarcity. 
Because there is no limit to me, I avoid those who think from a win/lose or scarcity perspective. Those who believe I am in short supply, or difficult to receive, will find that very reality, because I choose to avoid those who think small.
I love value. 
What magnetizes me most is the creation of value in the universe. I move to places where value is created, because creation is energy. If you wish to attract me into your life, focus on creating value for others, and I will appear. 

I avoid entitlement and complacency. 

No one ‘deserves’ to have me, and I am always moving to the place I am most respected and where value is created. It has nothing to do with ‘fair’. Those who take me for granted or become complacent with my energy will find me gone.

I only have one job, and that is to serve you. 

To continue reading, please go to the original article here:

http://museologies.blogspot.com/2011/10/if-money-could-talk.html