An old rule of thumb said that you could afford to buy a house that cost between one and a half and two and a half times your annual salary. In reality, there’s a lot more to take into consideration. You’ll want to know not only how much of a mortgage you qualify for, but also how much you can afford to spend on a home. In order to know how much you can truly afford, you need to take an honest look at your lifestyle and your standard of living, as well as your income and what you choose to spend it on. Continue reading “How Much House Can You Afford?”
What is it?
If you’re like most consumers, homeownership involves the largest financial transaction you’ll participate in during your lifetime. As such, it’s no wonder that the process of buying or selling a home can be so stressful, frustrating, and, at times, totally confusing. If you want to ensure that you make sound financial decisions and survive the process with your sanity intact, you should first educate yourself about real estate transactions and then engage in careful planning. Your first step should be to ask yourself: “Do I really want to own a home? Continue reading “Homeownership”
You’ve worked hard over the years to accumulate wealth, and you probably find it comforting to know that after your death the assets you leave behind will continue to be a source of support for your family, friends, and the causes that are important to you. But to ensure that your legacy reaches your heirs as you intend, you must make the proper arrangements now. There are four basic ways to leave a legacy: (1) by will, (2) by trust, (3) by beneficiary designation, and (4) by joint ownership arrangements.
Continue reading “Leaving a Legacy”
Go out into your yard and dig a big hole. Every month, throw $50 into it, but don’t take any money out until you’re ready to buy a house, send your child to college, or retire. It sounds a little crazy, doesn’t it? But that’s what investing without setting clear-cut goals is like. If you’re lucky, you may end up with enough money to meet your needs, but you have no way to know for sure. Continue reading “Investing for Major Financial Goals”
If you have a lot of debt, you’re not alone. Today, more and more Americans are burdened with credit card and loan payments. So whether you are trying to improve your money management, having difficulty making ends meet, want to lower your monthly loan payments, or just can’t seem to keep up with all of your credit card bills, you may be looking for a way to make debt repayment easier. Debt consolidation may be the answer. Continue reading “Debt Consolidation”
Even with all of your savvy college shopping and research about financial aid, college costs may still be prohibitive. At these prices, you expect you’ll need to make substantial financial sacrifices to send your child to college. Or maybe your child won’t be able to attend the college of his or her choice at all. Before you throw in the towel, though, you and your child should consider steps that can actually lower college costs. Although some of these ideas deviate from the typical four-year college experience, they just might be your child’s ticket to college — and your ticket to financial sanity.
Continue reading “Sticker Shock: Creative Ways to Lower the Cost of College”
Before you jump into investigating graduate school funding sources, the first thing to do is calculate how much your education will cost. Along with direct billed tuition and fees, make sure to add in collateral expenses that won’t show up on the bill, such as room, books, commuting costs, day-care expenses, and so on. And if you plan to give up your job, factor in the time you’ll be without a paycheck and the time it might take you to find a new job. Once you have a cost estimate, it’s time to look for the money.
Following are some suggestions on where to look for financial help.
Continue reading “Paying for Graduate School – Calculate the costs”
Generally, if your name does not appear on the account, either as a joint owner with rights of survivorship, trustee (if the account is held in trust), or a beneficiary, you probably can’t access the account unless authorized to do so by the probate court having jurisdiction over your spouse’s estate. Each state has its own laws dealing with this situation, and the applicable rules may differ from one state to the next. Even if you are named as agent in your spouse’s power of attorney with the right to access his or her accounts, that authorization ends upon the death of the person executing the power of attorney, namely your spouse.
Continue reading “My spouse just died. Do I have access to his or her accounts?”
There’s no doubt about it — going through a divorce can be an emotionally trying time. Ironing out a divorce settlement, attending various court hearings, and dealing with competing attorneys can all weigh heavily on the parties involved.
In addition to the emotional impact a divorce can have, it’s important to be aware of how your financial position will be impacted. Now, more than ever, you need to make sure that your finances are on the right track. You will then be able to put the past behind you and set in place the building blocks that can be the foundation for your new financial future. Continue reading “Adjusting to Life Financially after a Divorce”
In a perfect world, both halves of a couple share the same investment goals and agree on the best way to try to reach them. It doesn’t always work that way, though; disagreements about money are often a source of friction between couples. You may be risk averse, while your spouse may be comfortable investing more aggressively–or vice versa. How can you bridge that gap? Continue reading “Investing as a Couple: Getting to Yes”