RuMbO life group

Equis Financial Equis Financial

October 26, 2020

Is Your Home An Investment?

Jump to Article

Subscribe to get my Email Newsletter

Tap the Brakes! Life Insurance and Your Driving Record

September 14, 2020

Tap the Brakes! Life Insurance and Your Driving Record

Oh boy. It happened again: You hit the snooze button one too many times.

After a frenzied dash around your home – one sock on, a toothbrush hanging out of your mouth, and one kid asking why there’s a can of tuna in his lunchbox – you kiss the family goodbye and finally half-dive behind the wheel of your car.

It may seem like the only way to get to work on time is to go just a little over the speed limit. But just a little. Say, maybe 10 miles per hour over. But speeding doesn’t actually get you where you want to go that much faster.

Take this scenario for example: Say there are 100 miles between you and your destination.

  • At the 65 mph speed limit, it would take 92 minutes.
  • At 75 mph (speeding), it would take 80 minutes.

That’s only 12 minutes saved! And factoring in how quickly traffic can negate all time gained or how going faster burns more of your fuel, speeding isn’t really helping. In fact, it’s costing you. And if any of the consequences of speeding earn you a citation, those will definitely cost you when applying for life insurance.

During the life insurance underwriting process, the underwriter will take everything on your Motor Vehicle Report (MVR) into account.

  • Accident reports
  • Traffic citations
  • DUI convictions
  • Vehicular crimes
  • Driving record points

Just like looking at your health history, occupation, and risky hobbies, an underwriter looks at your driving record to determine how risky you will be to insure. Even some violations that you’d consider to be minor can have drastic consequences for your life insurance application. Any indication of reckless and risky behavior is a red flag to an underwriter. The more negative activity on your driving record, the worse your insurance classification will be. And the higher your life insurance rate will likely be.

Another important thing to keep in mind: time plays an important role for your driving history. Depending on which state you live in, an MVR can feature violations from 5-7 years ago. Some violations will seat you in a lower classification for anywhere from 3-5 years after the fact. So if you’ve changed your ways (and made a personal pledge to never hit that snooze button and speed into the office parking lot again), some insurance companies may take that into account. But finding which one will give the most grace as time passes is key to a potentially lower life insurance rate.

No matter what your driving record looks like, working with me gives you an advantage: you have access to numerous providers and life insurance policies, upping your chances for approval and a more affordable rate. It’s not a guarantee for success, but working together is one way to slow down and work on your options for a life insurance policy that will protect you and your loved ones.

  • Share:

Tips For Working At Home

Tips For Working At Home

You’ve most likely become a work-at-home pro over the last few months.

At this point you’re probably perfectly comfortable with your routine and feel like you’re highly productive!

But you also might need a refresher on some working at home basics. Even at the office—where you’re more likely to be held accountable—it’s easy to slide into bad habits. Here’s a quick rundown of some tips to help you get back in your groove!

Start strong
Sleeping in is almost always a temptation. Crawling out of bed, hitting the snooze button until it breaks, and rushing out the door just feel like a routine to many of us! Working from home can compound this. Suddenly, you have the luxury of peacefully sleeping until 8:55am, making some tasteless instant coffee, and booting up your laptop in your PJs right before your 9 o’clock video call. Sounds like the life, right?

But this ritual of jumping right from your mattress to your dining room table/temporary desk can have serious drawbacks. Staring at a computer screen while barely keeping your eyelids open is an incredibly uninspiring way to start a day. It’s much better to do things that help you wake up and get your mind focused. Make breakfast! Go for a walk! Meditate! Use that time you would normally spend looking at brake lights for something productive.

Make a workspace
Homes are (hopefully) relaxing. They’re where we go at the end of a long, stressful day to binge watch shows, eat delicious food, and spend time with our families and friends. Those associations can make working from home tricky. You might notice that the temptations to watch TV, talk to a roommate, or reorganize your kitchen for the 100th time are interfering with your job performance.

The solution to this problem is to create a workspace in your home that is dedicated to being productive. Remind your family that you love them, but that you’ll need some space when you’re in your home office. Move TVs and other distractions out and create a place where you can focus. And it’s probably wise to avoid setting yourself up in your bedroom unless absolutely necessary!

Always communicate
One of the biggest downsides of working at home is that it can strain communication with your coworkers. On one hand, that’s probably not awful. Less chatter with your office buddies about the latest reality TV show might be a welcome productivity booster! But collaborating with your team, getting approvals from bosses, and receiving feedback are essential parts of getting projects done and growing your skillset.

So don’t go off the grid. Stay in touch with your colleagues. Ask your boss for feedback. Get advice from your mentors. Staying vocal keeps work moving forward, it keeps you socialized and feeling accomplished, and it reminds the higher-ups that you still exist!

Whether you’ve finally decided to upgrade your work-at-home game or you just needed a reminder, try out these tips and let me know how it goes!

  • Share:

Power Naps

July 27, 2020

Power Naps

It’s 3:00 pm on a Wednesday and you’re running out of steam.

You didn’t get much sleep last night and keeping your eyes open feels impossible. The energy drinks and coffees and caffeine pills gave you a quick boost in the morning, but your yawns are getting deeper and that stack of papers is starting to look like a comfy pillow. What can you do?

It turns out that a quick power nap might be the solution to your midday energy slump. But there’s an art and a science to productive sleep. Here’s a quick guide to power naps!

The science of sleep
Sleep is surprisingly complicated. Even though we all need it to function and survive, scientists haven’t been able to figure out exactly why our bodies and brains have to shut down for about 8 hours every night. Theories exist (you can read those here), but there’s no definitive answer. For the purpose of power naps, what’s important is understanding what happens while you sleep.

Your body goes through 4 different stages while it sleeps. The first three are essentially your body’s transitioning from a light sleep (stage 1) to a deep sleep (stage 3). These are followed by the Rapid Eye Movement (REM) stage. This is when your brain processes information and when most people experience dreams. You then start the cycle over at stage one and repeat. A full four stage cycle happens over about 90 minutes, and it occurs multiple times when you get the recommended 8 hours of sleep.

The art of power naps
The key to nap powerfully is to control when you wake up in the sleep cycle. The goal is to wake up during the lightest stage of sleep. That normally occurs within 20 to 30 minutes after drifting off. Anything more than that will have you waking up in the middle of a deep stage of sleep. Ever emerge from a nap feeling like you’re on a different planet? Then you know how awful waking up too far into a sleep cycle can feel!

The benefit of power naps
A quick nap that doesn’t go through all the sleep cycles can have big benefits. It can boost alertness and motor function for up to two to three hours.(1) And it normally doesn’t produce the stress-inducing and hyperactive side effects of caffeine. Naps that go over 30 minutes can still have benefits as well, despite the grogginess.(2)

The greatest drawback of the power nap is how inconvenient it can be in an office setting. But if you find yourself working at home, it might be worth developing a nap routine. Skip the mid-afternoon coffee, let everyone know you’ll be unavailable for around 30 minutes, get some quick shut-eye and see how it goes!

  • Share:

3 Ways to Shift from Indulgence to Independence

June 17, 2020

3 Ways to Shift from Indulgence to Independence

On Monday mornings, we’re all faced with a difficult choice.

Get up a few minutes early to brew our own coffee? Or sleep a little later and whip through a coffee chain drive-thru, hair askew and a drool trail still drying against our cheek?

When that caffeine hits our bloodstream, how we got the coffee doesn’t seem to matter too much. But each time you pull through a drive thru for that cup o’ joe, just picture your financial strategy shouting and waving its metaphorical arms to get your attention.

Why? Each time you indulge in a luxury that has a less expensive substitute, you’re potentially delaying your financial independence. It’s strange how that can happen one $5 peppermint mocha at a time, but that’s how it happens – incrementally and without too much warning. Then comes the credit card bill… This isn’t to say that you can’t enjoy yourself every once in a while. Just be sure that you’re sticking with your strategy and saving wherever possible. You’ll thank yourself later.

Here are 3 ways to shift from indulgence to independence:

1. Make coffee at home. Reducing your expenses can start as simply as making your morning coffee at home. And you might not even have to get up earlier to do it. Why not invest in a coffee pot with a delay brew function? It’ll start brewing at the time you preset, and what’s a better alarm clock than the scent of freshly-brewed coffee wafting from the kitchen? Or from your bedside table… (No judgement here – Do what you need to do to get up in the morning.)

Get started:Here’s a huge list of copycat Starbucks drinks that you can make at home.

2. Workout at home. A couple of questions to get this one going:

1) Is an expensive gym membership really worth it? 2) How often have you gone to the gym in the last few months?

If your answers are somewhere between “No” and “…I’d rather not say,” then maybe it’s time to ditch the membership in favor of working out at home. Or perhaps you are a certified Gym Rat who faithfully wrings every dollar out of their gym membership each month. Ask yourself if you really need all the bells and whistles that an expensive gym offers. Elliptical, dumbbells, and machines with clearly printed how-tos? Yes, please. But a hot tub, sauna, and an out-of-pocket juice bar? Maybe not. If you can continue to workout without a few of those pricey luxuries, your body and your wallet will thank you.

Get started: Take a 30-minute walk around your local park each day and reap the positive results – it’s completely free! And if you’d prefer to workout at a gym, look into month-to-month memberships instead of paying a hefty price for a year-long membership up front.

3. Ditch cable and use a video streaming service instead. Cable may give you access to more channels and more shows, but if any of your favorite shows end up gathering digital dust in your DVR most of the time, waiting a little longer for them to be available on a streaming service like Netflix or Hulu might not be a bad idea. (Plus, who doesn’t love using a 3-day weekend to binge-watch an entire season of a show?) There’s also the bonus of how easy it is to cancel/reactivate a streaming service. With cable, you may be locked into a multi-year contract, installation can be a hassle, and you can forget about knowing when the cable guy is actually going to show up. The affordability and ease of use of a video streaming service makes it a more attractive option for your journey to financial independence.

Get started: Check out PCMag’s “Best Video Streaming Services of 2018” for a comparison of several options. Keep in mind that plenty of streaming services offer free trial periods. Go ahead and give any of them a try, but be careful: You may have to enter your credit card number to access the free trial; do not forget to cancel before your trial is over, or you will be charged.

Taking the time to address what kinds of luxuries can you live without (or enjoy less often) has the potential to make a huge impact on your journey to financial independence. Cutting back here and investing in yourself there – who knows where you’ll be this time next year.

Where are you going to start indulging less?

  • Share:

Are Gym Memberships Worth It?

Are Gym Memberships Worth It?

Let’s face it—we’ve all botched a New Year’s fitness resolution.

Sure, we started the year with great intentions and a few gym visits, but it didn’t take long for our resolve to waver and we never returned. However, many of us have kept that membership around. After all, we paid so much to sign up that we might as well hold on to it just in case our motivation comes back, right?

Wrong.

It turns out that gym membership might have been a bad value right from the start. But how can you tell? Here’s a few things to consider if you’re thinking about finally moving on from your overly ambitious New Year’s resolution.

How gym memberships work
Gym memberships seem pretty simple on the surface; you pay once a month for access to gym equipment during operating hours. But annual fees and initiation fees can add up pretty quickly, meaning that you can potentially sink hundreds of dollars into a gym. National gym chains may range in price from $164 to $1,334 per year, but the national average comes out to $696 annually. Plus, some gyms make you sign a contract locking you into a year-long membership. You have to pay for the membership regardless if you work out!

The big question: Are you paying for something you won’t use?
Gym memberships are more cost effective the more you take advantage of them. Going to the gym seven times a week at an average priced gym? Let’s do the math. You’ll pay $1.90 per visit. Go four times per week? $3.36 (1).

But let’s say you visit the gym about four times per month for an hour-long sweat session. You’ll wind up spending $14.50 per hour! To put that in perspective, we spend an average of $0.28 on Netflix per hour. Sitting around watching TV is far more cost effective than working out.

Alternatives to gym memberships
So what can you do if you want to get fit but don’t want the potential financial black hole of a gym membership? It’s often cheaper in the long run to build your own gym at home rather than getting a membership. You also might want to see if your apartment or office has a serviceable gym. If all else fails, you can always do body weight exercises. You might be surprised by how grueling and intense push-ups and squats can be!

The bottom line is that the keys to making your gym membership worth it are motivation and discipline. The cost of buying a membership isn’t enough incentive (2). You have to find a deeper drive to get you in the gym week in and week out. Check out the costs of your local gym, weigh the alternatives, and ask yourself why you want to start working out before you sign that contract!

  • Share:

Habits of Successful People

Habits of Successful People

Successful people come from all types of backgrounds.

But did you know there are certain habits they tend to have in common? What’s better yet, they’re mostly practices that don’t require a huge budget to start doing. Here are three concrete ways that you can imitate the wealthy—starting today!

Wake up early (but also get enough sleep)
Let’s establish right away that most people shouldn’t wake up at four in the morning if you’re going to bed at midnight. Lack of sleep can exacerbate or cause dozens of health and mental issues ranging from obesity to depression (1). That’s the exact opposite of what rising with the sun is supposed to do!

The primary perk of going to bed early and waking up early is that it helps give you control of your day. You’re not simply rolling out of bed forty-five minutes before work and coming home too tired to do anything useful. Instead, you get to devote your most productive hours to something that you care about, whether that’s meditating, working on a passion project, or exercising. Speaking of which…

Exercise
Exercise is something that the successful tend to prioritize. One survey found that 76 percent of the wealthy devoted 30 minutes or more a day to some kind of aerobic exercise (2). It seems obvious, but working out doesn’t just improve physical health; it can help ward off depression and increase mental sharpness (3). It’s no wonder so many successful people make time to exercise.

Read
Almost 9 out of 10 wealthy people surveyed said they devote thirty minutes a day to reading. Why? It turns out that it can improve mental awareness and helps keep your brain fine-tuned (4). But reading can also be a valuable way of expanding your perspective, learning new ideas, and drawing inspiration from unexpected places.

Some of these habits might seem intimidating. Switching your bedtime back three hours so you can wake up before sunrise is a big commitment, as is working out consistently or reading books if you’re just used to scanning social media. Try starting off small. Get out of bed thirty minutes earlier than usual for a week and see if that makes a difference. One day a week at the gym is much better than zero, and reading a worthwhile article (like this one!) might pique your appetite for more. Whatever your baby step is, keep expanding on it until you’re an early rising, iron-pumping, and well-read machine!

  • Share:

Are You Sitting Down?

Are You Sitting Down?

When things go wrong or we face an unexpected expense, we usually have one of two choices: Use credit to navigate a short-term cash crunch, or dip into savings.

In either case, it’s a good idea to have liquid funds available. Using credit can actually make your money problem worse if you don’t have enough to pay off the balance each month to avoid incurring interest charges. If you use savings but don’t have a comfortable cushion put away, repairing your home’s ancient A/C system may deplete your emergency stores, leaving you with nothing to replace the washer and dryer that decided to break down at the same time.

Ideally, you’ll have enough money saved to cover the unexpected. However, if you’re like many American households, that may not be the case. The U.S. personal savings rate continues to fall.

National Savings Rate
The savings rate is calculated as the ratio of personal savings to disposable personal income. In March 2018, the U.S. personal savings rate was about 3%. So – is that high? Is it low? Get this: The personal savings rate has fallen nearly 50% in the past two years. Tracking the monthly savings rate back to 1959 shows that we’re not as good at saving as we used to be. In the past, the long-term average personal savings rate was over 8%, with some periods of time when it was over 15%. Kind of shames our current 3% savings rate, doesn’t it?

The national personal savings rate is also skewed by higher income savers, with the top 1% saving over 51% and the top 5% saving nearly 40% of their disposable income. Unsurprisingly, lower income families can have more difficulty with saving, as most of their paycheck is often already earmarked for basic bills and normal household expenses.

A recent survey by GOBankingRates found that nearly 70% of Americans have less than $1,000 saved and more than a third have nothing saved at all. Yikes. Age and levels of responsibility can influence savings rates. Anyone with a growing family – particularly a homeowner or a household with children – knows that surprise expenses aren’t all that surprising because the surprises just keep coming. This can put pressure on the best laid plans to try to increase savings.

How to Save More
If you have a 401(k), your contribution to it comes from a payroll deduction, meaning your 401(k) contribution is paid first – before you get the rest of your paycheck. If you have a 401(k) or a similar type of retirement account, there are lessons that can be borrowed from that account structure which can be used to help build your personal savings.

Paying yourself first is a great way to begin building your emergency fund, which can leave you better prepared for the proverbial rainy day. If you look at your monthly expenses, and if your household is like most households, you’re almost certain to find some unnecessary spending.

Start paying yourself first – by putting some money aside in a separate account or a safe place. This can help prevent some of those unnecessary expenditures (because there won’t be money available) while also leaving you better prepared.

The next time the car needs repairs, the A/C stops working, the fridge stops freezing, or the lawnmower breaks down, you’ll be ready – or at least you’ll be in a better position to bail yourself out!

  • Share:

The Black Hole of Checking (Part 2)

The Black Hole of Checking (Part 2)

Previously on “The Black Hole of Checking”…

In Part 1, we learned that any object pulled into a black hole will be stretched into the shape of spaghetti through a process called – wait for it – spaghettification. If you threw your shoe into it, the black hole’s gravity would stretch and compress your footwear into an unimaginably thin leather noodle as it was pulled deeper and deeper into the hole. Your shoe would be unrecognizable by the time gravity had its way.

The same thing can happen to the money in your checking account. Having a child, replacing an old automobile with something newer and more reliable, or taking a last-minute trip to see the grandparents in Florida over the holidays, can put a strain on your finances and stretch your reserves farther than you might have anticipated. As new bills create a bigger and bigger hole in your budget, your financial strategy may become something you don’t recognize.

Here in Part 2, let’s talk about how assigning an identity to your money can keep your financial goals on track, and help reduce the stretching of finite resources.

For example, say you keep all of your money in your checking account. Simple is better, right? If you want to go on a family vacation, you’ll just withdraw the funds from your account. Paying in cash to secure a “great” package deal up front? You’re all over that. But what happens if you pick up some souvenirs for Uncle Bob and Aunt Alice? Hmmm…if you get something for them you’ll have to get something for Greg and Susan too. (You’ll never make that mistake again.) And you just have to try that chic little cafe that you read about – you may never pass this way again. (But how can they get away with charging that much for a mimosa?!) Buy One, Get One all day pass at “The Biggest Miniature Museum in the World”? Let’s do it!

When you’re on vacation – having fun and enjoying yourself – it might be hard to resist taking advantage of unique experiences or grabbing those unusual gifts you didn’t account for. On the other hand, you may have no problem being thrifty when travelling, but what if someone gets sick or injured and needs hospital care on the road, or the car breaks down, or there is unexpected bad weather and you have to stay an extra day or two at the hotel?

After it’s all said and done, when you return home from your fun-filled trip, you may find a gaping hole where you had a pile of cash at the beginning of the month. If you had given your money a specific role before you planned your vacation, you may not have had such a shock when you got home – and you can enjoy your memories knowing you stayed on track with your financial goals.

Give your money identity, purpose, and the potential to grow by separating it into designated accounts. Try these 3 for starters:

1. Emergency Fund. Leaky roof? Flat tire? Trip to the emergency room? Maybe you’re great at resisting impulse buys (like those fabulous shoes you spied the other day), but sometimes things happen that are out of your control. Your emergency fund is for situations like these. Unexpected, unplanned-for expenses can derail a financial strategy very quickly if you’re not prepared.

The most important thing to keep in mind about this account? Do. Not. Touch. It. Unless there’s an emergency, of course. Then replace the money in the account as quickly as possible until it’s fully funded again.

How much should you keep in your emergency fund? A good rule of thumb is to shoot for at least $1,000, then build it to 3-6 months of your annual income. However much you decide suits your financial goals, just make sure you aren’t dipping into it when you don’t have an emergency. (Note: Grabbing a great pair of heels on sale is not an emergency.)

2. Retirement Fund. If you want to retire at some point (and most of us do), this one is a no-brainer. Odds are you’ve already begun to set aside a little something for the day you can trade in your suit and tie for a Hawaiian shirt and a pair of flip-flops, but is your retirement fund in the right place now? Unlike a day-to-day checking account with a very low or non-existent interest rate, your retirement fund should be in a separate account that has some power behind it. You’re taking the initiative to put away money for your future – get it working for you! Your goal should be to grow your retirement fund in an account with as high of an interest rate as you can find.

3. Fun Fund. This category may seem frivolous if you’re trying to stick to a well-structured financial plan, but it’s actually an important piece that can help make your budget “work”! Depending on your priorities, you might contribute a little or a lot to this account, but making some room for fun might make it more palatable to save long-term.

You might try setting aside 10% of your paycheck for fun and entertainment and see how that works – is that too much or not enough? Bonus: this is easy to calculate each month. If you’re bringing in $2,000 per month, put no more than $200 in your Fun Fund.

What you do with your Fun Fund is your choice. Will it be more of a vacation fund or a concert fund? A wardrobe fund or a theme park fund? It’s all up to you. And when the rest of your money has a purpose and is growing for your future, you might feel less guilty about snagging those hot shoes you’ve had your eye on when they finally do get marked down.

Don’t let your goals and your money get lost in a black hole of coulda, woulda, shoulda. What kind of purpose do you want to give your money? I can help!

  • Share:

Putting a Wrap On the Sandwich Generation

July 15, 2019

Putting a Wrap On the Sandwich Generation

Ever heard of the “Sandwich Generation”?

Unfortunately, it’s not a group of financially secure, middle-aged foodies whose most important mission is hanging out in the kitchens of their paid-off homes, brainstorming ideas about how to make the perfect sandwich. The Sandwich Generation refers to adults who find themselves in the position of financially supporting their grown children and their own parents, all while trying to save for their futures. They’re “sandwiched” between caring for both the older generation and the younger generation.

Can you relate to this? Do you feel like a PB&J that was forgotten at the bottom of a 2nd grader’s backpack?

If you feel like a sandwich, here are 3 tips to help put a wrap on that:

1. Have a plan. In an airplane, the flight attendants instruct us to put on our own oxygen mask before helping someone else put on theirs – this means before anyone, even your children or your elderly parents. Put your own mask on first. This practice is designed to help keep you and everyone else safe. Imagine if half the plane passed out from lack of oxygen because everyone neglected themselves while trying to help other people. When it comes to potentially having to support your kids and your parents, a solid financial plan that includes life insurance and contributing to a retirement fund will help you get your own affairs in order first, so that you can help care for your loved ones next.

2. Increase your income. For that sandwich, does it feel like there’s never enough mayonnaise? You’re always trying to scrape that last little bit from the jar. Increasing your income would help stock your pantry (figuratively, and also literally) with an extra jar or two. Options for a 2nd career are everywhere, and many entrepreneurial opportunities let you set your own hours and pace. Working part-time as your own boss while helping get out of the proverbial panini press? Go for it!

3. Start dreaming again. You may have been in survival mode for so long that you’ve forgotten you once had dreams. What would you love to do for yourself or your family when you have the time and money? Take that vacation to Europe? Build that addition on to the house? Own that luxury car you’ve always wanted? Maybe you’d like to have enough leftover to help others achieve their own dreams.

It’s never too late to get the ball rolling on any of these steps. When you’re ready, feel free to give me a call. We can work together to quickly prioritize how you can start feeling less like baloney and more like a Monte Cristo.

  • Share:

6 Financial Commitments EVERY Parent Should Educate Their Kids About

6 Financial Commitments EVERY Parent Should Educate Their Kids About

Your first lesson isn’t actually one of the six.

It can be found in the title of this article. The best time to start teaching your children about financial decisions is when they’re children! Adults don’t typically take advice well from other adults (especially when they’re your parents and you’re trying to prove to them how smart and independent you are).

Heed this advice: Involve your kids in your family’s financial decisions and challenge them with game-like scenarios from as early as their grade school years.

Starting your kids’ education young can help give them a respect for money, remove financial mysteries, and establish deep-rooted beliefs about saving money, being cautious regarding risk, and avoiding debt.

Here are 6 critical financially-related lessons EVERY parent should foster in the minds of their kids:

1. Co-signing a loan

The Trap: ‘I’m in a good financial position now. I want to be helpful. They said they’ll get me off the loan in 6 months or so.’

The Realities: If the person you’re co-signing for defaults on their payments, you’re required to make their payments, which can turn a good financial situation bad, fast. Also, lenders are not incentivized to remove co-signers – they’re motivated to lower risk (hence having a co-signer in the first place). This can make it hard to get your name off a loan, regardless of promises or good intentions. Keep in mind that if a family member or friend has a rough credit history – or no credit history – that requires them to have a co-signer, what might that tell you about the wisdom of being their co-signer? And finally, a co-signing situation that goes bad may ruin your credit reputation, and more tragically, may ruin your relationship.

The Lesson: ‘Never, ever, EVER, co-sign a loan.’

2. Taking on a mortgage payment that pushes the budget

The Trap: ‘It’s our dream house. If we really budget tight and cut back here and there, we can afford it. The bank said we’re pre-approved…We’ll be sooo happy!’

The Realities: A house is one of the biggest purchases couples will ever make. Though emotion and excitement are impossible to remove from the decision, they should not be the driving forces. Just because you can afford the mortgage at the moment, doesn’t mean you’ll be able to in 5 or 10 years. Situations can change. What would happen if either partner lost their job for any length of time? Would you have to tap into savings? Also, many buyers dramatically underestimate the ongoing expenses tied to maintenance and additional services needed when owning a home. It’s an accepted rule of thumb that home owners will have to spend about 1% of the total cost of the home every year in upkeep. That means a $250,000 home would require an annual maintenance investment of $2,500 in the property. Will you resent the budgetary restrictions of the monthly mortgage payments once the novelty of your new house wears off?

The Lesson: ‘Never take on a mortgage payment that’s more than 25% of your income. Some say 30%, but 25% or less may be a safer financial position.’

3. Financing for a new car loan

The Trap: ‘Used cars are unreliable. A new car will work great for a long time. I need a car to get to work and the bank was willing to work with me to lower the payments. After test driving it, I just have to have it.’

The Realities: First of all, no one ‘has to have’ a new car they need to finance. You’ve probably heard the expression, ‘a new car starts losing its value the moment you drive it off the lot.’ Well, it’s true. According to Carfax, a car loses 10% of its value the moment you drive away from the dealership and another 10% by the end of the first year. That’s 20% of value lost in 12 months. After 5 years, that new car will have lost 60% of its value. Poof! The value that remains constant is your monthly payment, which can feel like a ball and chain once that new car smell fades.

The Lesson: ‘Buy a used car you can easily afford and get excited about. Then one day when you have saved enough money, you might be able to buy your dream car with cash.’

4. Financial retail purchases

The Trap: ‘Our refrigerator is old and gross – we need a new one with a touch screen – the guy at the store said it will save us hundreds every year. It’s zero down – ZERO DOWN!’

The Realities: Many of these ‘buy on credit, zero down’ offers from appliance stores and other retail outlets count on naive shoppers fueled by the need for instant gratification. ‘Zero down, no payments until after the first year’ sounds good, but often may bite back in the end. Accepting an offer can require a full rate of interest to be paid dating back to the day of the purchase if a single payment is missed. Shoppers who fall for these deals don’t always read the fine print before signing. Retail store credit cards can be enticing to shoppers who are offered an immediate 10% off their first purchase when they sign up. They might think, ‘I’ll use it to establish credit.’ But that store card can have a high interest rate. Best to think of these cards as putting a tiny little ticking time bomb in your wallet or purse.

The Lesson: ‘Don’t buy on credit what you think you can afford. If you want a ‘smart fridge,’ save up and pay for it in cash. Make your mortgage and car payments on time, every time, if you want to help build your credit.’

5. Going into business with a friend

The Trap: ‘Why work for a paycheck with people I don’t know? Why not start a business with a friend so I can have fun every day with people I like building something meaningful?’

The Realities: “This trap actually can sound really good at first glance. The truth is, starting a business with a friend can work. Many great companies have been started by two or more chums with a shared vision and an effective combination of skills. The danger can center around maturity. If either of the partners isn’t prepared to handle the challenges of entrepreneurship, the outcome might be disastrous, both financially and relationally. It can help if inexperienced entrepreneurs are prepared to:

  • Lose whatever money is contributed as start-up capital
  • Agree at the outset how arguments will be resolved
  • Not always talk business around friends and family
  • Clearly define roles and responsibilities
  • Sign a well-thought-out, legally sound operating agreement

The Lesson: ‘Understand that the money, pressures, successes, and failures of business have ruined many great friendships. Consider going into business individually and working together as partners, rather than co-owners.’

6. Signing up for a credit card

The Trap: ‘I need to build credit and this particular card offers great points and a low annual fee! It will only be used in case of emergency.’

The Reality: There are other ways to establish credit, like paying your rent and car loan payments on time. The average American household carries a credit card balance averaging over $16,000 dollars. Credit cards can lead to debt that may take years (or decades) to pay off, especially for young people who are inexperienced with budgeting and managing money. The point programs of credit cards are enticing – kind of like when your grocer congratulates you for saving five bucks for using your VIP shopper card. So how exactly did you save money by spending money?

The Lesson: ‘Learn to discipline yourself to save for things you want to buy and then pay for them with cash. Focus on paying off debt – like student loans and car loans – not going further into the hole.’

  • Share:

What is your #1 financial asset?

May 8, 2019

What is your #1 financial asset?

What is your #1 financial asset? It’s not your house, your retirement fund, or your rare baseball card collection gathering dust.

Your most valuable financial asset is YOU!
Today – Labor Day, the unofficial last day of summer – let’s look at ways you can develop your skills and outlook in the workforce as we move from summertime vacation mode into finishing 2018 strong.

You might be savvy at home improvement, you might be a whiz with your finances, or you might have the eye to spot a hidden treasure at a yard sale, but how do you increase your value as a laborer in the workforce? One of the top traits of successful people is that they come up with a plan and they execute. Waiting for things to happen or taking the crumbs life tosses their way isn’t on their to-do list. Whether you’re dreaming of a secure future for yourself and your family, or if you want to build a career that enables you to help others down the road (or both!), the path to your goal and how fast you get there is up to you.

Increase your value as an employee
Working for someone else doesn’t have to feel like a prison sentence. In a recent study, nearly 60% of entrepreneurs worked full time as an employee for someone else while planning and building their own business on the side. Being employed is a chance to learn alongside experienced mentors, and prime time to experiment with how you can best add value. In many cases, successful entrepreneurs spent their time in the workforce amassing a wealth of information on how businesses are run, making mental notes on what doesn’t work, and practicing what can be done better.

View your time as an employee as an opportunity to hone your problem solving skills. It’s a mindset – one that can make you a more valuable employee and prepare you for great things later. Being seen as a problem solver can grant you more opportunity for promotions, pay increases, greater responsibility, and perhaps most importantly, open up more chances for life-enriching experiences.

Build your financial strategy
While you’re working to increase your value as a laborer, you’ll benefit from steady footing before taking your next big step. This is where building a solid financial strategy comes into play. Nearly everyone has the potential to be financially secure. Where most find trouble is often due to not having a plan or not sticking to the plan. A few simple principles can guide your finances, setting you up for a future where you have freedom to choose the life you envision.

  • Pay yourself first. Starting early and continuing as your earnings grow, begin the habit of paying yourself first. Simply, this means putting away some money every month or every paycheck that can help you reach your financial goals over time. Ideally, this money will be invested where it can grow. The goal is to get the money out of harm’s way, where you would have to think twice before dipping into your savings before you spend.
  • Develop a budget and consider expenses carefully. Think about expenditures before opening your wallet and swiping that credit card. Avoid debt wherever possible. Most people are able to have more money left over at the end of the month than they might realize. Don’t be afraid to tell yourself “no” so you can reach a bigger goal.
  • Plan for loved ones with life insurance. Here is where the value you provide your family through your hard work comes into sharp focus. Life insurance is essentially income replacement, should the worst happen. Meet with your financial professional and put a tailored-to-you life insurance policy in place that assures your family or dependents are taken care of.

Put your skills to work as a leader
Once you’ve established a level of financial security, now is the time to think about giving back by providing opportunities and helping others to realize their goals. There’s an old saying: “You’ll never get rich working for someone else.” While that’s not always true, trying to realize your long-term financial goals in an entry-level position might be an uphill climb. Moving up into a leadership position can teach you new skills and can increase your earning power. The average salary for managers approaches six figures!

You might even be ready to branch out on your own, investing the knowledge and leadership skills you’ve gained over the years in your own venture. Consider becoming an entrepreneur with your own financial services business – this can allow you to help others while building on your continuing success as a financial professional.

Whether you choose to strike out on your own, start a new part-time business, or grow within the organization or industry you’re in now, there are key traits that will help you succeed. Having a future-driven, forward-thinking mindset will guide your decisions. Your sense of commitment and the leadership skills you’ve honed on your journey will define your career – and perhaps even your legacy – as others learn from your example and use the same principles to guide their own success.

  • Share:

How young people can use life insurance

December 10, 2018

How young people can use life insurance

Sometimes life insurance doesn’t get the credit it deserves.

Most of us know it’s used to replace income if the worst were to happen, but that’s about it. If you’re in your twenties and just starting out on your own, especially if you’re single or don’t have kids yet, you might be thinking that getting a life insurance policy is something to put off until later in life.

On closer inspection however, life insurance can be a multi-faceted financial tool that has many interesting applications for your here-and-now. In fact, there’s probably a life insurance policy for most every person or situation.

Read on for some uses of life insurance you may be able to take advantage of when you’re young – you might find some interesting surprises!

Loan collateral: If you have your eye on entrepreneurship, life insurance can be of great service. Some types of business loans may require you to have a life insurance policy as collateral. If you have an eye on starting a business and think you may need a business loan, put a life insurance policy into place.

Pay off debt: A permanent life insurance policy has cash value. This is the amount the policy is worth should you choose to cash it in before the death benefit is needed. If you’re in a financial bind with debt – maybe from unexpected medical expenses or some other emergency you weren’t anticipating – using the cash value on the policy to pay off the debt may be an option. Some policies will even let you borrow against this cash value and repay it back with interest. (Note: If you’re thinking about utilizing the cash benefit of your life insurance policy, talk to a financial professional about the consequences.)

Charitable spending: If a certain cause or charity is near and dear to you, consider using the death benefit of a life insurance policy as a charitable gift. You can select your favorite charity or nonprofit organization and list them as a beneficiary on your life insurance policy. This will allow them to receive a tax-free gift when you pass away.

Leave a legacy of wealth: A life insurance policy can serve as a legacy to your beneficiaries. Consider purchasing a life insurance policy to serve as an inheritance. This is a good option if you are planning on using most or all of your savings during your non-working retirement years.

Mortgage down payment: The cash value of a whole life policy may be able to be used for large expenses, such as home buying. A whole life policy can serve as a down payment on a home – for you or for your children or grandchildren.

Key man insurance: Key man insurance is a useful tool for businesses. A key person is someone in your business with proprietary knowledge or some other business knowledge on which your business depends.

A business may purchase a life insurance policy on a key man (or woman) to help the business navigate the readjustment should that person die unexpectedly. A life insurance policy can help the business bridge that time and potential downturn in income, and help cover expenses to deal with the loss.

Financing college education: With the rising cost of college tuition, many families are looking for tools to finance their children’s college education. You may consider using the cash value of your life insurance policy to help with college tuition. Just remember to account for any possible tax implications you may incur.

Life insurance policies have many uses. There are great applications for young people, business owners, and just about anyone. Talk to a financial professional about your financial wishes to see how a life insurance policy can work for you.

  • Share:


Read all of your policy documents carefully so that you understand what situations your policies cover or don’t cover. This article is for informational purposes only and is not intended to promote any certain products, plans, or strategies for saving and/or investing that may be available to you. Before purchasing an insurance policy, seek the advice of a financial professional, accountant, and/or tax expert to discuss your options and the consequences with use of the policy.

Are you stressed about saving for retirement?

October 22, 2018

Are you stressed about saving for retirement?

Most of us might feel at least a little anxiety when the subject of preparing for retirement comes up.

Many Americans feel like they haven’t saved enough. In fact, 79% of American workers plan on working longer to make up for what they haven’t saved.[i]

But anticipating staying in the workforce may not be the best strategy when it comes to funding your golden years. Why? Because there are many unforeseen events that can affect your ability (or desire) to work – health problems, caretaking, loss of opportunity in your field… or just wanting to spend time with your grandkids or travel with your partner.

With so much uncertainty, it’s no wonder many Americans feel stressed, burdened, and unprepared when it comes to saving for retirement.

But don’t let retirement worries steal your joy. When it comes to saving for retirement there are a lot of choices you can make to help you prepare. Read on for some principles and tips that may help lessen your stress about the future.

Small changes add up
Retirement saving may seem like an insurmountable task when faced with the high cost of daily life. It’s easy to think we can’t afford to save for retirement and get stuck in a pattern of defeat. But small changes over time can add up to big results.

Shake off despair by implementing small strategies. Consistent saving adds up over time, and it can help build your finance muscle. Read on for some more easy tips.

Direct deposit
Set up a portion of your direct deposit to go straight into a savings account. This is a “set it and forget it” savings strategy, and you’ll be amazed how quickly it can build.

Save found money
Found money is extra cash that comes your way outside of your normal income. It can be from bonuses, gifts, or even a side gig. You weren’t planning on receiving that money anyway, so throw it right into your savings.

Practice frugality
Instead of becoming stressed out and hyper-focused on saving every possible penny, practice frugality. Frugal living can put your energy into something positive – creating a new habit and lifestyle. Also, frugal habits may help prepare you for living on a fixed income during retirement. Try these tips for starters:

Consider downsizing your home
Cut back or eliminate “extras” such as dining out, movies, and concerts When making a purchase, use any available coupons or discount codes Seek sources of free entertainment such as community festivals or neighborhood gatherings

Hire a financial professional
If no matter what you do you still can’t help feeling unprepared and stressed about your retirement, consider hiring a financial professional.

A financial professional may be able to help you change your perspective on preparing for retirement and help empower you with strategies custom made for you.

Remember, financial professionals work with people of all income levels, so don’t hesitate if you need help to get a handle on your retirement. They may assist with:

  • Creating a budget
  • Setting up savings accounts
  • Clarifying your retirement goals
  • Strategies for eliminating debt

Change your perspective on preparing for retirement
If you’re anxious about having enough money for your retirement, try changing your perspective. Focus on small goals and lifestyle habits. Frugality, consistent savings, and solid financial strategies may help take the stress out of retirement planning.

Consistency over time is the name of the game with retirement savings. So implement a few strategies that you can live with now.

  • Share:

Budget Like a Rock Star with Your First Job

October 15, 2018

Budget Like a Rock Star with Your First Job

Congratulations! Landing your first full-time job is exciting, especially if you’ve been dreaming of that moment throughout college.

Now you can loosen your belt a little and not spend so much brain power on creative ways to make ramen noodles. But before you go and start spending on the things you’ve had to skimp on in school, it’ll be worth it to take a breath, do some self-examination, and create a budget first.

This is probably the absolute best time in your life to start a habit of budgeting that will last you a lifetime – before life gets more complicated with a family, mortgage, etc. If you become a whiz at your personal financial strategy, tackling all the things that life will bring your way may (hopefully) go a lot smoother.

So here are a few tips on setting up your budget with your first job:

1. Think about why you want a budget
It may sound silly, but knowing why you’re putting yourself on a budget will help you stick to it when temptations to overspend flare up. Beginning a budget early in life when you start your first job will help lay the foundation for responsible financial management.

Think about your goals here. Having a budget will help you (when the time is right) to acquire things like a home, new car, or a family vacation to the islands. Budgeting can also help you enjoy more immediate wants, like a designer handbag or new flat screen TV.

2. Get familiar with your spending
You can’t create a budget without knowing your expenses. Take a good, hard look at not just your income but also your “outgo”. Include all your major expenses of course – rent, insurance, retirement savings, emergency funds. But don’t forget about miscellaneous expenses – even the small ones. That coffee on the way to work – it counts. So does the $3.99 booster pack in your favorite phone game.

Track your expenses over the course of a couple of weeks to a month. This will give you insight into your spending, so your budget is accurate.

3. Count your riches
Now that you have your first job, add up your income. This means the money you take home in your paycheck – not your salary before taxes. Income can also include earnings from side jobs, regular bonuses, or income investment. Whatever money you have coming in counts as income.

4. Set your budget goals
Give yourself permission to dream big here and own it! Set some financial goals for yourself – and make them specific and personal. For example, don’t make “save up for a house” your goal because it’s not specific or personal. Think about the details. What type of house do you want, and where? When do you see yourself purchasing it?

For example, your budget goal may look something like this: “Save $20,000 by the time I’m 27 for a down payment on an industrial loft downtown.“ A good budget goal includes an amount, a deadline, and a specific and detailed outcome.

5. Use a tracker
A budget tracker is simply a tool to create your budget and help you maintain it. It can be as simple as a pen and paper. A budget tracker can also be an elaborate spreadsheet, or you can use an online tool or application.

The best budget tracker is the one you’ll stick to, so don’t be afraid to try a few different methods. It may take some trial and error to find the one that’s right for you.

6. Put it to the test
Test your budget and tracking system to see if it’s working for you. Try to recognize where your pitfalls are and adjust to overcome them, but don’t give up! It’s something your future self will thank you for.

7. Stick to it
Creating a budget that works is a process. Take your time and think it through. You’re probably going to need to tweak it along the way. It’s ok!

The best way to think about a budget is as an ongoing part of your life. Make it your own so that it works for your needs. And as you change – like when you get that promotion – your budget can change with you.

  • Share:

Inflation Over Time and What it Means for Retirement

September 24, 2018

Inflation Over Time and What it Means for Retirement

You may have thought that inflation is always bad, but did you know that sometimes it can be good?

Inflation is simply the difference in prices from one year to the next over time. It’s calculated as a percentage and it goes through cycles:

  • Two percent inflation is actually seen as economic growth and is considered “healthy” inflation.
  • As inflation expands beyond three percent it creates a peak and financial bubbles can form.
  • If the percentage falls below two percent, inflation may be seen as negative and recessions can develop.
  • Finally, there is a trough preceding another cycle expansion.

(If you want to geek out about inflation rates, check out a history from 1929 to 2020 at https://www.thebalance.com/u-s-inflation-rate-history-by-year-and-forecast-3306093.)

Good or bad, inflation should be a concern for everyone in the United States. The economy affects us all, but it can be particularly troubling for seniors living in retirement, or who are about to enter retirement. This is because retirement is usually based on a fixed income budget. Inflation can decrease the purchasing power of retirees, especially for goods and services that increase with inflation.

Here are some tips to protect your retirement income from the effects of inflation over time:

Maximize Your Social Security
Social security benefits have a cost of living/inflation increase built into the disbursement. So, as inflation goes up and the cost of living rises, so too does your social security.

This can be beneficial while you’re on a fixed retirement income. Because this is the only retirement investment with this feature, try to maximize your social security earnings by working until age 70 if you can.

Select Investments that May Grow When Inflation Rises
While living expenses such as gas, groceries, and utilities might rise with inflation, some investments may offer better returns as inflation rises. This is another reason a diverse retirement portfolio might be beneficial.

Minimize Expenses to Combat Rising Inflation
While none of us can affect the inflation rate itself, we can all work to minimize our expenses during our retirement years. Maximizing your income and minimizing your expenses is the name of the game when you’re living on a fixed budget.

Minimizing housing costs is a strategy to deal with inflation and rising prices. Downsize your home if possible. Perhaps investing in a renewable energy source may help save money on energy expenses. A simple kitchen garden can save you money on groceries – a budget item that can take a big hit from inflation.

The Ebb and Flow of Inflation Over Time
Over time, inflation waxes and wanes. A little planning, diversified investments, and consistent frugality may help you sail through inflation increases during your retirement years.

This article is for informational purposes only and is not intended to promote any certain products, plans, or strategies for saving and/or investing that may be available to you. Market performance is based on many factors and cannot be predicted. Before investing, talk with a financial professional to discuss your options.

  • Share:

Take your dream vacation, without causing a retirement nightmare

September 10, 2018

Take your dream vacation, without causing a retirement nightmare

Now that the kids are out of the house, maybe you and your spouse want to take that once-in-a-lifetime island-hopping cruise.

Or maybe your friends are planning a super-exciting cross-country road trip to see all the sites you learned about in school. It can be tempting to skim a little off the top of your retirement savings to fund that dream vacation and make it happen. But whatever your vacation dream is, you shouldn’t sacrifice your retirement savings to live it.

This isn’t to say you shouldn’t take that trip. Vacation is important to health and wellbeing. If anything, studies show that Americans aren’t taking enough vacation during the year.

But, for those that do take a break, many are going into debt to do it, sadly enough. A survey by the financial planning platform LearnVest asked 1,000 adults how they finance their vacations. The answer? They go into debt.

The study found:¹

  • On average Americans will accrue $1,108 of debt for a vacation.
  • 32 percent said saving money for a vacation was their top financial priority – above saving for a home or retirement!

So, what to do if you’re hungry for travel and need a getaway? Here are some simple strategies to help you save for that vacation, all while protecting your funds for retirement.

1. Follow the $5 a day rule: The $5 a day rule simply means you put a fiver away each day toward your vacation. Most of us could probably scrape together $5 a day just by making coffee at home and bringing a sandwich or two to work each week. If you muster up the discipline to stick to it for a year, you’ll end up with $1,825 – a pretty decent vacation fund.

2. Use a rebate app: Rebates can put cash in your pocket. Try an app like Ibotta.² Just sign up and select the rebates for items you purchase at the stores you frequent. Shop and scan your receipt. The app will put the rebate into an account. You can withdraw the cash through Paypal or Venmo.

3. Cancel the gym: Working out is critical to staying healthy! But ask yourself if you really need that gym membership. Gym memberships can cost anywhere from $35 to more than $100 a month. Consider saving that money for a vacation and start working out at home.

4. Cut down on your food budget: Of course, you gotta eat. But we could all probably tighten up our food budget a bit. Try meal planning and batch cooking. Plan your meals around what’s on sale and in season.

5. Find free entertainment: Can’t live without getting some weekly entertainment? You don’t have to – just look for the free events going on in your community. Consult your local newspaper or town’s website for info on community festivals, outdoor concerts, and art shows.

Keep Calm and Save On
Saving for anything has its challenges. But with a little effort and perseverance, you can have your dream vacation and your retirement, too!

  • Share:

Why It's a Good Idea to Track Your Budget

Why It's a Good Idea to Track Your Budget

So you’re finally on board with this whole budget thing.

You’ve set up your plan. Now you’ve got a budget complete with average historical spending by category. You’ve discussed it with family members, roommates, and anyone else to whom the budget applies. You’ve checked off all the boxes. Yet somehow – at the end of the month, the math isn’t working out. The budget is busted.

What went wrong? Life is full of mysteries, like who left an empty box of cereal in the cupboard? Where are my glasses? Why won’t the baby go to sleep? And, where did all my money disappear to?

For a budget to work well, you’ll need to track it regularly and often. Many times, the reason you made a budget in the first place is that there’s very little room for error with saving and spending your money. A budget’s got to be loved and nurtured, kind of like a garden. Sometimes you have to get out there and pull some weeds or dig up a few rocks to keep it thriving.

Making Your Budget
To make your budget (if you haven’t already), there are several methods you can use. Good old pencil and paper never goes out of style. And it might help you see where you stand a little faster than potentially losing your initial momentum by learning a new “app”. Specialized software or online budgeting tools can be great – but they can also be fiddly if you’re not used to them. Rather than trying to figure out complicated menus and search for hidden buttons from the get-go, you might want to try it on paper first to work through your budget and establish a limit for each category of spending. Writing out your expenditures by hand has the added benefit of helping you face reality. It hurts a little more than automated solutions if you have to write the numbers down in black and white. If you’re good with spreadsheets, Microsoft Excel or Google Sheets can also be used to quickly build a budget without a frustrating learning curve.

Tracking Your Budget
Technology can be friend or foe in the home budget process. Even though you may have started out on paper, when it comes to tracking your spending for the long haul and in real time, technology is definitely a friend.

Mobile apps come in two forms: free and not free. We’ll focus on free apps for now because it’s consistent with the goal of keeping your spending under control.

Mint.com is owned by Intuit, famous for Quicken and Quickbooks software, and makes budget tracking very simple. Mint links to your bank account and other accounts you’d like to track, so you can see a complete view of your finances at a glance either on your mobile device or on your computer. Budgets are set automatically for each category but can be changed easily. Spending and income are also automatically tracked and categorized so you can view your progress – including budget amounts remaining for the month. Cash purchases can be added from the home screen.

Another good option is Clarity Money, which tracks spending by category but also provides an easy way to cancel subscriptions and access your free VantageScore Credit Score (by Experian). Clarity Money was featured by Google Play as a “Best of 2017” and is also available for iOS.

Paper or spreadsheet methods help to make the budgeting process more tangible. Automated tracking makes it easy to monitor your progress against your budget – and to maybe think twice about spending on impulse.

The important thing is to think of your budget like a garden – once you have it planned and laid out, it’s going to take regular maintenance to ensure it stays beautiful.

  • Share:

A Surprising Help After Buying a House

January 2, 2018

A Surprising Help After Buying a House

When I say “buying a house,” what kind of insurance do you think of?

Homeowners insurance. Obvious, right? But there’s another type of insurance you should consider with a few amazing-yet-unexpected benefits for new homeowners. Give up? It’s… life insurance.

Mortgage payments and the cost of upkeep won’t stop with an untimely passing. Life insurance is a significant tool for homeowners because it’s a great way to help protect your loved ones from a sudden and unexpected financial burden. Your family wouldn’t have to lose their home because of missed payments, and if you co-signed a mortgage with someone outside your nuclear family, the benefits of life insurance have the potential to cover your contribution for a time, not leaving that friend or business partner in a financial bind. As for the upkeep of your home, a general rule of thumb is to set aside 1% annually of the purchase price of the house for routine repairs and/or maintenance. For instance, if you paid $250,000 for your home, set aside $2,500 each year. So if you’ve already had to convince yourself that the hole in the roof is almost, sorta, kind of the same as that skylight you always wanted to put in, just imagine what your family might experience if the income you or your spouse provides was no longer available.

Not sure if you have the right policy to help out with your new home in the event of a sudden death? Be sure to talk with a financial professional to make sure you’re financing the future you want – and that you’re doing everything in your power to help your family stay in the house that you’re all working to make a home!

  • Share:

Subscribe to get my Email Newsletter