personal finance deck Flashcards
How does this relate to career choice?
We make a living by what we earn, we make a life by what we give.career choice?
healthy giving
Giving out of excess in your life.
unhealthy giving
When you want to give back or pay it forward and the result is positive emotions
prep
Create a spending plan
money management tools
Statement of Financial Position .
decision making with giving
What other factors should be considered when deciding what and how to give to others?
giving
Giving Throughout the Life Cycle
giving throughout the life cycle
How does giving change throughout the life cycle?
how are they related to giving
financial statements, earnings
financial statements
How does giving change throughout the life cycle?
earning
Choose a career that can help you meet your giving goals
savings and investing
Emergency savings should be established prior to giving
risk management
Ensure you have planned for life events and accounted for such expenses prior to giving
Giving is integral in financial planning
You are better off in a community than by yourself?
what is a living will
A living will has nothing to do with where your assets go.
WHAT IS THE DIFFERENCE BETWEEN A WILL AND A LIVING REVOCABLE TRUST?
A will designates where your assets go upon death. But sometimes you need someone to make these decisions when you get sick. This is why you need a living revocable trust.
what is a holographic will
A holographic will is one you write with your own hand. Suze says they are better than nothing but there are far better alternatives. To avoid problems, set up a living revocable trust and have the trust as the beneficiary of the life insurance policy.
WHAT ABOUT LEAVING MONEY TO MINORS? SHOULD I USE AN IRREVOCABLE TRUST TO PREVENT THEM FROM SPENDING THE MONEY IN THE WRONG PLACES?
When leaving money to minors, like nieces and nephews, find a good successor trustee who can dole out the money. Do not use an irrevocable trust for people you care about. An irrevocable trust can never be changed and you never know when someone you care about may be sick or need financial help. Only use an irrevocable trust for tax purposes.
when should i get a will
Everyone has a will whether you know if or not. The state has already designated where your assets are going if you do not decide for yourself. Suze says everyone needs a will if you have any assets whatsoever. Designate who will get your car, puppy, furniture, etc. Once you have real estate, it is then time for a living revocable trust.
community property states
A married couple should own a home in community property with right of survivorship.
estate tax
Right now in 2008, a parent can pass up to $2 million to a child estate tax free. In the future that is going to change. The amount that can be passed on will increase until 2010 according to the following scale:
term life insurance policy
If you have a policy of which you are the owner, you are insured and your children are the beneficiaries, the life insurance death benefit goes into your estate when you die. This money passes down to your children. If this money is over the estate tax limit, your children are going to have to pay 40%-45% of the insurance policy to estate taxes.
two ways to avoid this
Set up an insurance trust. The insurance trust owns the insurance policy. You are the insured but the owner is the trust. When you die the money goes into the trust, not the estate. The beneficiary of the trust may be your children or whomever you want. This keeps the money from estate taxes. The only downfall is that this type of trust is sometimes expensive to set up.
declaration
[NAME], a legal adult with an address at [ADDRESS], being of competent and sound mind, do hereby declare this to be my last will and testament
BACKGROUND INFORMATION.
At the time of this Last Will & Testament, I am married to [NAME OF SPOUSE], and I have [NUMBER] children who are listed as follows.
exec appointment
I hereby nominate and appoint [EXECUTOR 1 NAME] as Executor/Personal Representative of this Last Will & Testament. Should the aforementioned individual be unavailable, unable or unwilling to serve as Executor/Personal Representative when needed, then I nominate and appoint [EXECUTOR 2 NAME] as the alternate Executor/Personal Representative of this Last Will & Testament. Immediately following my death, the Executor/Personal Representative will be authorized to exercise all provisions of this Last Will & Testament and to use the assets from my estate to make necessary arrangements, without any unnecessary delay, for the payment of personal debts, obligations and funeral expenses.
will
A clear and complete plan of what should happen upon your death
trade ups
What is a trade-off a couple would have to make to leave a solid estate plan for their children?
real estate planning
Must be 18 in most states to create
real estate planning
Letters are preferred over conversation because they have a longer presence
questions to answer
Who do I want making care decisions for me when I can’t make them myself?
questions to answer
If I am injured, what do I want to have happen for my care?
questions to answer
What do I want people to know if something happens to me?
questions to answer
What do I want done with my belongings?
to benefit children under 18
Who would take care of me?
to benefit children under 18
Is there enough money?
to benefit children under 18
What about my siblings?
to benefit children under 18
Who would be my guardian?
who can help plan
This is not an easy subject to discuss and plan for; it is complex and may require help of experts.
who can help
Attorneys can provide you insights for titling documents, wills, etc…
who can help
Accountants can help you determine net worth, see tax advantages
who can help
Certified Financial Planners can help you diversify investments, protect assets
types of wills
Living Will
types of wills
Executor
types of wills
Decedent
types of wills
Beneficiary
types of wills
Testator
types of wills
Fiduciary
estate planning as a gift
Teens are not too young to start
what will you gift
i will help my comunity
