personal finance deck Flashcards
(50 cards)
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
