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You are here: Home / Archives for Personal Finance

Why Your Will Should Be Up To Date

April 8, 2020 by Jacob Sensiba Leave a Comment

With the Coronavirus making its way through countries and countless healthcare systems, it’s a good opportunity to check in with everyone about their will and general estate planning.

We’ve written a couple of posts about the finer details of estate planning, but one of the most important things you can do is make sure that you have an updated will.

Beneficiaries

A beneficiary is anyone that will receive an asset, or assets when you pass away. You will have beneficiaries listed on your retirement accounts and life insurance policies. They can also be added to brokerage accounts via a Transfer on Death (TOD) designation.

It’s important to note that beneficiary designations and TOD designations bypass probate. The assets that the deceased owned at the time of death do not need to go to court. They go directly to the beneficiary (beneficiaries) listed on the account.

So…why is it so important to keep your beneficiaries up to date? The obvious answer is because life changes all the time.

Life Changes

People get married, divorced, re-married, etc. People have kids or marry someone that already has kids. The more grim circumstance is when a beneficiary predeceases you. It’s unfortunate, but something that does happen.

When you assign beneficiaries, there is often a box you can check labeled “per stirpes”. This simply means that if one of your beneficiaries passes before you do, that beneficiaries portion would be received by their children instead.

Not only can changes take place with your beneficiaries, but they can also change with the people you’ve entrusted with your estate. Roles like the power of attorney and executor.

Again, people can pass away before you and/or relationships can fall out of favor.

When it comes to your assets, those change often too. Good or bad years in the stock market can see drastic fluctuations in portfolio value.

Moving will change your residence, but it can also change your net worth depending on the value of your new home and how much you owe on that home. Remember Finance 101? Net worth = assets – liabilities?

Consequences

There could also be consequences for not having an updated will. The wrong beneficiaries could receive assets. Your power of attorney could be your brother and not your sister.

You actually have a much higher net worth than you thought, so now your heirs will have to pay estate taxes. Had you known that, you could have taken advantage of the gift tax exclusion and shared your wealth in order to bring your net worth down to avoid taxes.

To sum things up, you need an updated will because the items within it are going to change…plain and simple.

Related Reading:

How Long Should You Keep Financial Records After Death?

Your Estate and Your Family

Where Your Property Goes When You Die

Jacob Sensiba
Jacob Sensiba

Jacob Sensible is a financial advisor with decades of experience in the financial planning industry.  His journey into finance began out of necessity, stepping up to support his grandfather during a health crisis. This period not only grounded him in the essentials of stock analysis, investment strategies, and the critical roles of insurance and trusts in asset preservation but also instilled a comprehensive understanding of financial markets and wealth management.  Jacob can be reached at: jake.sensiba@mygfpartner.com.

mygfpartner.com/jacob-sensiba-wisconsin-financial-advisor/

Filed Under: Estate Planning, Personal Finance, Planning, Tax Planning

The Exciting Future of Credit Cards: What Are We in Store For?

April 6, 2020 by Susan Paige Leave a Comment

The future of credit cards is fast approaching.

Credit card usage is at an all-time high, with manufacturers changing the landscape of how credit used to be. Credit card companies are more competitive than ever.

With the rise of contactless payment, paperless statements, and electronic banking, technology plays a crucial role in finance. This advancement has quickly changed how we view our finances.

[Read more…]

Filed Under: Personal Finance

COVID-19 Concerns: How to Cover Healthcare Without Insurance

April 6, 2020 by Susan Paige Leave a Comment

Getting proper healthcare is something that most people take for granted. After all, most people get sick at least once a year. No matter what your lifestyle is like, it’s hard to avoid at least coming down with the common cold.

So what should you do when you need to visit your doctor but you don’t insurance? You’ve come to the right place for answers.

[Read more…]

Filed Under: Personal Finance

How and What Affects Credit Rating Negatively

April 1, 2020 by Susan Paige Leave a Comment

 

Credit rating is the evaluation scorecard assigned to a prospective borrower in relation to their credit risk. Borrowers can be individuals, companies, or state governments. This rating is used by lenders to predict the probability that a borrower is likely to pay or default the loan. Credit bureaus, and not the lenders, formulate the score. The analysts in these agencies use the information provided by the prospective borrower, information on the public profile, and other unspecified sources to qualitatively and quantitatively determine the creditworthiness of and individual, state, or company. [Read more…]

Filed Under: Personal Finance

Hacks for Covid-Related Issues

April 1, 2020 by Jacob Sensiba Leave a Comment

Our daily lives have been disrupted. People are working from home, unable to go to the store, or have lost their job.

For those of us that are able to continue living our lives, relatively normal, with some minor inconveniences, we need to adjust.

We need to take advantage of the 21st-century technology available to us. This could be anything from grocery shopping apps, social media, or the apps of your favorite stores.

In this article, we’re going to dive into some of the tools and hacks you can use to help get through this period of quarantine and social distancing.

Grocery Shopping Hacks

There are several hacks you can use to make your trips to the grocery store more efficient and effective.

  1. Get what you need and get out. You HAVE to make a list and you NEED to stick to that list. This isn’t the time to browse or look for sales (more on that in a minute), buy the items on your list and leave.
  2. Plan your route – If there’s a particular store you frequently visit, use that store’s app to plan your route. Personally, I go to Walmart for almost everything. The first thing I do is make my list. Then I go onto the app and start searching for the items on my list. The location marked as “your store” will pinpoint which department, aisle, and shelf position for your item.
  3. Buy in bulk – with items that won’t go bad or if the time in which you need to use it by is several months or years in the future, buy it in bulk. Be careful, however. It is important to do the math. Figure out the “per unit” price and make sure buying in bulk is an economically beneficial decision.
  4. Look up recipes ahead of time that require only a few/minimal ingredients. Ideally, you’ll want to find recipes that require few ingredients that can also make a healthy amount of food. That way you have leftovers. The way I like to think about it is how much does each meal cost?
  5. That brings me to my next point…buy foods you can freeze, or make meals that you can freeze. This gives you food that you can use down the road and also gives you something easy to eat if you’re tired or aren’t feeling well.
  6. One more quick one – Use your knuckles and/or elbows when possible. We all want to stay healthy and avoid passing Covid onto others. Where it makes sense, try not to use your hands.

Grocery Shopping Apps

There are possibly hundreds of grocery shopping apps available, but in doing my research, I found five apps that I thought were extremely useful.

  1. Flipp – Matches coupons from your favorite brands with the weekly flyer from your favorite store.
  2. MealBoard – Manages your recipes, grocery list, and it also keeps track of what you do or don’t have in your pantry.
  3. Grocery Pal – Browse sales and coupons from the stores you frequent, and seamlessly add sale items to your grocery list.
  4. Out of milk – Lets you know what’s in your pantry and what you need to add to your shopping list.
  5. Big Oven – Kind of like a social network for groceries and recipes. Find out what your connections are buying to get inspiration for recipes. You can also type in the ingredients you do have and find some recipes you can make with those ingredients

Working from home

It’s no doubt that we are extremely fortunate to be able to work from home. With all of the technology available, a considerable amount of the workforce is able to tap in from a remote location and still get their stuff done.

As lucky as we may be, working from home comes with its own unique challenges. Here are some hacks for those working from home.

  • Get dressed like you’re going to work – this is something that’ll help you psychologically. It’ll trick your brain into thinking you’re going to work. This helps you frame your mindset for work.
  • Designate a work-space in your home – a psychological trick as well as a means to an end. You can’t work in front of the TV. You need a space where you can actually be productive.
  • Keep a strict schedule (if you can) – Now this isn’t possible for everyone, especially if you have little kids at home that need constant attention. Just do your best. Lean on your family members to watch the kiddos for a little while so you can get some work done. Also, please remember to take breaks. Check-in with friends and colleagues. Try to make your day as normal as possible.
  • Communicate everything – Almost to a fault. Send emails and texts. Make phone calls about anything and everything. We’re so familiar with communicating in person that we don’t realize how much we actually say.

Working together

My favorite part of this post. Writing about the human condition and how in times of crisis we always put our differences aside to help our neighbor.

During this pandemic, do what you can to help your fellow humans. Offer to pool resources together. Share recipes. Have a rotation of who goes to the grocery store.

If you have an elderly neighbor or family member, do everything you can to help them. Go to the store for them. Send letters to loved ones. Send letters to folks in nursing homes and assisted living facilities.

We’re not all scientists, healthcare professionals, retail employees, or other essential professions that are keeping the wheels turning, so we have to do our part in some form or fashion. Be nice.

Reading and Resources:

What are the Advantages and Disadvantages of Saving at a Bank

Feeding America

American Red Cross

CDC Foundation

Direct Relief

Jacob Sensiba
Jacob Sensiba

Jacob Sensible is a financial advisor with decades of experience in the financial planning industry.  His journey into finance began out of necessity, stepping up to support his grandfather during a health crisis. This period not only grounded him in the essentials of stock analysis, investment strategies, and the critical roles of insurance and trusts in asset preservation but also instilled a comprehensive understanding of financial markets and wealth management.  Jacob can be reached at: jake.sensiba@mygfpartner.com.

mygfpartner.com/jacob-sensiba-wisconsin-financial-advisor/

Filed Under: budget tips, Featured, International News, Personal Finance, Psychology, risk management

7 Common Mistakes People Make Regarding Debt Management

March 30, 2020 by Susan Paige Leave a Comment

It isn’t unusual for many people within a single neighborhood to feel overwhelmed by debt. It’s so easy to slip into debt these days that just about every household has had some kind of struggle with repaying a loan, including emergency repairs to homes or autos, unexpected medical bills, or long-lasting student loans.

[Read more…]

Filed Under: Personal Finance

Does Health Insurance Affect Your Taxes?

March 30, 2020 by Susan Paige Leave a Comment

Insurance and tax premiums have one thing in common. We love to hate paying both of them. However, as much as we hate paying these taxes and insurance, paying them is mandatory.

Health insurance is something most Americans can’t live without. Fortunately, there are so many types of health insurance, and the premiums for health insurance are relatively cheaper than other insurance covers.

[Read more…]

Filed Under: Personal Finance

Managing Student Loan Debt: How to Deal With Student Loans

March 30, 2020 by Susan Paige Leave a Comment

The student loan debt in the United States currently stands at around $ 1.6 trillion. This crisis is made worse by the fact that only a small fraction of the 45 million borrowers have been diligent in their repayment plans.

Well, there are varying justifications as to why much of the national student debt loan is still unpaid. Most borrowers remain committed to paying their student loans. However, unemployment and the high cost of living top the list of constraining factors when it comes to adhering to repayment plans.

[Read more…]

Filed Under: Personal Finance

First-Time Home Buyer? Here’s Your Guide to the Home Loan Process

March 30, 2020 by Susan Paige Leave a Comment

Buying your first home is one of the most exciting milestones you’ll ever experience!

It’s so exciting to picture how your life will change when you have your very own place; the holidays spent there, the projects, and the day-to-day memories.

[Read more…]

Filed Under: Personal Finance

My Life and How I Manage Stress

March 25, 2020 by Jacob Sensiba Leave a Comment

This post is going to be very candid. I’m going to highlight what’s been happening in my life recently, how I’ve dealt with it, and what habits really help.

Let’s just tackle the last month, shall we?

I had three things going on all at once.

We’re Moving

First, I ran into an issue at my current apartment. When I was shown the unit, I mentioned that I’d have my dog, Mya, a couple of days per week. The remainder of the time, she’s with my ex-wife.

I looked at the unit in October of 2019 and they were fine with it. Come to find out the Condo Association where I rent has a 25-pound weight limit on dogs. Mya is 75 pounds, so there were a few complaints.

I tried to get them to make an exception and my landlord (the owner of the condo) went to bat for me. I was thankful for that but to no avail.

The choice was to part with the dog or find a new place to live. My son and I love Mya, so it was a pretty easy decision. We’re moving.

Thankfully, we were able to find a place pretty quickly. Our new home has more space and a basement, and that’s something I’ve wanted for my son so he has plenty of room to play when the weather is crappy.

Investment Property #1

Second, my old house (the one my ex-wife and I own) is being rented. It’s March 24, 2020, as I’m writing this and our tenants have moved in.

There was a strong push to get everything done sooner than I anticipated because of the Covid-19 situation. They (the tenants) wanted to get as far away from the city as possible, and our house is 45 minutes from the nearest “big” city. They moved in, a week or so ahead of schedule.

I busted my butt to try and get the house ready for them, but that had to be done when I had free time. Outside of business hours and outside of when I had my son. That left me with two nights per week and all day Sunday.

It was a lot of work, but I’m happy to say that I got it all done. The tenants are pleased and I’m looking forward to providing a lovely home for them.

The Market

Third, the elephant in the room. Covid-19. There has not been much of an impact on me personally. My lifestyle hasn’t changed much, though, I’m not sure what that says about my lifestyle.

I avoid going out as much as I can. I also forego taking my son to his favorite play place on Wednesdays.

Outside of that, it’s created an extraordinary amount of volatility in the markets. Thankfully, I prepared clients ahead of time, in terms of proper asset allocation and mentality.

On the other side of things, I’m part of our building’s tech department, so there was a strong push over the last two weeks to set my colleagues up so they are able to work from home if it’s deemed necessary.

I’m not going to lie, things have been incredibly stressful. A lot of work in a short amount of time and a relatively significant change in my living situation. Not to mention, I’m trying my hardest to limit the impact moving has on my son.

What habits help?

I’m meditating more regularly, I’m interacting with people I care about more often, and I’m viewing everything (or trying to) from a positive point-of-view.

The meditation calms me and makes it easier for me to find my “center”. It also reminds me to breathe when I start to feel too anxious or overwhelmed.

With regard to social interaction, I’m just meeting a primal need as a human being. We’re social creatures, not to mention I’m fairly extroverted, so talking with people always gives me a good boost.

The last piece is the x-factor. I’ve shifted my mindset and I have Stoicism to thank for that. If there’s an obstacle or a trial, I’m always looking for the bright side and I’m always looking for a lesson to be learned.

As I dive deeper into Stoicism, I find more value and gain more insight from it.

It’s been busy and challenging, but I’m doing much better from a mental perspective. Keep putting in the work, find habits that help, and things will get better.

To learn more about Stoicism, I highly recommend Daily Stoic. They have weekly newsletters, videos, and podcasts.

Related:

A Systematic Approach to Goals

Jacob Sensiba
Jacob Sensiba

Jacob Sensible is a financial advisor with decades of experience in the financial planning industry.  His journey into finance began out of necessity, stepping up to support his grandfather during a health crisis. This period not only grounded him in the essentials of stock analysis, investment strategies, and the critical roles of insurance and trusts in asset preservation but also instilled a comprehensive understanding of financial markets and wealth management.  Jacob can be reached at: jake.sensiba@mygfpartner.com.

mygfpartner.com/jacob-sensiba-wisconsin-financial-advisor/

Filed Under: Personal Finance

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