Picking out and buying your next new vehicle is an exciting time. It is likely to be the second biggest purchase of your life (after your house), so it really pays to be shrewd when making your decision.
How Depreciation Can Affect Your Auto Insurance Premiums?
Learning to drive a car safely is not enough if you want to drive legally. It is mandatory in every state of the US to have some form of auto insurance coverage to legally operate any road vehicle. With over 6 million passenger car accidents happening every year, it is a no-brainer why the insurance market is rising spectacularly. [Read more…]
Investments for Your Home, Self, and Loved Ones
It’s important to invest in the things that have the most value in your life, as the results are often worth the time and effort that was spent. Here are three investments you can make for your home, yourself, and your loved ones.
Seek HealthCare When Necessary
Good health is an important investment for everyone, so ensure to keep yours and your family’s in the best state at all times. You can do this by going for regular checkups and ensuring that you never miss a scheduled appointment. Ensure that you’re up-to-date on all the necessary vaccinations as well, so that you don’t miss out on improved immunity. When your children come of age, start taking them for regular checkups both at the dentist and general health practitioner.
In the United States, more than four million people wear braces, with 25% of them being adults. This is an example of one treatment you or a family member may need. Never hesitate to seek treatment as soon as you’re aware that it’s necessary. This goes for you and your family, as everyone is affected in one way or another when one person in the family is unwell. With this in mind, work towards good health in unity and enjoy spending more time together in good health.
Maintain Your Home’s Systems
Your home, which is likely your biggest investment as far as your finances are concerned, should be well taken care of at all times. Be sure to maintain all the electrical appliances so they run efficiently and serve you for a long time. When you do this, you will get more service out of your appliances and systems, making this a worthwhile investment. You can take on the basic ones such as changing air and furnace filters yourself while leaving the more technical and complicated ones to professionals.
Things like septic tanks, which need to be cleaned once every three to five years, will be better left to an expert to handle. This is because they will have the right tools and know-how to deal with them and you may not. Electrical issues are another project which you must never attempt to take on yourself. Avoid risky situations but make sure that you have all your home’s systems working as well as they should.
Celebrate Those You Love
Finally, celebrate the special people in your life at every opportunity you get. For instance, you should celebrate your mom and all other moms you know on Mother’s Day. To keep things simple, get flowers, on which $1.9 billion is spent every year on this holiday. You could pair the flowers you get her with a personalized gift that will have a special meaning for her. You could even gift her with a service if this is something you feel that you can do. From helping her with chores around the house to babysitting, the list of things you can do is endless.
For the other special people in your life, remember to celebrate anniversaries, birthdays, and other special days with them. Everyone loves being remembered and acknowledged on their special day. Even if you cannot spend a lot on gifts and parties, it’s the thought that counts at the end of the day. Show up and this in itself will create an amazing impression. Consider planning an experience if you don’t have the money for a material gift. Whenever you’re among loved ones, be present so that you can fully enjoy this time spent with them, and them as well.
These three investments are the main ones you can make for your family, yourself, and your home and finances in general. Keep them in mind and you will find that your life is a lot more fulfilling than it was before.
How to Transfer Assets to Children Before Death
If you are a parent, you already know it’s important to plan for your children in case something happens to you. One way to do this is by transferring assets to them before you die and in your estate planning. This can be done in a number of ways, and each has its benefits. In this blog post, we will discuss the different options available to you and how each can help protect your children’s future.
Remember: Generational Wealth building isn’t just for parents: grandparents, aunties, and uncles can change the shape of the entire next generation.
Work with A Family Law Attorney and a Tax Planner
There are many different ways to transfer assets to your children, and almost all of them require a lawyer and have tax implications. It is important to consult with an attorney as well as a tax planner, both to choose the transfer structure that is right for you and also to ensure that the documents are compliant with Federal and State property and tax law.
Draw Up a Will
One way to transfer assets to your children before death is through a will. A will is a legal document that outlines how you would like your assets to be distributed after you die. A will doesn’t actually transfer ownership of your assets until after you die, but it can be used to specify exactly who should receive what.
If you have a will, it is important to keep it up-to-date as your life and circumstances change. You should also review it regularly with a family law attorney to make sure it still meets your needs.
One important note: a will is great for establishing your wishes for the distribution of your assets are followed, but it will not keep your estate out of probate. Probate is the legal process of distributing a person’s assets after they die, via the courts in your state. It can be time-consuming and expensive, if you have substantial or complex assets, so many people choose a trust.
Create and Move Assets Into A Trust
A trust is an arrangement in which one person (the trustee) holds and manages property for another person (the beneficiary). It’s a critical part of estate planning. Transferring assets into a trust can help avoid probate because the trustee can distribute the assets according to your wishes without having to go through the court system.
Moving assets into a trust that can be managed by a trustee will give your children access to the assets when they reach a certain age while ensuring that the assets are managed responsibly.
One common type of trust is a living trust, which is created during your lifetime. You can name yourself the trustee, which gives you control over the assets during your lifetime. Then, when you die, the trust remains in force and the beneficiary can receive the assets without having to go through probate. You can even trigger the execution of your trust before you pass away.
This is a good option if you want to maintain control over the assets during your lifetime, but also want to avoid probate.
Name Beneficiaries on Financial Accounts and Insurance Policies
Most financial accounts and life insurance policies allow you to name a beneficiary. This means that the account or policy will be transferred to the named beneficiary upon your death, without having to go through probate. Having updated beneficiaries is the cheapest and easiest way to transfer assets such as retirement accounts, bank accounts, and life insurance policies.
It is important to review your beneficiaries regularly and update them as needed, especially after major life events such as marriage, divorce, birth, or death. This can be especially important for single parents and blended families.
Transfer Assets During Your Lifetime
Another way to transfer assets to your children before death is through a gift or by selling the asset to them for less than its fair market value.
The upside of this option is that you are still around to help them manage the asset. The downside is that lifetime transfers have serious tax implications that vary depending on the value of the asset and your state’s laws.
Gift Assets to Your Children
You can give $16,000 per year, per child (or any other recipient) without needing to file any tax forms or pay any tax. If you are married, you and your spouse can each give $16,000, for a total of $30,000 per child. More importantly, the current (2022) Federal gift tax lifetime limit is $12.06 million per person, and you can also double it if married. While it would require you to file a form, gifts of any size can be given to your children without owing any gift tax, as long as the total amount gifted during your lifetime does not exceed the $12.06 million limit.
Sell Assets to Your Children for Less Than Their Fair Market Value
You can also sell assets to your children for less than their fair market value. This is The most advanced move, absolutely requires a competent lawyer and tax planner, and is generally most appropriate for family businesses. Generally, this involves a contract in which you sell the asset to your children for an agreed-upon price that is less than the fair market value.
There are a few different ways to transfer assets to your children before death. The most common ways are through a trust, naming beneficiaries on financial accounts and insurance policies, or transferring the assets during your lifetime.
Each method has its benefits and drawbacks, so it is important to discuss your options with a family law attorney and tax professional to choose the option that best suits your family.
Claire Hunsaker, ChFC®, is a Chartered Financial Consultant featured in American Express, Forbes, Parents, Real Simple, and Insider. She offers free financial planning for single women through AskFlossie, where she is CEO. Claire holds an MBA from Stanford and is an IRS-certified Tax Preparer. She has 20 years of business and leadership experience and approaches money topics with real talk and real humor.
7 Things to Consider When Choosing an Easy Payment Plan for Your Loan
People save money before making a large purchase, but it’s not always possible, especially when it comes to expenses like education, housing, medical bills, and emergencies. And the fastest way to solve your financial problem is to take out a loan. [Read more…]
Should You Ever Use A Car Dealer’s In-House Financing?
Dealerships that offer in-house financing – also called “buy-here, pay-here” dealers – may seem like an attractive option. They let you handle your vehicle purchase and financing at a single place, often dealing with just one or two people along the way. But are they actually a good solution? Or is a car dealer’s in-house financing always a bad deal? If you’re asking questions like that, here’s what you need to know.
Pros and Cons of Buy-Here, Pay-Here Car Financing
The Benefits of Car Dealer In-House Financing
In-house financing at a car dealership does come with some benefits. First, it’s incredibly convenient, allowing you to handle all of your purchase needs in one location. Along with squaring away your financing, the dealer can bundle in the rest of the transaction, ensuring the car price, trade-in, and all other factors are part of one straightforward equation.
Second, in-house financing can usually let you handle everything in a single day. There typically aren’t many steps between you and driving away in a new-to-you vehicle. If you need a car fast, that could make this option more attractive.
Finally, you may have an easier time qualifying for in-house financing if you don’t have good credit. Many of these arrangements are designed with those with lower credit scores in mind. Since that’s the case, it may be a more viable approach if you’re in poor credit territory.
The Drawbacks of Car Dealer In-House Financing
While car dealer in-house financing does come with some benefits, there are plenty of drawbacks, too. The biggest one is usually the interest rate, which may be far higher than you would get if you worked with a bank, credit union, or another traditional lender. As a result, you could effectively overpay for the car, which isn’t ideal.
Another drawback is that the loan terms are typically pretty strict. Missing a payment by even just one day may trigger penalty interest rates or repossession, depending on the nature of the lending agreement.
Finally, many car dealerships that offer in-house financing sell strictly older cars, many of which may not be in great repair. There are laws protecting you from serious safety defects, failures to disclose major accidents, major breakdowns beyond a reasonable level, and similar issues. However, there isn’t protection against faster-than-expected wear and tear issues or similar problems that may lead to repair costs. As a result, the car may end up costing you a lot more than you planned right away.
Should You Ever Use a Car Dealer’s In-House Financing?
Generally speaking, the drawbacks of in-house financing outweigh the potential benefits. If you have access to traditional financing, you’ll typically end up paying less in interest by going that route. Plus, the terms may be a bit more flexible, allowing you to avoid costly penalty interest rates or repossessions if you make a minor misstep.
However, if your credit is poor enough that you can’t qualify for anything else, it is a pathway to a vehicle. Just be aware of the contract terms and ensure you make timely payments. Otherwise, you may trigger penalties or repossession.
Additionally, if you’re looking at older used cars, assume that you’ll have some repair bills on the horizon. If possible, have the vehicle inspected by a reputable repair shop before purchasing. That way, you can estimate what you might need to spend in the coming weeks or months. Then, you can use that information to ensure you have enough set aside or can take it to the dealer to potentially negotiate in some repairs or get a lower price.
Do you think it’s ever a good idea to use a car dealer’s in-house financing? Have you used in-house financing and want to tell others about your experience? Share your thoughts in the comments below.
Read More:
- The Top 5 Most Common Myths and Misconceptions About Certified Pre-Owned Vehicles
- Selling Your Vehicle Via a Private Sale-Follow These Steps
- 5 Things to Keep in Mind While Buying Auto Insurance
Tamila McDonald is a U.S. Army veteran with 20 years of service, including five years as a military financial advisor. After retiring from the Army, she spent eight years as an AFCPE-certified personal financial advisor for wounded warriors and their families. Now she writes about personal finance and benefits programs for numerous financial websites.
5 Crucial Trade Show Investments for Better ROI
If you’re planning to attend any trade shows in the next few months, you’re probably thinking about how to get the best bang for your buck. You want to make sure that your time, money, and resources are well spent when it comes to attending a trade show. But many companies make mistakes when they invest in trade shows. [Read more…]
How to Save Money on Your Beauty Routine
One of the biggest industries consumers invest in each year is the beauty industry, which racks up billions of dollars from individuals who are willing to spend to alter their physical appearance, and even spend on products like True Pheromones to make themselves appear even more attractive to friends, colleagues, or even a crush they are trying to communicate their interest to. With new makeup and skincare products constantly going viral on social media and capturing consumers’ attention and packing for these products becoming more eye-catching than ever, more and more people around the world are vastly expanding their own collection of products and establishing outlandish beauty routines. If you are one of those people and are looking for a way to cut down on your spending when it comes to beauty, you’re in the right place. Here are a few ways to save money on your beauty routine.
Energy-Saving Home Upgrades You Can Make in a Weekend
You can save money on your utility bills by doing the right home upgrades, which don’t necessarily have to be expensive ones. Here’s a helpful list of some health upgrades that you can make in a single weekend and start enjoying their results right away.
Maintain Your Home’s Appliances
It’s no secret that well-maintained appliances will run more efficiently, saving you money while they perform optimally. If the ones that you have are nearing the end of their lifespan, consider replacing them altogether. Make sure that you get smart ones while at it so you can start on the right foot. For example, an AirEx Air Cooled Complete Unit has a noise level of 94 decibels and a flow rate of 150 GPM. This would make a worthy upgrade to most other systems, so if you can afford it, it’s a good financial decision that your entire family will enjoy for a long time to come.
Insulate Your Home
A well-insulated home is one that retains the temperatures indoors in a way that leaves you spending less on energy. Since there won’t be any leaks through which you can lose the treated indoors air, you will need to crank up the air conditioner less while you enjoy good results all the same. Getting good insulation doesn’t have to leave a dent in your finances, so check around your house to see if there are any gaps that could be covered up and sealed, or thinning areas that could benefit from getting additional insulation. This will prove worth it for you in the end, so take time to get it done.
Inspect Your Plumbing
Have a look at your home’s plumbing and check if there are any leaks, which you will easily see by identifying wet spots and pools of water around your piping and water storage areas. If necessary, call a plumber and have them perform an audit to ensure that your home’s piping and drainage is in good shape for a long time to come. If you have a septic system, remember that most of them need to be cleaned every three to five years and adhere to this time frame. Doing this will help you avoid having to perform expensive fixes that come up as a result of your systems breaking down from neglect and such.
Get Smart Home Appliances
The future is smart, so ensure that your home is in line with this by getting smart appliances. From the thermostat to water heaters and more, there are many smart appliances you can get to improve your home’s feel and save on finances to boot. Ask around from friends and family and research online to see which appliances promise to give you the very best service and enable you to live a more efficient life. Trade your current ones for these and you will see the results in your future energy bills.
Landscape Creatively
Finally, you can make worthwhile savings outdoors as well by ensuring that your landscaping is creative and smartly done. For example, solid wood fences can reduce the wind flow in your compound by up to 50%. This would help you keep your compound more temperate, and the house by extension. While doing landscaping, you could also put up clotheslines and dry your clothes outdoors so you don’t have to rely on your dryer, which uses a lot of energy.
Make these upgrades, some of which are fast and affordable, and you will soon enjoy a more efficient home. You will also be playing a major role in keeping the environment green, something that everyone should make an effort to do.
How Much Should You Spend on Home Security?
At the end of a long day, you shed off your worries in the one place where you can truly be yourself — your home. Your home is the zone of comfort you can count on to keep you safe. [Read more…]