Category Archives: Financial Independence

Starting over financially after a divorce is often tough, especially if shared assets like a mortgage were involved. Not to mention, its not something people usually prepare for, either.

Here are some tips to help you reclaim your financial independence after a divorce, according to the experts.

Going through a divorce is often emotional and stressful, so its easy to lose sight of the financial ramifications that result, says Shomari Hearn, of Palisades Hudson Financial Group in Fort Lauderdale, Florida. The first step togetting a handle on your finances following a divorce should be to evaluate your living expenses, any outstanding debt you may have, and your income,including any alimony or child support, says Hearn.

Trevor Scotto, of Fiduciary Financial Group, suggests laying out your monthly bills and your bank and credit card statements. This can help identify any potential spending habits that may need to be corrected as well as payments that can be put on auto payment, says Scotto. You may experience a significantreduction in household income, which may require you to make adjustments toyour spending, he says.

The sooner you get a solid financial plan in place, the faster you can take the steps to progress financially in the future, says Monica Mizzi, of Legal Templates. Financial planning should encompassyour short-term, mid-term, and long-term goals, and the steps you will taketo get there including gradual milestones to keep you motivated and ontrack.

If your spouse managed all of the finances during your relationship, starting over on your own may seem complicated. If you need help trying to figure everything out, a financial planner may be able to help get you on the right track to financial independence.

A credentialed financial planner can help gather the financial pieces of the puzzle and lay out a game plan for your financial life after divorce, suggests Scotto. He says, If youre new to managing your own financial affairs its best to look for an advisor who specializes in financial planning and can educate you along the way.

New Jersey attorney Jef Henninger says he advises his clients to use the divorce process as a reset button on their lives.

Since you are laying everything out thereanyway, this is the best time to examine your spending and saving habits, he says. Seek professional advice if you need it but use this as an opportunity tostart over and change your habits.

Jessie C., who has been divorced since November 2016, says creating a spreadsheet helped her budget. I created a spreadsheet of the bills that I had and when they were due, and I use that to keep track of what I need to pay each time I get paid, she says. Keep track of your expenses and do not live above your means, she says. Only do things if you can afford them even if that means you need to live on PB&J for a little while.

Once your divorce is final, you may want to remove your former spouse from the title of your home. This can be done by refinancing and executing a quit-claim deed. A divorce decree and marital settlement agreement is needed to do this. Experts recommend talking to your mortgage company for next steps.

Relationship and personal finance blogger Jeff Campbell says its important to do away with any joint accounts to better protect both parties.

From a credit rating standpoint, it is very important to have no accounts remaining that are joint accounts as it could be very easy for the ex-spouse to damage your credit or take on additional credit under your name without your knowledge, he says. A clean break is the only way to proceed.

Most of the time, people name their spouse their primary beneficiary on insurance policies and retirement accounts. If youre no longer married, it may be best to change that. Update the beneficiary designations on your retirementaccounts, such as a 401(k) or an IRA, and on your life insurance policies, says Hearn. You want to avoid having these assets and benefits passing to your former spouse upon your death.

If you decide to apply for new home loan after your divorce, youre going to need your divorce decree. Its important to keep any documents related to your divorce for your financial records. This includes tax returns, mortgage documents, bank statements, and all other financial records, says Scotto. Make copies of all financial records in case you need them down the road.

If youre looking to buy a home after a divorce, be sure to check out these five tips.

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8 Tips to Help You Start Over Financially After Divorce - Zing! Blog by Quicken Loans (blog)

Forbes

How To Raise Financially Literate Millennial Children Forbes Millennials are often stereotyped as being entitled, Sarah Berger, The Cashlorette at Bankrate.com, said in a statement. It's refreshing to see that millennials really do have high expectations of gaining financial independence and getting off their ...

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How To Raise Financially Literate Millennial Children - Forbes

The path to become rich, in Swedish 'Vgen mot rikedom', has for a long time been a popular blog in Sweden, filled with advice aimed at people who want to become financially independent.

Now the blog's key advice have been summed up in a book called Millionaire before 30 and a retiree before 40. The anonymous author/blogger uses the pseudonym Millionaire before 30. What we know for sure is that he or she is around 35 years old and lives in Stockholm.

Here are the books seven best pieces of advice that help you become wealthy early in life:

1. Dont overcomplicate things

Everybody living in Sweden with a good job can become a millionaire. You dont need to start a unique company, invent anything or win the lottery. Its enough to earn a normal salary and being smart about saving some of that income.

You have plenty of time to realize your ambitious dreams once youve achieved financial independence.

2. Go your own path

Disregard the outer worlds expectations. Most people dont become millionaires by 30 and retire by 40. You have to look at consumption and saving differently than Average Joe. You need to make your own active choices and decide what gives you the best possible life in the long run.

3. Love saving

Make saving into an interest, and something that you are proud of and that you think of as fun. Go home after two beers, and say to your friends that you aim to become a millionaire before 30. Thats way better than having to say you cant afford that third beer.

Make sure to hang out with people who share your passion!

4. Start today, if you havent already

Time goes fast and time, together with compound interest, are your two best friends as you pursue financial independence. So start right away otherwise ten years will have passed very soon and you will be regretting the fact that you didnt get started earlier.

You will probably have your first million faster than you thought possible.

5. Trust the stock markets

Have faith in the long-term historical behavior of the stock markets. That means buying regularly and diversifying risks through index funds. In case the corporates would stop evolving and stocks would become a bad investment in a 20-30 year window then its not just the stock markets that will have stalled, but probably the whole of civilization.

6. Do a couple of fairly tough years of grinding

You need to grind away at work and show that you can achieve results. Try to negotiate a better salary in order to grow savings.

Get your saving career off the ground by doing a couple of austere years. But think about your saving as a long-term activity theres no point in burning yourself out or hating your life because of your work or saving habits. Find a level that you can maintain during at least 10 years.

7. Hate getting duped

Never pay more than what is necessary for anything. When you pay too much, try to imagine somebody conning you and laughing at you behind your back. Get out of the expensive funds, find the cheapest utility, and dont pay unnecessary premiums for designer clothes.

Good luck on your way to financial independence!

Footnote: The book is published by Sterners.

Read the original story in Swedish on Veckans Affrer.

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How to become a millionaire by 30 and retire by 40, according to Sweden's hottest money-saving guru - Business Insider Nordic

David Gardner For the Camera

One of the most common questions from prospective clients can be boiled down to this: how are we doing? In our culture, our finances are often kept secret even from extended family. We don't have anyone to talk to about our financial strength (or weakness) besides our spouse and that's only if you're married.

Sure there are online calculators that can be used to gauge your fiscal fitness, but most of us need something beyond that for clarity. We need to know whether we're ahead of schedule, or need to scramble, scrimp, and save to meet our goals.

One tool we use is the Financial Life Cycle, which is the brainchild of fellow financial planner Bert Whitehead, founder of the Alliance of Comprehensive Planners and author of Why Smart People Do Stupid Things with Money updated in 2013.

The Financial Life Cycle only needs three or four data points to render its verdict on your finances. First, we need to understand your net worth, which is the value of your investments, cash, and real estate less any debt that you have. Have your investments (including equity on real estate investments) broken out separately as we'll need that precise figure later. Second, we need your annual salary.

Finally, look at your level of spending for a year. Don't worry about the exact budget categories at this point. Instead consider your annual take home pay, and how you build up or drain down savings throughout the year.

Getting Started. This is the first adult Life Cycle, and is defined as your net worth being less than your annual salary. You enter Getting Started when you become self supporting. In this stage, you want to focus on the fundamentals. Save 15 percent of your income, accumulate one to two months of spending in cash, pay off your consumer debt with the possible exception of a low interest car loan, consider investing in your human capital in the form of education, and get on track to own your own house. These financial fundamentals are important throughout your life, but are vital at this early stage.

Early Accumulation. You enter this stage when your net worth exceeds your annual salary. At this stage, we educate them on the benefits of diversification and about the options for regular investing outside of their work retirement plans. It could be a Roth IRA or brokerage account at a low cost custodian such as Charles Schwab or saving for an investment property.

Rapid Accumulation. This stage begins when your net worth exceeds three times your annual salary. We say this stage is when your financial trajectory moves upwards like a hockey stick. In general, in Rapid Accumulation your investments start appreciating and earning more than you are able to save out of your salary. At this stage we focus on tax efficient investing using the three major account types: pre-tax (such as a 401(k)), taxable, and tax-free (Roth IRA).

Financial Independence. When your investments (not net worth) are more than seven times your annual spending, you've entered Financial Independence. There is an important shift here, as we move from looking at your net worth and salary, toward a focus on investments and annual spending. The idea is that we consider your investments in the context of supporting your living expenses by using your investment earnings.

Conservation. Once your combined investment value has passed ten times annual expenses, you have reached Conservation. Depending on your age, this could mean that you are financially strong enough to stop working all together. If you reach Conservation at age 68, you're close to receiving maximum Social Security benefits, and generally eligible for Medicare health insurance.

Distribution. If your investment balance exceeds 15 times annual expenses, you're in the Distribution stage. If you're close to normal retirement age, this stage tells us that it's very unlikely that you will run out of money in your lifetime unless you acquire bad habits or make destructive financial decisions. At this point you've won the financial game, and care should be taken to design your portfolio and cash flow to insulate you in the near term from the ups and downs in the market.

We like clients to progress through at least one Life Cycle stage per decade, with two jumps within reach for uber savers. Chart your progress over time. You may think you're not making progress because cash is tight every month, but when you consider the whole picture you're making tremendous progress.

David Gardner is a certified financial planner with a practice in Boulder County and can be reached with questions at dave@confluencefa.com and on Twitter @Dave_CFP

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How Does Your Financial Health Stack Up? - Boulder Daily Camera

Gov. Wolf and I would like to congratulate members of our House of Representatives for their bipartisan actions on two pieces of legislation designed to help Pennsylvania consumers achieve and maintain lifelong financial independence.

House Bill 780, sponsored by Rep. Ryan Mackenzie, whose 134th District includes part of Lehigh County, promises to extend the network of legal protections for homeowners by filling a vacuum in the commonwealth's regulatory authority in the mortgage marketplace. The House passed this bill on April 24 by a vote of 184-7.

Currently, Pennsylvania is in a distinct minority of states that does not grant its financial services regulator authority over companies that collect mortgage, tax and insurance escrow payments from homeowners. Mortgage servicing, as the business is called, is a critically important presence in a homeowner's life, especially since the consumer often has no choice in which company will service his or her mortgage.

News reports about mortgage servicing have painted a picture of the industry where too often homeowners are harmed by companies whose systems have failed, resulting in payment errors and even wrongful foreclosures. For example, more than 20 state regulators recently filed enforcement orders against a mortgage servicer named Ocwen for a range of system failures. Ocwen is one of the nation's largest non-bank mortgage servicers, conducting mortgage loan servicing for approximately 1.4 million consumers, including more than 53,000 homeowners in Pennsylvania. Pennsylvania was not among those 20 states because Pennsylvania does not regulate mortgage servicing.

Rep. Mackenzie's bill will grant the Department of Banking and Securities the authority to license mortgage servicers and examine their operations and books to ensure that their systems are working and their practices are not harming consumers.

House Bill 1039, sponsored by Rep. Rosemary Brown, whose 189th District includes part of Monroe County, allows banks and credit unions to create incentives for their account holders to save money, whether to be able to meet unexpected financial emergencies or for retirement. The House passed this bill on April 24 by a vote of 192-0.

According to the Center for Retirement Research, one in three American households has no savings account, and nearly 44 percent of American households do not have enough money saved to cover expenses if they lose a job or face a medical emergency.

At the same time, according to the National Institute on Retirement Security, 45 percent of Americans have nothing saved for retirement; the median retirement account for all working-age households is only $2,500, and median savings for those nearing retirement is only $14,500.

I agree with Rep. Brown, who stated that "we need to help families to start building a financial reserve."

Other states have begun to address this challenge. Michigan launched the first savings promotion raffle program in 2009. Data from 2013 show that financially vulnerable participants increased their savings by 30 percent over a 12-month period. Based on that success, 10 other states have since enacted similar legislation.

Rep. Brown's bill is one positive step that provides a piece to the savings puzzle. HB 1039 for the first time legally authorizes banks and credit unions to conduct savings promotion raffles in which the winner of the contest can have money deposited into a qualified account/savings program.

As these bills come up for consideration in the Senate, Gov. Wolf and I call upon our state senators to give these bills their support. Both bills provide bipartisan wins for members of the General Assembly as well as positive outcomes for Pennsylvanians working to secure the financial future for themselves and their families.

Robin L. Wiessmann is secretary of the state Department of Banking and Securities.

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Robin L. Wiessmann: Positive steps taken for consumer financial independence - Allentown Morning Call

The Jerusalem Post

Your Investments: Jerusalem Day, cheesecake and financial independence The Jerusalem Post As I write this column, outside of my office there is a steady stream of teenagers singing and waving Israeli flags heading for the annual Jerusalem Day flag parade. While some see this parade as a display of extreme nationalism, I think it's beautiful ... and more »

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Your Investments: Jerusalem Day, cheesecake and financial independence - The Jerusalem Post

Little People Big World is all new tonight on TLC beginning at 9 p.m. ET and the young Roloff husbands are very busy. Both are expectant fathers and each is making a major life change on top of that. Zach and Tori are getting ready for a career change for Zach that will bring in a steady income. Jeremy and Audrey are making the leap of faith it takes to uproot themselves from their current home in Oregon to move closer to the farm.

For Amy and Matt Roloff, having their sons become fathers within months of each other is the jackpot of all time. Both are more than ready to be grandparents and share the love. The delight is evident with Matt talks about building new things on the farm for the babies and Amy speaks about family meals on the farm. Check out the sneak peek posted below!

Little People Big World has tackled the issue of Zach and Toris baby being an LP as he says. The chances are stronger than with Jeremy and Audreys child, but as of this episode of the show, the couple had yet to find out if their child is average size. Zack frets a bit, but when anyone else speaks about it, he pipes up with enthusiasm. Hell be just like me, he says when asked if hes concerned about a baby with dwarfism.

Also on tonights episode is a look at Amy Roloff taking concrete steps towards her dream of owning a restaurant. We know the lady loves to cook and entertain, right? Last season she tried the bed & breakfast idea combined with a camping situation. It about drove her nuts to prepare and execute it to her high standards, but she pulled it off.

What will she need to know about the practicalities of being a restaurateur? The biggest obstacle is the failure rate, which she learns as she discusses the idea with a professional. Amy needs some financial independence from Matt and the farm, so lets see if shes willing to take that kind of risk.

Little People Big World airs Tuesdays on TLC beginning at 9 p.m. ET/PT Image/video credit: Discovery Communications/TLC, used with permission

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Amy Roloff Ready For Financial Independence, Tonight on 'Little ... - TVRuckus

Srinagar: The Mehbooba Mufti government will soon be convening a special session of the legislative assembly to introduce a bill that will merge different taxes into one Goods and Services Tax (GST). The state of Jammu and Kashmir is the only state in the Indian Union that will do so, the others merely following the GST slabs that the government of India will notify. This is because the state of Jammu and Kashmir enjoys a special status under Article 370 of the Indian Constitution. This special status has over the years been undermined in many ways. Could the GST be another blow to it? Economics professor Nisar Ali is of the view that if the JK Assembly passes an exact replica of the GST bill as passed by the Indian Parliament, it will be a violation of the spirit of autonomy enjoyed by the state. If the government passes the (GST) bill as it is, it will be a clear signal that they are violating their own Constitutional act of 1960 in virtue of having special status under Article 370. It goes against the spirit of autonomy of J&K, Ali told Kashmir Reader. He said that J&K enjoys special powers of levying, collecting and implementing taxes by its own agencies or departments, powers that with the implementation of GST would directly go to New Delhi. Ali criticised the Mehbooba Mufti government for not consulting the business community and trade organisations of Kashmir on the GST. He said the government must hold a dialogue with business bodies before convening the special session of the legislative assembly. Only when you have taken the main stakeholders on board will you succeed in customising the proposed bill to suit the states interests. The government also needs to exempt state exports from the tax as we have a very limited exports business of fruits and handicrafts, he said. JK finance minister Haseeb Drabu has said that a special session of the assembly would be convened to approve the GST bill which will be in consonance with the states existing constitutional position. Indian finance minister Arun Jaitley has also assured the J&K government of all possible help in restructuring the GST in accord with the special status of the state. What remains to be seen is whether the bill that the JK assembly passes is in accord with its special status or contrary to it. Ejaz Ayoub, a financial expert based in Srinagar, says that the states fiscal powers are being diluted by the GST. Previously, JK had its own monetary as well as fiscal powers to manage interest rates and taxes. But during the National Conference government, the monetary powers were handed over to New Delhi. Now our fiscal powers, too, are being diluted and snatched away with the GST. The PDP had raised a hue and cry when our monetary powers were being given to New Delhi but now the same PDP is following in the footsteps of the NC, he said. Ejaz pointed out that it took India almost 17 years to decide on the GST, but J&K has been given too insufficient a time to get the law ready within a month. Even if the government says that they dont have to frame an entire act but only have to make certain changes, we still need a good amount of time to reach consensus on the many issues involved in the GST. Our state has divided opinions Jammu has one view while the Valley has another. It is not only the legislators who have to discuss or debate the tax; traders must also be informed what the customised bill contains. There are also legal issues involved with it, he said. The J&K government had hired the Chartered Accountants Association of India to assess whether the GST would be beneficial to the state or not. The association submitted its report to the state government in 2016, recommending the GST. The report, a copy of which is with Kashmir Reader, said that the state will enjoy tax benefits of Rs 1,500 crore to Rs 2,000 crore if the GST is implemented. The report, however, was kept in official rooms and nothing was made available to the general public or to the business organisations of Kashmir. Associate Professor, Department of Law, Kashmir University, Rafiq Ahmad told Kashmir Reader that the GST is in clear contravention of the states special position and is an attempt to integrate the state further into the Indian Union. Economic forums like the Kashmir Chamber of Commerce & Industries, the Kashmir Economic Alliance, the Kashmir Traders and Manufactures Association, and the Federation of Commerce and Industries in Kashmir have welcomed the GST legislation, but at the same time warned of an agitation if the GST takes away the special status of J&K.

CM Mehbooba Mufti, Goods and Services Tax

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Is GST another blow to financial independence of J&K? - Kashmir Reader

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Sussex County Administrator Todd Lawson, along with Finance Director Gina Jennings, presented Sussex County Council this week with its proposed $143.8 million budget for the 2018 fiscal year.

That is a figure that can cause one to choke a little bit upon first hearing it, as any monetary figure that ends in million is one of significance. But one key figure jumped out to us right off the top.

For every dollar of realty and property tax spend by the County, 55 cents will be spend on public safety. The next closest expenditure is the general operations of the County government close to 15 cents on the dollar.

There will be an increase of close to $680,000 of spending in the Countys agreement with the Delaware State Police, as that contract will now see Sussex County paying for the full total and real cost of 22 troopers county-wide. If the County balked at the higher figure, Jennings said the result would be five fewer troopers in the county. And, with the State facing major budgetary issues, more of the onus now falls on counties and municipalities to provide their own funding.

On the bright side (in addition to a fully-stocked stable of Delaware state troopers), the County appears to be responding well to a booming growth period in terms of emergency services. According to a review of last years budget and financial breakdown, there was a 5-percent increase in the number of EMS service calls last year, but the response time improved by 12 percent, according to officials. In an age of declining state funds, Sussex County is adapting and flourishing.

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Editorial Sussex County showing financial independence ... - Coastal Point

Earlier this month, Joseph Melendez, CEO of ValueInsured, spoke with MReport regarding how four in 10 parents say they plan to help their children buy a home, but a recent study shows that millennials think they should pay for their bills earlier than their baby boomer counterparts.

Bankrate.com asked millennials, Generation X, Baby Boomers, and the Silent Generation what age people should be able to pay for their own bills, including housing. Come to find out, millennials are not as easy on themselves as media makes them out to be. Millennials thought that people should be able to pay for their own housing at the age of 22, their own car at 20 and their own cell phone bill at 18 . This is a year and a half younger than Baby Boomers reported.

"Millennials are often stereotyped as being entitled," saidSarah Berger, author of The Cashlorette at Bankrate.com."It's refreshing to see that millennials really do have high expectations of gaining financial independence and getting off their parents' payroll."

There were political and regional differences in the data, too. On average, Republicans believed that a person should be able to afford their own car three years earlier than the average Democrats response. Northeasterners thought housing costs should be shared with the parent until the age of 24 , two years longer than Midwesterners, 1 years longer than southerners and almost a year longer than westerners.

Cutting free from the support of parents is based on many factors including income and student debt load. For some, they may need to move back in with parents temporarily, others are ready to travel the world.

According to Melendez, this travel aspect makes it hard for parents who do not want to lose their money if their child needs to move for a new job and the market happens to have a temporary downturn.

Others, like Jessica Bergman, a 25-year-old college graduate, have agreements with their parents in order to pay their debt and eventually be independent.

I lived at home and worked for two full years to pay back my loans before I moved out on my own, Bergmann told Bankrate. It was the smartest movethe school I was teaching at was a 25-minute commute, so I checked my pride and did what was needed financially.

Though there are different paths for everyone, knowing the younger generation is ready to take charge of their finances, and do so at a younger age in the housing market, is a promising outlook to the future.

For further details on this survey, clickhere.

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Millennials: Financial Independence a Priority - The MReport