I was reminded recently why it’s so important to follow up on transactions to make sure instructions have been properly completed. I’m part of several professional forums where advisors can collaborate with each other, pose questions, etc.
While not the most exhilarating topic to think about, having a detailed list of what to do when a loved one passes can bring great comfort during a time of deep grief and stress. Also, this kind of checklist is also valuable during life as a guide for what things to keep up to date... just in case.
They say the best way to learn is to teach. I've always found this to be true. For over 10 years, I've volunteered with Junior Achievement (JA) as a classroom guest speaker on various topics.
I want to address a common investment strategy (“income/yield investing”) and a related spending rule of thumb (“don’t spend your principal”). Despite the superficial attractiveness and a certain forced discipline, neither of these are good strategies. At the end, I’ll offer improved versions of both of those ideas...
The last time I wrote a blog post was July 30, 2018. We were a little busy the last half of 2018. After realizing the need to have Debbie's parents closer and then not being able to find a suitable house, we decided to add on to the house we've lived in for 20 years. They moved in between Christmas and New Year's. While we learned much more than what I can write here, I thought sharing some lessons might be helpful for others in similar circumstances.
A lot of people have aging life insurance policies of various kinds that are no longer needed and/or about to lapse. The normal course is to just let them lapse… end of story. With some planning, this old policy could be used to shield future taxable income.