Here are some articles that caught my eye this week…
Imagine being in the midst of grieving the loss of a parent and you suddenly find out you need to come up with $20,000 to pay off that student loan in full since your parent co-signed for you. This is the sad, scary place where some borrowers are finding themselves. I believe student loan debt is an anchor on the souls of this generation. 18-year-old kids seldom even consider that scenarios like this could be in their future 10 or 15 years down the road. Not to mention this is one more reason that co-signing is a bad idea. In an effort to help, you may actually be harming your child in the long run.
I have been intrigued by the thought of doing this. The one big gotcha is live sports. I do enjoy watching sports and that is the one thing that is hard or sometimes impossible to get through streaming services. I’d be interested if any of you have cut the cord on cable/satellite TV. Leave a comment below with your experiences.
So much of financial success really has very little to do with math and so much to do with our attitudes and behaviors. The hardest part of changing our financial future is changing our mindset.
49% of workers do not have disability insurance, but almost all homeowners have insurance on their home. But the odds of having your home destroyed by fire are 1 in 1200. The odds of suffering a disability that lasts 90 days or more at some time before age 65 is 1 in 8! If you were unable to perform your job for 90 days or more would your family be able to survive financially? If not you need disability insurance.
This is one of my personal pet peeves. We teach many important things to kids in school, but often the basics of personal finance are almost completely ignored. Yet, understanding basic financial concepts is a key part of being a successful adult. While I think our kids’ education is lacking in this area, ultimately it is the parents’ responsibility to make sure their children understand the things they need to live a productive life. Unfortunately, parents are often ill-equipped to provide that training because no one ever showed them the basics. It’s difficult to set a good example and teach sound concepts when your own finances are a mess.
Everyone should have a will. If you have assets of any significance, it is worth spending a few hundred dollars to have an estate planning attorney help you get things set up properly. Often mistakes in this area can result in thousands of dollars in unnecessary taxes.