Today’s top story: Organizing your finances in just two minutes a day. Also in the news: How to retire in comfort, estate planning mistakes boomers should avoid, and what to look out for when buying an older home.
How to Organize Your Finances in Just 2 Minutes a Day
Surely you can spare two minutes.
Get These 4 Big Things Right to Retire in Comfort
Focus on the essentials.
Estate Planning Mistakes Every Boomer Should Avoid
Don’t go it alone.
5 Things to Look Out for When Buying an Older Home
Avoiding a money pit.
How Investing Affects Your Taxes
Don’t get caught off guard.
Today’s top story: Learn how to fight back against debt collectors. Also in the news: Finding the perfect retirement location, protecting your 401(k) from a market drop, and the best American cities to raise your family in.
How One Man Learned to Fight Back Against Debt Collectors
Don’t be afraid to push back.
How to pick the perfect retirement location
Getting the most for your retirement savings.
Here’s How to Protect Your 401(k) from the Next Big Market Drop
Avoiding damage from the next big downturn.
The Best Cities For Working Parents
Choosing the best place to raise your family.
Which States Give You More for Your Money?
A hundred dollars isn’t always worth a hundred dollars.
Today’s top story: Hackers steal close to five million hospital records. Also in the news: When to get your student a credit card, why a mini-retirement could restart your career, and the three powers of attorney everyone needs.
Hospitals Say Hackers Stole Records of 4.5 Million Patients
Community Health Systems operates 206 hospitals in 29 states.
Getting Your Student a Credit Card
Testing their personal responsibility.
Why a Mini-Retirement May Rejuvenate Your Career
And save you money at the same time.
Three Powers of Attorney Everyone Needs
The essentials for protecting yourself.
How Do You Stay Motivated With Your Financial Goals?
Keeping your eyes on the prize.
Today’s top story: One third of Americans have nothing saved for their retirement. Also in the news: How to pick the right bank, preparing financially for having kids, and how to get the best money market rates.
A third of people have nothing saved for retirement
You really shouldn’t be one of them.
How to pick a bank, in 7 steps
One of your most important relationships.
Babies Are Expensive: How to Prepare for Having a Kid
Adorable, but expensive.
How to Find the Best Money Market Rates
Getting the most for your savings.
3 Financial Firsts All Parents Should Prepare Their Children For
The sooner, the better.
Dear Liz: My in-laws just informed us that they have gone through their retirement fund and soon won’t be able to pay their mortgage. They borrowed against the house they’ve lived in for 30 years and currently owe $325,000. They are devastated, so I am trying to figure out the best way for them to stay in their house in their final years, as they are both 73. They have about $300,000 in equity but do not want to sell. They are willing to sell the house to my wife and me at their current balance. We would make the payments and they remain in the house. When they pass, the house would be ours. They looked into a reverse mortgage but this would cover only the payments, not taxes, insurance or maintenance. What is the best way to do this? Do I get a loan and purchase outright? Do I contact their bank and see if I can assume their loan? Do they quit-claim the home to my wife and me? My wife and I can afford to do this, but we want to make the right financial decision.
Answer: Before you do anything, please consult a tax professional and an attorney with experience in estate and elder law.
It’s unlikely the lender will allow you to assume the loan, so you probably would need to set this up as a sale of the home with you and your wife obtaining a new mortgage.
But their plan to sell the house to you at a below-market value could create gift tax issues and could delay their eligibility for Medicaid, should they need help paying for nursing home care.
There are other risks to your in-laws. Your creditors could come after the home if you lose a lawsuit, for example. You could sell the home without their consent, and you would have a claim on the property if you and your wife split up.
Then there are the risks to you. You say you can afford to make the payments (and presumably pay the taxes, insurance and maintenance as well), but what happens if you lose a job or suffer another financial setback?
All of you need to understand the risks involved, and your alternatives, before proceeding.
A sale of the home or a reverse mortgage may well prove to be a better choice. A reverse mortgage wouldn’t completely eliminate their home costs, but would substantially lower them — whoever winds up paying the bill.
Today’s top story: How to tell when credit card rewards are actually worth it. Also in the news: Big changes ahead for your 401(k), using your job hunting expenses as tax deductions, and how to determine if a charity is worth your hard earned money.
5 Times Credit Card Rewards Are Worth It
When credit cards rewards truly pay off.
5 Future 401(k) Changes You Need to Keep an Eye On
Big changes are ahead.
Writing Off Your Job Hunting Expenses
Your job search expenses could be tax deductible.
How to Pick a Charity
Making sure your money goes where its needed.
5 Unconventional Ways To Use Your Accounts
Could your 401(k) be used to purchase your new home?
Today’s top story: Personal finance tips from big data companies. Also in the news: Why more seniors are being duped out of their money, the right amount to have in your emergency savings and ten ways to best spend $1000.
Three Personal Finance Tips From Big Data
Analyzing your spending habits.
More Seniors Getting Swindled Out of Money
Preying on some of our most vulnerable
How Much Is in Your Emergency Fund?
What is your emergency sweet spot?”
We asked a palm reader and a financial adviser how to handle our money
Who came out on top?
10 Smart Ways to Spend $1,000
And possibly double your money.