Get smart with your money
Nonprofit credit counselors are the good guys in the debt relief industry, which is otherwise full to bursting with lies, scams and sketchy players.
That said, credit counselors need to acknowledge that their signature offering – the debt management plan – doesn’t work for everyone.
In my latest for the Associated Press, find out when declaring bankruptcy is a better option than credit counseling.
Today’s top story: How to do what your love and still pay off your student loans. Also in the news: What to consider before attending a for-profit college, five crucial personal finance lessons to teach your children, and how to make the most of working with a financial advisor.
How to Do What You Love and Pay Off Your Student Loans
They’re not mutually exclusive.
5 Things to Consider Before Attending a For-Profit College
Reading the fine print.
Teach Your Children These 5 Crucial Personal Finance Lessons
Starting them off on the right foot.
How To Make The Most Of Working With A Financial Advisor
Getting the advice you need.
Dear Liz: My son recently died. His girlfriend, who lived with him, said he told he would take care of her for the rest of her life. There’s nothing in writing that says this. She has his debit card and is using it. I am not sure, but I thought if a family member dies, the money in the person’s bank accounts belonged to the next of kin. There is a large amount of money missing, but I don’t know if my son used it to pay other debts. How do I clear this up?
Answer: If her name is not on the bank account, then most likely she doesn’t have the right to help herself to the money. Your son’s assets are supposed to be used to pay his final expenses and his creditors. Anything left over would go to the beneficiaries of his will or, if he didn’t have a will, to his next of kin according to state law.
It’s time to call an attorney familiar with probate in your state to walk you through the next steps. As angry as you might be with the girlfriend, consider staying on good terms if you possibly can, since you probably will need access to his home and his records to settle the estate.
Dear Liz: I read your recent response to the lottery winner. You made some really good comments and suggestions. However, you suggested that the person seek out a trustworthy, fee-only financial planner.
I am a certified public accountant. As you know, CPAs have historically been one of if not the most trusted advisors. I do get defensive when I read articles such as yours because never do people suggest that a CPA be consulted in situations such as these. In my opinion, financial planners do not have the overall breadth of experience and knowledge of the income tax and estate tax ramifications of decisions that need to be made.
Answer: If you’re holding yourself out as an expert in financial planning, you’d better be one.
There’s no question that CPAs are tax experts. But how knowledgeable are you about investments? Insurance, including life, health, disability and long-term care? Retirement savings and income planning? Education planning and funding? Social Security, Medicare and Medicaid? Employee benefits, retirement plan selection and business succession planning?
Those are only a few of the dozens of topics that a certified financial planner is required to know. CFPs are expected to look at clients’ entire financial picture and understand how the pieces should best work together. They are supposed to know that taxes may be a factor in many financial planning decisions, but taxes shouldn’t be the only or even the driving factor in any of them.
CFPs may not be able to match your breadth or depth of knowledge in your area, but that’s why they would refer clients to certified public accountants for detailed help with those issues. They also would know when to get estate-planning attorneys involved, and insurance agents and so on.
Some CPAs do become comprehensive financial planners by earning the personal financial specialist or PFS credential, which is similar to the CFP. The additional training and experience helps them understand how taxes fit into their clients’ larger financial picture. It also helps them know what they don’t know, so they know when to consult more knowledgeable experts for help.
Today’s top story: Controlling your finances by ignoring short-term frenzies. Also in the news: A new definition of affordable auto insurance, how military members can save money while moving, and how to estimate the value of your travel rewards.
Control Your Finances by Ignoring the Short-Term Frenzy
Resist being reactionary.
What’s ‘Affordable’ Auto Insurance? Now There’s an Answer
Defining the parameters.
7 Ways Military Members Can Save Money When Moving
Making the costs more bearable.
A Rule of Thumb to Estimate the Value of Your Travel Rewards Miles
What are your miles worth?
Today’s top story: What your high schooler needs to know about credit cards. Also in the news: Saying goodbye to foreign transaction fees, the new calling limits facing debt collectors, and how letting your adult child stay home could benefit you financially.
Credit Card Basics for High School Students
What your high schooler needs to know.
As International Travel Grows, Foreign Transaction Fees Get Left Behind
Bid farewell to foreign transaction fees.
Debt collectors could face new limits on calls
Changing the collection game.
Read This Before You Push Your Deadbeat Millennial Out of the House
Having your adult child at home could be financially beneficial.