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Liz Weston

Wednesday’s need-to-know money news

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Zemanta Related Posts ThumbnailToday’s top story: How to determine what your car payment should be. Also in the news: Itemizing vs. standard deductions, what to do with old electronics, and quirky ways to save money this summer.

How to Decide What Your Car Payment Should Be
Determining what you can afford.

How to Decide on Itemizing vs. the Standard Deduction
Deciding which deduction works best for you.

What to Do With Old Electronics
Clearing your personal information.

17 Quirky Ways To Save Extra Money This Summer
No-money Mondays!

Why You Still Can’t Trust Your Financial Advisor

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2If you haven’t already, expect to hear from your financial advisor soon about a great new investment opportunity for your IRA.

The reason: There’s a loophole in a strict new rule that requires advisors to act in their clients’ best interests when counseling them about retirement funds. That loophole allows advisors to continue lining their pockets at the expense of yours until the federal rule takes effect April 10, 2017, and even beyond.

In my latest for NerdWallet, find out why the Labor Department has had enough.

Tuesday’s need-to-know money news

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Zemanta Related Posts ThumbnailToday’s top story: NerdWallet dads share their personal finance tips. Also in the news: Why college grads need more education, how minimalism can help your wallet, and what the Fed meeting means for investors and home buyers.

NerdWallet Dads Share Their Personal Finance Tips
Learning from the dads.

College grads are educated, but not in matters of personal finance
More education is needed.

8 Ways Minimalism Can Help Maximize Your Wallet
Less can equal more.

What Fed meeting means for investors, homeowners/buyers
Keeping an eye on interest rates.

Monday’s need-to-know money news

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1436536219414Today’s top story: Time to give your financial goals a midyear checkup. Also in the news: The statute of limitations on debt, how to save on child care, and financial concepts to teach your teen.

Give Your Financial Goals a Midyear Checkup
Checking your progress.

The Difference Between a Debt’s “Statute of Limitations” and Your Credit History
The debts that will not die.

7 Ways to Save on Child Care
Saving where you can.

5 Financial Concepts To Teach Your Teen Before High School Graduation
Get them on the right path before they leave for college.

How to structure an inheritance for a spendthrift heir

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Dear Liz: My financially illiterate, almost 50-year-old son will be living off his inheritance when I die. A good part of his life was spent drifting, so I have no idea if he will receive Social Security or how much. How do I structure his inheritance so that he won’t fritter it all away in a short time and then expect his dependable sibling to shoulder his burden?

Answer: A spendthrift trust can keep your son from frittering away his inheritance. These trusts limit the beneficiaries’ access to the principal — the amount you put into the trust. This limitation prevents creditors from accessing the principal as well, and he won’t be able to borrow against the trust, either.

That’s the good news. The bad news is that you have to find someone to be the trustee, and that probably shouldn’t be his sibling. Putting one sibling in charge of another’s money is a good way to ensure lifelong enmity. Look instead for a professional trustee at a bank or trust company to fill this role.

A spendthrift trust is not a do-it-yourself project. Hire a good estate-planning attorney with experience in this area. You’ll need to make a lot of decisions, such as how payments will be determined, how often they’ll be made, whether the trustee will have the power to deny payments or to give your son access to the principal if his circumstances change.

Q&A: A dirty problem

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Dear Liz: I bought a house four years ago. The previous owner allowed a gentleman to plant flowers every spring and tend them all summer. I allowed the man to continue after I bought the house. He waters the flowers using my water and I help weed every year. He came to me last week and said he was getting too old to tend to the flowers and wanted to sell me the dirt for $1,000. This was never addressed when I bought the house. Presumably the guy did bring in special dirt, but removing it would damage the property. What should I do?

Answer: The dirt goes with the real estate you bought and has long since become part of it, said real estate expert Ilyce Glink of ThinkGlink.com. Without a written agreement, the man was simply doing work for free.

That said, his labor and the flowers he bought enhanced the curb appeal of your home and arguably its value, said Glink, author of “100 Questions Every First-Time Homebuyer Should Ask.” Consider offering him $500 as a compromise or “retirement gift” to thank him for his efforts.