The Finance Blogger

This is another post about adult children moving back to live with their parents. And this post is going to talk about how everyone needs a break at times from each other. Whenever you’re living with other people regardless of whether it is friends or family there are times when people just need a break from each other.

Families are no different when you’re living in close quarters with each other. You cannot be around each other all of the time. This is just part of being human and part of human nature. We tried to make sure that while our children lived with us, granddaughter daughter and son-in-law, that we made time for each of us to have our own space.

Everyone Needs a Break

As a grandparents, we made sure that at night if the kids wanted to be by themselves watching TV in another room that was comfortable. After a little while it became habit to watch some shows together because we don’t like them together and other shows we would break apart and watch them in different rooms. The same applied on the weekend. We always went for coffee on the weekends and this was our time to be by ourselves and give the kids their space to spend time together.

While they were living with us they had a built-in babysitter. So whenever we were at home during the weekend or the in the evenings we made sure that they knew our schedule so that they could go out and enjoy themselves while we babysit. This was a pleasure for us and we enjoyed it very much.

There does not need to be a schedule or a specific time when the whole family gets together or go their separate ways. You can sense when people need time to be alone versus time to spend together. One thing that we always did though was we had supper together during the week. On the weekends it would be a little different and much more flexible however Sunday night we would be together for Sunday night supper.

Hope this helps those people going through the same issues that we went through. If you have comments or suggestions please feel free to leave comments on our comment log.

This post is about having second thoughts after making an offer on a home. The deal being accepted at a price that everybody was satisfied with brings a new round of anxiety. Buying a house is the single largest expense most people have in their lives. We’ve been talking about adult children moving back home with their parents along with grandchildren. We have discussed many of the issues that come up when an event like this. This particular post we will talk about some of the second thoughts that they had after closing the deal with the seller. You are ready for them to move into their own place. But at the same time you want them to get a good deal and not be disappointed.

Buying a House – Forget the Emotions

After all of the excitement of negotiating a deal on the home, reviewing the inspection report which is recommended for everyone, finalizing the mortgage on the home and the euphoria of all of this they had second thoughts about whether they made the right choice or not.

Suddenly there are concerns about whether they moved into the right neighborhood, whether there are hidden issues in the house that they will have to make large repairs for, and whether they will be able to afford the monthly payments for the mortgage principal and interest as well as property taxes?

This is pretty typical after everything has calmed down and you suddenly realize that you own a home! Homeowners particularly when it’s a first home routinely go through this second-guessing about whether they’ve made the right choice or not. The revisit all of the decisions, all of the analysis, and all of their emotions. In this case our daughter and son-in-law after discussing it many times felt that they had made the right selection and I can tell you that they are very happy with the choice they made after having lived in the home now for three or four months.

It is Natural

It is a totally natural human function to reevaluate a major decision after it has completed. This is one of the biggest decisions that most people make in their lifetime. However it does take energy and emotion when you do this. It is better if you can avoid the whole situation and just look forward rather than try to second-guess. Save all of your energy for moving, decorating and settling into your home. Even if your home is pristine, there’s going to be lots of work to get it ready and get it to the level that you’re satisfied with. That too is just human nature!

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As a homeowner I have always had mixed feelings about whether house inspection reports are required when you’re making a purchase of a home, particularly an older home. This is another series of posts about adult children moving home with their parents. Then buying a house to move out from their parents home. In this post we’re going to talk about house inspection reports.

Our daughter and her husband requested a house inspection report for a house that they were interested in. The report was completed by a house inspector. It consisted of both narrative as well as many pictures to support some of the comments and thoughts that he was making with regards to the home.

There were no significant surprises or concerns associated with the house that would prevent them from buying the home. There were a number of significant small issues, easily fixed and repaired that were identified in the house inspection report.

House Inspection Report – Negotiation

These items were used to negotiate a slightly lower price in the overall cost of the home from the seller. Fortunately when they moved in all of these items were fixed or left as agreed by the agreement of purchase and sale. There were no major surprises.

I observed secondhand the process of arranging a house inspection report. I was able to review the report itself compared to the home that was actually purchased and moved into. A house inspection report can actually be quite good value for many homeowners. Even though in this case there were no significant items that were identified, which was a good thing. All of the major repair or potential repair items were notified and a status provided.

For example the state of the roof and the shingles were reviewed. Also the state of the furnace and air conditioning units were reviewed. The list included all potential items that could be a significant issue from a structural, and cosmetic perspective.

Had any of these items been a major issue e.g. the roof needed to be replaced, this would’ve been either a major roadblock in terms of purchasing a house or a major negotiating tool in terms of negotiating a lower price.

Based on some of this kind of analysis this home owner definitely feels that a home inspection report should always be arranged for by anyone who is buying a home. If nothing else it will give you peace of mind when you’re making an offer on a home that you’re planning to purchase.

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This is another post about adult children moving home with their parents and then moving out again. There are lots of issues to consider when your children move back with you. Also as well as when they move out to their own home. This particular post will talk about the art of negotiating house prices of the home that they want to purchase. Taking into account the emotional issues associated with whether this is the right choice as well as getting really excited about a house they have fallen in love with.

When our kids had found a home that they really liked, the next step was to negotiate the price that they were willing to pay for it. Obviously, they were going to offer a lower price than what the seller had listed it at. However, the question was what price should you offer without insulting the seller and at the same time paying too much?

Negotiating House Prices

They used a real estate agent who gave them prices to compare for some other homes in the area. Based on that they decided to make an offer that was about 5% below what the seller was offering the home at. This was quickly countered by the seller offering approximately a 1% reduction. After going back and forth a couple of times, they realized they were about $3000 apart.

At this point, they decided to take the offer, simply because it was the house they wanted and they did not want to risk losing this particular home. It also did not make much difference in terms of their monthly payment over the life of the mortgage.

During these negotiations, my son-in-law and I would discuss the price that they were going to submit. What we thought the seller would think of it and what his response might be. I would take the seller’s position and he would take the buyer’s position and we would discuss the options back-and-forth to come up with the appropriate strategy for the offer. It was just not the price that was being discussed, it was making sure that everything they wanted to be included in the house was placed in the offer and included in the price.

Bonding

I really enjoyed this conversation with my son-in-law because it gave us another opportunity to bond. My daughter was also part of the conversation. However, she was emotionally attached to the house and really didn’t care about the price much. She just wanted the house. It is so important not to get emotionally involved. You need to focus on negotiating a good price for a house in this case. It also caused a little bit of friction between my daughter and my son-in-law as they discussed buying the house and what price they would pay.

This is something to take into account as parents of children who are buying a home. How much you get involved. You may want to make comments about the discussion that is taking place. However, sometimes it’s just as well to stay out of it and listen until you asked. After all, they are the ones who are buying a house. They are the ones who were making mortgage payments and tax payments. It is part of their relationship and they must work out these issues. It is better for the parents to remain uninvolved as much as you can. For more posts about adult children living at home with their parents, click here.

This is another post about adult children moving back with their parents. Our children indicated as an objective when they moved in with us was that they were looking for a home to purchase. They also wanted to find out what it was like to live in suburbia as a family. Versus buying a home that was closer to downtown and being able to walk to work. Living in the suburbs is not the same as downtown. You can walk to work, and have more selection of restaurants and things to do.

They moved in with us and lived with us for approximately two months. Their commute from our house to downtown consisted of driving to a park-and-ride, catching a bus to the daycare, and then walking 20 minutes to work. Total trip time amounted to approximately one hour in both directions. This was compared to a 20-minute walk in total for them when they lived in their condo at their previous location.

Living in the Suburbs

It quickly became evident that their decision to look for a home in the suburbs was a bad decision. They realized that all of the time spent commuting was not something they wanted to deal with. They quickly narrowed their search for a home to an urban area in the downtown area of Ottawa. Both of them wanted to be able to walk to work, bike to work in the summertime, and also be close to daycare. This made their search much more difficult. It took a little bit longer however they were still able to find a home that they liked that met all of their objectives.

They had to pay more for the house that they purchased because it was downtown and commanded a higher price. However, they reduced their cost of commuting for gas, bus passes, and general frustration. They save approximately $300 a month for bus fares, gas, and wear and tear on their vehicle. These savings can be put towards the mortgage.

In addition in our city, there is a huge amount of construction going on. The major thoroughfares are blocked at rush hour. That hour of commuting has now stretched further, making their move downtown an even better decision. It is always a trade-off, cost of housing vs. time to commute and the cost to commute. Which would you choose?

This was a good deal for them and well worth the effort of moving in with us and then moving to a home that they found that they were both happy with.

For more thoughts and ideas about living with adult children, click here.

As we get older it gets more and more difficult to make financial decisions.  And as we begin to realize that we are having difficulty making financial decisions, we become even more cautious.  In fact, some people will be afraid to make any kind of financial decision in case they lose their fortune.  Some clients believe they must have a large amount of cash in their accounts just for emergencies.

Short term memory loss, Alzheimer’s, and dementia are the leading causes for people who need to make decisions about their finances and are no longer able to do so.  At this point, the spouse or the children must take over these kinds of decisions. They must make sure that all of the monthly bills are paid. Also that the person has sufficient money to pay for groceries.

Making Financial Decisions –  Get Help

Not everyone progresses at the same rate. Many people will be able to manage their money well into their old age. A large percentage of people will need help in making decisions of some kind to manage the money. It is this time when the children or the spouses must take over and manage their parent’s money.

If short term memory loss and diseases such as Alzheimer’s and dementia are not a prevalent issue, older adults can make just as good decisions s people in their 20’s based on their extensive life history and experience.  If you find yourself taking more time to make financial investment decisions, you may want to turn to someone you trust and help in making those decisions.

The number one thing to be careful of is not to depend on and put your trust in one person, and not to put all their money into one investment.  Asking questions of the people and getting several people to help you make the decision that you can trust as well as diversifying your investments is the best way to protect the investment.  This is one of the reasons older people were victims of financial fraud as much as $2.9 billion annually because many of these fraudsters picked on elderly people.  You may want to take precautionary means to protect their investments and to avoid becoming the victim of financial fraud.

Children of older parents should gradually insert themselves over an extended period of time depending on their parent’s ability and take over the day to day management of their finances. This can be a delicate issue for everyone and should be handled with care and diplomacy.

For more financial advice, click here.

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This is another post in the series about adult children moving back home with their parents. This year our daughter, son-in-law and granddaughter moved back with us for a period of two months. It was a huge opportunity for us and a great learning experience. We found it very enjoyable to have our family altogether in one house. There are some things we learned and this is why were blogging about this experience that we were so fortunate to have. Life is a lot different when you have working families on a schedule living in your home.

This particular post is about what we learned about working families on a schedule. We found that our family had to adopt a pretty strict schedule in the mornings. Evenings were a little less hectic however it’s very important to be organized and focused first thing in the morning if you’re going to keep a tight schedule to get to work.

Working Families on a Schedule

For example, our daughter got up at six to have a shower, our son-in-law got up at 6:15 to get our granddaughter up and dressed. Our daughter and granddaughter were downstairs by 630 to have breakfast and then the whole family was out the door by 7:05 to catch the bus downtown to get to daycare and to work.

It’s a pretty hectic schedule in the morning and everything must go like clockwork so the grandparents, that would be us, pretty much stay out-of-the-way and let them get things ready. We did enjoy having breakfast together with our granddaughter in the morning though.

In the evening there was a different schedule and somewhat less hectic. Our son-in-law would pick our granddaughter up and bring her home and then we as grandparents would look would look after our granddaughter while he made supper. When our daughter got home we would have supper together and then it was our turn to clean up the dishes and clean up after supper.

Our granddaughter was in bed by 7 o’clock after having a bath and spending some time with her parents.

Develop a Schedule

We found that the schedule worked really well for us and for them. Every family has a different set of requirements and may adopt a slightly different schedule and may do different things. The reason our son-in-law made supper is that he likes to cook and he knows what his wife and granddaughter likes for supper so we let him do that and then we would do all the cleanup.

The weekends of course were much different and much more relaxed. There are no schedules to keep and we can have our meals at various times usually always together, and do the weekly errands that needs doing during the weekend.

Maintaining a schedule like this really helps to make sure that everyone is not stressed out etc. We should mention that our family had to take the car to the bus station, and park the car. Then they took the bus downtown. It was about one hour trip in both directions. This is a lot of time out of their day. We found also that our granddaughter was getting pretty tired by the end the week.

Our next post will be talking about living in the suburbs versus finding a home closer to work. Living downtown to minimize the commute time and the cost of commuting is at the top of their priority list.

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Teach Your Children to Save can be one of the most important things to do in life. We are responsible for teaching our children of so many things to prepare them for all of the challenges that we have in life. One that many people ignore is how to manage money and how to save money. This is why we wrote this post to try and contribute some information that we feel will be useful to many people, adults as well as children. If you have enough money to get by and do the things you want to do, you can enjoy life much more than if you are destitute.

Teach Your Children to Save – Make Saving a Habit

We do not receive any financial training what so ever in school and most do not receive any from their parents either. Teaching your children to save some money for something that they would like to purchase is probably one of the most important things that you can teach them when it comes to money management as they grow older.

Follow the Ten Percent rule

Save 10% from everything you earn and invest it for the future. We like to suggest that you save the 10% for retirement. If you begin early in life, you will have much more than you can imagine for your retirement. It will also provide the flexibility for you to retire early if you  need to or want to and enjoy life. Save now and take advantage of the ability to compound your interest and savings.

Have a Savings Lists

In addition to the 10%, you may also want to save money for other things that you would like to have in your life. Whether it is a trip, a car or a house or something else in your life, saving and paying cash will leave more money in your wallet compared to paying interest on debt that you build up.

Be a banker for your kids

Teaching your kids to save and being a banker for your kids is another lesson to teach your kids. Keep records and make it important to you and to your children. They will appreciate learning about banking later in life.

Teach your children about compound interest:

When you save money and earn interest on what you save and then reinvest that interest and then earn interest income on the interest you reinvested, this is called compounding. It is amazing how fast the interest can accumulate and the value of your money can grow over the years.

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This is another post about adult children moving back with their parents. Having your daughter son-in-law and granddaughter living with you is an incredible opportunity. It also requires some adjustment to your daily living activity. In our case we have been 10 years without anyone living at home and suddenly we had our daughter, son-in-law and granddaughter living with us for two months. Living With Grand Children is a great opportunity to bond with your grand kids.

In our case our granddaughter is three years old and is a wonderful little child. We truly love her and enjoy almost every minute she is around us. We would not be honest if we did not say that she is just like the majority of other children were she has a great disposition, lots of humor, lots of energy and like all children she sometimes has her moments when she is tired and grouchy.

Living With Grand Children

Having three people move in with you requires adjustment to your daily schedule and life. For example in the mornings there is a huge rush to get ready for work and get our granddaughter ready to go to daycare. We generally stayed out-of-the-way, we helped a little bit at breakfast time but other than that we let the parents do everything.

In the evening it was our turn to look after our granddaughter while the parents got supper ready and did some of the household chores that they like to do. We got to spend an hour and a half with our granddaughter getting to know her and playing with her. At 7 o’clock it was bed time and time to get ready for bed and then we got to spend time with our daughter and our son-in-law.

This was a truly great opportunity for us as grandparents to spend time with one of her grandchildren as well as our son-in-law and daughter. We enjoyed every moment of it and sure there were times when things did not go smoothly but that is to be expected in any families life. You deal with it, and move on and make sure there are lots of communications to resolve any issues or conflict. This is something I would recommend for all families providing that you have the patience for kids, and communicate well with your family. The other requirement is that everyone should pull their weight in terms of the household chores and duties.

We would definitely do it again in a heartbeat.

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Taking responsibility for your finances and managing your finances is one of the most important things you can do to ensure a better quality of life for both you and your family.  Some of the statistics are quite scary when you consider the impact it will have on the family’s personal finances and their ability to deal with emergencies, and plan for retirement.  If we can get people to begin to manage your finances, we know that as a country and as individuals will be much further ahead.

Managing your Finances

Here are some facts that might surprise you:

• 6/10 Canadians live paycheck to paycheck
• the yearly savings rate of Canadians have strop from 12% of income to just under 2% today
• household debt has doubled in the past 10 years
• credit card charges have risen from $70 billion-$2 trillion in the past 20 years
• the average household credit card debt is $16,000
• 84% of graduates felt that they would have benefited from more education on financial management topics
• the average college graduate is over 23,000 that
• there is no system to educate Canadians and Americans by managing their finances

More Topics to Cover

The following are some of the things that the writer feels that many people would benefit from if they were to receive more education on these topics:

• how money works
• dispel myths and misconceptions about money and debt
• why people cannot save money
• why it is important to save money early in life
• how saving 10% can provide you with financial freedom
• compound interest
• how to invest your savings and maximize income
• understanding the stock market and the bond market
• should you purchase a rental property
• how credit cards and credit card interest work
• impact of not paying your credit card on your credit rating
• what you need to do to have an A+ credit score
• what is the difference between good debt and bad that

If people understood the issues behind the above concepts they would be in a much better position to manage your finances and to also make sure that they are financially secure and can withstand emergencies that come along from time to time.  Whether it is a health problem, job loss, a sudden large repair on your home or car or something that just comes of the blue, understanding the above issues will increase the probability that consumers can deal with these financial issues and have money set aside to fund their retirement.

In the coming weeks, we will cover the qualities topics in much more detail stay tuned for more posts about these subjects and basic money management of your finances.

Debt and credit are linked and dangerous for consumers. It is so easy to build up debt through credit cards. Don’t forget other personal loans along with car loans and mortgages. There seems to be no end of credit available to consumers. Credit cards are one of the worst. Every week we seem to receive a free application for a credit card. Or we are at a store and they are trying to persuade us to sign up for the store credit card.

What is Debt Credit

Debt is money you have already spent and owe to someone. For many consumers, this usually means credit cards. Some consumers will have as many as six or seven or even higher number of credit cards. Each of these credit cards has a Credit card debt limit. This is the amount of money that you can charge to the card. Let’s assume a round number of $5000 that can be charged to each of these credit cards. If you have six credit cards. As a result that could mean if they’re all charge to the maximum a total debt of $30,000. Each one carrying an interest rate of 18% or higher on any unpaid balance.

Credit is money that is not yet spent, but some companies, usually credit card companies will approve a credit card in your name with virtually no checking. Most people use a credit card and pay the balance on the statement due date each month. Subsequently, the Credit card company will often increase the total limit on the card by a few thousand dollars. Next thing you know you have a credit limit that is much higher than when you signed up.

Debt Credit – Personal Debt

Credit represents potential debt and this is where the number of credit cards that you hold can really affect your overall credit rating. Even if you do not use the cards and have them only for emergencies if you have many cards with high credit limits this represents a potential debt that credit rating agencies take into account.

Holding many credit cards represents a lot of potential debt and affects your credit rating negatively. This could impact being approved for a personal loan, or obtaining a loan but with a higher interest rate. If you have a lot of credit cards take a few minutes to examine how many you have and what the total credit limit is on all of these cards. You may want to consider closing a few of the cards to
lower your total potential credit limit. It could take up to six months to a year for this change to be reflected on your credit report.

It may be frustrating to learn that cancellation of a credit card may take as long as a year to be reflected on your credit rating. At least you’ve taken the right step to manage your debt, your potential debt, and your credit rating. It will pay off in the years to come when you apply for a mortgage, a Car loan, or a personal loan for renovations to your home or some other expense.

The benefit will be in lower interest rates. This means a lower overall cost for borrowing money and an easier application process. With an excellent credit rating, you should have no problem in applying for and being approved. The personal loans or mortgages should be at very competitive interest rates.

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We all have been out drinking at the bar or at a friends place and then have to think about driving home. After only two drinks there is a good chance that if tested, you would be over the legal limit. As far as driving under the influence of alcohol is concerned. It does not take much, to be over the limit. If you are stopped, you may need the services of a drunk driving attorney. There are many people on the road every day that are probably over the limit. They probably do not even realize it.

Your alcohol level depends a lot on your body type, your alcohol absorption rate, the food you have eaten, and how long it has been since your last drink. As a result, these factors are variable for every person. The net result is that most people should not take a chance. It really is not worth it when you consider an accident and the charges. As well as the legal/moral implications of that could be involved. Why take the risk.

Drunk Driving Attorney – Designated Driver

Many people now go out at night with the plan of having a designated driver. Or they will just leave the car and take a taxi home. They will pick up their car the next day. They will avoid any potential issue of being stopped, tested, and fined for driving while over the limit. Sure it costs more to take a cab. But compared to paying for an attorney, the fine, and even losing your license, the cost of a cab is really a minor expense. In addition, if you do have an accident, there is corresponding damage to vehicles. As well as possible to people in the car as well. Just take a cab if you have too much to drink. Or have a friend drive you, someone who has not been drinking.

One other thing. If you have an accident and it is judged that you are over the limit, some insurance companies will not pay for the damages. You’re on your own for both the damages to your car and also the damage you may have caused. It can get really expensive! The writer’s car insurance is written with this clause in it. This means that medical coverage is removed in this kind of situation. Better hope that your car insurance provides coverage for the other drivers!

Drunk Driving Attorneys

The services of an attorney who specializes in drunk driving cases are usually the best choice since they often have a lot of experience and can make recommendations regarding the best way to deal with your case. They also understand the system and which judges are the best ones to be heard by etc. that will increase your chances for a lenient sentence.

Other Services that You Night Need

Attorneys do not always specialize in only one area. They also provide will preparation services, estate planning in conjunction with financial accountants, estate management, other criminal and small claims cases. although you may be using a lawyer to help you with setting up a will for example for you and your spouse, they can usually help consumers with drunk driving charges and other situations that need an attorney’s assistance.

If for some reason they do not have expertise in the area that you need, and this is something that you should verify, ask for suggestions regarding attorneys in their firm that do have the experience and training to deal with your issue. Don’t go cheap, since it could cost you a great deal more if you lose the case and have to pay fines, lose your license, or worse spend time in jail.

After all, it is your life and no wants to end up with a large fine or worse such as spending time in jail because you had a little too much to drink one night.

The previous post talked about adult children living at home. This post is going to discuss married children moving home along with grandchildren. That is what happened to us when our married daughter and husband and granddaughter moved in with us after selling their home.

There was a good reason for them to move in with us. They had sold their house and we’re in the process of looking for another but did not find anything quickly enough before they had to move out of their existing home. Rather than grab something that they might not have been satisfied with, they decided to move in with us and take their time finding the perfect home in a perfect location for them. This was something that we were willing to do and supported and we had the opportunity of getting to know our daughter again after being away for 10 years, our son-in-law, and of course our granddaughter.

Married Children Moving Home – Grandkids

This was something that we thoroughly enjoyed particularly having our granddaughter live with us and have an opportunity to get to know her a lot better. She is only three years old and it is the perfect age for them to live with us. We establish some early ground rules which made it very easy for us and for them to enjoy our home while they lived with us.

The ground rules that we set up are pretty simple but worked for them and for us. These ground rules might vary by family and situation however it is definitely worth setting up ground rules and discussing them so that everybody is on the same page.

The ground rules are as follows:

We established space in the kitchen for them to store their foods and utensils that they wanted to use although we shared all meals together and groceries.

In the mornings we stayed out of their way so they could get ready for work and get our granddaughter ready to go to daycare.

In the evenings we would look after our granddaughter, while our son in law prepared supper. After supper, we did the dishes and cleaned up so that they could spend time together.

On the weekends if needed we would be happy to babysit anytime so that they can look for a home.

There was never any pressure for them to move out. Everything worked out really well. With the basic ground rules in place, we were confident that they would find a place to live within a reasonable time and at the same time enjoy their time living with us.

These basic ground rules worked very well for us and the only other thing that we both agreed to was that if there was a problem we would make sure that it was discussed and communicated clearly so that nothing got out of proportion in terms of a disagreement. Establishing mutual agreed to ground rules was the key to our success.

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Many consumers are struggling with debt. Consumers are paying the mortgage payment, and taxes, or rent, a car loan, and probably some credit card. The monthly payments compared to their income is often above 35%. This is the number the banks use to determine whether they can add further debt to your monthly payments and still be risk-free or relatively risk-free. What to do about the money you owe when it gets difficult to deal with? When you get about 35% in terms of debt load, it starts to impact the food that you can put on the table, the clothing that you can buy your kids, and many other entertainment style expenses. Consumers finally need to cut back.

What to do About Debt

They have choices regarding what to do. These choices are sometimes difficult. However, there are financial solutions that can lead to improving the loan situation and more money to enjoy life with. We will discuss some of these in the following paragraphs.

They can continue as is and just keep struggling along paying more loan payments than they can afford and also cutting back on food, clothing, and utilities. Ultimately they will default on their debt.

They can default on their debt. When you default on your debt, there is a severe hit to your credit rating. You end up with a bad credit rating and in most cases cannot borrow money for at least seven years. This means no car loans, credit cards, no other personal debt.

They can negotiate with lenders. This is probably one of the best solutions and that is to talk to your lenders and negotiate a solution that is a win-win for both of you. The lender wants to make sure that he gets paid, you need some relief from your payments, and as long as you’re both willing to work towards a solution you can get your loan payments under control.

They can refinance what they owe. Part of the discussion with your lender is that it could lead to a solution of refinancing all of your loans. This could lead to a lower interest rate, and lower monthly payments which allow you to get control of your loans and also continue to put food on the table and clothes for your kids. Always consider refinancing your debt particularly if you’re paying high-interest rates on debt such as credit card debt.

Pay the Highest Interest Rate Loan First

Then focus on repaying the highest interest rate debt first. You will reduce your interest cost significantly when this debt is paid and also a significant drop in your monthly payments if the highest interest debt is paid for first.

Consumers can do a combination of all of the above. Except for default on the debt which would really impact their credit rating! Taking positive steps towards managing your debt and demonstrating this to lenders will go a long way to managing your credit rating. Keep it at a level that allows you to borrow consolidation loans at reasonable interest rates. Deal with your loan situation quickly. Do not let it get out of hand otherwise, consumers will be faced with a bad credit rating and high interest-rate loans if you can get one.

For more posts and what to do about it, click here.

What do you think the long term stock value impact of baby boomers is?  When baby boomers begin selling their stock and investments will this drive the value, the price of these investments down?  What is the demographic impact of aging baby boomers as they cash in their assets? They are paying for trips and vacations and healthcare as they get older?

There are roughly 76,000,000 baby boomers who were born between the years 1946 and 1964.  They are now nearing retirement.  As the baby boomer, we are used to facts and marketing concepts that cater to us. We are used to making changes in just about everything. We are used to getting our own way about many things.  One of those things that we have done is created a massive financial savings machine in many countries. Which baby boomers are now going to cash in on.

Long Term Stock Value impact on the stock market?

Vacation properties and locations where still birds like to spend their winters have seen a significant increase in property values.  Baby boomers are cashing in their stocks and investments to pay for vacation properties. These are they can spend their leisure time and enjoy themselves.  Locations such as Arizona Nevada and California along with Florida have seen a significant influx of baby boomers retiring.  This has driven the cost of homes, condos, etc. sky high.

Are they cashing in their investments in order to pay for these properties?  In some cases, this is probably true. However many boomers are very cautious. They know that they will need money to ensure their comfort as they get older.  They will be investing in conservative investments and avoiding high-risk venture capital type investments.  Many analysts feel that the baby boomers will cash in their investments to support their Social Security benefits. We feel the most will keep their savings for as long as they can. They want the confidence that they can weather any financial emergency.

Americans and Canadians are living longer

We’ve all heard the message, our average age is increasing. We now can look to living well into her 80s, if not into her 90s in the next 20 years.  This is causing a great deal of concern for many baby boomers. They want to make sure that their money will last them which is increasing their caution with regards to how they spend their money.

Many baby boomers will continue working simply because they have not saved enough money. Or maybe they enjoyed the social aspect of going to work every day.  Many other baby boomers will spend their time doing volunteer work and helping others who are not as fortunate.

Saving enough for retirement

The fact of the matter is that the majority of baby boomers have not saved enough money for their retirement, which will force them to continue working to live the kind of life that they prefer.  Those that have a small number of investments will likely sell those investments early on to pay for part of the retirement.  Since most of the wealth in terms of money invested in the stock market and the bond market is from the top 25% of the population, we believe that these people will be much more cautious about how they spend their money and will not cash in their investments aggressively.

While they might have to delay their retirement, they will not cash in their investments just because they want to make sure that they have enough money to last their retirement.  Based on this opinion were pretty sure that the stock market is not going to crash or fall apart as baby boomers age.  They will also pass along some of these investments to the children who will look at this money as an opportunity to pay some bills and also to satisfy their own retirement.

Stock rallies in 2012 and 2013 have clearly indicated that the stock market is still appreciating and is experiencing little impact from baby boomers selling their investments.  Bottom line is to remain diversified, focus on blue-chip stocks, with dividend income in companies that have a history of increasing dividends every year.  Generate income from these investments and live off the income without touching your principle is probably the best advice that people can fall at this point in time.

The first step is to Negotiate your health bills while you’re still healthy! The others included – At the time you get a big bill; If you are suffering the results of a medical error; When you are caught between doctor and health plan; and Planning an elective procedure. No one wants to deal with a large medical bill. Even though the bill is going to be high, there is room to negotiate and reduce the total cost in most cases. The worst that can happen is that the doctor refuses to negotiate. Most will do something so always ask for a reduction. We will discuss these in more detail in future posts as well.

Negotiate your health bills if you are suffering the results of a medical error

A medical error can be really difficult. You are already suffering from some ailment that required medical treatment in the first place and now you have to deal with some mistake that was made concerning your health. We hear about the really bad ones where a patient has been operated on and something is left inside the patient, or the wrong patient was operated on or they removed something they should have not removed. Fortunately, these examples are pretty uncommon and the majority of cases are not this severe!

What is more common are things like incorrect prescriptions, incorrect diagnoses, or no diagnoses at all. Some doctors give too many prescriptions and their patients do not know the difference or in a few cases, they are thankful because they like the idea of being so many prescriptions. This is dangerous, but they are their own masters so there is not a lot you can do about these people.

What we are saying in this web site is there may be an opportunity to negotiate a settlement of some kind directly with the doctor if you are the recipient of a medical error.

Negotiate your health bills – An Example of a Medical Decision

A friend of ours was being operated on to remove a bone spur in his shoulder. This was to be a simple operation and he would have full use of his arm after the operation. Release forms were signed accordingly and he was operated on.

When he woke up he found that the bone spur had been removed. But the doctor had to repair a tear in his shoulder. This meant that he needed to keep his arm immobilized for three months and then go through physio for six months. The doctor made the right decision to make the repairs that my friend needed. However, he did not have permission and did not have release forms.

The doctor was very concerned and discussed it with my friend. My friend was of the opinion that he would rather have the operation completed. Instead of going back for a second operation months later. He expressed this opinion to the doctor who was greatly relieved.

This situation could have turned out very badly, however, both parties made the right decision and there was no litigation required. We do feel that if the patient had a trip for example booked and now could not go on the trip, he might have asked the doctor to cover this cost, however, there was nothing like that to be concerned about.

My friend cannot drive now for at least 5 months as his shoulder recovers. Apparently, it is illegal to drive with only one arm! Not everyone needs to launch a lawsuit in cases where common sense prevails. Negotiate your health bills when it makes sense.

Save

This is the question that many people ask themselves every day, how much do I need at retirement. How much do I need to save to ensure proper quality of life for my retirement. Some people do not ask themselves this question until they are in their 40s or 50s. By that time it is much too late to save a large nest egg. Unless you have an excellent income with little expenses it is very difficult to save enough money once you have reached that age.

Regardless of what age you are now, now is the time to start planning for retirement. If you begin when you’re young in your 20s  save at least 10% of your salary. You should have more than $1 million for retirement. Add to that any pensions that you might have from the government. Also, your employer pensions and your quality-of-life should be what you are looking for.

How much do I need at retirement – Inflation

However, there is one item that must be discussed and that is the amount of inflation. There are many calculators that can be used to calculate how much you need to save for retirement and what the impact will be of inflation on the amount of income that you receive as a result of that savings.

For example, we recently read an article of a man who is 32 years of age and had already saved 125,000. He was assuming an 8% percent growth and calculated by the age of 67 that he would have $1.8 million.

Assume a 3% inflation and the 4% initial withdrawal rate. His pretax income in retirement equivalent in today’s dollars was only going to be $26,300. Assumed a more cautious 6% return instead of 8%. The income derived from the savings was only going to be $13,000 a year. This is not a lot of money and demonstrates why you must save on a continuous basis. This man was very fortunate to have saved $125,000 already saved however it demonstrates that he needs to continue saving to account for inflation and to derive the quality of life that he is looking for in retirement

Get started now, with your savings plan for retirement and use one of the many calculators that are available to calculate what your annual income will be based on the amount of savings that you have when you retire.

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Over 51% of homeowners are confident that they will retire with some kind of debt including mortgage payment, even though they feel it is an important goal to retire with no debt payments.  The reality is that Most consumers will not retire debt-free. Most people are not happy with how they are managing their debt and have not sought the assistance of a financial planner. Consumers are generally unhappy about how they’ve managed debt. They have failed to develop a financial plan. A plan that they can follow through life. As a result, they have no idea whether they will have sufficient funds available to support them during retirement.

They come from all walks of life and income levels as well. They are worried about their quality of life during retirement. Many are worried about whether they can enjoy themselves. Will they have enough money for travel, for visiting the grandkids or even buying the food, etc that they need. For some,  it means they have to continue working well past the age where they expected to retire.

Most Consumers Will Not Retire Debt Free

Increasingly people as they get closer to retirement are realizing that they will have to work longer just to maintain their quality of life. They do not have the savings to rely on. They must work to ensure the income levels they need to maintain the quality of life they are used to.

Develop a Financial Plan Now

Developing a financial plan, consolidating your debt into one low-interest loan, focusing on reducing your debt, and discussing your retirement plan and savings plan with a financial adviser are key attributes for people who would like to retire debt-free. In addition, spend a few hours a month to get your financial plan in order. Subsequently, it could mean a huge difference for you and your family later on in life.

Discuss your plans with your spouse and write them down. Above all focus on meeting whatever objectives you set. Make sure your investments are diversified so that if one investment suffers a loss, you are only partially impacted. Most importantly ask for advice from several people, read about financial planning, and do not follow advice blindly without testing the advice with other people.

If it sounds too good to be true, it probably is too good to be true.

For more posts about debt freedom, click here.

There have been lots of stories about adult children living at home. Some never leave, after graduating from high school or college. They just get a job and continue living with mom and dad. Others leave for a while, find they can’t survive on their own, and return. Still, other adult children leave, get married, have children. Then the marriage doesn’t work and suddenly they are back with mom and dad. There are all kinds of reasons why adult children, their children, and spouses will move back with mom and dad.

Adult Children Living at Home – Grandkids

It are specific case, our 30-year-old children actually our daughter and husband and granddaughter moved back with us for a period of two months. We were certainly okay with this and had agreed to it much prior to them actually moving in. They were trying to sell their condo and had some difficulty in getting a sale. Once it was sold the buyer wanted a quick possession and so we agreed to have them move back with us until they could find their own home.

They both have great jobs, and can easily afford to purchase another home. It was just too quick to be able to find the home they really liked and they did not want to make a snap decision on something that did not quite fit their needs. They were happy to move in with us for two months while they looked for a house. As it worked out they were able to find a home that had been vacated that met all of their conditions and within two months’ time they were moving from our house to the house of their dreams.

A Good News Story

This is a good news story for them and for us. We got to live with our granddaughter and got to know her really well as well as our daughter’s husband. We are still excellent friends and enjoy their company. They still come for dinner every second weekend so I guess we can say that things worked out but that is not the case for many couples.

We will be doing a series of articles on this topic about adult children living at home, moving back in with mom and dad, and finally moving out of the house. Stay tuned for more articles on this topic.

For more about adult children coming home to stay or never leaving, click here.

Many consumers do not have a financial plan and have no idea of whether they have enough set aside for retirement or not. Many lose sleep at night worrying about this question and sometimes even ruin their health. The Top financial plans for consumers include meeting with a financial adviser who is willing to help them figure out a budget and savings strategy. There is really only one way to deal with this issue. The only way to figure this out is to look at the following elements of a total financial plan to understand their situation:

• How much do they have in savings and how will it grow over time
• Will they have enough in savings by retirement
• How much income will be generated from savings, private and public pensions?
• What is their expense budget to-day and what will it be in retirement
• What will they do in retirement to occupy their time and challenge themselves?

If you can answer these questions you are well on the way to developing your financial plan and taking the steps you need to make sure that your income in retirement will match your expenses. The following are a few stats from a recent survey that was completed, which readers may find interesting.

Top financial plans for consumers

• How can I save and pay down my debt?
• Can I afford the lifestyle I want in retirement?
• When can I retire
• How can I reduce my taxes and grow my net worth faster?
• Should I pay off my mortgage or concentrate on my retirement savings?

The top five financial planning recommendations to help consumers deal with their financial concerns

• Pay yourself first is a simple and effective long time approach
• Develop a plan, printed it out, and review it with a financial planner
• Reduce your most expensive debts as quickly as you can
• Learn about all tax saving options
• Make regular contributions to your retirement plan

What do consumers think about their finances?

• Only half of the consumers have a financial plan
• One-third of consumers plan on reducing their debt
• Only one-quarter of consumers are confident that they can manage their debt
• Holiday seasons contribute significantly to increases in consumer debt

For more financial advice posts, click here.

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