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Recent Blog Posts
More Seniors Opting to Rent Instead of Own
Owning a home is a goal that many individuals grow up with and consider as the "American dream." A home offers a place for families to raise their children. Later in life, a home provides a place for families to enjoy their golden years.
However, what is often not included in the description of the American dream is the cost and work that is required to maintain a home.
Over the past several years, more and more retirees are opting to sell their homes and are choosing to rent. In fact, statistics show that over the past 15 years, the number of retirees who own homes has dropped from approximately 85 percent to 75 percent. Additionally, projections show that over the next 10 years, more than 2 million seniors will make the decision to sell their home and rent.
One common reason for choosing to rent is the spikes and drops of the real estate market. Currently, the market is at a high, which means that it is a good time for sellers. Historically, when that high market reaches a certain point, it eventually comes crashing down and turns the real estate tables into a buyer's market. With that in mind, many seniors will make the decision to sell in order get the most money for their property. These funds can then be invested in such a way to boost a senior's monthly income.
Filing for Conservatorship in Illinois
In some situations, it is necessary for a conservator to be appointed to oversee a person's affairs. Many people refer to a conservator as an adult guardian. A conservator can be appointed to make decisions regarding a person's financial affairs (referred to as a conservator of the estate) or to make personal decisions for the incapacitated person (referred to as a conservator of the person). In many cases, one person can be appointed for both duties.
Sometimes, the person who needs the assistance of a conservator is able to make the decision as to who is appointed. However, it is often the case that the person is too incapacitated to do so. In these situations, there is a preferred legal order that the court considers when making the appointment. It is usually preferred that the spouse or domestic partner be appointed conservator. Other people who may be considered, in preferable order, include an adult child, a parent, and a sibling. If no one from the family is qualified, available, or willing, then there are professional conservators who are available for a fee, which is paid from the estate.
Wealth or Legacy: What Tops Boomers Inheritance List?
When most people think of leaving a legacy for their children, the legacy usually revolves around finances. Many of us want to make sure our loved ones are taken care of when we are no longer here to do so ourselves. Therefore, we need to take the appropriate estate planning steps to ensure that there is enough money, property, and other assets to accomplish these desires. However, a study, which was conducted by Allianz Life Insurance Company of North America, reveals that those in older generations appreciate the value of personal legacies as well.
The American Legacies Pulse Study surveyed both baby boomers (those who are between the ages of 47 through 66) and elders (those who are age 72 years or older). The company had conducted a similar survey seven years prior to this one.
An overwhelming 86 percent of boomers who were surveyed said that family stories— those passed down from generation to generation—were the most important legacy one can leave behind. For elders, 74 percent agreed that family stories were the most important legacy.
Estate Planning: Blended and Traditional Families and Same-Sex Couples
A recent survey compiled by UBS highlights the differences in the American family structure of today compared to past generations, and how those differences may affect a family's estate planning.
According to the survey, 34 percent of all high-net-worth investors live in modern families and 35 percent live in traditional families. However, nearly two-thirds of those who participated in the survey felt that financial advice is targeted to only traditional families.
The survey classified a modern family as one consisting of same-sex couples, one in which children were living in the home from prior relationships, or a home with parents and adult children living together.
There were 2,715 high-net-worth and affluent investors who participated in the survey. Of those who participated, 1,787 had a minimum of $1 million in investable assets, with slightly more than 400 members of that group having at least $5 million in investable assets.
Newlywed Estate Planning Checklist
One of the last factors that most newlyweds consider—yet perhaps one of the most important—is making estate planning arrangements. This is especially true for younger married couples.
There are steps a newly married couple should take to ensure that if one spouse is affected by a tragedy, the other spouse will be cared for.
Newlywed Estate Planning Tips
First, a couple should contact their employers' Human Resources departments. There are often benefits and/or retirement accounts which will need to be updated with new beneficiary information. For example, one spouse may have had one or both of his or her parents as the beneficiary of an employment life insurance policy. If the beneficiary information is not changed and something happens to that spouse, the surviving spouse would not receive any of that life insurance policy's payout—the funds would go to the parents of the spouse.
Report Finds Americans Are without Retirement Savings Plans or Pensions
The U.S. Census Bureau estimates that as the baby boomer generation ages into retirement, the age 65-and-older population will grow over 50 percent over the next 15 years. However, according to a new report recently released by the U.S. Government Accountability Office (GAO), a good majority of that population will not have the financial resources needed for retirement.
The GAO used data from the 2013 Survey of Consumer Finances, a survey sponsored by the Federal Reserve Board and the Department of the Treasury, to compile their report.
Per the GAO report, more than half of Americans aged 55 years or older do not have any type of retirement savings account, such as a 401(k) or Individual Retirement Accounts (IRA). Approximately 20 percent do have some type of pension which they will be able to draw from during retirement; however, another 30 percent will be left without retirement savings or pension.
Tips to Help Increase 401(k) Account
One of the primary sources of assets utilized in estate plans comes from 401(k) plans that people set up through their employers. The funds that accumulate in these accounts are often the ones used to fund living trusts and other estate planning options later in life.
Many employers offer 401(k) plans as a way for employees to plan for retirement. Typically, an employee decides what percentage of his or her pay he or she wants to put towards an account. An employer automatically deducts that amount from each paycheck and deposits it in the employee's 401(k).
An account is managed by a plan administrator—usually a brokerage firm or mutual fund company. However, an employee decides where he or she wants his or her funds invested. Often, an employer will offer a matching contribution. The more an employee can fund his or her 401(k), the more financially secure he or she will be for retirement.
Illinois Intestate Succession Rules
What happens to your assets and property if you die without a will? Every state's laws have a different answer to that question. In Illinois, the law that covers "intestate succession" is the Probate Act of 1975.
If you die without a will in Illinois, then the law covers any assets that you own which do not come under one of the following:
- Life insurance policy proceeds;
- Retirement accounts;
- Payable-on-Death (POD) bank accounts;
- Securities or stocks which are in a transfer-on-death (TOD) account;
- Property held on a TOD deed;
- Property owned with another individual(s) in a tenancy by the entirety or a joint tenancy; and
Who Wants to be a Millionaire?
"Who Wants to Be a Millionaire?" is a popular television game show where people attempt to answer a series of questions correctly, working their way up the ladder to reach a million dollars.
However, in than 15 years that the program has been on, less than 20 people have actually reached the million dollar prize level. It appears that if you want to be a millionaire, you have a better shot at reaching your goal with hard work and smart investing instead of trying to win your way there. Still, how does one go about getting there?
People who have reached the million dollar level of income have often developed similar strategies to help achieve a high level of income. These strategies include the following:
- Do not expend time and energy on things you wish you had done in the past; instead focus on the now. For example, do not spend time lamenting over your failure to invest in Microsoft two decades ago and how much you could have earned. Experienced financial advisors recommend investing in a diversified portfolio of stocks, allowing it to grow slowly, but steadily.
Questions to Ask When Hiring a Financial Advisor
Estate and retirement planning may involve consulting with a financial advisor. A financial advisor is someone who sits with clients, determines what the client's financial goals are—i.e. retirement—and then directs the client to the appropriate investments which will help the client meet those goals.
Just like when hiring any professional, there are certain criteria you should look for when deciding on an advisor for your financial future. Moreover, key questions should be asked to a potential advisor which will assist you in deciding if this is the person for you.
