As the mortgage market melted down this summer and the credit markets grew chaotic, Michael McCandless, a Lexington, Mass.,software developer, watched with detached curiosity. Unlike most buyers scheduled to close on new homes in mid-August, he knew his lender would come through as agreed.
The reason? The McCandlesses were financing the purchase of their dream home with a jumbo mortgage underwritten by a generous sister-in-law.
Borrowing money from one’s own inner circle is neither new nor uncommon. But it can harbor the kind of mismatched expectations that impact the Thanksgiving dinner guest list for years to come if done with too much informality.
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Disagreements about finances is the number one cause of divorce, so getting these issues out in the open and coming to an understanding before marriage can greatly increase your chances of staying out of divorce court.
We've all heard about pre-nuptial agreements among the rich and famous, but do they ever make sense for the average American? Pre-nuptial agreements can save many a bloody battle if your marriage ends up in divorce, but since most of us don't get married with an eye towards the divorce courts, we never even consider a pre-nuptial agreement.
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By: Brendan Boesch
By Craig Rozelle:
By Nicholas Hall
There is quite a bit for a family to consider when thinking about saving for their children’s college fund. By 2020, you'll need an estimated $225,000 to put Junior through a private college or $105,000 for a public university. With that being said, it is fairly obvious that planning early and creating a good investment portfolio are essentials for every family looking to put their children through college. The first tip is to do you research. You need to figure out how much you will need to save and by what time will you need the money based off number of children and their ages. There are a number of different types of loans, plans, bonds, and accounts that make this a much easier process as long as you know what you need. The IRS also offers a 529 plan that allows you extra savings and tax benefits on college plans. Tip number 2 is that a little extra couldn’t hurt. Always look for ways to add to your child’s college account, this could be anything from baby showers to just cutting unnecessary costs. Tip number 3 is to make sure you diversify any risky investments and select the method that makes the most sense for your individual situation. Finally, don’t pay for your child’s college at the expense of your own retirement and remember that there are always grants and loans that can make up the missing amounts. The best way to ensure a favorable outcome is to start to save as early and possible and be smart with your investments.
Sources:
http://www.savingforcollege.com/intro_to_529s/what-is-a-529-plan.php
By: Craig Rozelle
IF YOU AND YOUR partner are like most couples, chances are, you fight about money. Numerous studies have shown that money is the No. 1 reason why couples argue — and many of the recently divorced say those battles were the main reason why they untied the knot.
While anyone will tell you that talking about money is the first step in resolving problems, talk alone won't do the trick.
In fact, a 2004 study commissioned by SmartMoney magazine and Redbook, another Hearst publication (SmartMoney magazine and SmartMoney.com are jointly published by Dow Jones and Hearst), found that more than 70% of couples talk about money on a weekly basis. So what's the problem? "Most of us don't know how to talk about money," says Mary Claire Allvine, a certified financial planner (CFP) and co-author of "The Family CFO: The Couple's Business Plan for Love and Money."
"People tend to be emotional and reactive about money, not strategic," she says.
