If you have come to conclusion that you are ready to open a Roth IRA, it can be confusing on choosing the best place to setup your Roth IRA account.

Jeff Rose from Good Financial Cents has created a movement he has dubbed the Roth IRA Account Movement in an effort to encourage young adults to start saving early. Young adults like many investors are clueless on where to get started.

In this day and age, you have many, many choices.  In fact, it’s worse that going to all you can eat buffet when it comes to plethora  of options you have. You can go to your bank, you can go to a brokerage firm, you can go online.  It’s almost to the point where you can go to Wal-Mart to open a Roth IRA account.

Not quite, but you never know.  Your situation and your needs will be the largest determinant on where the best place is to setup shop.  Here is a breakdown at the different choices you have at opening a Roth IRA and why it may be best for you.

photo credit: Andi Sidwell

Open a Roth IRA at a bank

….if the word stock market equates to a major feature horror film, then opening a Roth IRA at a bank is probably your best choice.  Why?  Typically, at a bank, if you open a Roth IRA, your only two investment options are going to be CDs or money market savings accounts.  Both of these will be covered by the FDIC limits, which for IRAs are $250,000 per account.

By setting up the Roth at your bank or credit union, you’ll never have to worry about losing principal and you’ll never have to worry about the stock market.

Be careful though. If the bank or credit union has a brokerage firm within it, and that you get referred to the financial advisor there, then you’ll be most likely won’t be investing in a CD or a savings account.

Setup a Roth IRA account at a brokerage firm

…..if you’re looking for some more investment options other than CDs or money markets, but you still need help choosing the best investment for you.  In this case, you may want to consider going to a local brokerage firm.  Going to a brokerage firm will allow you to invest into mutual funds, ETF, stock, bonds.

The one downside by going to a major brokerage firm to open a Roth IRA is that the financial advisor could be skewed in his recommendations.  If they are employed by an in insurance company, they may have their own in house proprietary annuities or mutual funds that they might try to sell you.  Also, they may have a secret alliance to a particular mutual fund company, so you may not be getting unbiased advice.  Tread carefully and make sure to read the prospectus and ask plenty of questions.

Open a Roth IRA at an independent financial planning firm

…if (Same rules apply with the brokerage firm) you want more investment choices versus a bank, an independent firm might be the best choice for you.  With an independent firm, you should eliminate any biased advice or recommendations and have investments suggested to you that is purely based on your needs.

The only downside with an independent firm is that if you are a new investor they may have certain account size minimums in bringing on new clients.  If this is the direction that you are destined to go, it never hurts to ask to see what the possibilities are of working with an independent financial advisor.

Setup Your Roth IRA directly at a mutual fund company

….if you are hardcore zealot of that mutual fund company.   For example, if you love Vanguard because of their low expense mutual funds, then it makes perfect sense to open your Roth IRA account there.  Same rule applies for Fidelity, T. Rowe  Price, American Funds, etc.  The benefit of doing so is that you should (double check with the mutual fund company) be able to switch your mutual funds holdings without every occurring a another sales charge.

The downside is that you are typically limited to the that company’s mutual funds.  Vanguard, though, has 130 domestic and 40 international funds to choose from so you still get a very decent selection.

Open a Roth IRA at a online brokerage

…if you consider yourself a “do it yourselfer” and feel educated enough to make your own investment decisions, then opening a Roth IRA account at a online brokerage firm would be the best choice for you.  By opening a Roth IRA account online, you should pay less in transaction fees, annual custodial fees, and you have the freedom and flexibility to make changes to your portfolio whenever you want.

Here’s a look at some of the best places to open a Roth IRA online if this is the way for you:

Like many working class individuals, I had accumulated some unnecessary credit card debt along the way. With all the credit card processing companies out there, it makes it that much easier to over-use credit cards.

It was manageable credit card debt, but with an interest rate that was hovering around 15%, I knew I could do better. I started doing research into 0% balance transfer credit cards, but quickly realized there were tons of choices. Knowing I didn’t want to make a mistake, I read a lot of fine print to make sure that I wouldn’t have to pay any unnecessary fees when I did the balance transfer.

photo credit: Qiao-Da-Ye??????

When the dust had settled and my eyes hurt from reading all the fine print, I had settled on doing a 0% balance transfer to a Discover card.  Keep in mind that I did my transfer over 10 years ago and, ironically, Discover still has one of, if not the best, 0% balance transfer credit card offers.

Fees to Look For on Credit Card Balance Transfers

Much has changed since I did my first 0% balance transfer of my credit card.  Back in the day it was much easier to find transfer offers that had little to no fees.  Credit card regulations have made the process a little more tricky, but as long you are aware of the potential fees, it can still be very fruitful.

• Annual Fee: Preferably, you want a card with no annual fee, but some may charge a nominal fee in the $20-$50 range.
• Transfer Fee: When I did a balance transfer, I’m fairly certain that I didn’t have to pay a transfer fee on my balance.  Nowadays, the industry standard is 3%.
• Late Fees: Missing a payment could be detrimental to your credit score and extremely expensive if your company hikes up the rate.  Be sure to double check what exactly does happen if you happen to miss a payment.
• Rate for Purchases: Your new card might have 0% for balance transfers, but what about for purchases?
• APR: 0% is nice, but eventually the party has to end.  Be sure to know what the interest rate increases to after the introductory period runs out.

Why Do Credit Card Companies Offer 0% Balance Transfer Credit Cards?

It almost seems like the credit cards are giving away free money doesn’t it?   That’s exactly what I thought.  0% interest on anything debt sounds almost too good to be true, but it makes sense.  Why?   For anyone that does a 0% balance transfer to a new credit card, you only have a certain period of the introductory offer.  Most that take advantage of these balance transfer offers will not have paid the entire balance by then.  The credit card company now has a new customer paying interest on those transferred balances.

This, of course, doesn’t acknowledge the fact that these customers will most likely be purchasing more with their new card.  In the end, that’s the credit card companies goal.

How Long Does it Take to Do a Balance Transfer?

If you have a credit card with an interest rate greater than 20%, then most likely you’re ready to transfer yesterday, right?  If the thought of accumulating another interest charge is eating away at you, the first thing you need to do is apply for a balance transfer card.  That’s the first step.   Even after you apply, you still want to keep sure you make payments to the current high interest card to avoid any late payments.  Most balance transfers will take approximately two weeks for it to fully process.  Why does it take so long?  After you apply, the new card has to send a payment to your existing card.   The holdup can be in your existing card accepting and then crediting the payment.

Thankfully security camera systems are so affordable these days, it would be virtually impossible  to max out your credit card obtaining one. In fact, security cameras are so inexpensive, they go for as little as 50.00! Check out the previous site for more details.

Best 0% Transfer Credit Cards

Do the words “Stock Market” make you cringe? Did you see your 401k get slashed into a 201k? Are your bank CD’s paying pennies on the dollars?  Are you interested in potentially making 9.65% on your money? If you answered “Yes” to any of these questions, then it might be time to invest into something different.  Peer to Peer Lending might must just be what the doctor ordered.  This post shares my experience on setting up an account with P2P leading lender Lending Club and how I made my first investment with them.  Don’t know what Peer to Peer lending or Lending Club is? Don’t worry, you soon will.

Be sure to take advantage of a free $25 offer by clicking on the various Lending Club Links throughout this article.

Investing With Lending Club Review

What is Peer to Peer Lending?

I’ll be honest, I had read a few blog posts on Lending Club and follow their Twitter profile, but I really didn’t understand what they did or what Peer to Peer Lending was.  Thankfully, after requesting some info from them, a representative reached out to me with a phone call.  How’s that for awesome customer service?   Here’s how it works:

Peer to Peer lending sites like Lending Club and Prosper bring together a large network of borrowers and investors.  First, a borrower who may be looking to consolidate debt with one lender and lower their interest rate would go to Lending Club’s site and fill out an online application.  Based on several criteria (credit score, debt-to-income ratio, size of loan) that person is given a rating which then gives them a determined interest rate.   Their information is now on the Lending Club site for potential investors to loan them the money and collect the interest.  Much like investing into a bond.

Although it has it’s similarities to a bond, there is some potential downside. The biggest downside is that the borrower may default on that loan which leaves you out in the cold. That has to be an important consideration when you are choosing the loans you want to fund. Riskier and a potentially higher return is not always the best answer. One last thing to note is that Lending Club is not approved in all states.

Investing With Lending Club

Investing With Lending Club

How to invest money with Lending Club. Since I don’t have any debt to pay off, my main interest in Lending Club was as an investor.  The cool thing with investing with Lending Club is that it only takes as little as $25 with one borrower.  With a $250 investment you’ll be able to diversify among 10 different borrowers- much like a diversified mutual fund.   You have the option of selecting the more conservative loans or going more aggressive.

Opening an Account With Lending Club is Easy

I was amazed on how simple it was to open an account with Lending Club. After providing basic information as you would to open a savings account at your local bank, you are ready to go make your first investment.

After you verify your account, you have to fund it.  You have the option of adding money from your checking account, wiring the money, transfer using PayPal, credit cards, or now you can even transfer in an existing IRA.  For my first test, I transferred $250 from my PayPal account.  It only took 15 minutes for the money to transfer in before I was ready to invest.

Sample Conservative Portfolio

Making My First Investment With Lending Club

Once the money is showing in your Lending Club account, you’ll see a screen like that above that is asking you to “Build a Portfolio”.  As you can see, a conservative portfolio will get you a approximately 10.62% (provided no defaults) while the aggressive portfolio is 16.74%.  Having been the first time I had done this, I opted to go for the more conservative portfolio.

Once I selected the Conservative Portfolio, the Lending Club system automatically prepared a diversified portfolio of 10 individual notes which would net me an approximate 8.49% return (after potential default rates and service charges). Still not a bad return on my money. If there are no defaults and no pre-pays, I stand to make 9.92% return.

Since I selected the Conservative Portfolio, most of my notes were in the A, B, C categories (least risky) with one loan a D.  I could have changed it, but opted to go a little risky for at least one of my investments.

Information on Borrowers

While I took the easy approach and let Lending Club compose the portfolio for me, you also have the option of building your own portfolio of borrowers.  They give you the ability to get as much information on the potential borrower and even ask the borrower questions if you need further clarification.

One of the borrowers that I helped fund was looking to expand his current computer business.  This was an excerpt of what he was looking to accomplish with the loan.

I am requesting this loan with the goal of expanding a computer repair, computer networking and website development business that I currently own. I am an excellent candidate for this loan as I currently have no debt and simply need additional working capital in order to take advantage of the rapidly expanding IT market.

If I wanted to ask him more questions, I could have; but didn’t see it necessary.  In addition to the purpose of the money, you also have access to the following:

• Gross Income
• Current Employer
• Home Ownership
• Location
• Length of Employment
• Credit Score Range
• Accounts Now Delinquent
• Earliest Credit Line
• Delinquent Amount
• Open Credit Lines
• Delinquencies (last 2 yrs)
• Total Credit Lines
• Months Since Last Delinquency
• Revolving Credit Balance
• Public Records on File
• Revolving Line Utilization
• Months Since Last Record
• Inquiries in Last 6 Months

As you can see, you are provided with more than enough information to make an informed decision about your future investment.

Lending Club FAQ’s

Just in case I missed anything, here’s some more of the common frequently asked questions from the Lending Club site itself:

What is the minimum investment amount to open my account?

There is a minimum investment of $25 required to open an investing account. Diversification across multiple Notes requires a larger investment amount. For example, an investment of $5,000 would let you diversify across as many as 200 Notes. PRIME and No-fee IRA accounts do have minimum opening balance requirements of $5,000 and $10,000 respectively.

What to expect when a loan is late?

Lending Club will make every effort to contact the borrower and bring the loan back to a current status. Our company implements the industry’s most effective mechanism to ensure the loan status do not deteriorate further. You will be updated with any collection activity via the loan performance page in your account. Be aware that defaults are a natural component of investing in notes, and diversification is the best resource to lower the volatility of your portfolio and obtain consistent returns. Most investors start with an investment of $5,000 which allows for investing in as many as 200 notes. The average net annualized return after defaults and fees since inception is over 9.5%.

How are loans listed and approved for investing?

Borrowers who apply and meet our strict credit policy are listed on the site within 24 hours to receive funding. An additional manual review is performed and in some cases, Lending Club requires additional information.   When all information is complete loans are marked “Approved”. All approved loans will issue if the borrower receives funding and bank account is verified.

What is the default rate on Lending Club loans?

The overall annualized default rate since our inception in 2007 has been below 3%. Our stated returns to investors is measured after taking into account that default rate. Our default rate remains low because we are very diligent in both our selection criteria and our collection activities. Since inception, we have been approving less than 1 in 10 loan requests submitted to Lending Club. You can monitor the defaults and delinquencies of loans funded through Lending Club by reading our SEC filings at www.sec.gov and on our Statistics page.

Borrowing Money With Lending Club

As I mentioned, Lending Club to me was more of an investment opportunity not for borrowing.  If you are looking to borrow and possibly consolidate some debt or fund a business venture, Lending Club will fund you up to $25,000.  This can be especially attractive if you’re having issues getting funds from a bank or credit card.

If you’re looking for a good story for someone who did borrow from Lending Club, I encourage you to read a good story by Matt Jabs from Debt Free Adventure.  He walks you through the steps he took to consolidate his high interest credit cards and consolidate them with a loan from Lending Club.

Need to borrow some money or consolidate debt? Click the Sign Up Button to find out more info on Lending Club.

Is Lending Club Too Risky?

Although my experience is short lived, I don’t see Lending Club being any more risky that choosing a stock mutual fund.  The key is to be diversified-which is like any other investment you would make.   Do your homework and see if Lending Club makes sense in your investment portfolio.  As of now, it makes sense in mine.

Want to try out Lending Club? Just click above and get $25 towards your first investment today.

Other Reviews on Lending Club

• Bible Money Matters has a nice Introduction on Lending Club and Peer to Peer Lending.
• Cash Money Life offers his take on Lending Club.

How to Tap Your 401k Without Penalty

Is your retirement just around the corner and you’re concerned on where you’ll be able to derive your monthly income?  You may have a pension,or you may have Social Security, but if you are retiring early then you’ve most definitely been more diligent in your investment tracking and you know that these might not be an option for you to tap into.   You have your IRA and your 401(k), but by what you’ve been told, if you touch it, you may have a 10% early withdrawal penalty. As much as you’ve seen your accounts deplete in the last 15 months, you have no desire in giving the IRS any more money than you already have  with all of the bailout programs.

For some of you, you’re in luck.  There are some strategies that allow tap into retirement plans to take distributions without incurring the 10% penalty.  Here are a few options that will allow you to touch your retirement plans and avoid that 10% penalty.

To avoid tapping your 401k and paying an unnecessary penalty, consider a debt consolidation loan with Lending Club. You can read more about them on our Lending Club Review

1. Death

Obviously, you don’t get to enjoy this benefit.   But it does benefit your family in the event they need some of the money to help with expenses after your passing.  This is a good time to review your beneficiary elections on your 401k to make sure you have everyone listed that should be.

2.  Disability

If and when someone has an accident or is diagnosed with a condition that gives them a permanent disability, it can be quite scary when it comes to paying the bills. If you have a permanent disability you can withdraw from your 401k early and get the money you need. You’ll have to provide a disability letter to your 401k custodian so that they will not hit you with the 10% penalty. 

3. Medical Expenses

Medical expenses are another event that may allow you to touch your 401k penalty free.   Be sure to check with your plan document to make sure so see what medical expenses are covered.

4.  55 and Separated From Service

If you have retired early and are at least 55 years of age, you are in luck.  You can take a distribution from a qualified defined contribution plan, i.e. 401(k), and avoid the 10% penalty.  A couple key things to note on doing this is that it must be from the 401(k), 457 or 403(b), to avoid the 10% penalty.  If you have already done a 401(k) rollover into a traditional IRA, you have already missed this opportunity.  Once you hit the IRA and you take a withdrawal, you are then assessed a 10% penalty and given a larger gift than you needed.

5.  Welcome to 72t.

Another more complex strategy to avoid the 10% penalty is the rule of 72(t).  The rule of 72(t) states that withdrawals from your 401k have to be  “substantially equal periodic payments.  You must use one of the three methods that the IRS has determined and then take your payment on a set schedule for a specific time period. It is required that you take those payments for either 5 years or when you turn 59 1/2 , whichever comes later. For example, if you start taking your payments at the age of 52, then you must do so for 8 years. Someone who starts at 57, must do so till the age of 62.  Also read a previous post that addresses the 72(t) distributions.

Keep in mind 72(t)strategy may not always be suitable.  An advisor, or a tax or legal professional, can help identify the best course of action to incorporate the best investment services.

by eflon

I have a solid core storm door by Pella I purchased three years ago.  The reason it is a Pella, is because the last one I had was a Larson and it lasted only about three years.  I replaced the Larson because over the short time I had it,  the solid core swelled and eventually the outer skin ruptured and disintegrated.   I checked with Lowes and they told me I needed to contact Larson which is the company that made it.  It had a lifetime warranty but, as I recall it indicated that I would be required to package it and ship it back to them at my expense and then they would determine if it qualified.  That seemed far to difficult to mess with so for $247.00  it was easier to buy a new one.  The guy at Lowes told me that Pella was the best, so that is what I bought … the Best.

The Best Wasn’t Good Enough

Recently, I had the same issue with my new (three year old) Pella storm door.  It did exactly the same thing after just three years that my previous Larson door had done.  It actually started after the first year.  This time I was far more determined that I was going to get it replaced under the lifetime warranty than I was before.  I dug out my receipts, serial number, and warranty information and phone numbers for the Pella door.

Boomer Prepared to Battle

I called the phone number prepared for battle.  They were even more prepared.  It was one of those deals where you can’t really talk to anyone, but if you push the right buttons they will send you the claim forms to file.  I started by “pressing (1) for English”.  I received the forms in the mail approximately two weeks later.  I filled them out “to the letter” including the complaint, exact door measurements, glass measurements, screen measurements, color, hardware style, serial number, and eight 4X6 glossy pictures with circles and arrows and a paragraph on the back of each one ( sorry, I’m an Arlo Guthrie fan – Alice’s Restaurant).  I patiently waited for almost 4 weeks … Nothing!

A Real Boomer Never Gives Up when he is Right

Not giving up, I tried to call the Pella warranty claims number again. Of course you can’t talk with anyone so I elected to go to the Pella customer service website, which to my surprise happens to be www.larsondoors.com .  Go figure!  Larson Doors!  (Remember my last post on Brand names?  If not check it out here).  No wonder my Pella door failed exactly like my old Larson door had done before.  It R One!

Contact the Website

I cleverly used the “Contact Us” button on their Customer Service page and wrote a book in the little square.  I recieved a reply within one day!  The reply was from Steve with Larson Manufacturing.  His reply simply said he was sorry but, he had no record of my previous contact.   So I sent him an exact copy of the entire file via internet.  Within one day I recieved another response.  This time from Deb from Customer Service www.larsondoors.com.  Deb was unable to open my files so she wondered if I could convert them to a PDF format.  I really couldn’t then, but I went on line, purchased a PDF program for $39 and  and got it done anyway.  I was afraid that I finally had someones attention and I refused to take the chance of losing it.  Once she recieved my files in PDF format, she was able to open them and I got an immediate response.  Go Deb!

The Response – I Win! I Win! … I Think?

The response said that after reviewing my information it was an obvious failure of the door and ” I was approved to recieve a new storm door … minus the glass/ screen inserts, hardware, z-bars, and expander “.  It said I needed to call the Pella phone number (same as the one above) with the reference number and they would arrange to send me the new door (or at least part of it).  It did say there would be a ” processing fee” .  I swear,  if all they were really going to send me was the shell of the door, it was going cost more for them to ship it than it cost them to make it.  I called and for a processing fee of $30, paid in advance by credit card, they agreed to ship me the door.  At this point, I was not really very optomistic that I was getting my moneys worth, but I was determined to hassle them until I got a new door.

To Summarize

My first contact was on November 16, 2008.  I recieved my new door via UPS on January 15, 2009.  The good part is they screwed up,  it was a complete door with glass and screen insert included (no hardware , z-bar s or expander, but that is - ok ) No hassles with disassembling the old door and re-assembling the new one.  The bad part is it ended up costing me, excluding installation, which I will do myself, about $70, if I include the PDF program.  That also assumes my many hours of frustated effort is worth nothing.  Understanding manufacturing costs as I do, I am 100% confident that $70 is more than their cost to make the door.

“PB” says, Always Make ’Em Pay!

But, all is OK, because by golly, I made them pay?   I just don’t know how many more times I can afford it!  My basic math tells me that it cost me $70 and Pella/ Larson nothing!  I haven’t decided what I will do three years from now when the door fails again.  I pretty sure I will recall this experience, give in, and buy a new one! … The cheapest one I can find that still looks good!  Heck with the warranty!  At least I learned one thing … I’m no smarter today than I was three years ago … but, I’m just as stubborn! …  Somehow, I think I just got Boombazzelled.  Papa.

Related Articles:

1. Don’t be Fooled by Premium Name Brands
2. Terminex, Get Bugged, But not Hosed!  Boomers Beware!

Here’s our second installment on the the top 6 places to retire by the water.  This time we’re heading up the coast from the first spot.  The second is fairly well known from a Hollywood perspective, often being used for movies hoping to represent The South.  Now I definitely have you curious, don’t I?  Without further ado, the second stop on our list is no other than Beaufort, South Carolina.

Living on the Intra-Coastal Waterway

Beaufort, SC is nestled in the curve of a beautiful bay along the Intra-Coastal Waterway.  It offers a unique Low country living experience in the lasting memories of real southern hospitality.  It is a region steeped in rich history and scenic natural beauty.

Discover the Historic Downtown

Step back in the history of this 300 year old town into the National Landmark District adorned with architectural details preserved with great care and compassion.  This area boasts artifacts representing the Native American, Spanish, and French history.  Along with your cultural exploration, visit the wide variety of shops that line the streets of the district.  Take time to wander off the beaten path to enjoy additional shopping and dining unique to Beaufort.  It features casual eateries, cozy bistros, or world class restaurants, some of which offer waterfront dining with breathtaking views of the Beaufort River and Low country marshlands.

Beaufort has been used as a setting for movies such as Forrest Gump, The Prince of Tides, and The Big Chill . Its historic mansions and moss-covered oaks provide a perfect historic southern setting.  Located on the Intra-Coastal Waterway, it has far more to offer.

Plenty for all to enjoy

Renowned for its charming harbor along the Port Royal Sound and maintaining a historical character, Beaufort attracts tourists and new residents alike.  If you are a boater, you can access the Atlantic Ocean, visit the many islands, or just enjoy the sandbars and beaches along the way.  Beaufort County also offers plenty of of top notch golf courses and resort activities.  The famous Hilton Head is just 40 miles away.

The Plus Sides

Plenty of good golf close by.  Great medical care is available in the area.  Located near Duke University the local hospital is affiliated with Duke.  Well maintained historic charm and southern hospitality.  Temperatures more moderate than Florida. And if you are a huge Bluedevil fan, than that makes it that much more perfect. Personally, I’m not, so that offers no extra incentive for me.

The Down Side

Taxes are higher than some places.  While homes in the area along fairways are in hot demand, the most prized real estate in Beaufort is the well kept historic houses near downtown Beaufort starting at $500,000.  In newer areas just 10 miles away nice homes average closer to $300,000.  Tropical weather is always a concern in coastal areas.  Depending on where the grand-kids live it could be a long way to visit. For Papa Boomer, I like the idea of living close to the water, but just a little too far from my grandson.  Might be a good place to take him to visit when he gets older.

Ready to get away? Find great beach destinations at hotels.com.

Related Articles:

1. Retire by the Water – Sequim, WA.
2. Retire on the Water – St. Joseph, MI.
3. Retire by the Water – Marble Falls, TX.
4. Retire by the Water – Dunedin, FL.

Baby boomers are flocking into retirement.  Some of their most common concerns are running out of money during retirement and having to fit the bill for the rising costs of health care.  Surprisingly enough, many boomers fail to plan for what happens after they are gone.  Most boomers get overwhelmed when they ponder the ins and outs of estate planning.  What most boomers don’t realize is that by drafting a simple will, most of their estate plans will be taken care of.  By drafting a will, your estate should be taken care after your passing and your heirs will be saved from the headache of having to properly distribute your assets.

What Happens If Boomers Don’t Have a Will

Most boomers don’t draft a will because they don’t know what it really know what it means to not have one.  To die without a will, the legal term refers to dying “intestate”.  Dying intestate either means that you didn’t have a will drafted before you died, or your will doesn’t meet the requirements of the state law that you’re residing.

Avoid Probate at all costs…right?

When you die without a will, you are subject to probate.  Probate has become the “four letter” word of estate planning by most estate planning attorneys.  Depending on your situation, probate may not be that horrible.  While probate is usually the standard, you may also pass $100,000 with a small estate affidavit with or without a will. Probate allows for clean titling of your assets to go directly to your next of kin. One potential downside of probate is that your matters are made public and anybody is allowed to make a claim against your property. If you ever check your local paper, you can see examples of estates filing for probate.

On the other side of the coin, one way of looking at probate is that you are leaving it up to the government to decide how you want your estate divided. If you are okay with this, then maybe probate is okay.  Just because you are okay with the state handling your affairs after you are gone, doesn’t mean that you shouldn’t have a will.

What a “Will” will do

1. It allows you to give away your property that you own in your name the way that you want to.
2. It allows you to nominate an executor to take care of all of your last affairs as far as paying bills, et cetera,
3. It allows you to nominate a guardian for your minor children.

Obviously, if you don’t have a will, then these three things won’t be carried out.  You are then subject to your state laws to determine what the outcome of your estate is.

Who Gets Your Property?

If you die without a will, than your property is distributed pursuant to your state laws, and will most typically pass to your closest heirs. But who are your closest heirs? That depends greatly on your family situation, and the intestacy law covers pretty much every possibility. If you die without a will, the statue provides that your estate (anything that is in your name only) passes ½ to your spouse and ½ to your children. Is that what your intent is? Maybe, or maybe not. These are things to consider. Further complications are step-children (they are not considered children under statue) and children from a prior relationship (they are considered yours). These are all issues that can be resolved and simplified from having a will.

Estate Tax Benefits

One last thing to consider is the estate planning benefits that a will can accomplish.  Many time boomers say “I don’t have an Estate, why do I need an Estate Plan?”. This is very unfortunate.  Seeking some information on the basics of a will and estate Planning can be a huge comfort for you and your family.

Moolanomy: Do You Have a Will?

Millions of Boomers are expected to retire in the coming years.  While those looking ot climb in the job ranks, this can be an advantageous time for some.  But the concerns from the workforce is not just losing a good employee.  The concern is that the younger generation will not fill the void of the wisdom that the boomer possessed.  Does the incoming generation have what it takes to fill the shoes of the boomers? Junior does, but let’s see what the study says….

Who Will Fill The Void?

According to research from The Conference Board, as younger generations of workers fill the void left by boomers, there will be a “significant drain of business wisdom”.   This drain will have direct effect on the decrease of innovation and lower growth capacity.  The Board goes on to say that “Younger workers can’t be counted on to fill the void, as they lack the experience that builds deep expertise.” Part of this is that the younger workforce tend to change jobs more often than their boomer counterparts.  By doing so, job skills are lost in the transition and they never get a chance to hone on any particular skill. 

Let’s Understand How They Learn

As the generations have gone on, they all have learned under different capacities.  Here’s a look to see  what the differences are between the generations:

• Baby Boomers (born 1955-1964) – Most boomers are used to being taught in the formal classroom seting.  They are used to reading text but are learning to use computers more efficiently.
• Gen Xers (born 1965-1979)- Can learn from the formal setting but would prefer to learn from more of an informal one.  Most of Gen Xers look to find real solutions to real problems while in the workplace.  Since computers were introduced to us at a younger age, we learn more from visual aids than verbal.  I’m sorry, what did you say?
• Gen Yers (born 1980-1995)- Commonly referred to as "digital natives", they were truly born in the computer world.  From Blackberrys to IPods, technology as surrounded them from day one.  They are the generation that want to do, not be told.  They jump in and prefer to learn from their own mistakes rather than wait and see a opportunity pass them by.  With the introduction of social media, they can learn as a group sharing life experiences to help them make certain decisions.

Will They Have What It Takes?

Only time will tell to see how the passing of the torch pans out.  I know from this Gen X’ers opinion, we have what it takes.  We have the ability to multi-task and utilize the wealth of knowledge from the web to apply it to perfecting our trade.

What do you think? Does the next generation have it?

If one of the Big Three Auto makers fails, how many jobs are really lost?

Where are the two or three million lost jobs they are talking about?  The “Big Three” and the UAW claim, not only all of the jobs at GM, Chrysler, and Ford will be lost, but there will also be a huge job loss due to the ripple effect among their suppliers and the suppliers of their suppliers ………..That is just not true!

False Assumptions

The above is a pretty narrow minded, self serving perspective by the “Big Three”, the State of Michigan, and the UAW. They would very much like for people to believe the following false set of assumptions:

1. If one of the “Big Three” fails, they all fail.
2. The cars that would have been sold by the “Big Three” are not going to be sold by anyone else; therefore, fewer cars will be built.
3. Since fewer cars will be built, fewer people will be needed to build cars.
4. Since fewer cars will be built, fewer goods and services from their suppliers will be required; therefore more jobs will be lost.

All those assumptions make a good story for the State of Michigan, the UAW, and those companies that are after tax payer bail out money, but are not acurate assumptions for the auto industry as a whole or jobs in the United States as a whole.

A More Logical Set of Assumptions

A better set of assumptions might be as follows:

1. All of the “Big Three” will not fail. Only one might fail.
2. If one of the “Big Three” does actually fail, the other two and the rest of the auto industry will reap great benefits from increased sales and production volume. Example: If GM fails, Chrysler and Ford get well (along with others).
3. The same number of cars will be sold in the United States no matter who builds them; therefore the same number of cars will be required to be built.
4. If the same number of cars are built, it will require approximately the same number of people to build them.
5. If the same number of cars are built, it will require the same overall support from suppliers.

So where are two to three million jobs lost?  First of all, it is not two or three million jobs. Secondly, most of what is lost would be in Michigan.  The only real losers are Michigan and the UAW.  Everybody else gets well.

The Real Story – Don’t Be Boom-bazzelled!

The fact is that the same number of cars are going to be sold and built in the United States, no matter who builds them. In order to sell them, you have to be competitive.  Jobs lost by the closing of one of the automakers will be gained by the others who are more competitive.  You can’t build cars that are not being sold and remain competitive. You can’t continue to pay people to not build cars and remain competitive. How many factory jobs are really lost, other than a few redundant management positions, if the same total number of cars get sold? If the “Big three” and the UAW want to be the ones to build them they need to get more competitive.

Solution … Boomers, buy more!

So where is the problem? The real problem is that not enough cars are being sold due to the panic over the economy.  People, especially Boomers, who have most of the money, are not buying cars out of fear of their own future.  They are either afraid to borrow money or can’t get a loan at this time. You cannot build your way out of this problem. More cars need to be sold to save the jobs of those who build them, or those that are willing to build them competitively. It really doesn’t matter who sells them or who builds them!

That is why putting money into the financial credit industry to increase credit availability makes some sense.  Giving money to the “Big Three” to pay for sins of the past doesn’t … unless you’re from Michigan.

Papa says so!

More on the Auto Bailout:

Tough Money Love: Taxpayer’s Betwen “Like A Rock and a Hard Place”

Free From Broke: Auto Maker’s Bailed Out For Now

Cash Money Life: Do We Really Need Another Stimulus Check