Monday, December 7th, 2009
Written by Hollis Colquhoun, Accredited Financial Counselor and author of Women Empowering Themselves: A Financial Survival Guide.
Many banks are offering higher-yielding accounts if you use your debit card frequently each month. The higher yield is obviously good, however there are possible dangers when using a debit card versus a credit card. Usually, your debit card carries a “Mastercard” or “Visa” logo, so you have a choice of functions each time you use it. (more…)
Thursday, December 3rd, 2009
Life Changes. Get Set.
By Marc Patoile, Esq. and Jeff Town, Esq.
Few events can change a person’s life more than a divorce. The emotional challenges that one faces during a divorce makes it all the more difficult to property plan for what the future holds. All of the mechanisms that were in place during marriage to protect your assets and loved ones can disappear, and in order to properly plan for the future you need to make sure that you are protected.
People who haven’t been through a divorce cannot imagine what an awkward challenge this is to bear, all while an uncooperative ex-spouse is looming, who can make matters worse and often does. It addition to the emotional challenges, it is extremely important to waste no time in protecting yourself from the legal changes to come. This involves changes during the divorce process itself and orders that will be binding on you during coming years. Aside from the obvious, getting legal advice that you may need to guide you through the divorce process, you should also get advice on the other changes that come after divorce.
For instance, if a disability or a death occurs after divorce, you need to make sure that you have a plan in place. First, a life insurance policy may be required as part of the divorce orders, in order to secure child support or spousal maintenance obligations. Second, you may want to consider the separate needs for another policy to pay off your debts and have plenty left to provide for a new spouse or additional needs of your children. Third, disability insurance becomes another consideration, because you may need a way to support yourself if an injury leaves you without present income to meet your own needs and/or support orders.
In addition to insurance needs, your estate planning desires may change after divorce. The selection of a guardian becomes a very important consideration and one only needs to look as far as the Michael Jackson fiasco to see how this plays a significant role in many probate cases. In addition, an estate planning lawyer will help you make sure that your belongings, bank accounts, and other assets will be properly taken care of if you pass away, or how they might be managed if you become incapacitated. One thing that we learn from divorce is that one can never predict what the future holds. Estate planning will leave you feeling secure that you are protected against the unexpected.
Going through divorce can raise questions that many overlook, even some professions, until an issue arises. Such as, how do I claim dependents exemptions on my income tax returns if my spouse is not cooperating? Many fail to get the new required IRS forms signed up front as part of the divorce process, such as the newly required http://www.irs.gov/pub/irs-pdf/f8332.pdf. What do I do when my spouse is refusing to pay child support as he or she was just laid off? Many professionals fail to discuss the benefits of a Family Support Registry and Child Support Enforcement, as everything seems amicable during the divorce. It may be easy to assume that your soon to be ex-spouse will be cooperative and that questions like these won’t come up in your case, but in reality, disputes like this are common and it is important that you come prepared. After divorce, life changes. Get set.
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At the law firm of Folkestad Fazekas Barrick & Patoile, P.C., we have been serving the front range area for the nearly 40 years, assisting clients in a wide range of practice areas. The firm’s eight attorneys practice in different areas of the law and understand the courts, the law, and the players. We are committed to producing quality legal services for our clients in a timely, efficient, and economical manner. If we might be able to assist you, please call Marc Patoile direct at 303-524-3393 or visit us online at www.ffcolorado.com and www.patoile.com.
Thursday, December 3rd, 2009
Disability Insurance. Could You Survive Without It?
By Jamie K. Fleischner, CLU, ChFC President, Set for Life Insurance by KF Financial, Inc.
There are many things we can’t live without. Most of us become very dependent on the things we love and wonder how we could have ever lived without it. Imagine having to wash your clothes by hand. Or remember the days of the pay phone? Personally, I can’t imagine how I ever survived without my beloved iPhone! Sometimes even our luxuries feel like necessities.
To take care of our important assets that we couldn’t live without, we leverage our risk with insurance. This includes homeowner’s insurance, auto insurance, and even life insurance.
But what drives all of these assets and luxuries? It’s your income. Ask someone who has recently lost their job how they are getting by. Even if you are currently gainfully employeed, you still are at risk of losing your income if you became too sick or injured to work.
Have you considered covering your most valuable asset-your income? Imagine surviving without your income. How would you survive? Do you have enough money in savings to cover you if you couldn’t work for 6 months? What about 2 years? Or longer?! Most people overlook protecting their income. However, most people could not survive without it.
Disability insurance is designed to pay you a monthly benefit if you become sick or injured and can’t work. A personal policy is non taxable (if paid with after tax dollars) and typically kicks in after a waiting period of 90 days or longer. You may choose a benefit period of 5 years, age 65 and lifetime. The longer the period, the more expensive the policy.
There are various types of definitions and policy provisions. These include definition of disability (try to purchase a policy that covers you if you couldn’t work in your specific occupation), partial disability, inflation riders, and the ability to purchase more in the future without further medical underwriting.
It is important to work with an expert that can help guide you through the process and find the most suitable policy for your needs. The underwriting process requires a look at your previous medical history and a paramedical exam (blood and urine test). Look for an independent broker that works with multiple companies instead of an agent that will only show you one company that may or may not be the best fit for you.
Premiums will vary based on gender, age, occupation, geographic location and policy definitions and riders. Rates are 30-40% higher for women than men based on risk. However, there are ways to create discounts if more than 3 people from the same employer apply. Plan on spending approximately 1-3% of your gross income to protect 60-75% of your take home pay.
For more information about protecting your most valuable asset, contact Set for Life Insurance at 888-553-3559 or visit www.setforlifeinsurance.com. You’ll be glad your income is protected. It’s hard to survive without it.
Thursday, December 3rd, 2009
Tuesday, December 1st, 2009
Congratulations! All of your hard work has been recognized and you have been asked to become a partner. For most of you, this will require either a direct payment to your practice or a reduction in income as you buy in. What would happen to you if you became too sick or injured to work? What would happen to your buy in process?
When an individual is invited to become a partner in a business or a professional practice (such as a physician, law or dental practice), there is typically a period of time involving the buying in. The person buying in often times gives up a percentage of income in exchange for an equity position. If the person buying into the practice becomes disabled during the buying in period, problems can develop in the completion of the buy in agreement. The new, to be partner, is not yet a partner. Therefore, a traditional buy sell plan will not work in covering this risk. A specialty plan know as Buy In Disability Insurance can fulfill the financial obligations stated in the contract, thereby safeguarding the completion of partnership.
There are common solutions for the following:
•· Limits as high as $50,000
•· Medical History
•· Risky Avocations
•· Older Ages or Age Differences Between Partners
•· Difficult to Insure Occupations
•· Family Owned Businesses
•· International Relationships
•· Reducing Benefits From Traditional Carriers