Andy Johnson - Your Money Coach

Veit (Andy) Johnson

Your Money Coach

Over the years we made many financial mistakes. It is our goal to help you to avoid the mistakes we made and help you to gain financial peace and be able to do all the things you dream of doing in the future.

 

Our Mission: We have a plan to help people get out of debt quickly and build wealth for early retirement. It is never too late to start!

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I read and respond to all replies to my emails. !Yes, it really is me!

So please introduce yourself, I'd love to learn more about you!

Please click "reply" and briefly tell me more about you, where you live, where you're at with your managing your debt, your money and where you want to be.

Looking forward to your reply,

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Veit !Andy! Johnson

VIDEO - Four Walls HOGAN from NAD Stewardship on Vimeo.

We are not affiliated with Ramsey Solutions or with Chris Hogan.

For many answers regarding money you may visit 
Dave Ramsey at Ramsey Solutions. Click Here

 

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"As you begin changing your thinking, start immediately to change your behavior. Begin to act the part of the person you would like to become. Take action on your behavior. Too many people want to feel, then take action. This never works." -John C. Maxwell

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Stop retirement contributions

Stop retirement contributions (until debt is gone). One thing you’ll start to see as you start eliminating your debt is that it’s SUPER easy to take “one step forward, two steps back”. I ALWAYS recommend that one who has debt stop contributing to retirement while they’re getting out of debt. This is only temporary. (1-2 years) Why? Because it’s inefficient. You can’t do two things at once here. You must do an analysis of what your debt is costing you verses what your investments are earning you. Odds are the gains are either cancelled out OR worse yet, you’re losing ground even faster than you thought. The bigger point here is that, if you want to start to win with money, you have to be willing to question and then skewer your current thought patterns and habits around money. Would you agree with that? Is what you’re doing now really working? I know this is a little challenging and it may feel like I’m poking you in the eye a little bit, but I can promise you this is a super important point. In this process, you’ll only get momentum if you can focus intently on each of these micro steps as you go through them.

Preparing or Reparing

 I often tell people every day you're either preparing or repairing. Hi, John Maxwell here. Welcome to Minute with Maxwell. That’s your statement of strength today.

Today, right now in your life, my life, we are either preparing or we are repairing. One [person] sets up tomorrow for success. The other [person] sets up today for failure. If we are repairing, we can't even get into tomorrow. At best, what we're doing is trying to fix today because of something we allowed yesterday. But if we're preparing, it means that we're making the best of today so that we can guarantee that tomorrow is going to be a success. I think that's essential during a crisis, because a crisis has a tendency to come in like a tornado, a hurricane, and just scatter and mess stuff up and wreck lives. And I just want you to know, don't let it happen. Take each day at a time.

Today matters. Make today count. I wrote a book on that. Don't try to take care of the next week in the crisis. It will overwhelm you. Just take care today and prepare well. Tomorrow will come. It'll get a little better.

Thanks for being with me today on Minute with Maxwell.

MISSED PAST STATEMENT OF STRENGTH VIDEOS? CLICK HERE TO WATCH 

Never Give Up

 

Never give up on becoming a master of your money.

What is Debtg Consolidation?

 

Kiersten Essenpreis for Money

Debt consolidation gathers debt from multiple sources and puts it in one place, which simplifies paying off what you owe. Consolidation can also allow you to reduce the interest rate or total amount of your debt.

Most of us manage many forms of debt simultaneously, keeping track of due dates and balancing interest rates to avoid late fees or a bruised credit score. But one lump sum means one lender, one due date, one interest rate, and one set of login credentials. It can be a strategic personal finance move in the long run — as long as it’s done right.

Before consolidating your debts talk to us. Debt consolidation is usually not a good idea and creates more problems in the long run.

Schedule a free consultation appointment today. Our goal is for you to learn to master your money! 

Click Here To schedule a free online appointment.

Benefits of Budgeting

According to Spendmenot statistics, only 32% of US families maintain a household budget. So why should you join this number? A budget is a financial plan that helps you allocate funds to different categories of your life. You get to decide how much you spend, save or invest based on your take-home income. Your take-home income is the amount left after the payment of taxes and medical insurance.

Budgeting allows you to:

• Highlight horrible spending habits.

• Prepare for emergencies.

• Spend what you can afford.

• Stay focused on your personal finance goals.

Earn extra money for your budget: https://r.honeygain.me/VAJOH7AD2A

Financial Tip

 

Did you know that the majority of the population would be able to save much more money every month than they think? When you think about all the non-essential things you buy, it’s pretty easy to believe! According to the long-proven 50/30/20 rule, you should set aside:

• 50% of your budget for essential expenses such as housing and food;
• 30%—maximum!—for non-essential spending;
• At least 20% of your income should be put into savings.

When you think about it, it’s a pretty logical way to manage your finances. Unfortunately, too few people take the time to make a detailed budget and think about it.

Here are some facts from 2018 about how Americans’ money relates to the LivingFacts website:

• 12% of Americans said they could not cover a potential $400 expense. 61% said they could afford the $400 in cash or equivalent, while 27% of Americans said they would have to borrow the $400, or sell assets, if the opportunity arose;
• 36% of Americans say their retirement savings are on track. 44% say they are having problems, and the remaining 20% are unsure about the state of their savings;
• 64% of Americans owned a home, while 27% rented one, and 9% had other arrangements;
• The average annual salary of an American can be divided into three different types of expenses: 33% for housing, 16% for transportation, and 13% for food;
• Only 47% of Americans with a credit card say they have been able to pay their bill in full every month for the past year. 26% say they have had a balance on their card a few times, while 27% have a balance most of the time;
• 82% of married people say they are doing well financially, compared to 66% of single people. 78% of married people with children under 18 are doing well, compared with 52% of single people with children.

Business Insider even goes so far as to say that many Americans plan to work until they die and not retire because their finances are so precarious. More precisely, 37% of Americans think they will have to work until they die, while 34% of them plan to be able to retire around the age of 80.

It is therefore quite clear that the financial health of American society in general is more precarious than one might think, especially considering that even people who manage to save do not in fact save enough.

With our best saving tips article, though, you will be able to get to your goal quickly and, who knows, maybe you’ll have a little more leeway for your non-essential spending in addition to planning your retirement properly!

Good Value or Poor Value

 My family often goes shopping for different products including clothing, food and small appliances.

When is something a good value and when is it a poor value. My wife often likes to purchase things she thinks she will need in the future. Many times we use the item but as time goes on some of the things that are purchased are never used. End result, the items she has purchased that are never used are a poor value. Just because something is on sale it is not a bargain if you do not use it. It becomes a waste of hard earned money. Before you purchase something that is on sale be sure that you really need it. I can look in my garage and a spare room that we have in our home. There are many things that we have collected over the years that we do not need and the items were used very few times. My suggestion is when you are thinking about purchasing something make a list of the reasons why you need the item. Then make a list of reasons not to purchase the item. The reasons you put on either list is anything that comes to mind. Go hog wild with your reasons. When you get done count the number of reasons on each list. I give everything on the list to purchase 1 point. Every reason on the list to not purchase an item gets 2 points. If the list not to purchase has more points then we do not purchase the item. Another method is to wait for a day and see if you still need the item. If you still think you need the item, wait 2 more days. On the 3rd day if you still need the item the wait 3 more days. If you can say you still need the item then go ahead and purchase it. One caveat, be sure that you do not use credit to purchase the item. Only use cash. This way you do not incur debt. Our plan to control our money is to avoid debt

My Story

Hello!

I'm Veit Johnson

My friends call me Andy

Our Family Motto

Life is Fun

Life is Exciting

Life is an Adventure

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I started life out 74 years ago in 1946 and I was debt free. As a child my Dad and Mom taught me different things that I would need in life regarding how to take care of my self and face the world in the future.
As a youth I learned a lot of things about money. I learned that I could spend it, save it and give it to others. I have not been able to figure out what else I can do with it. During my teen years I learned to work for money and I did not get all that much per hour since the minimum wage in the 1960's was just $1.00 per hour. I worked at mowing lawns, milking and feeding goats, and delivering newspapers. I was able to save enough money and purchase my own car when I was 16. It was a great car, a 1955 Oldsmobile Hardtop with a Rocket 88 engine. Wow! Had great fun with it. I even had a Chevron Oil credit card for gas. I worked most weekends to earn money to pay for gas and repairs. Did not really understand the implication of having a credit card. Since I was earning money during high school my Dad introduced me to the stock market. He taught me how to invest in stocks.
At the age of 17 I was unable to find jobs out in the world since most places wanted someone who was 18. As a result I join the U.S. Navy and became a corpsman. I spent a short time being stationed in San Diego and at Lemoore Naval Air Station before proceeding to San Francisco to be on a Hospital Ship bound for South Viet Nam. From their I was on troop carriers ferrying troops from the U.S. and South Korea to South Viet Nam.
During my time in the navy I found I was not in the need of much money. As a result I put most of it in a mutual fund that grew nicely for my 3 years, 2 months and 23 days of active duty.
Upon getting out of the Navy I started working for Pacific Telephone and Telegraph, first in a central office and then as a telephone installer/repairman. During that time I was able to share an apartment with two friends where we split the rent and food three ways. I needed transportation other than the bus so I was able to purchase a motor scooter for cash with my savings from the money I saved while I was in the navy. Later I moved in with two other friends renting a three bedroom home. Also during this time I was able to get a credit card with a local clothing store and started wearing a lot of spiffy clothes. Now I had to pay on a credit card each month and because I did not pay it off I had to pay interest on the outstanding balance. I was giving away money because of interest. I was also eating out a lot so there was little to no money left from my paycheck each week. I was living paycheck to paycheck. 
After a period of about 5 years it was now 1972 and I had a few small pay raises and since my room mates had married I was now on my own renting different apartments. Room mates were no longer working out and I was still eating out much of the time. Now I was paying full rent, and also now had a car payment along with the payments for my gas and clothing which was getting larger each month. I had no money left over. Since I was single I was also trying to support dating which was usually centered around church activities, concerts and plays along with a few movies here and there. 
About 1967 or so I was talked into purchasing a home. I bought a 3 bedroom home in Fremont, California where I was paying $333 a month for house payments on a home that I purchased using a VA loan with nothing down. This was about 30% of my income. I had stared saving about $100 a month in a 401k. Since I was still spending money on the high life with a new car (cost $3001) in 1971I was making a car payment of $83 a month. My life from about 1970 until 2005 was spent every month making car payments. I hate to think of how much I spend on interest. During that time I purchased 4 used cars and 4 new cars. I was still living paycheck to paycheck and often I was borrowing money from different companies at high interest. I even took money out of my 401k to make ends meet.
In 1993 I met my wife and we got married. By selling my home and her condo we had a lavish wedding and put a nice amount of money down on a new home for about $250.000. We were still living paycheck to paycheck and the only item being saved was my 401k. My wife was a spender and I was still one too. We were taking great vacations to local areas in California, Oregon, Washington, Idaho, Nevada, Hawaii, Utah, Missouri, England, Scotland, Switzerland, Spain and Wales all with the help of credit cards and more credit cards. During this time we upgraded to a nicer home for about $500,000. With the sale of our first home in 1997 we were about to put down 20%. We were also able to pay off all of our debts with nothing left over. About 2 years after upgrading to a nicer home that was about 50% Our income we both lost our good paying jobs. Now we were depending on the money in our 401k's. We were able to find some temporary jobs here and there which allowed us to maintain a lavish lifestyle. We were slowly accumulating more and more debt. (This met we were giving away a lot of our money to interest. Interest is money that we would never be able to spend on the things we needed or wanted.) Our payments were about $1500 a month.

September 11, 2001 happened and our investments that were paying our house payment and paying for part of our lifestyle suddenly disappeared. We were drawing from our nest egg now faster than it was growing and it was quickly dwindling to nothing. We had to do something quickly. In 2003 we sold our very nice 4 bedroom home with spacious closets and 3 car garage and moved into another not so nice new home in Tracy, Ca. We were able to put down 20% and pay off our debt. We were debt free except for the monthly payment on the mortgage. 

Did we learn our lesson? No!!! We were still using the credit cards and financing vacations. Suddenly we found that we were $60,000 in debt. What do we do? We trotted down to the local bank and signed up for a variable interest loan to pay off our debt. Again we were debt free. Guess what? We still were using the credit cards and went into debt again of about $60,000. We could not see the surface. We filed bankruptcy. We stopped using credit cards since all of our accounts were closed by the bankruptcy court. We were now operating on a cash basis. We were managing but just barely.

In 2010 I had a stroke. I recovered quickly and was cleared to work by my doctor and a Neurologist. Problem was since I was working as a truck driver the Department of Transportation said I could not work for a year as a driver. I was not successful in finding other work and we had no money to live on and no income. I was able to start drawing social security of about $3200 a month since I had a dependent child and my wife declared she was a stay at home Mom. Since our income was not enough my wife during this time took out student loans for us to live on to the tune of $60,000. In addition I was able to find a temporary job a year later as a truck driver that brought in about $15,000 a year. During the last year my son turned 18 (no more ssi). My wife applied for SSI and is getting about $2,400 a month along with my 2,000 a month. In addition I work as a truck driver earning $5,000 a month or a bit more. For the last 2 years we have been at $100,000 a year. Our debt at this time is $60,000 in student loans, $60,000 second mortgage, $40,000 interest free car loan and an $8,000 lien on our home from a lawsuit that we had to try and recover our retirement investments because of poor management on the part of our investment advisor who provided us with investments that did not meet our needs.

In September of 2019 I discovered Dave Ramsey and his plan to get out of debt and become wealthy. My wife has not been willing to get on board. As a result we are not following the plan laid out by Dave Ramsey.  Instead because of my age and the need to build a nest egg we are investing in a ROTH and building a emergency fund. (I do not recommend this to my clients). This makes the road to being debt free very much longer. I decided that I wanted to help others to avoid my financial mistakes and decided to become a financial coach. My wife and I now have a spending plan and discuss all of our spending. Although I have tried to get her to follow a spending plan I have been unsuccessful. I have started writing down everything we spend and show it to her so we can develop a full budget. I can say this, no one is ever too old to start. One never knows how long they will live. In my family many folks live into their 90's. At 74 I could still live another 20+ years.

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Roth IRA

Roths differ from traditional retirement accounts in how they’re taxed. A traditional 401(k) or IRA allows investors to make tax-free contributions, deferring the taxes until the money is withdrawn. Roth IRAs are the opposite in that investors pay income taxes on the money as it goes in, not when it comes out. The benefits of Roth IRAs include that you can make early withdrawals from contributions without a penalty.

Letting Go of Stuff - Travel Light, Part 1 with Pastor Craig Groeschel

pastorGreg shares what is truely important in life

Your Dog - Social Media

 What Your Dog Wants You to Know About Using Social Media

 
Social media is a wonderful way to stay in touch with family and friends, but it can have its downside. Numerous studies suggest that overdoing it on Facebook or similar sites can make us unhappy.
 
For example, having more than 7 social media accounts triples the risk of depression among young adults, according to researchers at The University of Pittsburgh. Maybe it’s the multitasking or the pressure to look cool in multiple venues with different rules. Either way, that’s one mistake your dog wouldn’t make. He’s content with playing in the same park each afternoon, and eating his usual for dinner each night.
 
If you’re going to use social media, there are a few more things your dog could teach you. After all, he’s man’s best friend, so take a look at these ideas he’d want to share with you.
 
Play Nice:
 
Online spontaneity can lead to regrets if you say something insensitive. Even dogs benefit from being socialized.
 
1.      Think first. Ask yourself if what you’re typing is encouraging and constructive. Imagine how you’d feel if you were on the receiving end.
2.      Consider your audience. Context matters. Avoid misunderstandings by choosing the appropriate platform for your remarks. Puppy pictures will get more laughs on Facebook than LinkedIn.
3.      Take the high road. You’ll probably run into some rudeness and aggression online. Try to elevate the conversation or leave gracefully if necessary.


Accept Yourself:
 
The average mutt can have just as much confidence as any Westminster Kennel Club winner. Loving yourself protects you from feeling inferior online and off.
 
1.      Be authentic. Know that you are worthy of happiness and respect just the way you are. Celebrate your strengths, and enjoy exploring the areas where you want to grow.


2.      Resist comparisons. Sometimes it looks like everyone else on Facebook is taking exotic vacations and bragging about their gifted children. Count your blessings and pursue your own definition of success.


3.      Think positive. Think of challenges as opportunities. Wake up with a smile and be kind to yourself. When you talk to yourself, choose words that comfort and inspire you.


Stay Active:
 
Being sedentary takes a toll on your mental and physical health. Maybe you need to step away from the computer.
 
1.      Take a walk. Exercise each day. Walk your dog an extra mile or visit the gym.
2.      Move around. Incorporate more physical activity into each day. Climb the stairs or do some extra chores around the house.
3.      Interact offline. Cultivate relationships face-to-face. Meet up with friends for a regular coffee or lunch date. Throw a potluck dinner with your neighbors.


Engage in Meaningful Activities:
 
Your dog can find fulfillment in chasing a stick. You may need to aim a little higher. If you’re feeling down about squandering the last 2 hours on celebrity gossip, devote your time to finer things.
 
1.      Live mindfully. Any activity can be profound if you keep your purpose in mind. Enjoy preparing breakfast for your family or giving your dog a bath.
2.      Find a hobby. Fill your leisure time with projects that expand your knowledge and skills. Play a musical instrument or study a foreign language.

3.      Focus on giving. True gratification comes from helping others and contributing to your community. Volunteer at a local soup kitchen or library. Tell a retail worker when their patience and kindness helps to make your errands more pleasant.


If your dog can figure out how to avoid Facebook depression and Instagram anxiety, so can you. Monitor your social media use and pay attention to your life offline. You and your dog will both benefit!

Kaligh X

9 years ago my husband and I set out on a journey to change our lives and the way we live. Not many people today understand it but after finding ourselves homeless, broke, and in debt a few months before our wedding we decided we never wanted to be like that again. We got married while we were homeless and the cabin on our cruise boat was the first private room we had in several months (our wedding/cruise was prepaid so it still happened). We started attending Church soon after and Financial Peace University was being offered that Fall of 2011. We decided (Well I decided) we were going to see what it was all about. We started our relationship as roommates and were still treating our cash accordingly. We were challenged in FPU to combine our money during the class. (I didn’t want to be responsible for his debt so this was really hard for me). We combined our money and jointly set the task before us to get out of debt from the credit cards, cars, medical bills, etc. It took us a few years to pay everything off but we did it and it’s been an amazing feeling to not have anything hanging over us. But it has always been a dream to be COMPLETELY debt free including our home. Today is the day! We finally made it! We are DEBT FREE INCLUDING OUR HOUSE! The journey has not been easy. We definitely have had to live like no one else to make this happen over the years. But by using biblical principles in managing our money here we are. 33 yrs old and DEBT FREE. Pandemic or not 2020 is a year I will always remember! I hope our story brings hope to others. If we can do it so can you. Stick with the plan and it WILL happen!

Mark N.

 Can I share with you what God did? The year my wife and I got married, I spent 3 months in the hospital fighting for my life — battling AIDS, with no immune system. And due to mounting medical bills, college loan debt and credit cards, our house was foreclosed on and I had to sell my vehicle. Needless to say we were broke. Then we met Dave Ramsey and Financial Peace University, followed his baby steps and were faithful in our tithes. In the months and years to follow God showed us His faithfulness. Within weeks of graduating from FPU, my wife and I prayed and we felt led to leave behind the increasing costs of renting an apartment and purchase a mobile home or RV. I was working at a children’s home (a large residential campus that included a small campground) and it was the plan to move the mobile unit onto the children’s home campground, which would eliminate our rent and utilities — giving us the ability to pay down more debt with gazelle intensity. Within a week of looking, we found an used RV for $8,000, but after looking at it, the owner said, “I need to know tonight, because I have someone else interested.” Well we knew then that this was not from God, because we all know what Dave says about large purchases... wait at least 24 hours. So we waited, and the next week, I was hosting an event for donors at the children’s home, and within a few minutes of welcoming guests this couple that I had never met before came up to me and said, “we need to talk to you.” I pulled them into a separate room, and the husband proceeded to say, “we have a brand new motorhome that we would would like to donate, so you or another staff member can live in it.” I was blown away by the greatness of our God. A few weeks later, they delivered this class A Winnebago and my wife and I moved in. This couple came to visit us in our new home on wheels in the months to follow, and said to us, “we had no intention of donating the RV until we drove onto the property that very first day, and the Holy Spirit told us someone here needed it.” We know through obedience, God will supply every one of our needs according to his riches in glory in Christ Jesus. We give Him all the glory!

Leigh A

 

Two years ago at age 30 we finished paying off $160,000 of student loans and 2 days ago (for my 32nd birthday present) we paid off our mortgage!! 

The teller at the bank said, "Wow, that is quite the accomplishment at your age"! But my husband and I can officially say we are debt free.

The journey seemed like a long one, but after only 5 years, we can look back and say we made all the right sacrifices because this feeling is the best feeling!

Had to share here, because I knew you could all relate to the journey, the struggle, and the sacrifice. I really want to shout it to EVERYONE I know at the top of my lungs, but I knew this was the only place that would truly understand.

Federal Student Loans

Student Loan Borrower: Don't wait on congress for more relief.

Federal student loan borrowers haven't had to make payments since March. But without continued government intervntion, those unable to pay can expect long waits for help come October when bills are scheduled to restart. Automatic interest-free forbearance provided by the first coronavirus relief package was not extended by the Health, Economic Assistance Liability Protection and Schools Act proposed by Senate Republicans. There's no additional relief for studen loan borrowers in the proposal.

Education

Education is the process of facilitating learning, or the acquisition of knowledge, skills, values, beliefs, and habits. Educational methods include teaching, training, storytelling, discussion and directed research. Education frequently takes place under the guidance of educators, however learners can also educate themselves. Education can take place in formal or informal settings and any experience that has a formative effect on the way one thinks, feels, or acts may be considered educational. The methodology of teaching is called pedagogy.

Many professions are required to take continuing education. Have you considered even if you only graduated from high school, college or trade school that your education continues your entire life. What are you doing to continue your education? Here at this blog you encourage you to learn how to manage your money in a way that you are out of debt and you can build wealth for your future and the future of your family and community.

We offer a free initial meeting where we will provide you with free tools to get out of debt and start building your wealth.

Coach Dungy of the Indianapolis Colt says that everyone needs to have mentors in their life. That includes someone that can help you to keep you on track regarding your financial future.

“We’re having to readjust some things, but we can still be intentional with our money.” — Chris Hogan

Best Credit Cards

Looking around the web I find many companies advertising their credit cards. Do you know how many credit cards you should have in your wallet?

Are you the Master of your credit? Are you seeking a Visa for your next trip? Are you hoping that the lockdown ends so you can Diner out once again with family, friends, and business associates? What about that emergency expense? Are you thinking I can whip out that piece of plastic to solve my financial problems?

I see company after company that is seeking to expand its customer base. Maybe it is Best Buy, Target, Walmart, Macey's, Home Depot or just name your favorite place to shop that has a credit card. Wow, I can save anywhere from 10% to 20% on my first purchase. How much do you save on your next purchase with your favorite retailer when you go into making a purchase. Whoops, why am I visiting a retailer to make a purchase or why am I visiting their website to buy something? Do I really need that credit card? Oh, yes now I know why I need that card. I need to build my Fico score I am thinking. Really? Why do I need credit? Oh, yes, I remember, I need it because I want to purchase a new home or a new car.

I am out looking at new cars with loans that are zero percent interest on the loan. This is a great deal. I get a new car with a new car smell and I can drive all over town with people looking at my new car seeing how successful I am in life.

I have news for you. You do not need credit. Credit is your enemy, it is not your friend. People do not care what stuff you buy in life. They are sitting on the sidelines cheering you on to make purchases (they might get some benefit) or they want you to go on vacation with them. Oh, vacations are on hold at the moment for most of us with COVID-19.

Did you know that credit card interest rates are between 0% (limited time) and 29% each month you have an outstanding balance. Do you have credit card debt? If you have $1,000 in credit card debt you may be paying out as much as $290 a month in money that you will never see again. This $290 is like taking the money and lighting a match to it. I know you would not really do that but in essence, that is what you are doing.

I am getting off the subject. There is no best credit card or loan anywhere on this earth. All credit cards are your enemy and interest is your enemy!!!

Covd-19 and Job Loss

Life can change in just a few days. The Coronavirus  has changed many of our lives permanently. Life will not be the same this year as it was in the past and it will probably never be the same again. For some of us we have lost our jobs and have to start a new job search and life for most of us is uncertain.

Here are some things we can do to make our lives a bit easier.

Unemployed

Apply for unemployment. For many of us this seems impossible. If you are having difficulties keep at it. Sooner or later yo will succeed on filling out the online forms or getting someone on the phone. It has been my experience that when you do get signed up that you can get paid retroactively.

Are you in need of extra cash. Filling out surveys can help to provide some extra income. It takes a bit of work. I personally have filled out surveys for several companies and have been paid. It is not a get rich quick way of earning an income but at least it can help to put food on the table, keep you from becoming homeless and maybe put a bit of gas in the car. See the top survey sites of 2020.

Click Here to visit the Survey Police

The Four Walls

We teach that when you are short of funds it is necessary to go into storm mode and concentrate on your four walls. The four walls consist of food, shelter (including utilities), basic clothing and basic transportation. Transportation can be expensive so we recommend using public transportation if at all possible. You stop paying monthly bills on credit cards and anything that is not essential for daily living expenses.

Make Every Dollar Count

Cancel all subscriptions. These would include any monthly memberships in clubs, gyms, entertainment items including cable. Youtube.com is a great way to watch television and if you have a smart phone, smart television or tablet this will work almost as good as cable. If you have favorite programs do a search on YouTube and you may find what you normally watch but for free! One of the items some of us have are things like pet insurance. This usually has high deductibles and I have found that many items that are basic at the vet are not covered. As much as we love our pets sometimes it is time to depart from our pet when their health is keeping them from having a good life. Stop  using credit cards for any purchases. Many times we use credit for wants. Remember anytime you use credit and it is not paid off by the end of the month that you will pay interest. Interest is money that you are never able to spend on things that you want or need in the future.

Expand Your Job Search

Just because you normally work in a factory or warehouse or maybe in a more upscale job it does not mean you limit your job search to the same job or skill set. We need to look to create new skills or apply for other types of employment. Many companies are seeking temporary workers or even permanent employees to take the place of those that are unwilling to go to work because of Coronavirus. Consider delivery jobs. Consider task that you can perform in your local neighborhood. If you are going to drive in a new job be sure to check with your insurance company. Consider pet sitting or dog walking as a possibility. Go door to door in your neighborhood and meet your neighbors.

Sell Stuff

Many of us have purchased stuff over the years. Look around your garage or basement. You can likely find stuff you can sell on websites or maybe have a sale of items in your driveway. Let folks know about your driveway sale on twitter, Facebook and other social media accounts. Sell so much stuff the pets think they are next.

Investment Accounts

For some of us we have been investing for our retirement. To maintain the 4 walls that we wrote about earlier you may want to consider taking small amounts from retirement accounts for survival. We recommend that this money be used only for the 4 walls. Do not spend these funds to pay off debt or any creditors. 

Reverse Mortgages

This tool is not recommended. These come with high fees and can mean that you will not have a home to stay in if you do not meet all the requirements. You must maintain the home in good repair and you still pay all the taxes. You can live in the home until death. If you do not live in the home for 12 months the monies received in a reverse mortgage come due on the reverse mortgage. This means at that time if the reverse mortgage is not paid that a foreclosure will take place.

Social Security

If you qualify you can begin to receive social security payments. It may take some time to get started but payments will be received from the time that you apply. For full details you need to contact social security. There are many variables that need to be discussed with them that includes the possibility of suspending payments or repaying amounts received if you change your mind.

Walt Disney World

Walt Disney World Resort in Florida is back in business this summer. Just don’t book your trip expecting that the rides, restaurants, hotels, and general atmosphere will be the same as the “Most Magical Place on Earth” was before shutting down in mid-March due to the coronavirus pandemic.
Among other things, kids (and adults) shouldn’t anticipate getting hugs from Mickey or any of the princesses. Everyone who is out of diapers will have to wear a face mask, too. Here’s more of what you need to know if you’re considering a trip to Disney World anytime soon.

Life Insurance

The Easy Way To Get Life Insurance in 2020 What happens to your family if you or your wife should pass away? Do you have insurance to replace the income that comes into your home? How do you pay for day to day expenses if the husband should die. How do you pay for expenses if the wife should die? If you are depending on insurance from the workplace what happens if you lose your job or choose to change jobs. If this happens you have no life insurance. The insurance at work is a nice extra. Financial advisors say that term life insurance is the best value for your dollar. Do not let time pass. If you do you are in jeopardy of not having money to cover expenses and the longer you wait the more expensive the insurance gets. You want to provide for your family and life insurance is one of the ways you provide for financial needs if something should happen. People in the world of finances say that you should have 10 to 12 times your annual income for insurance. This should apply to both the husband and wife individually. Life is short... so it shouldn't take long to find a life insurance policy that covers it. Don't waste time — Zander Insurance  the fastest, easiest, and most comprehensive way to search curated life insurance policy quotes from top carriers, in partnership with Zander Insurance, all from the comfort of your couch. With different levels of policy coverage depending on your needs and wallet, you could have life insurance before you finish your morning cup of coffee.

National Debt

Ask Chuck: Are We Taking On Too Much National Debt?  Chuck Bentley Dear Chuck, I just don’t understand how America can implement another massive bailout/stimulus without some long-term consequences. Aren’t we already carrying too much national debt?  Read Article

Debt Free Before Dating

Disclaimer: I am not affiliated with Dave Ramsey or Ramsey Solutions. I will be sharing short vidieos from Ramsey Personalities. I recommend you go directly to you tube to learn more about how to handle your finances.

Debt Free Degree

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Student loan debt doesn’t open doors for young adults—it closes them. They postpone getting married and starting a family. That debt even takes away their freedom to pursue their dreams. But there is a different way. Going to college without student loans is possible!

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• How to prepare their child for college
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SMART INSIGHTS FROM PROFESSIONAL ADVISERS

SMART INSIGHTS FROM PROFESSIONAL ADVISERS

A Widow's Broker Made a Huge Mistake

Karen, a recent widow, reached out to me for help with getting financially organized after her husband passed away. Her husband had a broker, but Karen didn't really know him. So she hired me, and together we got to work on her Survivor's Financial Plan, a tool I use to review the financial, retirement, estate, investment and insurances of a new widow. 

The Cost Basis Never Stepped Up 

As I got to reviewing her investment statements, I immediately noticed something was wrong: The cost basis of the stocks in the joint account were never stepped up to her husband's date of death. The way the tax code works, if a spouse passes, the deceased's share in the cost basis in those shares is stepped up to the value on the date of death. This is important because when you go to sell a stock, the difference between the fair market value and the cost basis (the gain) is the income tax due. This could be extremely costly. If she went to sell the stocks, she would have owed a substantial amount of money in income taxes, since she had a substantial gain due to the low cost basis in the stocks. 

Here's how it works. Karen and her husband, John, have a joint investment account holding several individual stocks. They bought the stocks several years ago, and the majority of them have appreciated over time. One stock, a tech firm they bought for $25 per share in 2003, is now worth $180 per share. So, their $5,000 investment ballooned to $36,000. Since they held the stock for more than one year, if they sold, they would owe long-term capital gains tax on $31,000, which is the difference between the $36,000 market value and the $5,000 cost-basis (what they paid). Karen and John are in the 15% capital gains bracket, meaning they owe 15% of the $31,000 gain - or $4,650 - if they sold the stock prior to John's passing. 

With John's passing, his share of the stock's cost-basis should have "stepped-up" on the date of his death. This means instead of the cost basis being $5,000, half of the cost-basis should have been increased to $18,000 (half of the $36,000, John's share in the stock on the date of his death). Karen's share of the cost-basis remains $2,500 - half of the original $5,000. 

The difference is huge. If Karen went to sell the stock without a step-up in basis, she'd owe $4,650 in taxes. However, with the step-up in basis, she'd owe only half that amount, or $2,325. Repeat this scenario by all the other stocks in their joint account, and you can see the tax-cost would have been significant if she didn't receive a step-up in basis. 

We went back to the brokerage firm to correct the problem. But why did this happen? 

Having a Joint Account, But Different Last Names Was the Ultimate Culprit 

At the majority of investment brokerage firms, the cost basis is automatically stepped-up on the date of death. However, this is not always the case when the deceased and the surviving spouse have different last names, as was the case with my client. She and her husband were married, but she kept her last name. In that case, the brokerage firm didn't automatically step up the basis, but rather needed further instruction from the deceased husband's broker - something the broker must have overlooked. 

Luckily, we caught the error in time. The brokerage firm acknowledged the mistake. Since they already had the death certificate on file, which showed the date of death, no new forms were needed. The investment company went back and corrected it, so half of the cost basis in each stock was stepped-up to the date of John's death. Keep in mind it is not always "half" of the value of the position that gets stepped up. If John owned 100% of the stock in an account in his name, the entire basis steps up on his death. 

It's often the little things that add up to big things in the world of financial planning and investing. Here, the broker's oversight, if left undetected, could have cost Karen a pretty penny in unnecessary income taxes. The key takeaway here is to always double check that the cost basis is stepped up in the appropriate accounts. 

For more financial planning insights for Widows and Widowers, please visit my website at www.survivorplanning.com. 

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

From Kiplinger magazine January 2020