3 Tips and Resources That Everyone Can Use
Save for kids’ college, or add to the retirement account?
What should be the priority when budgets are tight? Because retirement may be some years away, it may be tempting to put your kids’ education savings on the front burner. But that may be a mistake. For one thing, college students can apply for low-interest loans, work-study programs, and scholarships to help pay for their education. But you cannot realistically expect to borrow funds to pay for your retirement. It may sound cold-hearted to your loved ones, bu you have to consider your future income needs and not derail your retirement plans.
Update your estate planning documents!
If your life situation has recently changed – if you’ve been divorced or widowed, or have had a child, for example – you should check to see that the beneficiaries on your retirement accounts and insurance policies are up to date. You should also periodically review your will, power of attorney, and health care proxy to ensure that they properly reflect your wishes upon your death. And, if you haven’t already, you might want to consider putting in place a digital executor to manage and distribute your digital assets after you die in the way you want.
How much house can you afford?
A conservative rule of thumb states that no more than 35% of your income should go toward paying your debts, and no more than 28% should be allocated for all housing expenses, including mortgage, property taxes, and insurance. Of course, where you chose to live will have a significant impact on affordability. Try out the home affordability calculator at nerdwallet.com to determine how much house you can afford.1
1 © 2016 Kmotion, Inc. This newsletter is a publication of Kmotion, Inc., whose role is solely that of publisher. The articles and opinions in this newsletter are those of Kmotion. The articles and opinions are for general information only and are not intended to provide specific advice or recommendations for any individual. Nothing in this publication shall be construed as providing investment counseling or directing employees to participate in any investment program in any way. Please consult your financial advisor or other appropriate professional for further assistance with regard to your individual situation.
