10 Things Divorce Attorneys Won't Say

1. You'll pay more than the advertised rate -- way more.

2. I get sued -- a lot.

3. My lack of fiscal know-how will cost you. “Divorces often require complicated financial calculations, like projecting the long-term value of a 401(k). But finance isn't typically part of the law school curriculum.”

4. I make promises I can't keep.

5. I've only handled a couple of divorce cases. Ever.

6. Prepare for plummeting income. “Households with children in which the parents divorce and remain divorced for at least six years face a 40 to 45 percent average drop in family income, according to the National Bureau of Economic Research. Divorcing or separating mothers are also nearly three times as likely as married mothers to end up in poverty, according to a 2011 study by the Family Research Council.”

7. Go cry somewhere else

8. You may not even need me.

9. I don't have time for you.

10. I'm dragging my feet.

Read the details in: Smart Money by Catey Hill: http://www.smartmoney.com/spend/family-money/10-things-divorce-attorneys-wont-say-1339516676756/

Also: http://www.womansdivorce.com/divorce-and-money.html

http://www.divorceandmoneybook.com/

And the best resource: Divorce & Money: How to make the best financial decisions during divorce. By Dale Fetherling and Violet Woodhouse, CFP, Attorney.  http://www.nolo.com/products/divorce-and-money-DIMO.html

5 Smart Strategies for Managing your Debt

"Consumers have been good about paying down their debt. But they stink at managing what debt remains. Here are five ways to keep control."
1. Match assets and liabilities.
2. Maintain liquid savings.
3. Watch interest rate risk. 
4. Don’t forget to save.  
5. Minimize regular debt expense. 
Find out the details at the Time/Moneyland site: 
http://moneyland.time.com/2012/06/20/5-smart-strategies-for-managing-your-debt/?iid=pf-main-lede
Join us on Wed. July 11 for the Financial Planning for Women program: Get out of Debt fast with PowerPay debt reduction software. Details at: www.usu.edu/fpw

Disability Insurance

How would you pay your bills if you are disabled and unable to work, even for just a few months?

“A consumer’s most important asset is his or her income. Over a 40-year career, an individual who earns an average of $52,000 a year would receive more than $2 million in income.

The Social Security Administration estimates that just over 1 in 4 of today’s 20 year-olds will become disabled before reaching age 67.1Disability can be caused by a wide range of illnesses or injuries. It can mean several weeks of missed work for surgery, months away after a serious injury, or a year or more for a chronic illness.”

“Two-thirds of private sector American workers are not covered by employer-sponsored disability insurance against loss of income due to illness or injury. For those covered by long-term disability insurance, benefits typically replace 60% of an employee’s salary.”  Find out more about disability insurance at http://www.consumerfed.org/pdfs/FactSheet.CFA.UnumDisabilityInsruance.4.30.12.pdf

AARP Retirement Calculator

"Retirement is a goal to be relished, not dreaded. Yet for many people, thinking about retirement can be overwhelming. Am I saving enough? When can I afford to stop working? How long will my money last? Now, the answers are right at your fingertips. Use the AARP Retirement Calculator to plan your financial future so you can retire when — and how — you want. You've got options. This calculator will help you discover what they are."
"This calculator is designed for single people, married couples and domestic partners who are still working and planning for retirement." Check it out at:
http://www.aarp.org/work/retirement-planning/retirement_calculator/

Teach your Children about Money

“Money as You Grow, developed by the President's Advisory Council on Financial Capability, provides 20 essential, age-appropriate financial lessons—with corresponding activities—that kids need to know as they grow. Written in down-to-earth language for children and their families, Money as You Grow will help equip kids with the knowledge they need to live fiscally fit lives. The lessons in Money as You Grow are based on more than a year of research, drawn from dozens of standards, curricula, and academic studies.” http://moneyasyougrow.org/

4 Rules for Vehicle Loans

Although it is ideal to pay cash for a gently used car that is rated highly by Consumer Reports, most vehicle buyers take out a loan. Note that getting a modest car loan and repaying on time will boost your credit score for young people with slim to no credit history.  One of my favorite quotes is from a team of bankruptcy researchers (Sullivan, Warren, & Westbrook): “cars depreciate faster than they toll downhill.” So keep that loan to a modest amount and be realistic about what you really “need’ in a vehicle.

1.      Know your credit situation. Go to annualcreditreport.com to review your free credit report.

2.      Shop around for a loan. NEVER get your financing from the dealer.

3.      Don’t be upsold.  Decide before you go what you can afford and stick to your plan. Skip the rust proofing (no longer needed on new cars), extended warranties, etc. Dealers push they add-ons hard because their profit margins on the vehicles themselves are slender as consumer shop on the internet.

4.      Avoid the Yo-Yo trap of conditional financing. Arrange your loan ahead of time from your credit union or bank.

Read the details at: Time/Moneyland http://moneyland.time.com/2012/06/18/4-rules-for-getting-a-car-loan/?iid=pf-main-lede

Income-Based Repayment (IBR) for Student Loans

"Since 2009, federal student-loan borrowers who are experiencing a “partial financial hardship” and are thus unable to make payments under their standard repayment plan have been able to enroll in IBR to cap their monthly student-loan payments at 15% of their discretionary income. (In 2010, President Obama signed legislation that lowered the cap to 10% for borrowers beginning in 2014.)"
"Lenders will look at how much a borrower makes, note how far above the poverty line it is and adjust the payments accordingly. If the result is below the standard repayment plan, then borrowers are given the option to pay less. If they stick with the plan for 25 years, any remaining debt (both principal and interest) is automatically forgiven. For those who work full-time at a nonprofit or public-service job, the remaining debt is forgiven after only 10 years."

Please help spread the word about this program
Read more: http://moneyland.time.com/2012/06/12/why-have-so-few-student-loan-borrowers-have-taken-advantage-of-income-based-repayment/#ixzz1xhB26XvW

Daughters of Boomers Giving More Financial Help to Parents

"Two-thirds of baby boomers' daughters are helping their parents financially, up from 48% five years ago, an Ameriprise Financial survey finds. More women than men worry about their parents' retirement income and have discussed their parents' finances with them." Compared to a similar study conducted in 2007 before the crash, more daughters are helping their parents financially (paying utility bills, housing, & long term care costs) and with household tasks (cooking, cleaning, laundry, transportation). While sons are helping out, they haven't increased their contributions compared to 2007. 
A big concern is the future financial security of these daughters. Extensive research shows women are less prepared for retirement than men. By diverting money (and time away from work) to their parents now, they are putting their own financial security at risk and their children (many un- or under-employed and saddled with education debt) are likely to be less able to help their mothers in the future. A multi-generational dilemma. Women tend to put the needs of their parents and children before their own, risking their financial security in later life. Ann Carrns summarizes the study in The New York Times blog:
http://bucks.blogs.nytimes.com/2012/06/12/daughters-of-boomers-giving-more-financial-help-to-parents-study-finds/http://bucks.blogs.nytimes.com/2012/06/12/daughters-of-boomers-giving-more-financial-help-to-parents-study-finds/