Few leave marriages of any length unscathed, but the financial impact is often more extreme for those who have been together for decades. For example, when one partner has always assumed the money management duties, the other is left with atrophied skills and a dangerous lack of awareness about how much they may own or owe.
"One would be surprised how many spouses have no idea what the other spouse earns, has in a 401(k) or even where their spouse banks," says Elizabeth Durso Branch, family law attorney and partner at McCurley, Orsinger, McCurley, Nelson & Downing in Dallas. "One spouse could be hiding money and failing to disclose assets." Those who remain ignorant often sell themselves short.
Wives tend to be particularly hard hit when a marriage crumbles, and today's depressed economy is worsening matters. According to a 2011 U.S. Census Bureau study, women who divorced in the past 12 months reported less household income than recently divorced men, and were significantly more likely to receive public assistance than their ex-husbands (23% as opposed to 15%).
"For women who have never supported themselves or who have dabbled at part-time work and volunteerism, taking full financial responsibility for themselves can be emotionally paralyzing," says Debra D. Castaldo, a professor at Rutgers University and author of "Divorced without Children: Solution Focused Therapy with Women at Midlife."
"I have worked with women in my practice who have never written a check, paid a bill on their own or balanced a checkbook," says Castaldo. The typical result: poor decisions that lead to accepting an unfair divorce settlement and mismanaging cash and credit.
Even with the economic disparity among the sexes, maintaining separate households means both men and women will pay more to live, but at a time when their earning years are waning. "Many have an adjustment period when the reality of the leaner lifestyle hits home," says Branch. "There is simply not enough set aside to continue to maintain the lifestyle for either party."
Protect your finances before and after divorce
About to exit an extended marriage? Focus on gaining and maintaining financial stability. Here's how:
*Employ a lawyer, judiciously. Yes, you're probably going to need legal counsel. However, you'll be paying by the hour, so don't waste cash venting to your attorney -- call a friend instead. Think with your wallet, not your heart. "Litigation is by far the most expensive and emotionally damaging way to handle your divorce," says Stacey Lau Welsh, a San Francisco wealth manager for United Capital Financial Advisers, who specializes divorce matters. "Look for alternate ways to resolve your differences, such as mediation, to negotiate the division of your assets." On the other hand, do let your lawyer fight for what's rightfully yours. According to Branch, too many spouses "just want out" and are willing to take a fire-sale attitude to end the matter.
*Create a "Now I'm single" budget. Jerry Cohen, a Los Angeles Certified Divorce Financial Analyst says the majority of his clients who separate from a long-term marriage find it difficult to manage their finances afterward. To prevent overspending that leads to credit card debt, develop a realistic budget before the divorce is final. "The longer you delay making the difficult changes, the longer your financial well-being will suffer," says Cohen. "Consider what you will have to do to accept your current situation and take positive steps toward making the changes that will benefit you in the future."
*Prepare for merged debt. Owe money as a couple? Some of the repayment responsibility can fall into your lap, even if you didn't make the charges. However, if you end up with a disproportionate amount of the debt, Branch says that you might also be awarded a greater share of the assets to compensate. Mind that not all liabilities will be shared. "Student loans are paid by the student who incurred the debt," explains Branch. "For secured debts -- the debt follows the asset -- you get the house, you get the mortgage." Build all bill payments into your new budget.
*Plan to spend your settlement carefully. If you've agreed to a cash settlement, managing those assets wisely will be essential, says Welsh. "All too often, I see people spending too freely once they get their settlement," she says. "If you're 50, you need to plan on having your money last another 50 years. Most financial advisers can advise you on how much you can spend from your investment portfolio without running out of money. No one wants to be a 95-year-old bag lady!"
*Be house smart. Make absolutely sure you can afford the mortgage and other property costs if you'll be keeping the family home. Also, get an appraisal and conduct a title search right away. "You don't want to be surprised to find out after you settle that there is a lien on your house, or heaven forbid, that your soon-to-be-ex pledged it as collateral for a loan you don't know about," says Welsh.
*Discuss your finances with trusted loved ones. Avoid the urge to isolate. You may have adult children and other relatives who can help you through this difficult time. "Have a regularly scheduled meeting with your family to discuss your financial issues," says Cohen. "Talk about the challenges you have, what you would like to change, what's working and ways to improve." Listen to their advice and consider offers of economic and emotional support. Even if you don't need it, the assurance that they are there for you, just as you were for them, can prove invaluable.
*Can you pull through and make ends meet? Yes, says Castaldo, who survived the dissolution of her own long-term union, but a major shift in thinking is often necessary to move forward: "Exiting a marriage later in life often requires the calling forth of strengths and capabilities that may have been stifled for decades."
Source
Friday, November 4, 2011
Wednesday, May 25, 2011
4 Critical Money Questions to Ask Before You Get Married
Welcome back, Starting Out fans! My name is Stacy Rapacon, and I hope that I can fill this space as well as former columnist Erin Burt did over the years.
Speaking of daunting yet exciting new opportunities, I just got married in October. Topping the long list of things my husband, Dave, and I do to keep each other happy (placed just slightly above volunteering to do the dishes) is communicating clearly and openly -- an especially helpful habit when it comes to money matters.
In fact, Dave and I started our financial talks long before we strolled down the aisle. Sure, it was embarrassing to admit that my college years were riddled with late bill payments, leaving me with a credit score about a hundred points lower than his nearly perfect record. And he struggled to fess up to the thousands of dollars in debt he had amassed, coincidentally, since we started dating. But we knew that if we wanted to share our lives, we also had to share our finances. So we laid out all our dollars and cents and hoped those early discussions would prove that we’re each other’s perfect money match and prepare us for the long journey ahead. So far, so great.
What should you find out about each other’s money before making a lifelong commitment? Here are four questions that need to be answered. Have other suggestions? Please feel free to drop them into the comment box below.
HOW MUCH IS THERE?
It’s not an appropriate first-date conversation, but if you’re in it for the long haul, finding out each other’s net worth is only fair. When assigning dollar figures (priceless as your significant other may be), be sure to include retirement accounts, investments and debts, as well as checking and savings accounts. Plus, you should share your credit scores, another important piece of the financial puzzle.
If you find that debts severely outweigh assets, or that your partner’s credit score is in the gutter, you’ll want to ask some other questions, such as “How did this happen?” or “What’s your plan to deal?” Unromantic as it may be, you may not want to commit to someone who’s careless with credit, especially if that person has not considered how to fix the problem.
When Dave and I faced the issues of my late payments and his growing debt, we obviously didn’t call it quits. We focused on finding solutions. Fortunately, I had already started working at Kiplinger and had picked up good tips on how to keep up with bills, such as setting up automatic payments and e-mail alerts for due dates. As for his credit-card debt, he stopped using the card, and we made paying it all off a top priority. Mission accomplished!
So, before you dash for the door, talk out your issues and see whether you can come up with a plan to balance your finances better. But if your partner’s deep debts came from years of spending beyond his or her means, be ready to deal with this issue for the rest of your life. After all, you can’t force people to change if they don’t want to do it for themselves.
WHERE DOES IT COME FROM?
At this point in your relationship, each of you knows what the other does for a living. But you should also talk about what you plan on doing and earning a year, five years, ten years and even 20 years from now.
Consider what it will take to make those plans a reality. Is there room for that kind of growth at your current companies? Or will a move be necessary somewhere down the line? Would more education or training be beneficial? (Measure the payoff of going back to school.) Asking these questions now will help you draw a road map for your future.
WHERE IS IT KEPT AND INVESTED?
You probably brushed over what kinds of accounts you both keep when you tallied up net worth. But you should also dive into the details of where the money sits within those accounts. Sharing this info can help reveal financial attitudes.
For example, someone who pours heavily into emerging-markets stocks is a bit of a risk taker. (Test your risk tolerance.) And someone who invests 401(k) money entirely in a single target-date mutual fund is likely more laid back. Whatever you two discover, be sure your fiscal personalities mesh. Otherwise, you could be in for a bumpy ride, and you might want to get off before it’s too late.
WHERE IS IT GOING?
Take a look at your budgets. If you don’t keep one, now’s as good a time as any to get started because you’ll have to make a new one to cover both of you anyway. To do that, bust out the pencil and paper (or Excel spreadsheet) and lay out all of your recent and regular expenses. Use our Household Budget Worksheet to get started.
Or try Kiplinger’s favorite budgeting site, Mint.com, which can organize data from all accounts into different expense categories and help you identify the biggest outlays. For example, in a deliciously colorful pie chart, you might see that a big slice of your mate’s budget goes to dining out. Is that a cost you’re willing to eat? Or are your love’s gastronomical desires subject to compromise?
No matter your method, a clearly laid out budget will illustrate the spending habits you both have. From there, you can figure out whether those habits complement each other or if it’ll take some work to make them fit. It’s okay if one of you is more of a spender and the other is more of a saver -- in fact, that’s the way it is with most couples. What’s most important is that you know what to expect from one another and you accept it.
Once you’ve survived your first big money talk, you’re free to spend your lives in love. Just remember, this is only the beginning; throughout your relationship, you’ll want to discuss your finances regularly and update your plans and budgets accordingly.
Source
Speaking of daunting yet exciting new opportunities, I just got married in October. Topping the long list of things my husband, Dave, and I do to keep each other happy (placed just slightly above volunteering to do the dishes) is communicating clearly and openly -- an especially helpful habit when it comes to money matters.
In fact, Dave and I started our financial talks long before we strolled down the aisle. Sure, it was embarrassing to admit that my college years were riddled with late bill payments, leaving me with a credit score about a hundred points lower than his nearly perfect record. And he struggled to fess up to the thousands of dollars in debt he had amassed, coincidentally, since we started dating. But we knew that if we wanted to share our lives, we also had to share our finances. So we laid out all our dollars and cents and hoped those early discussions would prove that we’re each other’s perfect money match and prepare us for the long journey ahead. So far, so great.
What should you find out about each other’s money before making a lifelong commitment? Here are four questions that need to be answered. Have other suggestions? Please feel free to drop them into the comment box below.
HOW MUCH IS THERE?
It’s not an appropriate first-date conversation, but if you’re in it for the long haul, finding out each other’s net worth is only fair. When assigning dollar figures (priceless as your significant other may be), be sure to include retirement accounts, investments and debts, as well as checking and savings accounts. Plus, you should share your credit scores, another important piece of the financial puzzle.
If you find that debts severely outweigh assets, or that your partner’s credit score is in the gutter, you’ll want to ask some other questions, such as “How did this happen?” or “What’s your plan to deal?” Unromantic as it may be, you may not want to commit to someone who’s careless with credit, especially if that person has not considered how to fix the problem.
When Dave and I faced the issues of my late payments and his growing debt, we obviously didn’t call it quits. We focused on finding solutions. Fortunately, I had already started working at Kiplinger and had picked up good tips on how to keep up with bills, such as setting up automatic payments and e-mail alerts for due dates. As for his credit-card debt, he stopped using the card, and we made paying it all off a top priority. Mission accomplished!
So, before you dash for the door, talk out your issues and see whether you can come up with a plan to balance your finances better. But if your partner’s deep debts came from years of spending beyond his or her means, be ready to deal with this issue for the rest of your life. After all, you can’t force people to change if they don’t want to do it for themselves.
WHERE DOES IT COME FROM?
At this point in your relationship, each of you knows what the other does for a living. But you should also talk about what you plan on doing and earning a year, five years, ten years and even 20 years from now.
Consider what it will take to make those plans a reality. Is there room for that kind of growth at your current companies? Or will a move be necessary somewhere down the line? Would more education or training be beneficial? (Measure the payoff of going back to school.) Asking these questions now will help you draw a road map for your future.
WHERE IS IT KEPT AND INVESTED?
You probably brushed over what kinds of accounts you both keep when you tallied up net worth. But you should also dive into the details of where the money sits within those accounts. Sharing this info can help reveal financial attitudes.
For example, someone who pours heavily into emerging-markets stocks is a bit of a risk taker. (Test your risk tolerance.) And someone who invests 401(k) money entirely in a single target-date mutual fund is likely more laid back. Whatever you two discover, be sure your fiscal personalities mesh. Otherwise, you could be in for a bumpy ride, and you might want to get off before it’s too late.
WHERE IS IT GOING?
Take a look at your budgets. If you don’t keep one, now’s as good a time as any to get started because you’ll have to make a new one to cover both of you anyway. To do that, bust out the pencil and paper (or Excel spreadsheet) and lay out all of your recent and regular expenses. Use our Household Budget Worksheet to get started.
Or try Kiplinger’s favorite budgeting site, Mint.com, which can organize data from all accounts into different expense categories and help you identify the biggest outlays. For example, in a deliciously colorful pie chart, you might see that a big slice of your mate’s budget goes to dining out. Is that a cost you’re willing to eat? Or are your love’s gastronomical desires subject to compromise?
No matter your method, a clearly laid out budget will illustrate the spending habits you both have. From there, you can figure out whether those habits complement each other or if it’ll take some work to make them fit. It’s okay if one of you is more of a spender and the other is more of a saver -- in fact, that’s the way it is with most couples. What’s most important is that you know what to expect from one another and you accept it.
Once you’ve survived your first big money talk, you’re free to spend your lives in love. Just remember, this is only the beginning; throughout your relationship, you’ll want to discuss your finances regularly and update your plans and budgets accordingly.
Source
Friday, April 15, 2011
Seven Habits of Highly Unsuccessful Spenders
After working with people and money for years, this is what I've learned: Money makes us crazy! "I have too many choices. I am inundated with too much information. And life is moving at warp speed."
What becomes apparent are the habits od these unsuccessful spenders.
1. I can do it, just watch me. We are overconfident that we can control our spending. We think we can control our behavior--this time. We accept the teaser credit card application because we think we won't use it. We buy "six-months-same-as-cash" because we know we'll have everything paid off in time. Bad things--life--only happens to the other guy.
2. I know I'm right and I can prove it. We rationalize and confirm our spending decisions. No one likes to be wrong and losses/failure emotionally hurt--a lot. We ask "experts" we agree with to confirm our spending choices. We discount anyone who disagrees with us. Over time, we can rationalize just about any spending decision.
3. I'm smart. We think the skills and abilities that have made us successful in one area will carry over to our spending decisions. I know a number of very smart and successful professionals who thought they could run a restaurant. They could not--regardless of how good their mom's pizza recipe. We tend to confuse luck with being smart. Admit it, some of our buying choices worked because we were at the right place at the right time. Brains had nothing to do with it.
4. This time is different. We want to believe that a bad spending choice in the past won't happen again. It can and it may. We aren't very good with figuring out risk and probability. If we were everyone would own life insurance and not more than 10% of their company's stock. Remember, the group can be wrong--dot coms, housing, and so forth.
5. It's an investment. We as individuals have no control over the market price or rate of return of anything. We can ask a price for our Beanie Babies, gold plated coins, and collector's edition presidential plates but the market will determine what it is worth. Just because the guy on television says it's a great investment does not make it so.
6. I have enough time to get my spending under control. We never have as much time as we think. Compounding is our friend--if we use it. We seldom get a "do over" with our money.
7. I don't have enough money. If we are really honest with ourselves, we have money. We simply don't like to make the hard choices about our spending choices. Instant gratification is great. Our feeling brain loves it. However, have to choose between the car that cost more than my first house and being able to retire in the future.
Ted McLyman is a fully licensed financial advisor and author. He is a retired Lt. Col, USMC where he served in various command and staff positions to include: economics instructor, U.S Naval Academy; Aide to the Assistant Secretary of the Navy for Financial Management; and served a tour in Southwest Asia during Operation Desert Storm.
Tuesday, February 8, 2011
planning the split...
At best, divorce is a time of distraction in one's life, when emotional and family concerns take center stage and financial issues often take a back seat.
Yet divorce is one of the biggest triggers of bankruptcy in a world where bankruptcy has gotten a lot tougher to file. That means that financial planning is crucial when a marriage breaks up.
Anyone filing divorce should seek the help of financial and tax advisers as well as attorneys skilled in divorce, experts say, because financial issues that get pushed to the background eventually can take a surprising and disastrous toll on the newly single ex-spouse and his or her children.
Planning
Reaching a Suitable Divorce Resolution Option for Your Family
Financial Planning Matters for Amicably Tackling a Divorce Settlement
Creating an After-Divorce Action Plan to Provide More Gold for the Golden Years
Divorce? Financially Prepare Yourself
The Biggest Financial Mistakes People Make in Divorce – and How to Avoid Them
Getting a Divorce? Avoid Common Financial Mistakes
How to Handle a Divorce Settlement
source: financial planning association
Find additional resources on bankruptcy, debt management, credit and foreclosure go to http://www.debthelper.com/ or call
Credit Card Management Services, Inc. 1-800-920-2262
Yet divorce is one of the biggest triggers of bankruptcy in a world where bankruptcy has gotten a lot tougher to file. That means that financial planning is crucial when a marriage breaks up.
Anyone filing divorce should seek the help of financial and tax advisers as well as attorneys skilled in divorce, experts say, because financial issues that get pushed to the background eventually can take a surprising and disastrous toll on the newly single ex-spouse and his or her children.
Planning
Reaching a Suitable Divorce Resolution Option for Your Family
Financial Planning Matters for Amicably Tackling a Divorce Settlement
Creating an After-Divorce Action Plan to Provide More Gold for the Golden Years
Divorce? Financially Prepare Yourself
The Biggest Financial Mistakes People Make in Divorce – and How to Avoid Them
Getting a Divorce? Avoid Common Financial Mistakes
How to Handle a Divorce Settlement
source: financial planning association
Find additional resources on bankruptcy, debt management, credit and foreclosure go to http://www.debthelper.com/ or call
Credit Card Management Services, Inc. 1-800-920-2262
Friday, January 28, 2011
Mail thieves are waiting for your tax documents | Pamela Yip Columns - Personal Finance - Business News for Dallas, Texas - The Dallas Morning News
Mail thieves are waiting for your tax documents | Pamela Yip Columns - Personal Finance - Business News for Dallas, Texas - The Dallas Morning News
You should always guard your mail, but you need to be especially vigilant at this time of year.
That’s because January is when you start receiving sensitive personal documents, such as year-end credit card summaries, your W-2 and 1099 income tax forms, and brokerage statements.
Those have critical information, such as your full name, address, Social Security number and account numbers that identity thieves treasure.
“People don’t understand that ‘walkers’ follow mail carriers and look through your mail for any bonanza they can find,” said Linda Foley, chairman of the Identity Theft Resource Center, a nonprofit organization in San Diego.
“Mail thieves know the prime time is between 9 a.m. and 3 p.m. Others take advantage of the dark of night and/or consumers’ tendencies of not checking mailboxes each day.”
Some thieves even open the envelopes, copy the documents, then reseal your mail and place it back in your mailbox a day later, she said.
“It is one of those times of the year when everyone should be on the lookout, and if you aren’t receiving the appropriate amount of documentation you’re expecting, you need to act quickly,” said U.S. Postal Inspector Amanda McMurrey.
Keep a monthly calendar of when items arrive and if they seem delayed, call the sender to find out why.
Then contact the post office. The toll-free number for the U.S. Postal Service is 800-275-8777.
“You may have a new carrier on the route,” McMurrey said.
In a worst-case scenario, someone may have submitted a change-of-address form without your knowledge to have your mail forwarded to them.
To protect consumers, the postal service will automatically send letters to your old address and new address “to verify that indeed that was a legitimate change-of-address-order,” McMurrey said.
If you feel your mail’s been stolen, contact your creditors or bank about your bills and notify the U.S. Postal Inspection Service, the federal law enforcement agency that protects the nation’s mail system.
The toll-free number for the postal inspection service is 1-877-876-2455. You may also file a mail theft complaint online at https://postal inspectors.uspis.gov/contact Us/filecomplaint.aspx
Your local post office doesn’t handle criminal matters concerning the mail.
To expedite the investigation of your case, gather any documents that demonstrate that thieves may have hijacked your sensitive personal information, such as credit card statements or bad checks and submit copies with your mail theft complaint.
Here are other things you can do to protect your mail:
•Get a secure locked mailbox for your home or a post office box.
•Don’t leave your mail in your mailbox for long.
•If you’re going on vacation, have your mail held at the post office until you return to retrieve it.
“Don’t use the excuse that you always get the mail when it arrives,” Foley said. “Postal deliveries are not always at the same time, and you can’t make sure you are standing next to your box at the right moment. That 30-second window is all a thief needs.”
Thursday, January 27, 2011
Can Money Buy Happiness?
In the 2010 flick Wall Street: Money Never Sleeps, Shia LaBeouf’s character (Jake Moore) asks Josh Brolin (Bretton James), “What’s your number? …the amount of money you would need to just walk away from it and live?”
Without hesitation, Brolin responds, “More”.
Yes, that was a fictional movie but we all know people who have that same you-can’t-be too-rich-or-too-thin mentality. And let’s face it, who hasn’t played “What I would do if I won the lottery” in their minds? I have, several times in fact.
My visions – as cliché as they may seem – include luxurious vacations in exotic locales, a to-die-for wardrobe, and my very own ‘Team Susan’: a masseuse, chauffer, personal trainer, maid and chef. My parents would have the very best health care. My friends’ children’s college tuitions would be taken care of. The ASPCA would receive a big fat check. But would this accumulation of material goods (and snapshots of goodwill) make me happier? Is being rich overrated? Would I become more of a glass-is-half-full gal?
CAN MONEY BUY LIFE’S NON-TANGIBLES?
Money coach, best-selling author and award-winning financial journalist Jean Chatzky stated, “A Roper study conducted for my book The Ten Commandments of Financial Happiness revealed that what you need to feel happy is enough cash to live comfortably – not lavishly, just comfortably.” More money than that won’t buy happiness.” (November 2010 issue of Women’s Health magazine.)
Why not? Personal Finance Expert Andrea Travillian (takeasmartstep.com) explains that self-esteem can’t be bought. “If you don’t like yourself, you still won’t be happy regardless of how much is in your bank account. Money can buy new clothes and “toys” which provide you with a temporary boost, but eventually these items lose their impact. The gadget is no longer new, the car is old and you need to get more so you look for the next boost.
Bottom line: you can not buy self-esteem.
Adds Matt Wallaert, a behavioral psychologist and lead scientist at GetRaised.com (a web service that helps people earn what’s fair), “It’s probably true that a big screen TV won’t automatically make you happy in any long-term sort of way. But if you hook up a Wii and start playing with your kids more often, that probably will. In other words, happiness isn’t about stuff: it’s about what you do with the stuff.”
In the same movie I referred to earlier, Michael Douglas tells his future son-n-law, “Money is not the prime asset of life. Time is.” Quite a turn around for a guy who coined the infamous phrase, “Greed is good”.
THE 3 P’S
Pop quiz – which of these brings us genuine inner peace and drive happiness?
1.Purpose (Where do you want to serve? In what area do you want to make a contribution?)
2.Passion (What are you truly passionate about? What is your ultimate dream?)
3.Paycheck
Wallaert explains, “Part of happiness is a sense of purpose, a feeling that your life matter and that you are doing something meaningful with it. Philanthropy can certainly provide part of that sense of meaning. It is one of many things that one can do to feel like they matter. But so is building an empire, or teaching, or spending time with your family – people have many ways of providing meaning for their lives.”
We hear about people who have left high paying jobs to start nonprofits or pursue a long-awaited dream job – pay cut included – and are more fulfilled than they’ve ever been in their lives. People who chose ‘a’ and ‘b’.
BUT NO MATTER WHAT, WE STILL WANT IT…
If, in the end, riches do not make people happier, why do so many people go to such extremes to get their hands on the green stuff?
New York City bankruptcy attorney Daniel Gershburg, ESQ has a roster of clients who once “had it all” and then lost everything. “Everyone strives for it because they think it’s going to change their lives. They think they are going to wake up in a different world thanks to this financial cushion. Their expectations didn’t come to fruition and they feel empty. …disappointed that nothing has changed. They thought money would be the crutch to bail them out of their misery and are now left feeling like, ‘Now what do I do’?”
Adds Gershburg, “Surprisingly, my (formerly wealthy) clients who decided to claim bankruptcy are almost always relieved afterwards. There’s no need to maintain silly appearances anymore. That ‘hamster on a wheel’ feeling because is gone. They’ve been relieved of $3-$4,000 minimum monthly credit card payments and are completely fine with relinquishing the Mercedes and getting a Honda. It’s as if they have cut ties with an addiction.”
If you’re not happy without it, you won’t be happy – or any happier – with it.
So, back to my lottery fantasy. Yup, I had it all figured out – the trips, the clothes, the donations. And then I returned to reality, which to be honest, isn’t such a bad place to be.
Source
Without hesitation, Brolin responds, “More”.
Yes, that was a fictional movie but we all know people who have that same you-can’t-be too-rich-or-too-thin mentality. And let’s face it, who hasn’t played “What I would do if I won the lottery” in their minds? I have, several times in fact.
My visions – as cliché as they may seem – include luxurious vacations in exotic locales, a to-die-for wardrobe, and my very own ‘Team Susan’: a masseuse, chauffer, personal trainer, maid and chef. My parents would have the very best health care. My friends’ children’s college tuitions would be taken care of. The ASPCA would receive a big fat check. But would this accumulation of material goods (and snapshots of goodwill) make me happier? Is being rich overrated? Would I become more of a glass-is-half-full gal?
CAN MONEY BUY LIFE’S NON-TANGIBLES?
Money coach, best-selling author and award-winning financial journalist Jean Chatzky stated, “A Roper study conducted for my book The Ten Commandments of Financial Happiness revealed that what you need to feel happy is enough cash to live comfortably – not lavishly, just comfortably.” More money than that won’t buy happiness.” (November 2010 issue of Women’s Health magazine.)
Why not? Personal Finance Expert Andrea Travillian (takeasmartstep.com) explains that self-esteem can’t be bought. “If you don’t like yourself, you still won’t be happy regardless of how much is in your bank account. Money can buy new clothes and “toys” which provide you with a temporary boost, but eventually these items lose their impact. The gadget is no longer new, the car is old and you need to get more so you look for the next boost.
Bottom line: you can not buy self-esteem.
Adds Matt Wallaert, a behavioral psychologist and lead scientist at GetRaised.com (a web service that helps people earn what’s fair), “It’s probably true that a big screen TV won’t automatically make you happy in any long-term sort of way. But if you hook up a Wii and start playing with your kids more often, that probably will. In other words, happiness isn’t about stuff: it’s about what you do with the stuff.”
In the same movie I referred to earlier, Michael Douglas tells his future son-n-law, “Money is not the prime asset of life. Time is.” Quite a turn around for a guy who coined the infamous phrase, “Greed is good”.
THE 3 P’S
Pop quiz – which of these brings us genuine inner peace and drive happiness?
1.Purpose (Where do you want to serve? In what area do you want to make a contribution?)
2.Passion (What are you truly passionate about? What is your ultimate dream?)
3.Paycheck
Wallaert explains, “Part of happiness is a sense of purpose, a feeling that your life matter and that you are doing something meaningful with it. Philanthropy can certainly provide part of that sense of meaning. It is one of many things that one can do to feel like they matter. But so is building an empire, or teaching, or spending time with your family – people have many ways of providing meaning for their lives.”
We hear about people who have left high paying jobs to start nonprofits or pursue a long-awaited dream job – pay cut included – and are more fulfilled than they’ve ever been in their lives. People who chose ‘a’ and ‘b’.
BUT NO MATTER WHAT, WE STILL WANT IT…
If, in the end, riches do not make people happier, why do so many people go to such extremes to get their hands on the green stuff?
New York City bankruptcy attorney Daniel Gershburg, ESQ has a roster of clients who once “had it all” and then lost everything. “Everyone strives for it because they think it’s going to change their lives. They think they are going to wake up in a different world thanks to this financial cushion. Their expectations didn’t come to fruition and they feel empty. …disappointed that nothing has changed. They thought money would be the crutch to bail them out of their misery and are now left feeling like, ‘Now what do I do’?”
Adds Gershburg, “Surprisingly, my (formerly wealthy) clients who decided to claim bankruptcy are almost always relieved afterwards. There’s no need to maintain silly appearances anymore. That ‘hamster on a wheel’ feeling because is gone. They’ve been relieved of $3-$4,000 minimum monthly credit card payments and are completely fine with relinquishing the Mercedes and getting a Honda. It’s as if they have cut ties with an addiction.”
If you’re not happy without it, you won’t be happy – or any happier – with it.
So, back to my lottery fantasy. Yup, I had it all figured out – the trips, the clothes, the donations. And then I returned to reality, which to be honest, isn’t such a bad place to be.
Source
Friday, November 5, 2010
How to dispute credit report errors
By Ben Woolsey
Your credit report contains information about where you work and live and how you pay your bills -- especially credit card bills. Credit reporting agencies -- also known as credit bureaus -- compile and sell your credit information to businesses. Because businesses use this information to evaluate your applications for credit, insurance, employment and other purposes allowed by the Fair Credit Reporting Act, it's important that the information in your report is complete and accurate.
Financial advisers suggest that you periodically review your credit report for inaccuracies or omissions. This is especially important if you're considering making a major purchase, such as buying a home. Checking in advance on the accuracy of information in your credit file could speed the credit-granting process and get you a loan at the rate you deserve.
Getting your credit report
Under a 2005 amendment to the FCRA, every American is entitled to a free credit report from each of the three major credit bureaus once a year. Go to AnnualCreditReport.com to get yours for free. (And despite other well-known credit report-providing sites, this is the only one that is truly free, with no strings attached.)
In addition, if you've been denied credit, insurance, or employment because of information supplied by a credit bureau, the FCRA says the company you applied to must give you the bureau's name, address, and telephone number. If you contact the agency for a copy of your report within 60 days of receiving a denial notice, the report is free. In addition. Otherwise, the bureau may charge you for a copy of your report.
If you simply want a copy of your report, call the bureau listed in the Yellow Pages under "credit" or "credit rating and reporting." Call each credit bureau listed since more than one bureau may have a file on you, some with different information. The three major national credit bureaus are:
Equifax, P.O. Box 740241, Atlanta, GA 30374-0241; (800) 685-1111.
Experian, P.O. Box 2002, Allen, TX 75013; (888) EXPERIAN (397-3742).
TransUnion, P.O. Box 1000, Chester, PA 19022; (800) 916-8800.
Correcting credit report errors
Under the FCRA, both the credit bureau and the organization that provided the information to the bureau -- such as a bank or credit card issuer -- have responsibilities for correcting inaccurate or incomplete information in your report. To protect all your rights under the law, contact both the credit bureau and the information provider.
First, tell the credit bureau in writing what information you believe is inaccurate. Include copies (NOT originals) of documents that support your position. In addition to providing your name and address, your letter should clearly identify each item in your report you dispute, state the facts and explain why you dispute the information, and request deletion or correction. You may want to enclose a copy of your report with the items in question circled. Your letter may look something like the sample below. Send your letter by certified mail, return receipt requested, so you can document what the credit bureau received. Keep copies of your dispute letter and enclosures.
Credit bureaus must re-investigate the items in question -- usually within 30 days -- unless they consider your dispute frivolous. They also must forward all relevant data you provide about the dispute to the information provider. After the information provider receives notice of a dispute from the credit bureau, it must investigate, review all relevant information provided by the credit bureau and report the results to the bureau. If the information provider finds the disputed information to be inaccurate, it must notify all nationwide credit bureaus so they can take the appropriate actions. For example:
* Disputed information that cannot be verified must be deleted from your file.
* Erroneous information must be corrected.
* Incomplete items must be completed. For example, if your file showed that you were late making payments, but failed to show that you were no longer delinquent, the credit bureau must show that you're current.
* An account that is shown to belong only to another person, it must be deleted.
When the reinvestigation is complete, the credit bureau must give you the written results and a free copy of your report if the dispute results in a change. If an item is changed or removed, the credit bureau cannot put the disputed information back in your file unless the information provider verifies its accuracy and completeness and the credit bureau gives you a written notice that includes the name, address, and phone number of the provider.
Also, if you request, the credit bureau must send notices of corrections to anyone who received your report in the past six months. Job applicants can have a corrected copy of their report sent to anyone who received a copy during the past two years for employment purposes. If a reinvestigation does not resolve your dispute, ask the credit bureau to include your statement of the dispute in your file and in future reports.
Second, in addition to writing to the credit bureau, tell the creditor or other information provider in writing that you dispute an item. Again, include copies (NOT originals) of documents that support your position. Many providers specify an address for disputes. If the provider then reports the item to any credit bureau, it must include a notice of your dispute. In addition, if you are correct -- that is, if the disputed information is inaccurate -- the information provider may not use it again.
You can't remove accurate negative information
When negative information in your report is accurate, only the passage of time can assure its removal. Accurate negative information can generally stay on your report for seven years. There are certain exceptions:
* Information about criminal convictions may be reported without any time limit.
* Bankruptcy information may be reported for 10 years.
* Credit information reported in response to an application for a job with a salary of more than $75,000 has no time limit.
* Credit information reported because of an application for more than $150,000 worth of credit or life insurance has no time limit.
* Information about a lawsuit or an unpaid judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer. Criminal convictions can be reported without any time limit.
Adding accounts to your file
Your credit file may not reflect all your credit accounts. Although most national department store and all-purpose bank credit card accounts will be included in your file, not all creditors supply information to credit bureaus: Some travel, entertainment, gas card companies, local retailers and credit unions are among those creditors that don't. If you've been told you were denied credit because of an "insufficient credit file" or "no credit file" and you have accounts with creditors that don't appear in your credit file, ask the credit bureau to add this information to future reports. Although they are not required to do so, many credit bureaus will add verifiable accounts for a fee. You should, however, understand that if these creditors do not report to the credit bureau on a regular basis, these added items will not be updated in your file.
Following is a sample letter that could be used to dispute an inaccurate credit report:
Date
Your name
Your address
Your city, state, ZIP code
Complaint department
Name of credit bureau
Address
City, state, ZIP code
Dear Sir or Madam:
I am writing to dispute the following information in my file. The items I dispute are also encircled on the attached copy of the report I received.
(Identify item(s) disputed by name of source, such as creditors or tax court, and identify type of item, such as credit account, judgment, etc.)
This item is (inaccurate or incomplete) because (describe what is inaccurate or incomplete and why). I am requesting that the item be deleted (or request another specific change) to correct the information.
Enclosed are copies of (use this sentence if applicable and describe any enclosed documentation, such as payment records, court documents) supporting my position. Please re-investigate this (these) matter(s) and (delete or correct) the disputed item(s) as soon as possible.
Sincerely,
Your name
Enclosures: (List what you are enclosing)
Source
Your credit report contains information about where you work and live and how you pay your bills -- especially credit card bills. Credit reporting agencies -- also known as credit bureaus -- compile and sell your credit information to businesses. Because businesses use this information to evaluate your applications for credit, insurance, employment and other purposes allowed by the Fair Credit Reporting Act, it's important that the information in your report is complete and accurate.
Financial advisers suggest that you periodically review your credit report for inaccuracies or omissions. This is especially important if you're considering making a major purchase, such as buying a home. Checking in advance on the accuracy of information in your credit file could speed the credit-granting process and get you a loan at the rate you deserve.
Getting your credit report
Under a 2005 amendment to the FCRA, every American is entitled to a free credit report from each of the three major credit bureaus once a year. Go to AnnualCreditReport.com to get yours for free. (And despite other well-known credit report-providing sites, this is the only one that is truly free, with no strings attached.)
In addition, if you've been denied credit, insurance, or employment because of information supplied by a credit bureau, the FCRA says the company you applied to must give you the bureau's name, address, and telephone number. If you contact the agency for a copy of your report within 60 days of receiving a denial notice, the report is free. In addition. Otherwise, the bureau may charge you for a copy of your report.
If you simply want a copy of your report, call the bureau listed in the Yellow Pages under "credit" or "credit rating and reporting." Call each credit bureau listed since more than one bureau may have a file on you, some with different information. The three major national credit bureaus are:
Equifax, P.O. Box 740241, Atlanta, GA 30374-0241; (800) 685-1111.
Experian, P.O. Box 2002, Allen, TX 75013; (888) EXPERIAN (397-3742).
TransUnion, P.O. Box 1000, Chester, PA 19022; (800) 916-8800.
Correcting credit report errors
Under the FCRA, both the credit bureau and the organization that provided the information to the bureau -- such as a bank or credit card issuer -- have responsibilities for correcting inaccurate or incomplete information in your report. To protect all your rights under the law, contact both the credit bureau and the information provider.
First, tell the credit bureau in writing what information you believe is inaccurate. Include copies (NOT originals) of documents that support your position. In addition to providing your name and address, your letter should clearly identify each item in your report you dispute, state the facts and explain why you dispute the information, and request deletion or correction. You may want to enclose a copy of your report with the items in question circled. Your letter may look something like the sample below. Send your letter by certified mail, return receipt requested, so you can document what the credit bureau received. Keep copies of your dispute letter and enclosures.
Credit bureaus must re-investigate the items in question -- usually within 30 days -- unless they consider your dispute frivolous. They also must forward all relevant data you provide about the dispute to the information provider. After the information provider receives notice of a dispute from the credit bureau, it must investigate, review all relevant information provided by the credit bureau and report the results to the bureau. If the information provider finds the disputed information to be inaccurate, it must notify all nationwide credit bureaus so they can take the appropriate actions. For example:
* Disputed information that cannot be verified must be deleted from your file.
* Erroneous information must be corrected.
* Incomplete items must be completed. For example, if your file showed that you were late making payments, but failed to show that you were no longer delinquent, the credit bureau must show that you're current.
* An account that is shown to belong only to another person, it must be deleted.
When the reinvestigation is complete, the credit bureau must give you the written results and a free copy of your report if the dispute results in a change. If an item is changed or removed, the credit bureau cannot put the disputed information back in your file unless the information provider verifies its accuracy and completeness and the credit bureau gives you a written notice that includes the name, address, and phone number of the provider.
Also, if you request, the credit bureau must send notices of corrections to anyone who received your report in the past six months. Job applicants can have a corrected copy of their report sent to anyone who received a copy during the past two years for employment purposes. If a reinvestigation does not resolve your dispute, ask the credit bureau to include your statement of the dispute in your file and in future reports.
Second, in addition to writing to the credit bureau, tell the creditor or other information provider in writing that you dispute an item. Again, include copies (NOT originals) of documents that support your position. Many providers specify an address for disputes. If the provider then reports the item to any credit bureau, it must include a notice of your dispute. In addition, if you are correct -- that is, if the disputed information is inaccurate -- the information provider may not use it again.
You can't remove accurate negative information
When negative information in your report is accurate, only the passage of time can assure its removal. Accurate negative information can generally stay on your report for seven years. There are certain exceptions:
* Information about criminal convictions may be reported without any time limit.
* Bankruptcy information may be reported for 10 years.
* Credit information reported in response to an application for a job with a salary of more than $75,000 has no time limit.
* Credit information reported because of an application for more than $150,000 worth of credit or life insurance has no time limit.
* Information about a lawsuit or an unpaid judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer. Criminal convictions can be reported without any time limit.
Adding accounts to your file
Your credit file may not reflect all your credit accounts. Although most national department store and all-purpose bank credit card accounts will be included in your file, not all creditors supply information to credit bureaus: Some travel, entertainment, gas card companies, local retailers and credit unions are among those creditors that don't. If you've been told you were denied credit because of an "insufficient credit file" or "no credit file" and you have accounts with creditors that don't appear in your credit file, ask the credit bureau to add this information to future reports. Although they are not required to do so, many credit bureaus will add verifiable accounts for a fee. You should, however, understand that if these creditors do not report to the credit bureau on a regular basis, these added items will not be updated in your file.
Following is a sample letter that could be used to dispute an inaccurate credit report:
Date
Your name
Your address
Your city, state, ZIP code
Complaint department
Name of credit bureau
Address
City, state, ZIP code
Dear Sir or Madam:
I am writing to dispute the following information in my file. The items I dispute are also encircled on the attached copy of the report I received.
(Identify item(s) disputed by name of source, such as creditors or tax court, and identify type of item, such as credit account, judgment, etc.)
This item is (inaccurate or incomplete) because (describe what is inaccurate or incomplete and why). I am requesting that the item be deleted (or request another specific change) to correct the information.
Enclosed are copies of (use this sentence if applicable and describe any enclosed documentation, such as payment records, court documents) supporting my position. Please re-investigate this (these) matter(s) and (delete or correct) the disputed item(s) as soon as possible.
Sincerely,
Your name
Enclosures: (List what you are enclosing)
Source
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