Questions on getting Finances in order.

[hobbystock98]

Re: Questions on getting Finances in order.

my wife and i did the Dave Ramsey class almost a year ago. since then our financial state has made a complete 180. we are not out of debt no where near it but making progress and much happier i'd recommend the class to any married couple especially young people starting out

 

[rivermouse]

Re: Questions on getting Finances in order.

I have discovered that there are some disadvantages to being retired and having your home paid off in full. For one it is the first thing that will be tied up if you owe money you cant pay for hospital bills etc. If you ever need to enter a nursing home and cant pay the 5k a month in cash the first thing you will lose is your home...I think it is wise to "maintain" you lifestyle till you die and not be concerned about leaving a free 100% paid off home for anyone to inherit....Why would you.? Why skip and do without in order to pay off the house because if you leave it to your kids most likely they will just sell it fast and offer a bargain to the buyer anyway. The key word is "maintain' Better for your assets to be in a place where you decide who counts them when you die.Protect them

 

[bruceb58]

Re: Questions on getting Finances in order.

I can see your point somewhat about paying off the house and I used to think that way. I think its easier to develop a bigger nest egg by being disciplined in getting rid of debt early and using the extra money from not having a house payment to build up an emergency fund and retirement fund.

As far as the OP is concerned, he needs to think about this for his long term planning but he has bigger fish to fry in the short term.

 

[joewithaboat]

Re: Questions on getting Finances in order.

I think its easier to develop a bigger nest egg by being disciplined in getting rid of debt early and using the extra money from not having a house payment to build up an emergency fund and retirement fund.

^^^^^^ This !!!! ..... But

Also trying to protect assets, like your house, is an important way to think. Different states have different rules. I'm no expert and only know what i know because of people i know who have been through it. You always here about the failures and rarely the successes. I will be looking to leave my stuff to my children by planning ahead which will probably mean selling them my house well before my wife and i expire.
I know of someone who will likely loose his house due to his mother being in a state paid hospital for a few years before her death. House was in her name still. I only get bits and pieces of the whole story...

 

[korygrandy]

Re: Questions on getting Finances in order.

+1 on the Credit Union commment.

Consumer Credit Counseling helps you manage your debt. A credit union will help you analyze your credit report and educate you on the necesarry steps to take to position yourself for a residential mortgage.

I would talk to the credit union first as they will point out what on your credit report will prevent you from getting the mortgage.

The CCC will provide you the service of consolidating your debt, and they can also work with the lenders to reduce what is owed, but any consumer can advocate that service for themselves without paying someone. This may or may not be a service for you, I would ask the Credit Union if it is something to pursue in your debt situation.

Don't be ashamed to discuss your finances with the credit union. You would be surprised to know how many people struggle with there finances. The credit union, just like yourself wants you to get your finances in order just like you do and they are willing to help in my experience.

 

[korygrandy]

Re: Questions on getting Finances in order.

+1 on the Credit Union commment.

Consumer Credit Counseling helps you manage your debt. A credit union will help you analyze your credit report and educate you on the necesarry steps to take to position yourself for a residential mortgage.

I would talk to the credit union first as they will point out what on your credit report will prevent you from getting the mortgage.

The CCC will provide you the service of consolidating your debt, and they can also work with the lenders to reduce what is owed, but any consumer can advocate that service for themselves without paying someone. This may or may not be a service for you, I would ask the Credit Union if it is something to pursue in your debt situation.

Don't be ashamed to discuss your finances with the credit union. You would be surprised to know how many people struggle with there finances. The credit union, just like yourself wants you to get your finances in order just like you do and they are willing to help in my experience.

ALSO, Don't believe the bank when they send you a letter saying your loan was denied. I received one from Wells Fargo, only to freak out as my offer was already accpeted and I thought, ooh no financing after all this hard work I did to get my credit repaired, I am never going to be approved.

Well I then went to a residential mortgage broker, whom definitely reassured me I was worthy of the loan. Of course I didnt believe it until the loan actually went through, and less than a month (I swear before I had even paid my first months mortgage) Wells Fargo magically ended up with the mortgage.

So they said they didnt want me as a lender via mail, but when my broker talked to a president at WF and he saw that they were going to lose out on the loan...voila!

 

[bruceb58]

Re: Questions on getting Finances in order.

^^^^^^ This !!!! ..... But

Also trying to protect assets, like your house, is an important way to think. Different states have different rules. I'm no expert and only know what i know because of people i know who have been through it. You always here about the failures and rarely the successes. I will be looking to leave my stuff to my children by planning ahead which will probably mean selling them my house well before my wife and i expire.
I know of someone who will likely loose his house due to his mother being in a state paid hospital for a few years before her death. House was in her name still. I only get bits and pieces of the whole story...

Depending on the gains of your house, might be better to do this after one of you dies. The reason is that you get stepped up valuation at the death one of the spouses. This is important if the gain of the house is greater than $500,000. Each person filing gets $250K exclusion. I know in the case of my parent's, they paid $35K for their house back in 1965 and now it is worth one Million dollars. If they sold it now, they would pay tax on $500K after exclusion. If they waited until one of then dies, the basis price of the property gets stepped-up to the value at death of one of the joint tenants.


There is a special exemption as well for incapacitated home owners to allow them to get a tax break to sell the home in case of a situation where going into a nursing home.

 

[joewithaboat]

Re: Questions on getting Finances in order.

Depending on the gains of your house, might be better to do this after one of you dies. The reason is that you get stepped up valuation at the death one of the spouses. This is important if the gain of the house is greater than $500,000. Each person filing gets $250K exclusion. I know in the case of my parent's, they paid $35K for their house back in 1965 and now it is worth one Million dollars. If they sold it now, they would pay tax on $500K after exclusion. If they waited until one of then dies, the basis price of the property gets stepped-up to the value at death of one of the joint tenants.


There is a special exemption as well for incapacitated home owners to allow them to get a tax break to sell the home in case of a situation where going into a nursing home.

Its on my list of things to educate myself on before i check out. We are still young so i have a bit of time.

I'm going to try to get my mother to reverse mortgage hers with a private investor so she doesn't have to be so careful with money. We don't need her house.

Learning all of these things by going through it is a tough road sometimes. Good luck to you o/p and be careful of those consolidation companies.

Its sad that laws become so twisted that the common man can't keep up with them.

This story was all over the radio and TV here in Texas when it happened. Made me laugh... Lawmakers couldn't get their act together so the U.S. ended up with no federal estate tax in 2010.

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