Warren Buffett, Facebook IPO, & Friday Money Thoughts

May 18, 2012 in Community with 2 Comments

 

Mark Zuckerberg caricature

By the time you read this Facebook shares are flying off the shelf, the dust has settled from another Berkshire-Hathaway meeting, and I’ve got more Friday money thoughts!

Enjoy your weekend and join us next week for Small Business Week series of posts.

Facebook IPO

Facebook’s initial public offering (IPO) is today and should be around $38 a share. If you are awake today, that is all the news is going to talk about.

A lot of people at Facebook are going to be instant Millionaires. They should read how I would spend the lottery–a successful IPO is basically the same thing.

Berkshire-Hathaway 2012 Meeting (Warren Buffett’s Holding Company)

One day I hope to have a meeting credential to a Berkshire-Hathaway meeting that ended on the 5th. One slight problem, I’m going to need to own a share of BRK-A, only 120K per share at the time of writing.

My wife wants to own a share someday, so I plan to make her happy. :-) Here are some results of the meeting:

Friday Money Thoughts

  • What would happen if we had to pay for our mistakes?- great article by Travis I’m Not Paying for Your Mistakes, Even if You’re Only 13
  • With the oncoming of the digital wallet, what will homeless people do if we live in a cashless society? Will handouts be given by bumping phones with the guy on the corner?
  • Along the same lines, are Barista making less money since many pay with cards? I hardly ever have cash to tip anymore.
What are your money thoughts this week? 

Photo Credit DonkeyHotey

How Trustworthy Is Your Charity?

May 17, 2012 in Giving with 0 Comments

How does your charity compare to the rest?

One of the great parts about being out of debt is the ability to give more money away. Giving to others and to organizations that help others is a joy. How does your charity of choice compare to the rest of the pack?

When giving to a new organization, it is a good idea to do your homework before writing the check. Did you know that 6% of donations to churches are embezzled or lost to fraud?

Below are a few ways to make sure the organization aligns with your values and spends your money wisely.

IRS Exempt Organizations Select Check

There are many reasons to give beyond receiving a tax deduction, but it is wise to take any tax advantages the government offers.

The IRS has a new tool for checking the exemption status of non-profit organizations (501C3) to ensure you are able to write off your giving on taxes (assuming you are able to itemize your taxes). This tool improves upon their electronic publication 78 search.

The IRS EO Select Tool allows you to see if an organization (source):

  • Is eligible to receive tax deductible contributions.
  • Has filled out a 990-N form. (if gross receipts are $50,000 or less)
  • Has had tax exemption status revoked due to not filling 990-N for 3 years.

Search Feature

The IRS Exempt Organizations Select Check tool allows you to search by EIN or name of organization + location.

If you are searching by name, it is listed by their official Does Business As (DBA). Below is an example search for “Church” in Los Angeles. Use the “Description Status” on the right side to determine exemption eligibility.

Example Search

If your organization isn’t listed, then please make them aware and inquire further as to why or ask if they will release their EIN or DBA to search the database again.

Not being listed could be a red flag you are being scammed or that the non-profit isn’t yet organized.

Charity Navigator

Charity Navigator is probably the largest Non-Profit evaluator. The free feature allos There is a feature where you can sign in for access to more information on your charities: 3 years of historical data, comparison feature, and more.

They have some cool top 10 lists also.

Charity Navigator Video

 

Before making a large donation to a nonprofit or begin regular giving, it is advised to do your homework first using the above tools and others available on the internet.

Do you check your charities before you give? Use the tools above to grade the non-profits or charities that you give to.

Photo Credit TheBusyBrain (Creative Commons)

Make a Will: Do It For Your Family

May 15, 2012 in Estate Planning, Personal Finance with 0 Comments

 

You love your family and want the best for them. The thought of leaving them in financial or legal problems if you die early is unthinkable.

Yet, if you are like 50% of Americans with kids, you have no will in place. 41% of Baby Boomers don’t have a last will either. It is time to do something for your family that will last longer than you. It’s time to write a will.

Why You Need a Will

The most important reason to write a will is not for yourself, but for those you leave behind.

Why you need a will:

  • You Love Your Children-This is a huge reason to have a will. If you die without naming a guardian for your minor children, then the state will decide who will take care of your children. They don’t know what your intentions were or who is best suited for raising children. Don’t leave the decision up to the courts or let your family fight about guardianship.
  • Keeping the Family Peace- If you have any material possession, then people could fight over them. Your family could fight over small amounts of money or important possession. If you have an larger estate, then a Trust could be a better option to avoid probate court. Consult an attorney in your state to discuss this option.
  • Charitable Giving-If you want to give your possessions or money to a charitable organization when you die, it needs to be in writing.
  • Complicated Situations- Some situations are complicated and need a will drafted by an attorney to ensure your wishes will be followed. If you have been married several times, have children from a previous marriage, have a child with special needs, domestic partnerships, disinheriting heirs, or believe your will be contested make sure you have a will and consult an attorney in your state.
  • Small Business- If you have a business or are partner in a business, then you’ll want to get professional help to draft the documents to ensure the business keeps running smoothly and passes to the correct heirs.
  • Pet Owner- If no guardian exists for Sparky the pooch, then they could end up in a shelter.

Are you convinced  yet? I bet 99% of you fit at least one of the above categories. It’s time to create a will.

Why I Finally Wrote a Will

I had been putting off writing a will for  years. I know I should do one. It’s been on my goals and ‘to do’ list countless times, but it never happens.

Until now. For Mother’s Day my wife asked me to draft a will as part of her Mother’s Day gift. Geez, how can I say no to that? The heat was on to draft a will this past weekend and I’m happy to say: mission accomplished.

Make a Online Will

*If your situation isn’t too complicated, there is a good chance that a state specific online will is a good option.

I looked into several companies and ultimately decided on U.S. Legal Forms. It was one of the cheaper options and enabled me to name a guardian and set up a basic will. I only had to fill in about 40 blanks of information, which took about 1 hour since most everything had been decided. Next step is to print out the document and sign it in front of a Notary and 2 witnesses.

I also considered RocketLawyer.com and plan on using as our situation becomes more complicated. Their tutorial was very detailed and easy to understand. They even had options for adding virtual property (blogs, email addresses, etc) which is very relevant for bloggers like me.

They charge a yearly fee (for unlimited forms), but you are able to save your will to make changes when life events change. I’ve also used Rocket Lawyer for business contracts and was pleased with the ease and quality of their services.

I Have a Will, Now What?

If you have a will that has been signed, notarized, and witnessed (or requirements per your state) then congratulations- You’ve got a will!

1) Make sure the executor has a copy of the will and store a copy in a safety deposit box at a bank or home safe.

2) Make a list of all current assets, financial advisors, passwords & security questions, legal documents, etc and let your executor know the location of the document.

3) Talk about any important or unusual decisions with your heirs and loved ones, so they know what will happen. No one should be shocked upon your death.

4) Review your will periodically and make appropriate changes should the following change:

  • Marry, divorce, or remarry.
  • Birth of a child.
  • Changes in state or federal tax and estate laws.
  • Move to a new state or out of the country.
  • Significant change in assets.
  • Death of spouse, guardian, heirs, or executor of the will.

Do you have a will or estate plan? What is stopping you from writing a will this month? 

*Disclosure, I am not a lawyer or giving state specific legal advice. Consult an attorney for specific legal questions.

Photo Credit: Freedigitalphotos.net

S.H.I.E.L.D Your Finances From Total Destruction

May 14, 2012 in Personal Finance with 7 Comments

S.H.I.E.L.D costumes

This summer Nick Fury and the Avengers are protecting the earth from total destruction from the evil Loki. The Avengers elite unit was dubbed S.H.I.E.L.D.

You can protect your finances by learning how to S.H.I.E.L.D. them from harmful elements. Unless you act, you’ll  be banished to debt slavery, interest rate annihilation, and the scariest of all–government dependance.

**There are no spoiler alerts, you may proceed reading without fear.

S.H.I.E.L.D. Your Finances

Save- Having an emergency fund will SHIELD you from the little bumps along the way, like robots destroying your vehicle with death rays.

Heath Insurance- The number one cause for bankruptcy is due to medical issues. Having health insurance will help SHIELD you and your family from a bankruptcy due to a medical illness. Make sure you have a high or unlimited lifetime payout.

Long term disability insurance is also a key to this battle plan as ages 25-55 or more likely to become disabled than die.

The Avengers Lego

Are Superheros insurable?

Invest- Invest for retirement as soon as debt is vanquished and your emergency fund is topped off. You don’t want to rely on Social Security–it likely won’t be there or be enough. Invest for your kid’s college and in continuing education for yourself too (How to make indestructible shields 101).

Emotions will turn you into a hulking green monster. Greed will lead you down a path that has no end. Becoming fearful will cause you to change your investing plan at the wrong time or invest in products sold on late night T.V. like gold.

Lower Expenses- Having a budget will help you measure your expenses and where you can eliminate vampire spending. Hammer out the details of your budget with your spouse before the robots invade earth.

Thor action figure

Thor can hammer out your budget if you have trouble.

Debt can kill. The best way to avoid total financial destruction is to avoid debt. Being debt free is awesome and enables you to do cool things with your money–like buy really expensive Avengers costumes.

Protect your personal finances by employing these tactics from SHIELD and you’ll be on your way peace on earth without the threat of evil robots.

Photo Credits chris favero, 1upLego, Dunechaser (Creative Commons)

Happy Mother’s Day Edition + Weekend Money Questions

May 11, 2012 in Holiday with 0 Comments

Super Mum

Happy Mother's Day

In case you forgot, this is Mother’s Day Weekend. If you did forget, STOP and call your mom.

Men, if your wife bore you a child–plan something on the quick or you’re on the couch tonight!

We love our mums (Hello U.K. readers!) and the 9 months they carried us in the womb. Our mothers taught us how to talk, eat vegetables, draw, paint, say “thank you” along with almost everything else we know that is useful in life.

 

Mothers are in are a special club with a 9 month waiting period, lifetime dues, and unlimited reward points.

Thank you to all the mothers out there who take care of the worlds’ sons and daughters.

Thank you to my mom and to the mother of my son. I love you.

Gift to My Wife

I’ve got a few gifts up my sleeve for my beautiful wife who carried our son. One portion of her gift is a will that I’m making–per her request. Yep, I’m writing a will. [I'm not sick, just to be clear.]

Odd, but it shows that I care about her, even if something should happen.–I hope it doesn’t for a long time, but I don’t want her to worry about financial or legal issues should I die.

More Mother’s Day Articles

Call Your Mother (infographic)

Strange Mother’s Day Gifts- From the Digerati Life

9 Thrifty Meaningful Gifts for Mom- From WiseBread

Weekend Money Questions

  • Can I count a Spotify Premium membership off as a business expense?
  • Should I start hoarding pennies since the price of copper is increasing and the penny might get phased out?
  • If time is money and making money takes time, will I ever have both?

What are you doing for Mother’s Day? 

Photo Credit:  Leo Reynolds

10 Reasons Why Your Budget and Marriage Aren’t Working

May 9, 2012 in Relationships and Money with 7 Comments

Can you balance love and money?

If your budget isn’t working, chances are your marriage is alos having a few issues. You might be having a few of the classic money fights that often occur in marriage or you’re newlywed and learning how to do a budget for the first time. Either way we can all learn how to improve our marriage and our budgeting practices as a couple.

10 Reasons Why Your Budget and Marriage Aren’t Working

1. Different Values- Our values are the underlying current of where our money will flow. Having common values is a key to determining how your money will be spent as a couple. This obscure Jewish guy said:

“For where your treasure is, there your heart will be also.”-Matt. 6:19 ESV

2. Mistrust or broken trust- A series of broken promises, blown budgets, or unmet expectations will lead to mistrust. If you don’t trust you’re teammate you’ll stop passing them the basketball.

3. Lying or Hiding something- It could be straight up infidelity or financial infidelity. If one spouse is lying or hiding something from the other, it’s going to reflect in the fiances sooner or later.

4. One spouse has already left the relationship in spirit, but the body hasn’t followed yet. If one spouse constantly doesn’t get a vote in decisions- they’ll check out and eventually find a new place where their voice will be heard.

5. Lost Hope- If one team member looses hope, they drag down the other. A spouse without hope might cope with overspending or expensive overindulgences.

6. You are Lazy- You’ve stopped trying to do a budget and you believe it takes too much time and work. This laziness will leave your marriage and finances in shambles.

7. The budget is too complex- A budget has to be understandable and workable. Unless you both are 10 page excel spreadsheet nerds, make it simple and workable or the budget will just be too hard to follow.

8. Your budget meeting is boring. Spice up your budget meeting and turn it into a budget party that both of you will enjoy.

9. You’ve got a spending addiction- I’m not talking about blowing $50 at Target, but being a compulsive shopper who needs help. Seek professional help if this exists in your home.

10. Selfishness and Entitlement- Focusing on self and getting your needs met, rather than having shared goals and serving your spouse will lead to a lonely road.

Financial issues in a marriage are often symptoms of deeper issues within the marriage that need resolving. If you are facing difficulties in your marriage, don’t be afraid or to macho to attend marriage counseling. Take action today.

Make a commitment to your spouse to grow your relationship and not only your bank accounts. 

What are your thoughts about budgets and marriage?

Photo credit HikingArtist.com (Creative Commons)

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