Most people won't inherit millions of dollars, but according to the American Association of Retired Persons (AARP), the median amount of today's inheritance is about $64,000. While that's not enough to provide financial security for life, it's still a lot of money and requires careful planning before deciding what to do with it. So therein lays the question - if you receive an inheritance - what should you do?
Step One...Do Nothing: Remember, this is an emotional time. You may have lost a loved one, you're receiving a sizable chunk of money, and your judgment may be clouded by emotion. Rather than make a decision you regret later, take some time to step back and think. In the meantime, put the money in a money market or savings account that will keep it safe, and allow you to access when you're ready.
Check the Tax Laws: Some inheritances are tax free, but some are subject to federal and state taxes. Make sure that you diligently record everything that you inherit and the date that you inherited it. Most important, seek advice from a tax professional before you decide what to do with the inheritance - you don't want to spend money that you don't actually have. And if you need a referral to a great tax pro - just get in touch with me.
Stick to Small Wishes: Many people dream of a vacation home or taking a luxury cruise around the world. Receiving an inheritance may make those dreams seem within reach. Often, however, they're not realistic for your overall lifestyle and budget. So keep the splurging to a small gift for you or your family. Keep the big picture in mind for the rest of the money.
Invest as Usual: Don't gamble your inheritance away on a high-risk investment that doesn't make sense. Instead of thinking of it as "found money" or looking for a big score, treat it like the rest of your investments. Work with a professional advisor to determine which options and risk-level make sense, based on your entire portfolio and future plans - and feel free to contact me for a referral to a great financial pro.
Monday, December 17, 2007
Friday, December 7, 2007
Timing is money
Did you know that the fiscal year for Japanese companies ends in March? Do you care? You SHOULD...if you want the best deal on a new television for your home theater system.
That's because new models and products are scheduled for release at the beginning of the new fiscal year--which for Japanese electronics companies is April. And the release of the new models means...you guessed it...huge discounts on the previous year's models. So if you're shopping for a television, stereo or other electronics, your best bet is to watch for sales in spring.
Looking for Even More Savings?
You can save on just about every item you need...if you know what season or day of the week to purchase it. Below are some tips to help you save the most on your shopping list.
Airplane Tickets: Planning on traveling for the holidays this year? Want to save some cash on your airline tickets? Of course you do! Did you know your best chance for saving is Wednesday morning? That's because airlines introduce their savings over the weekend and during the first few days of the week, subtle price wars begin. By early Wednesday, the savings have usually hit their peak...and there are still plenty of seats left for you to capitalize on.
Gas: Going by car this holiday season? We've all seen gas prices jump as travel weekends approach. It's a common occurrence...but it can be avoided. Whether you're planning to travel or not, the best time to top-off your tank is early Thursday morning. Then, watch the prices rise and calculate your savings!
Cars: You probably already know that you can save on car purchases in early fall when new models are released and the current models go on sale. And you may also know that your best chance to negotiate a better price is at the end of a month when car dealers need to make their monthly quotas. But did you know you can drive home a great deal early in the week, especially during the morning? At that time, the dealerships aren't overflowing with shoppers like they are on the weekend, so you'll get more personalized attention. Plus, salespeople are more likely to negotiate when they don't have three or four other buyers waiting in the wings to pay full price.
Toys: The winter holiday season is a no-brainer for toy sales. Store shelves are stocked and prices are often priced to move the merchandise. But you can also save some serious dollars by shopping well before the holidays arrive...such as the end of summer. Think about it...department stores only have so much room to store their merchandise. And by the end of the summer and early fall, they're starting to stock up for the big holiday push...which means they have to get rid of their current inventory of fun. So for savings of 60 percent off and more, try getting a jump on your toy shopping as early as late summer and the beginning of fall--you'll avoid the mad holiday rush and save some cash.
Furniture: Unless you need to replace your sofa or dining room table right away, those "HUGE" weekend and holiday sales aren't the best time to buy. Instead, you should plan ahead and do your furniture shopping in October or early November as well as in April and early May. That's when new lines of furniture are unveiled at industry trade shows...which means you can save big on the in-store stock that needs to be sold before the new inventory takes a seat on the showroom floor.
Clothing: By the time the weekend rolls around, just about every dressing room is filled...and the best deals have been picked over already. Why? It's simple. With the large number of special promotions to be marked and shelves to be stocked, most clothing stores get started early. And savvy shoppers, like you, can get the best deals and the best selection by Thursday evenings. As an added bonus, the stores, dressing rooms, and checkout lines aren't nearly as crowded--so you save on stress too!
The moral of the story--plan ahead on your purchases and you'll be rewarded!
That's because new models and products are scheduled for release at the beginning of the new fiscal year--which for Japanese electronics companies is April. And the release of the new models means...you guessed it...huge discounts on the previous year's models. So if you're shopping for a television, stereo or other electronics, your best bet is to watch for sales in spring.
Looking for Even More Savings?
You can save on just about every item you need...if you know what season or day of the week to purchase it. Below are some tips to help you save the most on your shopping list.
Airplane Tickets: Planning on traveling for the holidays this year? Want to save some cash on your airline tickets? Of course you do! Did you know your best chance for saving is Wednesday morning? That's because airlines introduce their savings over the weekend and during the first few days of the week, subtle price wars begin. By early Wednesday, the savings have usually hit their peak...and there are still plenty of seats left for you to capitalize on.
Gas: Going by car this holiday season? We've all seen gas prices jump as travel weekends approach. It's a common occurrence...but it can be avoided. Whether you're planning to travel or not, the best time to top-off your tank is early Thursday morning. Then, watch the prices rise and calculate your savings!
Cars: You probably already know that you can save on car purchases in early fall when new models are released and the current models go on sale. And you may also know that your best chance to negotiate a better price is at the end of a month when car dealers need to make their monthly quotas. But did you know you can drive home a great deal early in the week, especially during the morning? At that time, the dealerships aren't overflowing with shoppers like they are on the weekend, so you'll get more personalized attention. Plus, salespeople are more likely to negotiate when they don't have three or four other buyers waiting in the wings to pay full price.
Toys: The winter holiday season is a no-brainer for toy sales. Store shelves are stocked and prices are often priced to move the merchandise. But you can also save some serious dollars by shopping well before the holidays arrive...such as the end of summer. Think about it...department stores only have so much room to store their merchandise. And by the end of the summer and early fall, they're starting to stock up for the big holiday push...which means they have to get rid of their current inventory of fun. So for savings of 60 percent off and more, try getting a jump on your toy shopping as early as late summer and the beginning of fall--you'll avoid the mad holiday rush and save some cash.
Furniture: Unless you need to replace your sofa or dining room table right away, those "HUGE" weekend and holiday sales aren't the best time to buy. Instead, you should plan ahead and do your furniture shopping in October or early November as well as in April and early May. That's when new lines of furniture are unveiled at industry trade shows...which means you can save big on the in-store stock that needs to be sold before the new inventory takes a seat on the showroom floor.
Clothing: By the time the weekend rolls around, just about every dressing room is filled...and the best deals have been picked over already. Why? It's simple. With the large number of special promotions to be marked and shelves to be stocked, most clothing stores get started early. And savvy shoppers, like you, can get the best deals and the best selection by Thursday evenings. As an added bonus, the stores, dressing rooms, and checkout lines aren't nearly as crowded--so you save on stress too!
The moral of the story--plan ahead on your purchases and you'll be rewarded!
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