Tehachapi's Online Community News & Entertainment Guide
Tehachapi's Online Community News & Entertainment Guide
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If you are reading this article, I am assuming you are at least thinking about an estate plan. So, let's continue! What are the benefits of a Living Trust? A trust does not get filed with the court. A will does. Transferring your biggest assets into a trust makes it a whole lot easier for your heirs, I should say kids, to manage your assets upon your death. The person you name as the successor trustee can manage your assets if you become incapacitated. It can also be highly customized to fit...
Every moment seems especially uncertain when you are living it. It is always an illusion. In the shadow of several elections and a couple of wars, with central banks pivoting and equity markets on an unusually long bull run, late 2024 may feel especially dangerous. One way to remember that risk is just the water we swim in is to enumerate and describe our uncertainties. It makes them feel tractable. What follows are my three big questions, and my guesses at their answers. I choose the word...
In most walks of life, you'd probably be pleased if you could accomplish two goals with one action. That's exactly what happens when you can turn some of your retirement funds into charitable gifts that support a worthy organization while also realizing tax benefits. Here's a little background: If you haven't already withdrawn from your traditional IRA, you must do so once you reach 73, or 75 if you were born in 1960 or later. If you don't take these withdrawals - called required minimum distrib...
A Cashout Refinance is a financial strategy that homeowners can utilize to tap into the equity they have built in their homes, providing an opportunity to reclaim financial freedom. By refinancing your existing mortgage, you can replace the current loan with a new one, borrowing more than the outstanding balance with the goal of receiving a lump sum of cash. A Cashout Refinance may be able to help you: 1. Consolidate high interest debts: Homeowners burdened with multiple high interest debts,...
The cost is the worst part of a probate. When property passes through full probate, the estate will incur attorney's fees, court costs and potentially other expenses, all of which can be quite substantial depending on the size and nature of your estate. Attorney fees are generally set by state law and are usually based on the market value of the assets in the estate being probated, exclusive of any debts or loans associated with the asset. If you own real estate in California or your estate...
Medicare's annual open enrollment period is underway, running through Dec. 7. This time of year is an important opportunity for Medicare beneficiaries to take a look at their current plans and make sure they're still the best fit. If everything works well with your current plan, you don't need to make any changes. Still, it's always a smart idea to review your options and make sure your doctors and medications are covered. I know firsthand that sorting through Medicare can be a bit overwhelming....
It is hard to believe it is fall again in Tehachapi. Soon it will be Thanksgiving and then Christmas! Have you been thinking about Estate Planning? I know it can be a difficult topic...but your children will be happy you have thought ahead to make it easier for them to take care of your estate without a probate. What is better, a will or a trust? A trust will streamline the process of transferring an estate after you die while avoiding a lengthy and potentially costly period of probate (in...
Social Security is complex, and the details are often misunderstood even by those who are already receiving benefits. It's important to understand some of the basic rules and options and how they might affect your financial future. Full retirement age (FRA) Once you reach full retirement age, you can claim your full Social Security retirement benefit, also called your primary insurance amount or PIA. FRA ranges from 66 to 67, depending on your birth year (see chart). Claiming early The earliest...
Q: My husband died recently and I need the transfer the property into my name. How do I do that if my name is not on the deed? I thought since I am the surviving spouse I can just transfer the property into my name. A: Remember, this information is not legal advice. Please consult an attorney if you need direction on what procedure to use in your case. Fortunately there is a simple solution. But it does require a court order. According to "How To Probate and Estate in California" by NOLO, any...
At different times, inflation may be high or low, but, except in those rare periods of deflation, it's always with us. During your working years, when you may receive boosts in your salary, you at least have the potential to keep up with inflation - but what happens when you retire? As a retiree, what can you do to cope with the rising cost of living? Here are a few suggestions: • Keep some growth potential in your investment portfolio. During your retirement years, you may want to move your p...
Truth #1: a reverse mortgage is a loan A reverse mortgage offers a way to take equity out of your home and continue to own and live in the home. The lender will make some of your equity available to you either as cash, payouts or as a line of credit. In exchange, at the end of the loan, you will owe the lender the amount you borrowed with interest. Reverse mortgage borrowers may continue living in their homes without making monthly mortgage payments as long as they also continue to uphold the...
Although it is a difficult conversation, I always encourage families to discuss end of life decisions, even if they are a young family. The truth is, tomorrow is not promised to anyone of any age. Informing loved ones of your wishes, even if it's only verbal, can alleviate a great deal of stress on them should you pass unexpectedly. Too often I have sat with families who have no clue what their loved one wished for in their end-of-life decisions. This, on many occasions, has led to squabbling...
It is hard to believe it is fall again in Tehachapi. Soon it will be Thanksgiving and then Christmas! Have you been thinking about Estate Planning? I know it can be a difficult topic...but your children will be happy you have thought ahead to make it easier to take care of your estate without a probate. What is better, a will, or a trust? A trust will streamline the process of transferring an estate after you die while avoiding a lengthy and potentially costly period of probate (in California...
On the road to retirement, be on the lookout for hazards that can hamper your progress. Here are five potential risks that can slow you down. Traveling aimlessly Embarking on an adventure without a destination can be exciting, but not when it comes to retirement. Before starting any investing journey, the first step is setting a realistic goal. You'll need to consider a number of factors - your desired lifestyle, salary/income, health, future Social Security benefits, any traditional pension...
Example: My mother just passed away. She had a Living Trust. I need to distribute the assets. After the grantor of a living trust dies, there are several things that must be done, either by the successor trustee or the surviving trustee (usually the spouse). The process is called Trust Administration. 1. Obtain several copies of the death certificate. 2. Prepare and record documents that establish the authority of the current trustee. In California, typically you would file an Affidavit Death...
We all hope to enjoy long, healthy lives, retaining the ability to think clearly and make our own decisions. But life doesn't always work out that way - which is why you need to prepare for a potential incapacity that could affect your independence and possibly create financial problems for your family. So, in thinking about incapacity planning, you may want to consider the following arrangements: • Health care power of attorney – When you establish a health care power of attorney, you name some...
With a payable on death account or paid on death account, you name a beneficiary who gets the account when you die ... no probate, no hassle. The person you name has no rights to the money until you die, so you can spend it all or change the beneficiary whenever you want. A payable on death account is created when you make an agreement with your financial institution – usually your bank. The bank has a formal, legal agreement that lets you tell the bank who they should hand your money over to a...
The SECURE Act of 2019 dramatically changed the rules governing how IRA and retirement plan assets are distributed to beneficiaries. The new rules, which took effect for account owner deaths occurring in 2020 or later, are an alphabet soup of complicated requirements that could result in big tax bills for many beneficiaries. RMDs and RBDs IRA owners and, in most cases, retirement plan participants must start taking annual required minimum distributions (RMDs) from their non-Roth accounts by...
When you die, the identified property will transfer to your named beneficiary without probate. The TOD deed has no effect until you die. You can revoke it at any time. Can I use this deed to transfer business property? This deed can only be used to transfer (1) a parcel of property that contains one to four residential dwelling units, (2) a condominium unit or (3) a parcel of agricultural land of 40 acres or less, which contains a single-family residence. How do I use the TOD deed? Complete the...
If you're planning to retire in a few years, are you looking forward to it? Or are you somewhat apprehensive? Are you asking yourself: "What sort of retirement can I afford?" It's a good question - because the answer can make a big difference in your ability to enjoy life as a retiree. And retirement can indeed be enjoyable, exciting and fun. Consider this from a recent survey by Edward Jones and AgeWave: A majority of respondents said retirement should be looked at as a whole new chapter of...
Want to make your mortgage process go as smoothly as possible? By following these guidelines, you can be sure that your loan processing and closing are completed as quickly as possible. Don't apply or take out new credit cards, auto or personal loans or have new credit inquires in your credit bureau file during the course of your loan process and closing. Don't make any large, unverifiable and undocumented deposit or withdrawal to your checking or savings accounts. Don't quit or change...
Investing can be daunting, whether you are experienced or a beginner. Even if you feel confident about your investing strategy, it can be easy to lose focus or make decisions based on emotion. Here are eight quotes from successful investors, economists, and other insightful thinkers that may help provide perspective and focus for your own investing strategy. "The individual investor should act consistently as an investor and not as a speculator."1 – Benjamin Graham, investor, author, and t...
The City of Tehachapi's Finance Department received the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association. This achievement is for the City's annual comprehensive financial report for the fiscal year that ended June 30, 2023. This award represents the COT Finance Department's commitment to the "spirit of full disclosure," to clearly communicate the City's financial story and motivate potential users to read the report. According to...
Deciding whether to wait for potentially lower interest rates or to buy a home now depends on various personal and market factors. Here are some considerations to help you make an informed decision: 1. Current Market Conditions: • Interest Rates: If interest rates are high and expected to decrease soon, waiting could potentially save you money on your mortgage over the long term. • Housing Market Trends: If home prices are rising quickly, waiting might mean paying more for the home, even if mor...
When you invest, you'll find that knowledge is power. The more you know about your investment choices, and who is offering them, the better prepared you'll be to make good decisions. And this diligence can also help protect you against investment scams. How widespread is this activity? Consider this: Investment fraud losses totaled more than $4.5 billion in 2023, according to the FBI's Internet Crime Report. Here are some common types of scams: • Cryptocurrency – Not all cryptocurrency off...
