Like many people, the recession hit me pretty hard. Thanks to a job loss, I got behind on some of my credit cards. Even though I did mange to make the mortgage payment every month, my credit rating nose-dived. While things did get better, I still wondered if it would be possible to refinance my mortgage with bad credit. After talking with a few lenders, I found out that my situation was not unique. I also found lenders who were willing to work with me. I managed to get terms that will save me money over the life of that mortgage. If your credit has taken a beating, don't assume that refinancing is out of the question. I'll share how I researched options and found a lender who offered a good deal. You could find that refinancing your mortgage is within your reach.
Are your children reaching the age when they will leave school and head out on their own? This is a time of great change for you as a parent, and that should be reflected in your financial planning. How might you need to adjust your financial plan to accommodate this new stage of your life? Here are a few things you may want to consider and why.
1. Shifting Focus to Retirement
As your children's education winds down, most parents now need to shift their attention to their own retirement planning. Start by determining if you're behind on saving and need to be more aggressive. You may also need to rebalance your investment portfolio. Research whether or not you can still rely on assumptions about Social Security, pensions, and working past retirement age. Also, look at your mix of tax-advantaged accounts.
2. Providing for Adult Children
Just because an adult child has finished their education doesn't mean they're ready to be fully on their own financially. Some kids need more help getting launched from the nest. Others may choose a career that doesn't pay well in the early years or could still be searching for their path. Whatever the reason, consider what types and how much financial help they may need and how you want to plan for it.
3. Changing Your Near-Term Plans
What do you want to do with your newfound freedom — time-wise, financially, or physically? Do you want to renovate the family home? Travel more? Spend time seeing your kids and any grandkids? Start a business? Now is the time to adjust your spending and savings plans to accommodate any new expenses, such as that sports car you always wanted or even a new volunteer gig.
4. Doing New Estate Planning
Once your children turn 18, complete new estate planning documents. First, they will no longer need guardians. They can also now inherit money or assets directly. And they may be able to serve as executors to your own estate. Revamp your estate —including changing account beneficiaries, powers of attorney, asset distribution, and insurance policies.
Where to Start
Ready to get started with your new financial planning needs? Begin by meeting with an experienced financial planner in your state. They will work with you to reassess your goals, turn these into actionable plans, and execute them. And then you can sit back and relax knowing you've completed one chapter of your life and are beginning an exciting new one.
Share3 June 2021
