The full report, available at www.nefe.org/early-warning-signs, documents new research funded by the National Endowment for Financial Education® (NEFE®) to identify very early financial skill declines in cognitively normal older adults funded by the National Institute of Aging of the National Institute of Health.
INESCAPABLE TRUTH: FINANCIAL ABILITY DECLINES WITH AGE
IT IS INEVITABLE that people will see a decline in their financial skills and decision-making ability as they age. No one is exempt: Everyone experiences normal cognitive aging in their later years, which in turn affects various financial skills. The degree of cognitive decline and its effect on specific financial skills varies by individual.
Most of us do not give it another thought and simply assume we can contribute to an IRA if we meet IRS income criteria. But what if your only source of income is alimony? Guess what – the new tax law changes may just eliminate your only means to save in a retirement account.
Your Money & Your Brain by Jason Zweig looks at neuroeconomics, which is research using brain activity, economics, and behavioral psychology to study how we make decisions.
The main focal point is how the brain affects financial decisions but it’s obvious the material goes beyond money matters. It’s equal parts scary and impressive how much is going on behind the scenes in our brains unconsciously that we’re unaware of.
Lili Vasileff is quoted in a recent article by Tom Anderson for CNBC's 'Your Money, Your Future' on how to handle adult children moving back home. Lili says, “Create a spending plan and timeline. The plan should include how expenses are shared, what savings will be tapped to pay for additional expenses and how, if possible, those savings will be replenished.”
An adult child coming home to live with you can sidetrack your financial plans
By Tom Anderson for CNBC's 'Your Money, Your Future' – March 19, 2017
You should be enjoying life. Your kids are out of college, you're in your top earning years and you can see the... Read More
For many years there has been no means by which to save tax-deferred money for a child with disabilities without placing at risk their government entitlements. But in 2014, Congress created Achieving Better Life Experience (ABLE) accounts.
Prior to the creation of the ABLE accounts, individuals with disabilities who were eligible for Medicaid or federal Supplemental Security Income were limited to a maximum of $2,000 in assets, such as bank savings accounts.
ABLE accounts now allow disabled people to have up to $100,000 in these accounts without jeopardizing their Medicaid or Supplemental Security Income.
ABLE accounts are fashioned after qualified state tuition programs, sometimes referred to as Section 529 plans. Although there is no tax... Read More
Parents often face the competing challenge of funding their children's college or their own retirement savings.
During divorce, these goals collide more acutely. Income is stretched and expenses increase with two households.
How do 529 plans come into play? Here is a great resource with more information:
College Savings Savvy: Under what circumstances should I advise clients to change 529 plans?
Click image below to view the video.Read More
In this article published in Bloomberg News, Lili Vasileff contributes to a discussion of the state of information sharing in marriages -- especially when it comes to financial details. Lili says, ‘‘Most couples don’t share fully financial details about private accounts, the nature of investments, or the amount of savings."
By Suzanne Woolley
Published in Bloomberg News, August 31, 2016
Trust of politicians in America seems to have reached a new low in this election season.
But who would have guessed how little trust exists across the kitchen table?
Many American couples don’t share even basic financial details of their retirement savings account, beyond the fact that they have one. Twenty-one percent of couples either married... Read More
- Different types of retirement accounts are subject to different rules.
- Dividing workplace plans like 401(k)s and traditional pensions requires a court order that is separate from the divorce agreement.
- It's important to make sure the attorney drafting that separate document is an expert in this.
Sarah O'Brien | @sarahtgobrien
Published 12:30 PM ET Wed, 7 March 2018 Updated 5:59 PM ET Wed, 7 March 2018
Divorcing couples can face enough agony as it is dividing up possessions and agreeing on custody of children, let alone splitting retirement assets.
Yet that nest egg often represents a divorcing couple's largest pot of money. And if the process for the division of those assets is not done... Read More