Money, Love, and Change

I think Suze Orman is a little crazy. I just started watching her on a regular basis a couple of weeks ago, and I am surprised at her large fan base despite how arrogant and annoying she can be at times. There is almost a point during each episode where I am ready to turn off the tv, usually due to how annoyed I am, but also because I disagree with her opinion sometimes (there are times that I think she fails to get enough information about a person’s situation before dispensing her advice).

So why do I continue to go back? I have learned something new each time I have watched her show (3 times). For a 40 minute investment of my time (I use the DVR and cut out commercials), that’s not a bad return!

The last episode I watched had to do with retirement. My husband and I have been dragging our feet when it comes to a will – our excuse is that we are still not sure who we trust with our son if we were to both die. This is no reason to delay things, however, and I really want to take care of it soon after the new year. After watching the show, it really drove the point home.

What I learned from Ms. Orman was that the beneficiaries on 401(k) and IRAs override a will (I think that this is the case for life insurance as well, but I would need to check on that). After checking on our IRA beneficiaries, I found that I had not updated them since we got married (over 3 years ago)! I am not sure if having my husband listed as a beneficiary without formally naming him as my spouse would have been a problem, but leaving money to a deceased person would probably have caused an issue (which was the case for one of us).

Taking care of naming each other as primary beneficiaries was not a problem (Vanguard, for example, let us name beneficiaries online). However, we still need to name new secondary beneficiaries (ie. in the case that we both die). At the moment, we both have our son listed, but according to Fidelity.com (please check out the full article here):

Your beneficiaries can be individuals, charities, or trusts — but probably shouldn’t include minor children. “If you choose a minor as a beneficiary, most states will appoint a guardian, who must be bonded, and file very cumbersome accountings with the court each year until the child turns 18,” notes Modly (a financial advisor). “Then the courts hand over the money to the 18-year old, no questions asked, and wash their hands of the consequences.”

Eek! It looks like even though we don’t have a huge amount of assets, we need to seriously consider a trust. It seems like such a daunting task, but it really does need to be done, and soon.

Over the past week or so, I have been reading different blog sites looking for ideas on how to develop my own blog. The main question in my mind has been what topic to develop. I have a lot of ideas, but I don’t want the site to become too messy. I know that I could develop multiple blogs, but I think that a lot of topics are interrelated. After taking a look at Steve Pavlina’s website, I came to realize that I am interested in helping others develop themselves as a whole, and that this encompasses a number of different facets of life.

I specifically took a look at the article How to Discover Your Life Purpose in About 20 Minutes. I realized that there are a couple of big things I want out of life:

1. I want to be a good mom and wife, and I do not want to compromise my quality time with my son.
2. I want to have a job with a purpose that helps other people directly in a way that may change them for the better.  I would also like to be able to develop some of my hobbies into potential side-income opportunities.
3. I want to be financially independent – this will help with #1 and #2.  When speaking of financial independence, my primary goal would be for both my husband and I to be able to work whatever job we like. 

After some more thought, I realized that the first thing I want to do is develop the financial side of this blog. I have seen a lot of different financial blogs, and many of them have wonderful advice. I would really enjoy adding my perspective to the mix, and becoming part of the financial blogging community.

We’re about to find out! As an introduction, we are a family of 3 in our early thirties. We have a son, age 2, a lot of student loans and credit card debt (mostly from college as well as from when we first had our son), and are living on a single income. We do have a house, our cars are paid for, and we do have a start on retirement savings (all on our own). I have started this blog to document our journey to financial independence.

I have seen a lot of other financial blogs out there (many of which are really great!), but have not seen anything from a family with a stay-at-home mom. I am hoping that this blog will provide another perspective for people who are hoping to achieve the same goals as we are. I look forward to learning a lot, and interacting with others!