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| This Week In Your Wallet |
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Choosing the wrong trustee could unravel everything you built. As boomers age, trusts are having a moment in estate planning – but experts warn picking the wrong person to do the job can undo years of careful planning. A lack of financial skills, conflicts of interest, rocky relationships with beneficiaries, or simply not having the time or organizational skills to do the job well can all backfire, potentially wasting assets, causing family conflicts and other negative consequences. Experts say the fix is asking the right questions before you name a trustee and, above all else, trusting your gut. "Ask practical questions instead of emotional ones," Edmund Yan, an estate planning attorney, tells USA Today. "Has this person ever managed money that wasn't theirs? Do they hit deadlines? Do they call you back when the news is bad? Can they say no to their own spouse? Can they tell a sibling something that sibling doesn't want to hear and still show up at Thanksgiving? If the answer to a few of those is no, you can still honor that person in the plan. Just don't give them the checkbook."
Parents putting money in Trump Accounts could get a $2,500 tax break. The Treasury Department and IRS have proposed new rules that would let employees put away up to $2,500 per year pretax directly through their paychecks. "That means these contributions could lower a parent’s upcoming tax bill while also building up their child’s future nest egg," MarketWatch reports. There’s a caveat, though: for workers to take advantage of the perk, their employers have to opt in and set up plans that allow them to make Trump Account contributions from their paycheck. The proposals are open for public comment through September 25, with a hearing set for October 15 before anything’s finalized.
Paying off debt before you retire? It’s more doable than it feels. HerMoney talked to three women who each paid down about $5,000 in debt before leaving the workforce – including Gail, who turned things around simply by tracking where her money was actually going. Her biggest leak: food, at about $50 a day. "We talk about dinner at 5 p.m. when we’re both starving, then we go to the [grocery store], or we go out," Gail tells HerMoney. She also discovered she was quietly subsidizing her adult kids, which is more common than you’d think. A recent survey found 50% of U.S. parents financially support their adult children, averaging $1,474 a month. Get more pre-retirement debt payoff inspo here. |
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| Things That Save You Money |
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| Why More Money Doesn’t Mean Less Money Anxiety |
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We spend decades building our nest egg so we can finally relax with our money. So when the time comes, why can’t we?
Jesse Mecham, founder of the beloved budgeting app YNAB and author of the new book Never Worry About Money Again, joined Jean on the HerMoney Podcast to talk about why a healthy bank balance doesn’t automatically mean a quiet mind – and what actually does.
A recent survey found that 67% of Americans worry more about running out of money than they worry about death. Mecham isn’t surprised, but he does think most people are misreading what’s actually going on.
"Money can’t buy happiness, but it can steal it," he said. He's watched it happen again and again: people in their 40s earning more than their 27-year-old selves ever imagined, still just as anxious as ever.
"We are carrying around this worry that is just flat out unnecessary. We don’t need to earn more. We don’t need to spend less," he said. "The issue is that we spend so much time acquiring money that when the spending starts, it feels like losing control."
Mecham calls these experiences RAMS – Random Attacks of Money Stress – a term coined by a YNAB user that stuck instantly. It’s the little ping of doubt at the grocery store. The mental math at dinner. The hesitation before booking a trip you can absolutely afford. The size of the purchase often has nothing to do with it.
"It’s just this little devil on your shoulder casting some doubt, casting some concern," Mecham said. |
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| Take Control Of Your Money: Free Workshop August 25 |
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If you’ve read Belle Burden’s blockbuster memoir, Strangers, and found yourself thinking differently about your money or your future, you’re not alone. The conversation around the book is prompting many women to take a more active role in their shared finances.
One way to start? Join our friends at Willow for a live Empowering Her Finances workshop on Tuesday, August 25 at 12 PM ET / 9 AM PT. They'll cover practical steps to better understand your financial picture and take greater control of your future.
Spots are limited – register here to save yours. |
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| Ask Jean |
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| Q: |
Today’s question comes from Brandy. She writes: "How long is too long to argue over who’s paying the bill when out to dinner? This happens constantly with my parents, who always insist on picking up the tab when we go out together. How can we avoid it?" |
| A: |
Fighting over a bill is awkward for everyone involved – even when it’s with family, and especially so for the server who might feel like they have to be the mediator.
My solution? Address it up front, before you even get to the restaurant. If you’re the one making the plans, it could be as simple as saying "this one’s on us" when you call to ask if they’re free.
Another fix – excuse yourself before the end of the meal, and give your card to the server, or let the server know as soon as you sit down that you’ll be paying. This eliminates any arguing and lets you focus on the people you’re at the table with, instead of who’s footing the bill.
As for your parents, I’ll just say that it’s natural for them to want to take care of their daughter, even when it comes to something as simple as the dinner check. It probably makes them feel good to pay, and you might want to allow them the pleasure once in a while. |
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| Submit your questions to Jean here. |
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