Sincerely,

Joe

  

Buying a home is one of the most stressful experiences and biggest financial commitments of many people's lives. But inheriting a home from a parent or relative can be equally stressful and complex in ways you may not anticipate.

As you cope with a loved one's death and all the emotions it stirs up, you'll need to decide whether you should sell the home, live in it, or rent it out.

 

Unfortunately, inheriting a house isn't always a financial gain. The good news is that you can avoid many potential pitfalls by asking the right questions. Here are some key factors to consider before you make any decisions about the house you've inherited.

Is there a mortgage on the property?

If so, will the estate assets be used to cover it? If there aren't enough assets to pay off the mortgage, or if the other heirs don't agree to do so, you can take on the deceased's mortgage in order to keep the house-as long as you have the means and desire to assume the debt. In this case, you'll want to consider refinancing to see if you can get a better rate or lower monthly payment.

If the house is "underwater" (i.e., the home's current value is less than what is owed on the mortgage), you may decide to walk away from the property and let it go into foreclosure. Of course, before making any decision, you should seek the guidance of an estate attorney.

Would it make sense to keep the home?

Although selling a family home can be a painful process, it's important not to let nostalgia jeopardize your financial well-being. Even if you're able to manage the mortgage, does the home have any other value to you? Ask yourself these questions:

• Is it a property you're going to use, either for vacations or to live in yourself?
   
• Do you have the time and money to handle the maintenance and upkeep the house will require?
   
• If you plan to use it for rental income, would renovations be needed? Would you be willing to hire a property manager (if you can't manage the rental yourself)?

What does the local real estate market look like?

If you're thinking of selling or renting the home, do your due diligence on the local market. A knowledgeable real estate agent can advise you about the options in your area, discuss comparable properties and what they've sold or rented for, and help you determine if any renovations would be worth the time and money. (Real estate laws differ from state to state, so it's important to work with a professional licensed in the state where the property is located.)

If you plan to sell, keep in mind that high-end finishes and other upgrades won't necessarily get you your money back if the neighborhood isn't made up of similarly designed homes. Rather than investing in renovations, listing the house "as is" for a lower price may result in a quicker sale.

Continue reading this article here. 

 

This article from Forbes gives us insights on planning for the crucial college-financing decision.

It's super-crunch time for college seniors and the anxiety over college expenses is palpable.

How do you find that best fit/best value college? Is it worth getting into debt? How will you pay off your debt if you don't land a decent job?

Never has a single generation been faced with more vexing economic questions. And college costs keep rising every year; it's harder than ever to save.

According to a survey by Sallie Mae, families are under increasing pressure to take out loans to finance college, spending 16 percent more last year than the previous year - the biggest increase in five years.

Here's what the college financing company found:

• Parent out-of-pocket spending was the number one source used, surpassing scholarships and grants (30 percent) for the first time since 2010.
   
• Among families who did borrow, the student signed for nearly three-fourths of the amount borrowed.
   
• Working students are now the norm, with 74 percent of students working at some point during the year) to help cover costs.

If you're facing college decision now, the best route is to find the college that offers the best tuition discounts, grants and scholarships. Keep in mind you still have some wiggle room. Ask to replace loans with grants and whether more aid is available from the college. There's also local and state scholarships available, but you need to apply for them separately.

Not facing a decision at the moment? If you're a parent, all of these worries are coming to roost as you attempt to save whatever you can for college.

Leading College Saving Myths

There are always barriers to saving for college, but many of them are based on misconceptions. Here are the leading myths:

We don't have enough disposable income to save.

True, many don't have anything left after paying rent/mortgage, taxes, insurance and saving for retirement. But disposable income is also a matter of spending less and saving more.

What if you were to cut your cable TV or wireless bill and save the difference? What about going out to eat? Look at what you're spending and tick off a few items.

There are no good ways to save.

Look at your state's 529 savings plans. Although every state offers one, you can invest in any state's plan. Pick the plan with the best tax breaks, lowest costs and most flexibility. You'll not only get to save money tax-free - if you use the proceeds for college - some states will give you breaks on your contributions.

Have you asked grandparents for help? Have you asked your family to contribute money to college savings plans for holidays, birthdays and religious events instead of buying soon-forgotten gifts?

We won't qualify for financial aid, so why apply?

Since the aid formula is rather opaque, you never know who will get aid and who won't. There are two different forms of aid: Merit and financial aid. The former is not based on financial need. There are tens of thousands of these scholarships and grants available. See FinAid.Org for a list of them.