Dave Ramsey
Month: March 2022
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APRIL 2022
6 financial tips for the sandwich generation
It seems like only yesterday that your kids were toddlers. Now they’re heading to college — just as your aging parents need your help. Congratulations, you’ve joined the sandwich generation. Whether this is your current situation — or one you may face in the future — taking care of multiple generations of your family can be tough on your stress level and your wallet.
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Here are six tips to help you support your loved ones while safeguarding your own financial well-being.
1. Get your finances on track.
Whether you’re currently caring for your kids and aging parents, or you’re on your own, now’s the time to get rid of your debt. Need help? Sign up for SmartDollar® and follow the 7 Baby Steps to restore your financial health.
2. Talk about finances early and often.
If you’re caring for your parents, don’t be afraid to ask them tough questions. Are they in debt? Do they have life insurance or long-term care insurance? Do they understand their investments? Do they have a will? Can they share its location with you? As for your grown children, ask them about their goals. Talk to them about lifestyle changes they need to make to get where they want to be.
3. Start planning for the right kind of elder care
If your parents need in-home care, an assisted living facility or a nursing home, you’ll need to discuss the financial impact with them. Decide what type of care fits their budget (or yours, if you’re the one supporting them). Visit Resources For Living® for adult and elder care referrals and to find out more about the 30-minute free legal consultations available to you.
4. Save and invest for your own retirement.
If you aren’t already doing it, start saving for retirement. By making your retirement savings a priority, you can save your kids from the same stress you might be going through now with your own parents. The sooner you take advantage of your Costco Retirement Plan, the more you’ll save.
5. Save for your children’s college.
It’s never too early to start exploring the best ways to save for your kid’s college education. If they’re still in high school, make sure their dream college is one you can afford. Help them look into scholarships, and encourage them to get a part-time job. This way, they can start saving before entering college. If you have kids who are already in college, talk to them about getting a part-time job during the school year and a full-time job for the summer to help them avoid accruing debt. Finally, talk with them about learning to live on a budget.
6. Set clear boundaries.
Balancing money and relationships can be complicated. The best thing to do is set healthy boundaries and talk about expectations. It’s hard to say no to parents or children when you’re trying to work on your finances. But don’t let anyone make you feel guilty for trying to take care of your own household first.
Source: RamseySolutions.com
The following resources are available to help you stay financially fit — whether you’re single or caring for aging parents or children. These resources are confidential and available to you at no extra cost.
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APRIL 2022
Make a will for peace of mind
There’s a reason 50 to 60% of Americans don’t have a will. Even the idea of talking with someone about estate planning makes some people uncomfortable. But it’s an important conversation to have. You can learn how to provide for your loved ones after you’re gone. And you can enjoy the emotional benefits of getting your finances in order and knowing that you’re taking care of the ones you love.
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A will puts your mind at ease
Having a will is one of the most important things you can do for yourself and your family. It offers you peace of mind — right now — because it allows you to:
Protect your family from financial hardship
You decide — not a probate court — how to divide your estate. This means, at a very difficult time, your family can have a seamless and peaceful financial transition and avoid long, unnecessary delays as well as attorney and legal fees.
Minimize confusion and conflict
Having a will empowers you to make your wishes clear and helps minimize family clashes over your estate. It also ensures that part, or all, of your estate doesn’t go to someone you never intended to be your beneficiary. Your beneficiary is the person (or persons) you choose to inherit your assets if anything should happen to you.
Choose the right guardian for your children
You can then take the time to think about which relative or friend you’d want to raise your minor children, and then ask them if they’d be willing to take on that responsibility. Once that’s settled, you can designate them in your will, a legally binding document.
Make meaningful gifts and donations
Your personal values and interests can live on through the legacy you leave your favorite organizations. Gifts up to $13,000 are excluded from estate tax, so you’ll also be increasing the value of your estate for your heirs and beneficiaries to enjoy.
When you make a will, you gain the satisfaction of knowing you’ve done the smart, responsible thing for those you love. And that’s something to feel good about.
Source: FindLaw. Top 10 reasons to have a will.
The following resources are available to help you plan and secure your family’s financial future. These resources are confidential and available to you at no extra cost.
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APRIL 2022
Invest where you work
Working for a thriving company is a good feeling. You’re part of a winning team. Your hard work is making a difference. And at Costco, there’s something else to feel good about: You can share in the profits you helped build — through the Employee Stock Purchase Plan (ESPP).
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What is an ESPP?
The employee stock purchase plan, or ESPP, is a benefit Costco* offers that allows employees to buy shares of company stock without having to pay commissions. In Costco’s case, fees and commission for these purchases are fully paid by Costco. Employees who choose to participate generally make contributions to the plan through payroll deductions. The deductions are held in the plan until a set purchase date. At that point, they’re invested in the company’s stock.
*At Costco, employees who are 18 or older are generally eligible to participate. Participation in the ESPP is entirely voluntary.
What are the advantages of an ESPP?
With an ESPP, the brokerage fees and commission are paid by Costco. Brokerage fees and commission can be as high as 2% of the stock price. So, for example, if you buy ten shares of Costco stock at $500 per share, the fees and commission would be around $100.
When participants enroll, they can choose either a percentage or flat dollar amount to be withheld from their paychecks. These deductions accumulate during the offer period. Then, on set purchase dates, the company uses the funds to buy stock for plan participants.
A qualified ESPP can offer some tax benefits. When you sell the stock:
- If the stock has increased in value, the gain will also be taxed as ordinary income.
- If you hold the stock for more than a year, it will be taxed at the typically lower capital gains rate.
Source: NerdWallet. ESPP: What to know about employee stock purchase plans.
The following resources are available to help you learn more about your Costco Employee Stock Purchase Plan. These resources are confidential and available to you at no extra cost.