Financial retirement literacy quiz

by July

Although this quiz is imperfect and may reflect some bias, it can give you feedback on how well you know the financial aspects of retirement planning.

2017 RETIREMENT INCOME LITERACY QUIZ

Your thoughts?

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Are you afraid of wiping out your savings?

by Lauren

There are very few financial decisions that I disagree with my husband about, but we don’t agree on whether we need long-term care insurance. I read this article and reminded him about my concerns about certain illnesses that can wipe out even large amounts of savings. I’ve seen this with some of my friends with parents or grandparents that lived for many years after a stroke, or even my grandmother that survived 9 years after she exhausted her savings at the age of 90.

Do you have concerns about this situation?

Long-term care insurance

by Sheep Farmer

My insurance agent recently asked me if I had long-term care insurance. When I told her that I did not, she told me that I should seriously consider purchasing it I am not quite 50, so LTC insurance is not something that I had given any thought to. I went home and started researching LTC. I looked up prices, statistics as to what percentage of the population needs long-term care, the length of time spend in long-term care, etc. I considered the longevity of my own family and that of DH. After much thought and research, I decided that we would be better off putting the same amount that the monthly premiums for LTC would be into an index fund. If we need LTC, we will be to self fund it, and if we don’t need it, then DD will stand to inherit quite a bit of money. What are your opinions on LTC? Have your or members of your family purchased it?

Buying a car

by lagirl

Finally after 13 years of driving my Corolla I am going to buy a new car. Some of you may remember I wanted the Lexus IS 250 but have recently become enamored with the new Civic. Clearly the Civic will be much cheaper. I test drove it and it feels very similar to my Corolla.

Any tips of negotiating through email? They told me that they don’t offer 0% financing but i know a lot of companies do.

Also, I’m interested in changing my insurance company as well-anyone have one they really like?

Interfamily financial friction

by Anonymous

This CollegeConfidential post must have hit a nerve because it generated so many comments.

Is this “greedy”? Really?

FIL passed away recently. FIL (and the sons) were terrible about money in the sense that they were always throwing wads of money at each other. “Here let me pay for that. No really I INSIST.” “No really WE INSIST.” Yada, yada.

Typical situation: When everyone was returning to base for the funeral week, SIL spent $200 to stock up the MIL/FIL house with food for the incoming hoard (it was empty for the season when they winter over in the south). H gave SIL $100 because MONEY. Not sure why it was our responsibility to pay for stocking the house (there are 5 siblings) since we live in the same place and were not the ones eating all that food, but that’s how it is. We’re wealthy – it’s not like it matters.

So people were spending hither and yon, and H and I had a discussion about whether everyone was going to keep track and start billing each other. We agreed that since MIL is not poor in any sense of the word, and all this tracking and billing would be a PITA (and why?), we would generally have MIL pay for her own expenditures as we went along.

Since she has a hard time getting around, one of the things I am trying to do now is pick up things at the market once a week or when I happen to be going I ask if she needs something. I get a separate bill and have them bagged separately and she reimburses me when I take them in. Tonight, I picked up a few things she asked for and made dinner at her house as well. H showed up and tried to waive off the $10 for her groceries. I took the money because that was the plan. Now he is having fits and says I’m just greedy. I basically told him to pound salt.

The initial comments indicate some readers believe other issues besides money are at play here.  But isn’t that usually the case?  Money can represent so many things — love, prestige, self-worth, independence, etc.

Misunderstandings can easily occur.  I was recently surprised when a relative insisted on compensating me for my Uber expenses after I did her a favor.  At first I was a bit surprised, as if she considered it a financial transaction instead of a favor.  Then I realized that she just viewed these types of things differently and did not want to burden me financially.  And I made a mental note that she would probably expect to be compensated if I asked her for a similar favor.

How does your family operate?  Do they “nickel and dime” expenses among each other?  Or do they tend to be more casual?  How are restaurant bills split?  Have you had major (or minor) disagreements?  Financial dealings between parents and their children can be particularly touchy.  Part of what makes these types of dealings potentially more complicated are discrepancies between family members’ wealth.  But even when everyone is in a similar financial position, misunderstandings can occur.

Have you ever borrowed or lent money to family?  How did that turn out?l