The Elderly And Their Children Must Talk About A Plan For The Future

Whether you have an elderly parent or you are elderly yourself, you must begin a conversation with your loved ones about how to handle the future. An initial one-on-one conversation between the elder parent and his or her child should begin the process of what needs to be considered. Here’s what to ask about…

*Understand one’s reticence at losing control:

It’s only natural that a person who has been in control of his financial life doesn’t want to lose control. Being sensitive to this is first and foremost.

But as time goes on, old age can trigger a sequence of physical and emotional losses such as hearing, eyesight, mobility, memory, as well as friendships. And these can undermine a person’s ability to competently handle his affairs and wishes.

It’s best to gradually build up to creating a plan that the elder parent can warm up to. Begin by raising questions that the elder can consider for future conversations. Begin before a real crisis occurs.

Make it clear that you’re not taking over control, but only want to be aware of how things are handled so when trouble handling things occur, you can help your parent in the way he would want.

*Household finances:

Ask how the household finances are handled. Ask if all the bills are getting paid on time, and are things arranged as conveniently as possible. Are investments being monitored enough and can you help under the control of the elder?

Perhaps you can suggest using automatic teller machines, direct deposit of Social Security benefit checks, and automatic bill paying to improve his security and convenience in handling day-to-day affairs.

*Health care:

Ask how the parent sees the possible growth of long term care needs. How should they be handled as typical care needs arise? How should they be paid for?

Explain the costs they can generate and the effect that can have on the parent’s wishes for themselves and what he or she’d like to leave as a legacy. Medicare doesn’t handle long term care costs. Perhaps long term care insurance should be bought, or a plan for transferring some wealth so Medicaid can help pick up eventual significant long term care costs.

*Handling estate planning:

Ask how the parent would like financial and medical decisions handled if he or she becomes incapacitated. Ask how he’d eventually like his assets transferred, which ones to whom.

You can suggest updating a will, or use a trust for managing and passing assets. Mention that a power of attorney can allow the parent to designate a specific individual to make financial or legal decisions on his behalf. And a health care proxy does the same for medical decisions when the parent is incapable.

How to Be Financially Successful and Spiritual

Many of us wonder just how we can live through life being financially successful while simultaneously being spiritual. The process of attaining financial wealth can at times feel like a stressful process and therefore counter-intuitive to what we seek when we follow a spiritual path.

1. Define it: Spiritual wealth and financial freedom mean something different to everyone. It is important to first define what financial success means to you and then define what spiritual wealth means.
Is financial success a certain amount of money in the bank?
Does it mean being debt free?
Is it about the freedom to choose when to work and where to travel?
What about being spiritual?
Is spirituality about finding more peace and purpose?

2. Be OK with your demands: Once you have defined what spiritual and financial success means to you- it is vital that you accept that what you want is OK. For some a life of abundance means having the simple things in life. A happy and healthy family and a secure job. For others it may mean being able to travel the world giving talks, publishing books and mingling with inspiring people. There is no right or wrong! It simply is what it is for you.

3. Don’t take it personally and let go: Money and finances can be quite an emotional topic for many people. It relates directly to our survival and the thought of losing it can bring up a lot of emotional baggage. For many their self-worth is linked directly to the amount of money in their bank account. Not having enough can bring up negative thoughts such as ‘What is wrong with me?’ and ‘I must be a failure.’ Furthermore, having a lot of money in the bank can strangely also illicit a similar negative though process with the inner conversation sounding something like: ‘I could lose it all’ or ‘I have to maintain this or I will lose the love of___.’ When we hang on to these beliefs we are putting enormous stress and pressure on our bodies and eventually lead ourselves down a path of harm such as ill health. It is vital to be aware of what money means to you and be willing to let go of the thoughts, habits and patterns that harm you.

4. Like attracts like:Have you heard of the law of attraction? It is the belief that by focusing on positive or negative thoughts, one can bring about positive or negative results. When we are attempting to increase our income by way of acquiring a new job or launching a new product or business, we are often focused on the result. It is essential in business to be clear on your intended outcome, however, putting too much emphasis on that can actually be counterproductive. Have you ever had an experience with a sales person that left you running for the door? You could literally feel their desperation. On the other hand, have you dealt with someone where a transaction took place but it felt more like a pleasant conversation with a friend than a sales pitch? When we are able to trust that the right people will be drawn to what it is we have to offer, we release ourselves from having to try so hard and allow a natural, effortless interaction to occur.

What You Need To Know About Home Ownership

Many people have the desire to own a home. The first step when buying a home is to find an ideal lender that offers the best low rate mortgage. Hence, it is advisable to compare the various lenders in the market, as well as the home loan products that they are offer.

What is a Low Rate Mortgage?

This refers to a home loan offering a low rate of interest. This type of mortgage enables borrowers to save money when they purchase residential or investment property, since the lower interest rates allow them to make lower monthly repayments. Different lenders offer low rate mortgage as either fixed or variable home loans. However, it is important to note that some of the low rate mortgages are simply introductory loans that offer discounted rates at the beginning of the loan term.

Understanding Amortization?

Amortization is an accounting method that requires the accounting for expenses that are incurred over the useful life of assets, instead of the time at which they are incurred. In other words, it is a monthly payment that people make over a specific period, which combines the principal amount and interest. Technically, amortization is somehow similar to depreciation since businesses use it to reduce the value of assets or liabilities over time.

Difference between Amortization vs. Depreciation

Understanding the types of financial events that the amortization concept involved is the easiest way of explaining how it differs from depreciation. Depreciation is the definition of both non-cash and cash assets that become less valuable over time. Mortgage amortization, on the other hand, is the reduction of the principal amount of home mortgages over a specific period. The terms of the loans usually fix the principal balance of these home mortgages.

How Amortization Affects Your Low Rate Mortgage

Amortization is the periodic reduction of capital or principal amounts on loans at interest rates that the terms of the loans fix. Interest is the amount of money that borrowers pay in order to reimburse the lenders for the currency or credit that they use.

Lenders apply more money to the principal amount when the amortization schedule ends, and greater amounts of the payment to the interest in the initial stages of this schedule. As such, lenders use the monthly payments to reduce the actual amounts of the loans since the borrowers begin the amortization schedule through the payment of mostly interest.

When borrowers repay low rate mortgage by making payments at specific periods, over the defined loan term, they amortize them. Their goal is the full amortization of their mortgages, which is the easiest way to pay off their home loans when the terms of the loans end. The interest paid reduces as a borrower pays more of the principal amount and in effect, they amortize greater mortgages in the years that remain for them to repay their loans and subsequently increase the equity in their properties.

The Significance of the Online Home Loan Calculator

The amount of money that borrowers will pay out over the period that their loans will be outstanding is an extremely important thing for them to consider when they want to take out mortgages. A mortgage calculator can affect them by enabling them to see their entire schedule easily since it provides them with estimates of the payments that they will make on a monthly basis.

Once borrowers have sufficient knowledge about how amortization works for low rate mortgage and home loans, the process is very easy to understand. According to real estate investors, amortization is the periodic reduction of the principal mortgage amounts by the making monthly payments.