Thursday, June 14, 2018

Death - Life Insurance – Beneficiaries




This is not a post to discuss the sadness of everyone concerning the recent passing of Anthony Bourdain, nor a post to discuss his accolades, nor a post to discuss the wonder he was, but it is a post questioning the steps a person needs to take while living in order to protect and care for his or her loved ones left behind.

In the shower this morning, I was cleaning one of the tile shelves that sticks out of the corner of the shower stall and in the back of my mind (it’s cray cray back there sometimes) I imagined slipping and hitting my head so hard on that shelf I died right there (see, cray cray back there).  This thought caused me to be a little more careful and try not to slip though.  It also caused me to think about my life insurance policy and how there’s no instructions to my kids, the beneficiaries of said life insurance policy, on what to do with the money they’d receive if I was no longer here.

I don’t have many assets at this point in my life, but I’m debt free.  I have a little cash and some beater cars, some tools and some rifles, and these assets could be easily distributed to whoever wanted them without much instruction.  What I do “have”, however, is a $900k Term Life Insurance Policy that has my 3 kids listed as beneficiaries.  I don’t have a will.

Here’s some details of my kids:

Daughter – 21 – full-time college student (senior next year) 2 years paid for completely – third year paid mostly – but I think she’ll come out with a small student loan, thinks she needs to build a credit score and has a credit card with the clothing store where she works part time and a credit card with her bank, both of which she pays off each month, has her own car with a small loan, pays her own bills, lives near her mother in PA at her boyfriend’s parents’ house.

Son – 18 – currently living with his mother in PA (he was full time with me after the divorce, but was messing up in school so we made a change in his home life this school year in hopes of him graduating, which he barely did), currently NOT working, driving one of my beater cars, not going to school and no plans right now to do so.

Son – 14 – similar to son-18, currently living with his mother in PA for better school guidance after being full time with me, gamer, skateboarder, getting ready to enter a computer education program running co-currently with his high school program.

So, where do I go, what do I do at this point, to direct how/where the life insurance money goes?  Do I leave it up to the kids in the case of the daughter and oldest son, and the probate court in the case of my youngest son?  Do I set up a trust to direct how the money gets used and how do I do this?  Do I somehow set up the money to be invested so they receive monthly checks from the interest?

What do I do?  How should I go about this?  How have you set up your will?

Monday, June 4, 2018

Net Worth Update - MAY 2018 - $23,562 (+$1,449)


Here are my May numbers:


Month:
April
May
change
ASSETS



Checking Account
$500
$500
0
Emergency Fund
$2,300
$6,800
$4,500
TD Ameritrade Account
$1,805
$1,194
-$611
Simple IRA
$5,285
$5,431
+$146
401(k)
$1,723
$2,437
+$714
Land Cruiser
$3,000
0
-$3,000
BMW
$3,000
$3,000
0
T100
$2,000
$2,000
0
GMC Pickup
$1,500
0
-$1,500
Corolla
$1,000
$1,000
0
4Runner

$1,200
+$1,200
Total Assets
$22,113
$23,562
+$1,449
LIABILITIES



Bank Visa
0
0
0
Total Liabilities
0
0
0
Net Worth
$22,113
$23,562
+$1,449

Checking Account:  This account, for the most part will remain around $500, after everything hits.

Emergency Fund:  +$4,500  I sold a couple cars, sold some stock, and added my regular payroll additions.  I also pulled some to buy the 4Runner and then a little more after I found an engine.

TD Ameritrade Account:  -$611  I didn’t make any purchases in May and I sold off everything except my position in Ford.

Simple IRA:  +$146 – No more payroll additions here as we switched to a 401(k) plan.  The market went up a little.

401(k):  +$714 – Payroll additions plus Company Match plus minimal growth.

Cars:  -$3300  My son came down at the beginning of May to exchange Blue (the GMC truck) for the Toyota Corolla I picked up last month.  I offered Blue to my brother for $800, but he passed on it so I put it up on Craigslist for $1500 and accepted $1200 for it.  I also put the BMW and Landcruiser up for sale this month on Craigslist and Facebook Marketplace.  Interestingly, they got way more attention from FB Marketplace (AND WAY LESS SPAM).  My plan was to keep the T100 and buy a Toyota 4Runner once the others sold.  Well, a 4Runner popped up about mid-May with a blown motor so I picked it up for $700.  I can sell it for $1200 as is, so that’s what its value is above.  Once I get the motor installed and it’s on the road, I’ll bump the value up to around 3k-3.5k.  I sold the Landcruiser on the 29th for $2,600, which I’m pleased about since it was getting cranky and running like poop lately.  The guy who purchased it plans on going through the engine to make it more reliable and building an overland vehicle (think off-road adventure and camping).  The BMW is still on the market and if it sells soon, I’ll have to get my butt in gear and get a motor put in the 4Runner.  I don’t like only having one vehicle, especially since they are older cars.

Bank Visa:   – Done, Debt Free

Overall – I made some drastic changes in May and my overall change still falls close to my average of +$1,800 per month so I’m still doing OK.

Death - Life Insurance – Beneficiaries

This is not a post to discuss the sadness of everyone concerning the recent passing of Anthony Bourdain, nor a post to discuss his...