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Twila Van Leer

Who Inherits Your Digital Assets?

July 31, 2014 By Twila Van Leer

Where Will Your Digital Assets Go When You Die?
Where Will Your Digital Assets Go When You Die?
It’s a phenomenon of today’s technology-rich world. Besides the usual concrete accumulations of your life, you have such personal things as Facebook, email, blogs and other “digital assets.” So, what happens to them when you die?

The question has become a matter for the Uniform Law Commission, people selected by states to promote standardization of state laws, when possible. The commission endorses a plan to automatically give next-of-kin access to all digital accounts of a deceased person. They would not, however, have control of the accounts. An individual could specify through a will or other official document, which accounts he or she wished to die when they did.

State legislatures would have to adopt the commission’s recommendations to make them law. The provisions would be very helpful, the commission believes, in estate planning.

Those who back privacy are not supportive. They say people shouldn’t have to draft a specific will to protect private information, for instance a dating profile or emails that contain personal information that the writer would rather not share with an ex-spouse.

On the other hand, information relative to finances would be very helpful to grieving relatives. Some would value sentimental content. People often put very personal musings, photographs and videos into their computer accounts. Such things as a cooking blog or the comments of a gambling avatar or the every-day ramblings of noted celebrities could be valuable commodities after their passing.

In an Associated Press article on the topic, Ginger McCall, associate director of the Electronic Privacy Information Center, says that a judge’s approval should be requisite to delving into a deceased person’s digital assets. Such accounts today are the “filing cabinets” of the past, said an attorney who sits on the commission.

Some people assume that sharing certain passwords with those they trust is sufficient to guarantee access in the event of death. They could even make the passwords available to someone they trust through the terms of a will. But wills become public property. Also, anti-hacking laws and the “terms of service” applied by most companies prohibit anyone from accessing someone else’s accounts. Loved ones innocently trying to follow the guidelines of a will could find themselves accused of criminal activity.

Some tech providers have addressed the issue. Facebook will “memorialize” accounts, allowing confirmed friends of a client to continue to view photos and old posts. Google, YouTube and Picasa Web Albums have versions in which, if a client does not log on after a specified time, the account can be deleted or shared with a designated person. Yahoo users agree when they sign on that the account will expire when they do.

But court cases have made it clear that not everyone believes that the technology supplier should have the final word. The survivors of a Marine killed in Iraq sued Yahoo for access to his emails and won. A mother whose son was killed in an accident likewise sued and was eventually given access to her son’s Facebook account. (She complained that the communications had been edited.)

The commission’s proposed law would supersede a provider’s terms of service agreement. But other rules, such as copyright or licensing agreements, would remain intact.

Sticky issues, certainly, but obviously germane in a day in which everything we think and feel is likely to end up on the computer. Almost certainly, clarification is coming in the way of new laws and more oversight.

Filed Under: Inheritance

Budgeting Made Easy

July 29, 2014 By Twila Van Leer

Turn The Impossible Into Reality
Turn The Impossible Into Reality
There are those who know how to budget. The rest of us tend to depend on them to fill in the details where finances are concerned. But with a little bit of learning you could take your place in the ranks of those who are serious budgeters.

If it’s something you have been vowing for a long time to launch into in a serious way, now is the time. Tomorrow is never a good day to begin budgeting.

Start off with one simple rule: Spend less than you make. Then begin to investigate the shortcuts that have proven to be effective in making a budget work for your financial well-being.

The people who developed The Fool’s Lazy Budget have learned where to cut corners and simplify the steps. They offer these tips:

Analyze Your Current Spending Habits

Begin with an analysis of your current spending habits. Honestly examine your outgo on every single day for three months. If you don’t lay this foundation up front your budgeting efforts are likely to fail. There are tools to help you track spending, including a 218-category spreadsheet. Put in the data then study it carefully. But that may be the hard way. A simplified one-step approach starts with a debit card review. Look at the raw data your bank provides and create your own general spending categories. Pay particular attention to the categories in which the figures make you weep. Some banks provide a year-end spending summary, with weak spots graphed in different colors on bar charts. Pay particular attention to your spending if you use cash and project the results over four weeks. Whatever your method, identify the categories where overspending is obvious.

Peek Into the Future

Take a mental trip to “the mall of your future,” as advised by Dayana Yochim of the Fool’s Lazy Budget staff. This virtual shopping spree, sans side trips to the food court, will give you a concrete view of what you want to spend. List your needs for the next three to six months. Start with the things that are not optional, of course, such as housing, food, utilities, etc. Then realistically list such things as new car tires, family vacation costs, etc. If you have plans to pay off a credit card, max out your IRA or add to your emergency fund, list these items. Than add expected expenses for long-term items you anticipate over the next year or thin the next five years. Use the lists to plot spending to match identified needs.

You now have a written plan that, if followed faithfully, will save you from impluse spending that is a budget-buster. Share the plans with family members. If practical, provide a wallet-sized outline for each person involved in family spending. Don’t ignore the potential spending that adds to the quality of life for your family. Add some agreed-upon items that will make life better over the short term and the long term. It’s sort of the old all-work-and-no-play-makes-Jack-a-dull-boy theory. Spending is more satisfying if there is room for some outlay for what you really WANT.

Set Goals

When you have your goals firmly in mind, pencil in what you estimate the costs of achieving these goals will be, on a monthly basis. For instance, if those new tires for the car are non-negotiable, start setting aside a portion of the cost over several months so the final outlay is not so overwhelming.

Save Regularly

Start saving something each pay period. Hide some money from yourself by diverting a portion of each paycheck to an account separate from your checking account. Don’t let it be available for impulse buying or those sudden moments when you see something you “just can’t do without.” Think carefully about what you think is essential. Often it isn’t. Arrange with y our bank to transfer the excess in your checking account to savings on a regular basis.

Quit Overspending

Stop overspending. You know where your own temptations lie. Set some limits and stick with them. Start an envelope system where you put an amount sufficient to cover a necessary expenditure for a month into an envelope. Typically, the four most essential expenditures for a family are housing (34 percent); transportation (18 percent); food (13 percent); and entertainment (4 percent). If it is at all possible to cut any of these categories, do so and you’ll have money to shift to other categories. Have an envelope for each category and slip in the money to cover that expense. When it’s gone, that’s it. Economize where it’s feasible.

A budget is a personal thing and you will make your own adjustments. That’s fine as long as the basics stay in place. Don’t spend more than you make. Give yourselves a savings cushion. Look ahead to avoid, as much as possible in this uncertain world, the unexpected expenses that knock you for a financial loop. You’ll save yourself a lot of stress if you keep a handle on your money. That’s called budgeting.

Filed Under: Saving Money Tagged With: Budgeting

Funding Your Spending Goals

July 28, 2014 By Twila Van Leer

Most everyone has in their budget some special projects, purchases or plans that require advance savings to accomplish. If you have created such a wish list, it’s time to seriously begin the planning part.

Set Written Goals For Your Desired Purchases
Set Written Goals For Your Desired Purchases

Start by identifying as accurately as possible what this “dream” item is going to cost. When the figure is set, break the total into as many “payments” as necessary to reach that goal. That’s how much you need to set aside each pay period to fund this goal. Take the “wish list” into consideration if you should happen into any windfalls, bonuses, raises, inheritances or other augmentation of your income. The sooner you achieve one goal, the sooner you can start on another.

Make your goals concrete by putting them down in writing. Purchase or create a chart that lets you see at a glance where you stand vis-à-vis the goal.

It’s likely you will have several savings goals concurrently: a dream vacation, saving for a down payment on a house, building a retirement fund, etc. If you find you are pinching to fund all of them, you have some options: Reduce the list or scale back on some of the goals (a shorter vacation, perhaps?) You can extend the time for some of the larger goals, reducing the periodic savings payment. Or you can reassess your overall budget and see if there is some category that can be reasonably reduced and the money shifted to the savings category. For instance, you may be willing to sacrifice some of your regularly budget entertainment or transportation funds to speed up the long-term goals.

Other tips that will support those goals include setting up automatic deductions when possible, for instance for your 401k, a savings bond program, a brokerage account, etc. Track expenses monthly. If there is a category in which you are overspending, apply self-discipline. Streamlining could save you something to put toward your wish list. When you go out, leave your credit cards and checkbook home. Use cash. Having to hand over something concrete may inspire you to be a bit more stingy when you are out and about.

Above all, keep your attention focused on what it is you want in the future and don’t let the wants of the present rob you of those satisfying financial objectives.

Filed Under: Budgets

Cut Your Expenses And Increase Your Income

July 24, 2014 By Twila Van Leer

Savings Can Grow When You Decrease Expenses and Increase Your Income
Savings Can Grow When You Decrease Expenses and Increase Your Income
The annual AARP list of 99 ways to save money is out and it offers these nine suggestions to reduce your expenditures on financial matters:

Auto Insurance

Shop around for auto insurance. Insurers use a tactic called “price optimization.” That means they raise premiums based not on risk factors, but on how much of an increase they think you will accept. When it comes time to renew your insurance, bargain with your insurer for a better rate.

Pay Raises

Before you are called into human resources to discuss your next raise, ask for a salary range that informs you of the low-to-high range the company pays for a particular job. Knowing where you are in the range can become the basis for negotiation. Perhaps understanding the range will be impetus for more training so you can move up.

Free Credit Reports

Don’t pay for a credit score. It can be obtained free from Creditkarma.com or Credit.com or from Sharpen Your Financial Focus through its website, Sharpen Today.org.

Social Security

Plan ahead on your Social Security. If you have reason to think you will live beyond age 80, wait until you are 70 to begin collecting so you will get the maximum benefit. If you are a couple and feel it likely you will live past 80, let the partner who had greatest earnings delay collection.

Home Improvement

If you are considering house renovations, these changes are considered the most likely to enhance the value of your property: Replace the front or garage door, add a deck, turn an attic space into a bed/bath or update the kitchen. That‘s from Remodeling Magazine’s 2014 cost/value report.

Credit Card Payments

When you have heavy credit card expenditures, consider paying the bill in two increments instead of one monthly payment. Paying on time is the most important factor in calculating your credit score. Next is the percentage of credit you have available. People with the highest scores keep utilization under 10 percent. Paying your bill in two payments in a month keeps a lid on this number.

401Ks

Consider tax diversification in your 401k. Like Roth IRAs, many Roth 401k’s allow you to put in money on which you already have paid tax. Then you may withdraw it at retirement tax-free. If there is a possibility your tax bracket will go up in the future, these tax-free dollars stashed in a 401k now be even more valuable.

Interest Rates On Bank Accounts

Look at your banking institution. Some smaller banks and credit unions offer more than the going interest rate (about 2 percent) on checking accounts, even with balances of $10,000 or more. You’ll have to make direct deposits, in all likelihood to reap this benefit.

Pet Prescriptions

Talk to the vet who cares for your pets and see if he offers drug discounts or will provide samples of medications free. Ask if you can fill the vet’s prescriptions at a pharmacy for humans. Walmart and some other pharmacy outlets provide a $4 prescription price for many medications, which could save you money.

Filed Under: Saving Money

Hints For Saving Tech Dollars

July 23, 2014 By Twila Van Leer

Saving MoneyYou can pocket some cash when adding to your technology “stuff” by following these suggestions that were included in the AARP’s annual list of 99 ways to save money:

Research new gadgets and find when they will be on the market. That way you won’t purchase an item soon to be obsolete. In general, a new iPhone hits the market every September, followed by an updated iPad in November. New camera models hit the markets in February and October. And there’s always a pile of electronics items that make their appearance for the holidays.

Consider a prepaid cellphone. That way, you pay for the calls before, not after, you’ve made them and that can save you considerable cash. All the big cellphone producers offer prepaid versions, but they don’t tend to advertise them. Make the request.

Keep in touch with family via Skype or similar app. They are available for smartphones, tablets and computers. Face Time is the version for Apple phones, tablets and computers. This free phone chatting over the Internet adds the bonus of video. Both parties, obviously, must have the app, but most families are now prepared to commune by computer.

Learn to outsmart scammers. If you receive an email purportedly from your bank or a big store, don’t click the link and log in. The email is fake and takes you to a fake website. As you are logging in, you give the bad guys access to your password.

When traveling outside the United States, put your phone on airplane mode. If you don’t, the phone will keep checking the Internet and emails on the cellular network in the country you are visiting. You’ll have a big bill when you return home. If you have to check email, turn on Wi-Fi and find a Wi-Fi hot spot.

Look at refurbished computers, rather than investing in a “new” one. Many of those listed as refurbished are, in fact, new ones that were bought and then returned for some reason. There are inspected more thoroughly than new machines, but the dealer can’t sell them as new. They cost less and have the same warranty.

Stick to basic cable, then sign up for Netflix streaming, which usually costs about $8 per month. You then have unlimited movies and entire seasons of some T shows. Your local library most likely has a good collection of DVDs.

Before you buy anything online, check for discounts and deals. You may find a better deal.

Filed Under: Saving Money Tagged With: Saving Money

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