Tehachapi's Online Community News & Entertainment Guide
Tehachapi's Online Community News & Entertainment Guide
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It is hard to believe it is fall again in Tehachapi. Soon it will be Thanksgiving and then Christmas! Have you been thinking about Estate Planning? I know it can be a difficult topic...but your children will be happy you have thought ahead to make it easier to take care of your estate without a probate. What is better, a will, or a trust? A trust will streamline the process of transferring an estate after you die while avoiding a lengthy and potentially costly period of probate (in California...
On the road to retirement, be on the lookout for hazards that can hamper your progress. Here are five potential risks that can slow you down. Traveling aimlessly Embarking on an adventure without a destination can be exciting, but not when it comes to retirement. Before starting any investing journey, the first step is setting a realistic goal. You'll need to consider a number of factors - your desired lifestyle, salary/income, health, future Social Security benefits, any traditional pension...
Example: My mother just passed away. She had a Living Trust. I need to distribute the assets. After the grantor of a living trust dies, there are several things that must be done, either by the successor trustee or the surviving trustee (usually the spouse). The process is called Trust Administration. 1. Obtain several copies of the death certificate. 2. Prepare and record documents that establish the authority of the current trustee. In California, typically you would file an Affidavit Death...
We all hope to enjoy long, healthy lives, retaining the ability to think clearly and make our own decisions. But life doesn't always work out that way - which is why you need to prepare for a potential incapacity that could affect your independence and possibly create financial problems for your family. So, in thinking about incapacity planning, you may want to consider the following arrangements: • Health care power of attorney – When you establish a health care power of attorney, you name some...
With a payable on death account or paid on death account, you name a beneficiary who gets the account when you die ... no probate, no hassle. The person you name has no rights to the money until you die, so you can spend it all or change the beneficiary whenever you want. A payable on death account is created when you make an agreement with your financial institution – usually your bank. The bank has a formal, legal agreement that lets you tell the bank who they should hand your money over to a...
The SECURE Act of 2019 dramatically changed the rules governing how IRA and retirement plan assets are distributed to beneficiaries. The new rules, which took effect for account owner deaths occurring in 2020 or later, are an alphabet soup of complicated requirements that could result in big tax bills for many beneficiaries. RMDs and RBDs IRA owners and, in most cases, retirement plan participants must start taking annual required minimum distributions (RMDs) from their non-Roth accounts by...
When you die, the identified property will transfer to your named beneficiary without probate. The TOD deed has no effect until you die. You can revoke it at any time. Can I use this deed to transfer business property? This deed can only be used to transfer (1) a parcel of property that contains one to four residential dwelling units, (2) a condominium unit or (3) a parcel of agricultural land of 40 acres or less, which contains a single-family residence. How do I use the TOD deed? Complete the...
If you're planning to retire in a few years, are you looking forward to it? Or are you somewhat apprehensive? Are you asking yourself: "What sort of retirement can I afford?" It's a good question - because the answer can make a big difference in your ability to enjoy life as a retiree. And retirement can indeed be enjoyable, exciting and fun. Consider this from a recent survey by Edward Jones and AgeWave: A majority of respondents said retirement should be looked at as a whole new chapter of...
Want to make your mortgage process go as smoothly as possible? By following these guidelines, you can be sure that your loan processing and closing are completed as quickly as possible. Don't apply or take out new credit cards, auto or personal loans or have new credit inquires in your credit bureau file during the course of your loan process and closing. Don't make any large, unverifiable and undocumented deposit or withdrawal to your checking or savings accounts. Don't quit or change...
Investing can be daunting, whether you are experienced or a beginner. Even if you feel confident about your investing strategy, it can be easy to lose focus or make decisions based on emotion. Here are eight quotes from successful investors, economists, and other insightful thinkers that may help provide perspective and focus for your own investing strategy. "The individual investor should act consistently as an investor and not as a speculator."1 – Benjamin Graham, investor, author, and t...
The City of Tehachapi's Finance Department received the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association. This achievement is for the City's annual comprehensive financial report for the fiscal year that ended June 30, 2023. This award represents the COT Finance Department's commitment to the "spirit of full disclosure," to clearly communicate the City's financial story and motivate potential users to read the report. According to...
Deciding whether to wait for potentially lower interest rates or to buy a home now depends on various personal and market factors. Here are some considerations to help you make an informed decision: 1. Current Market Conditions: • Interest Rates: If interest rates are high and expected to decrease soon, waiting could potentially save you money on your mortgage over the long term. • Housing Market Trends: If home prices are rising quickly, waiting might mean paying more for the home, even if mor...
When you invest, you'll find that knowledge is power. The more you know about your investment choices, and who is offering them, the better prepared you'll be to make good decisions. And this diligence can also help protect you against investment scams. How widespread is this activity? Consider this: Investment fraud losses totaled more than $4.5 billion in 2023, according to the FBI's Internet Crime Report. Here are some common types of scams: • Cryptocurrency – Not all cryptocurrency off...
I get calls all the time from a parent that wants to add their child to their home. Typically this is done to avoid probate. I looked at several articles on the internet and this is what I saw. Adding an adult child to your house deed, or giving them the home outright, might seem like a smart thing to do. It usually isn't. Transferring your house to your kids while you're alive may avoid probate, the court process that otherwise follows death. But gifting a home also can result in a big,...
Asset allocation and diversification are so fundamental to portfolio structure that it's easy to lose sight of these strategic tools as you track the performance of specific securities or the dollar value of your investments. It might be worth considering how these strategies relate to each other and to the risk and potential performance of your portfolio. Keep in mind that asset allocation and diversification are methods used to help manage investment risk; they do not guarantee a profit or...
Legal Document Assistants were once commonly known as Independent Paralegals. However, as of Jan. 1, 2000, only those Paralegals working directly for attorneys may now be referred to as Paralegals. Those formerly known as Independent Paralegals are now officially known as Legal Document Assistants (LDA). LDA often have the same educational background as a paralegal and are REQUIRED by law to be registered and bonded in the county in which they have their principal place of business. Please...
The movement of the financial markets can seem mysterious - and yet, if we look back over long periods, we can see definite patterns that consistently repeat themselves. As an investor, how should you respond to these market cycles? To begin with, it's useful to know something about the nature of a market cycle and its connection to the business or economic cycle, which describes the fluctuations of the economy between periods of growth and contraction. Issues such as employment, consumer...
There are many different ways in which business is conducted in California. Selecting the most appropriate form of business enterprise for an individual or a group of individuals involves careful consideration of a variety of factors. These factors must be balanced against each other to ensure that the most appropriate form of business is selected. Businesses often act through designated individuals called agents who conduct their operations, and the law of agency governs many legal...
Mortgage rates have been a central concern for homeowners, prospective buyers and investors alike. Over the past few years, predictions of lower mortgage rates have often missed the markespite various economic forecasts anticipating a decrease, mortgage rates have stubbornly remained high. This article delves into the reasons behind this trend, examining the persistent factors driving mortgage rates and why the anticipated decline hasn't occurred. Persistent Inflation Pressures One of the...
I know I'm a nag. I nag because it's so important to plan now for your family when you die. It's not that we plan to fail, we fail to plan. So what happens to your children when they inherit the family home that is in a trust? A step-up in basis resets the cost basis of an inherited asset to its market value on the decedent's date of death. Example: Dad dies and has a house that is owned by a revocable trust. He bought the house for $100,000 in 1970 and transferred it to his trust. Dad died in 2...
Your most valuable asset may be your ability to earn an income. Over the course of your lifetime, you could earn several million dollars - money that helps support you and your family. If something happened to you, how would your family replace your lost income? Life insurance can help replace your income when needed at your death. However, with the wide variety of policies available, it's important that you understand some of the basic types of life insurance coverage. Term Life Insurance With...
Soon a new rule will take effect that will dramatically change the way the Social Security Administration (the "Administration") looks at disability for certain individuals. These changes will reduce the burden on individuals applying for disability by allowing them to focus on the most current and relevant information about their past work. What does this mean exactly? Well, the Administration has long held that if an individual is capable of their past work, they are not disabled for work...
Mortgage down payment assistance programs in California are designed to help first-time homebuyers or low- to moderate-income buyers afford a home. These programs can significantly reduce the financial barriers to homeownership by providing grants, low-interest loans or forgivable loans to cover some or all of the down payment and sometimes closing costs. Here's an overview of how these programs work and why you might consider using them: Types of Down Payment Assistance Grants: Some programs of...
It's election season again. Over the next several months, you're bound to hear an array of promises from the candidates and speculation from the pundits on what those promises, if enacted, could mean for the country. But, how might these possible outcomes affect your financial future? When considering this question, keep these points in mind: • Campaign promises aren't always kept. Presidential candidates often proclaim that they intend to institute major changes in tax or spending policies, o...
If you're presented with an opportunity for your small business, but don't have the cash on hand, you're likely wondering if it's a good idea to get a loan. However, you may be hesitant because the process seems daunting or you're unsure if it makes sense financially. You might be surprised that taking on some debt can actually be the best choice for your business, allowing you to operate more profitably. Reason 1: To expand your business Whether you're moving to a larger office, opening a new...
