How to Prepare Your Parents for End of Life Finances

by Mrs Money

Preparing for your death is never a nice topic. Many people avoid it exactly for that reason. And that’s where financial problems happen due to unexpected bills and a failure to prepare for what happens after death. You can prepare your parents, though. Here are some of the aspects you need to address when it comes to end of life finances.

Write a Will

If you haven’t already, you should have them write a will. This is crucial for ensuring all the family assets are divided up appropriately. It creates a whole trunk of legal complications if this doesn’t happen in the beginning. It can take many months to sort the problem out.

Here’s what will happen if you don’t have this crucial contract drawn up. Legally, the state takes over where a will doesn’t exist. At this point, the problem is on you to prove that you are the desired person to inherit. You will have to attend probate court and the process can take about a year to sort out.

This is assuming you don’t have any siblings or relatives who also want to lay claim. It can easily cost you thousands and lead to the process lasting years. Before they know it, squabbling relatives have drained the entire estate due to legal costs. Imagine if this problem could be avoided simply by having a will in place. You don’t even need an attorney to draw one up, although this is recommended.

Power of Attorney

Power of attorney can have huge financial implications. If one or both of your parents become legally incapable of making decisions, the power of attorney will state who makes the decisions on their behalf. This applies to both medical care and financial issues. Get the power of attorney issue in writing from the very beginning.

Burial Insurance

You must have some sort of coverage for funeral expenses. These days, it can cost a few thousand dollars for both a funeral and burial. If you don’t have any cover, this must come out of the estate of the family, or the next of kin is responsible for paying. It’s always better to have a comprehensive burial insurance policy setup to ensure you don’t lose a big chunk of your inheritance.

Your Investments

Contrary to popular belief, many investments don’t pass out of your hands and into oblivion when you die. They can be passed to the next of kin, assuming proper instructions have been setup. There are only certain investments that can’t be passed on, but they don’t include things like stocks and shares. Get a full idea of what you parents own before they pass on.

A Difficult Task

It’s perfectly understandable why this may be a conversation you wish to avoid with aging parents. Sooner or later it has to be discussed because otherwise you’ll suffer the consequences of unexpected bills and the state taking over your family assets. The earlier you can address these issues the easier it will be to manage.


Chart Your Success – 3 Forex Chart Mistakes to Avoid

by Mrs Money

With up to $5 trillion worth of foreign exchange trades occurring daily, you won’t be surprised to learn that the Forex markets can be a lucrative place to do business. With many new online trading platforms such as ETX Capital, it is easier than ever to get involved and to try your hand at stock trading, making money without leaving your house! In this high stakes arena, there’s the potential for huge gains, but also for heavy losses. So, what can you do to optimise your chances of success?

Traders use charts to monitor the markets and to help inform decisions about when to buy or sell stock. Being able to read these charts effectively is of critical importance and here are three tips to help you avoid making mistakes and thus losing money.

See the Bigger Picture – Chart Time Frames

Charts show you what is happening to stock prices over time and you can change the time frame you are looking at, So, for example, you can look at a charts progress over one minute, five minutes or an hour. New or inexperienced traders can make the mistake of only monitoring short time frames and therefore don’t see patterns and trends that have happened over longer periods of time, stock may look over or under-priced and good to trade, until you look at the bigger picture and realise that in fact it isn’t.

Parabolic or Diabolic – Don’t Use Too Many Indicators

Indicators, such as, ‘Moving Average’ indicators, can help you to analyse what is happening on a chart, but having too many indicators up on screen at the same time can lead to confusion and you can spend too much time trying to work out what they are all telling you instead of watching what is happening to the stock price. Using just one or two indicators will mean you are less likely to loose focus of what is really important – when to trade or when not to trade. ‘Moving Average’ and ‘Bollinger Bands’ are two good indicators to use.

The Top and Bottom of it – Support and Resistance Levels

Support levels indicate a price that stock is unlikely to fall below and resistance levels is a price that stock is unlikely to rise above. It is important that you don’t ignore these because they can be a useful indication of when to buy or sell stock. If you want to “go long”, or in other words buy stock in the hope that the price will go up, you want to buy the stock at the lowest price you can. If you want to “go short” then buying stock at a high price means you will make money when the price falls.

Forex trading is fast and exciting and knowing how to use charts effectively can help you plot your way to success.

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