Many people do not really enjoy thinking about their impending passing from this earth, which means that questions about wills, trusts, and estate distribution can be disconcerting.  Still, it’s smart to consider what will happen to your estate and your sentimental belongings at your passing.  Keep in mind that the more you prepare for that time of your life, the more you express your care for those you love; leaving them without making your wishes known can leave them bewildered, confused, and upset.

Take control now.

A will and or trust ensures that your belongings go to the people you choose.  If you do not have a will in place, the court will appoint someone to distribute your assets—both the big ones (like your home) and the little ones (a sentimental pair of earrings or a watch, for example).  Most of us would rather make those choices ourselves.

A Will or a Trust?  Or Both?

Should you prepare a will, or a trust, or both?  Perhaps defining each of them and comparing the two will help.

What is a Will?

A will is a written legal document that allows you to distribute your property as you wish upon your death.  You can:

• Select beneficiaries of your property
• Choose someone to execute your wishes
• Receive court supervision to assure that your “executor” follows your guidelines.

Keep in mind that a will becomes public information once you pass.  They are subject to probate proceedings should a probate become necessary (which can be very expensive)

If you have children, you will name a guardian for your children if you pass away.  Interestingly, there is nothing automatic about this named guardian; the court still must affirm your nomination or reject it—although rejection of your selected guardian rarely occurs.

A will is almost always less expensive to prepare than a trust.  A will is done when it is done—requiring no further action or involvement on your part.  A trust, however, morphs as your life unfolds.  The trust will be funded and developed while you are alive; so the ongoing work brings about ongoing expenses.

What is a Trust?

A Trust is just a different way to transfer your property upon your death.  Some consider it an “alternative method” to a will.  The trust differs from the will in that you manage your estate while you are living; a will manages your estate when you pass.  With a trust, you have a trustee (yourself or someone you name if you are no longer willing or able) who manages your property according to your wishes.  An attorney can help you weigh the pros and cons of both; and then, assist you in creating the legal document that you choose.

Why do people choose a Trust over a Will?

• Living trusts are not subject to probate proceedings.
• No court supervision is provided (or needed) should benefits be challenged or disputes arise.  All defers to your successor trustee.
• Trusts are private matters—not open to the public.
• You continue to manage the assets in your trust as long as you are alive and of a sound mind.
• Should you lose the mental or physical ability to manage your trust, you name a “successor” to do so for you.
• There will be no probate costs if all of your assets are held within the Trust.

Keep in mind that trusts cost more than wills to prepare because they are ongoing and developing over your lifetime; you will be funding the trust and managing it along the way, rather than simply writing up a will and being done.

Since a trust is something that you establish during your living years, it can also bring you benefits while you are living.  Over time, you will continue to transfer all of your estate into your trust.  And, you can arrange that, upon your death, any assets not within the Trust at that time can be transferred.  This will keep your property out of probate court.

Here’s the bottom line

You should choose at least one.  If you die without a will or a trust, the state will gain control of your assets and will distribute them as it sees fit to a surviving spouse and/or your closest relatives.  This removes you completely from the picture, and you may not like the results.

Many Choose Both.

Go ahead. Create a will.  Include a trust within that will if you’d like.  The goal here is to make sure that at the end of the day, all of your assets go to those you love rather than become the property of the state.  If you have children, you can include a trust within the will that sets up instructions for how and when your minor children get what they need.  If it costs a little more to do a trust or a will and a trust, so be it.  Your family will be blessed by your attention to details during a time of grief.

Do you have a will set up already?  Do it for $69 at Legalzoom today!

Related posts:

1. A Prosperity Theology Dilemma: What Does “Living Like a King’s Kid” Really Mean?

Ever since the popular book “Smart Girls Marry Money,” came out in 2009, the subject of women marrying for money has become a hot and controversial topic.

We all know the tired and clichéd scenario that is portrayed so often in Hollywood flicks:  the gold-digger woman who goes looking for a rich man to marry, only to move swiftly on to her next victim after she has milked the poor old geezer for every penny he is worth.

Of course, if you are considering a marriage of convenience, it is unlikely that you are planning to go to such lengths. Presumably, all you want is a bit of security and a life that is free of stress and hardships. Maybe you had a difficult childhood and had to fight for every scrap of food on your plate.   Perhaps you had a business that ran into the ground, or maybe you are just disillusioned with the Prince Charming fairytale that has been shoved down your throat ever since you were old enough to tie your shoelaces.

Whatever your reasons, you should know that marriages based solely on money do have some pitfalls. Before you make a decision based on visions of sparkling diamonds, gleaming yachts and fancy dinners, we are here to tell you why marrying a man for his money may not be your best idea yet.

1. Women need ambitions

Whether you are a feminist or not, you will have to agree that the desire to snag a rich man hardly qualifies as an ambition. Not having a goal to work towards will leave you feeling unsatisfied and unfulfilled in the long run.

When we are young, we often have big dreams and ambitions, but as the years drag on and we are faced with problems like debt and failure, we tend to sacrifice our dreams for security. However, security will never be able to replace your desire as a human being to accomplish something in life and leave your mark on the world. Before you trade in your ambitions for security, take a good hard look at yourself and see how much are willing to give up for that comfortable lifestyle.

2. Money does not equal happiness

Yes, it’s the old cliché that money can’t buy you love, but in this case, we aren’t necessarily talking about love. In the same way that you shouldn’t rush into a marriage just because you are in love, you should also never get married just because there is money involved. No matter how attractive that big house in the suburbs seems at this moment in time, you need to consider the future.

Is this really the man you want to share the rest of your life with? Do his values and ambitions match up with yours? Does he want children? Do you want children? These questions apply both to marriages for love and marriages for money. Love is often blind, but money can be equally as blinding — and if money is your only motivation for marriage then you will probably not be very happy.

3. Co-dependency affects self-esteem

Planning your life entirely around someone else’s life and career will cause your self-esteem to take a hit. You may not feel that way now, but just wait until you have been living comfortably off someone else’s salary for a few years and see if it doesn’t make you feel a little less than adequate.

4. Your marriage will lack romance

A man who knows you married him for his money is not likely to continue to woo you with flowers, moonlight walks or simply taking time to hear about your day.   He has no motivation to impress you because he knows you are not going anywhere.  If a lifetime of romance is a high priority for your marriage, don’t marry for money.

5. A greater risk of infidelity

Research has also shown that wealthy men are more likely to be unfaithful in their marriage than men with lower incomes. Scientists found that the reason for this is that wealthy men tend to feel entitled to cheat due to the fact that they have earned their success.  This may not happen to you, but be aware that marrying for money puts you at higher risk.

6. Rich people are rude

Absurd as this statement may sound, research has shown that the richer someone is, the ruder that person will be.  Scientists at the University of California, by studying the body language of 100 undergraduate students while they were engaged in conversations, discovered that those from higher socio-economic backgrounds were far more likely to be rude during gaps in the conversation. Those from lower income families made more of an effort to be engaging by making eye contact, raising eyebrows or laughing, while those from richer families would fidget or begin grooming themselves.

Psychology professor Dacher Keltner who led the study commented, “Men with less money try harder socially because making connections is a survival skill—and rich men may subconsciously believe they don’t need it.”

7. Money may not last forever

Last but not least, you should consider the fact that nothing lasts forever. People can make bad decisions, lose their jobs or go bankrupt, and then what will you have? This may sound fatalistic, but basing your whole life on something that could be gone within a split second is risky to say the least.

At the end of the day, it’s your life and you need to do what you think will make you happiest. But don’t fall into the old mindset that says you need to marry well in order to be happy. If you are unsatisfied with your career or romantic life, you are the only person who can change that. Sure, marrying into money will give you financial security, but is that really going to make you a happier individual in the long run?  It is highly unlikely.

Ally is part of the team that manages Budgeting Spreadsheet and How to Save Money, which are both personal finance-related sites based in Sydney, Australia. Before joining BS & HSTM, she was a Media Planner in McCann Worldgroup Philippines, Inc., with award-winning executions, including the Levi’s 501 “Live Unbuttoned” global campaign.

Related posts:

1. Five Reasons You Need a Will

“Words are like the wind” Adam said with a sigh. It had been a hard couple of weeks at work and we were both growing frustrated with the lack of action being taken by upper management. Always quick to make promises, the bosses seemed to have a lot of trouble following through. It’s the kind of thing that gets to you after awhile.

Since he said it, I can’t get it out of my head, “words are like the wind”. Such a poetic way to say, “words are meaningless without action”.

It keeps rolling around in my head because I’m wondering if my words are mostly wind. If I’m honest, a hard look at my life reveals unreached dreams, broken promises, and lost potential.

More often than I’d like to admit, my words are wind.

Financially, this is devastating. I’ve always kept up on finances, but most of my friends haven’t. I’ve seen their words turn into wind without actions to back them up. Things like, “the budget is in my head” or “I’m going to save for retirement starting with my next paycheck” or even “I’m going to cut back on eating out” seem to be a mere wind blowing around without merit.

Reality check:  The budget is not in your head, you aren’t going to start investing, and (if you can’t do these first two) what makes you think you’ll have the discipline to cut overspending?

The truth is, you’re dealing with wind as often as I am. We’ve both got broken promises, poor decisions, and wasted talent behind us. It’s not something anyone wants to admit, but it’s true.

What Do You Do?

A realization like this isn’t something you can just gloss over.

Most of you will. It’s likely you’re one of the thousands of people who will read this without seriously considering all the wind passing through without any actions behind it.

Don’t be like that. Take some stock in your life and ask a few hard questions:

• What promises am I breaking?
• What do I say I want to do but keep neglecting?
• Where am I untrustworthy?

Three hard questions to ask. Three answers you probably don’t have time to deal with right now.

Do it anyway.

Minimize your browser, step away from your computer, and take a few minutes to think about all the things you aren’t doing – things you always say you’ll do someday.

Now pick one of those things and start it today. Do the hard work. Make it count.

There use to be a time when a person’s word meant something. Make yours mean something again.

What aren’t you doing, even though you always say you’re about to?

Alex Humphrey is a personal finance writer and coach at EntrepreLife a personal finance blog that teaches easy ways to dominate money by dropping debt, investing well, and saving for the things you love to do. When he’s not blogging he leads a youth group, spends time with his wife, and figures out new ways to teach people personal finances. You can follow him on Twitter and Facebook and subscribe to the EntrepreLife mailing list.

Have you ever thought about how Jonah relates to your finances? If not, you should.

For those who didn’t go to Sunday school as a kid, Jonah was one of God’s prophets. He came from a rich family and was a big deal prophet of God.

One day, God tells Jonah to prophecy to the most horrible people in the world: the Ninevites. God wants them to know He’s coming for them if they don’t repent. Jonah, not being overly keen on God’s idea,  hopped on a boat heading as far away from Nineveh as he could get.

If you went to Sunday school you’ve got this next part memorized.

God sends a huge storm and the crew, in order to appease God, throws Jonah overboard.  It works! God calms the storm and has a big fish eat Jonah and take him to land. While in the fish’s belly, Jonah has a change of heart and agrees to prophecy in Nineveh.

Once there, Jonah gives the absolute minimum effort. He tells the Ninevites God’s going to kill them and offers them no hope.

The Ninevites believe Jonah and God’s message gets all the way to the king who calls for the entire city to repent of all the horrible things they’ve done.

God relents, but Jonah isn’t happy about it. He wanted to see God kill the Ninevites. At one point he even tells God the whole reason he avoided prophesying to Nineveh was he knew God is merciful and wouldn’t kill them if they repented.

God asks Jonah some poignant questions and we never find out Jonah’s answer.

What Does That Have To Do With Money?

That’s a good question.

The truth is, God will make you do things with money that will make you resent Him. He’ll tell you to give money to someone whom you’re sure will blow it on alcohol; he’ll ask you to take on responsibilities you can’t fathom affording. And once you begrudgingly follow through with God’s commands, he won’t work everything out the way you hoped. He won’t repay your tithes 100 times or give back the thing you gave up to follow Him. He’ll never change His character to accommodate your feelings. He will always do the right thing, and — because you are His child — He’ll make sure you’re doing the right thing too.

And that’s a good thing.

Money is an idol in America and no one is exempt. We all prefer the safety of our stock options over the safety of God. We’d prefer a million dollars in the bank and a few hundred in our pockets than total reliance on the creator.

But God doesn’t play by those rules. He’s going to do the things that are better for us and for those around us – and he’ll make us do them with Him.

When I’m stuck in a hopeless situation; when my income stifles; and when I don’t like how things are working out, I’ll consider Jonah and remember that God is good, He’s in control, and I can trust Him.

It probably won’t make me feel better, but it’ll get me thinking in the right direction.

What is God making you do?

Alex Humphrey is a personal finance writer and coach at EntrepreLife a personal finance blog that teaches easy ways to dominate money by dropping debt, investing well, and saving for the things you love to do. When he’s not blogging he leads a youth group, spends time with his wife, and figures out new ways to teach people personal finances. You can follow him on Twitter and Facebook and subscribe to the EntrepreLife mailing list.

Even with all the advice here at Personal Finance By The Book, you still managed to overspend this holiday season.

It’s not that surprising; one-in-three Americans put their holiday on credit cards. Many more used loans, credit lines, and same-as-cash deals to pay for the big day. And with presents, eating out, travel, and increased utilities (your mother-in-law needs to take shorter showers) you’ve found yourself up to your eyeballs in bills.

But fear not! There is still a way to enjoy 2012 without paying Christmas debt for the next 6 months.

Using these three methods to make some extra cash this year and get out of the mess left from the holidays.

Sell Unused Stuff

January is a good time to get rid of all the junk you’ve built up in recent years.

Even the most frugal among us has useless junk lying around their house. You are not the exception. Maybe it’s a shirt you never wear, a lamp you never use, or plates that have been collecting dust for years. Whatever it is, you need to find all that stuff, set is aside, and sell it.

There are plenty of ways to make money. You can:

• Sell things on consignment. Consignment selling is a great way to keep your stuff local and make a little cash.
• Get it on eBay. For all the hate eBay gets, there are still millions of users buying things from it every day. Put your stuff on eBay and make a little bit of money. Amazon is another great way to sell stuff, but it usually takes longer.
• Use Craigslist. Like consignment, Craigslist is a great way to sell your stuff locally. Just set your price, post your ad, and wait for emails. You may have to deal with some hagglers, but you’ll probably sell it at a great price.

If you’re having trouble getting rid of things, use the four-seasons method to decipher what’s useful and what’s “stuck”. All you have to do is ask yourself:

“Have I used this in the past 12 months?”

If the answer is “no” then you should sell it. Going all four seasons without using something means you likely won’t ever use it – no matter what you tell yourself.

The only exception to the four-seasons method is truly meaningful stuff. This doesn’t mean you save things you might use someday; it means you save things that have meaning (like pictures, heir looms, etc).

A Part-Time Job

You should have seen this one coming.

The best way to make a little extra cash is to get a part-time job. Minimum wage is over 7 dollars an hour and with 25-30 hours you can make enough money to get that Christmas debt paid off. If you get a job that includes tips (pizza delivery, waiting tables, etc) you can get it paid off even sooner!

Someone may say, “You can’t get a part-time job after Christmas! Spending has slowed down.” And while it’s true spending has diminished, it hasn’t stopped. That’s like saying, “You can’t eat after thanksgiving, everyone is full!” And while they may eat less the next day, they will still eat something.

In the same way, people are still buying things after Christmas – just less than they were in December when (like you) they were over-spending.

Cut Spending

Since you refused to cut spending in December, you’re going to have to do it now.

Instead of eating out, stay home in January. When you’re friends want to see a movie, invite them over for a $1 red box viewing. And when you’re ready for a date night, hit up the free-night at your local art museum.

There are millions of ways to save money without ruining your life. Take a look at where your money is going and resolve to slow down in January. This not only frees up cash to pay debt with, but also forces you to change the way you think about spending and saving in the New Year. The creative ideas I’ve seen people come up with when they couldn’t spend money have brought together families, reignited romances, and built relationships.

It’s tough, it’s not as fun (at first), but it’s worth it.

Start Today

You’ve made resolutions, now set some goals. Starting today, look over your budget and find a few things to cut. Then go around your house and pick two or three things to sell. Once you’re finished, list out a few places you can apply at a part-time job.

In no time, you’ll work your way out of Christmas debt and be able to start the year off right.

Aren’t we all looking for the freedom to enjoy the year without the stress of last year following us?

Alex Humphrey is a personal finance writer and coach at EntrepreLife a personal finance blog that teaches easy ways to dominate money by dropping debt, investing well, and saving for the things you love to do. When he’s not blogging he leads a youth group, spends time with his wife, and figures out new ways to teach people personal finances. You can follow him on Twitter and Facebook and subscribe to the EntrepreLife mailing list.

Related posts:

1. 5 Ways to Stretch Your Christmas Budget
2. Spending Money You Do Not Have
3. Four Ways a Part Time Job Will Change Your Life Forever

Will your child be better off than you are?

A recent article in Money Magazine provided some interesting statistics.  A group of people was asked how they felt the economy would impact their lives.  From questions about children to retirement and family life, the results were interesting to read.

53% of Americans aren’t sure their kids will be better off than they are.

How many of you have said or heard this before?  It’s a noble thought to want those you love to have a more successful life than you lived.  But half of those surveyed didn’t feel like their children would have it better than they did.

While there are circumstances that we cannot control (i.e. available jobs and investment performance) we can do some things to make sure the next generation is truly better off than we are.  Here are two ways that I thought of:

• Instill an attitude of contentment – I really liked the article that Joe wrote over at Christian PF entitled: How to Raise Non-Materialistic Children.  What better way to set them up for success than to prepare them to be content with what they have in life?  I think we can all agree that a lot of the economic trouble we’re in today was caused by greed and discontentment, so encouraging children to be content with the things they have will put them way ahead of the crowd today.
• Encourage financial education among children – This follows closely to point one.  If you don’t emphasize the importance of a budget and saving when your children are young, they might not catch on until it’s too late.

67% worry their quality of life will suffer in retirement.

Unfortunately, a lot of Americans have held onto a false sense of security when it comes to Social Security.  I think the fear of the unknown has driven many soon-to-be-retirees to the point of worrying.  So how do you combat those worries?  If you can afford it, you can try to max out retirement plans.  You can also take some larger measures and downsize your home.  I know my parents are looking to downsize and it will save them a tremendous amount of money in their retirement years.

80% say they’re eating at home more often.

I definitely fall in this category.  We like to cook at home anyway, but the eating out budget is the first to go when finances get tight.  We still find creative ways to treat ourselves, but we usually end up eating around the table almost every night of the week.

75% say that time with the family is more important than ever.

The wording on this is interesting to me.  It’s not that 75% of people think their families are more important than they were five years ago.  Most would say that their family has always been a priority in their lives.  To me it says that people are realizing which priorities truly matter most.  We’re not guaranteed another day with our family members and we can’t replace them like we can a job or house.  If there is one good thing that has come out of this economic dip, I think we can consider this one a positive thing.

So what about you?  Do you agree with these stats?  Would you fall in the majority or minority for the topics that were mentioned above?

Tim is a personal finance writer at Faith and Finance a Christian financial help blog that provides financial insights for individuals, businesses, and churches. Outside of finance, Tim enjoys spending time with his wife, playing the saxophone, reading economics books, and a good game of RISK or Catan. Find him on Twitter and Facebook and subscribe to the Faith and Finance RSS feed.

Related posts:

1. Even in a Down Economy Your 401k Is Still Your Best Friend
2. Twenty Christians Who Have Changed Our World
3. What is Dave Ramsey Saying About Today’s Economy?

Read about these three toward the end of this post

The traditional view of retirement — working for the same company your entire career and then retiring to draw a lifetime pension — is a thing of the past. Yes, some government workers continue to retire with paid pension plans, but as states and municipalities continue to fight for survival, these pension plans will also be phased out. To add to the angst, Social Security is scheduled to run out of money within the next 25 years.

The bottom line is that many, many of our upcoming retirees are in trouble. The average baby boomer has less than $100,000 set aside for retirement and, according to Financial Planning magazine, 56% of those nearing retirement age have no idea how much income they will have in their retirement years.  Because they have no personal finance plan, the time to wake up is now.

“But Joe”, you stammer. “It is too late for me to do anything now. I have waited too long.”

“Wrong! You just need to redefine your retirement. These tips will help.”

1) Learn where you stand.

Whether you run the numbers yourself or get some help from a financial counselor, you need to know the truth. Answer these questions: “If nothing changes, what will my retirement income be?” and “How does this compare to my current standard of living?”

2) Budget accordingly.

Based on what you learned, make the appropriate changes now.  Make those sacrifices today, while you have a choice, because some day you won’t have that choice.

3) Pay off your house.

Think of it this way: getting that house paid off will bump your retirement cash flow by whatever payment you are currently making. Besides, having your home paid for in your retirement years will give you a security you wouldn’t have otherwise.

4) Invest in your health.

No matter how fit you are financially, your retirement will be dampened if you lose your health. Our local community college offers exercise curriculums, with all of the equipment and a trainer for only $30 a semester. The time to invest in your health, regardless of your age, is now.

5) Don’t retire.

One way to redefine your retirement is to change that definition from one of lazing around for the last 20 or 30 years of your life to one of staying active and productive. Ask yourself, “What dreams have I left undone?” If you do what you love to do, you won’t want to quit doing it…ever! Fulfill that passion and your later years will be full of wonder and meaning.

To close this post, I challenge you to allow some of these seniors inspire you to redefine your retirement:

• Olive Riley: began blogging at age 107, and continued until two weeks before her death at age 108.

• Pierre Jean “Buster” Martin: Claims to be the United Kingdom’s oldest employee at the age of 102, and notably refused to take a day off on the day he celebrated his 100th birthday. Martin entered the 2008 London Marathon and, according to press reports, he walked the 26 mile course in approximately 10 hours.

• Arthur Winston was a Los Angeles Metro employee for 72 years. He is best known for being honored as the “Employee of the Century” because he was never late to work and only took one day off during his entire career.

• Ron Donahue (72), Norm Benson (77) and George Nesbitt (80), who volunteer their carpenter skills to make school desks for special needs children.  (See picture at beginning of post).

Maybe you won’t run a marathon or work for one company 72 years, but you CAN live life to the fullest for all of your life.

Doing so will redefine your retirement.

Readers: In what ways do you need to redefine your retirement?  What changes do you need to be making today?

Related posts:

1. Retirement Funds Tanked? Time to Redefine Your Retirement.
2. Guidelines and Tax Saving Tips Pertaining to Retirement Savings
3. Think You’re Too Old To Plan For Retirement? Think Again.

"Do not store up treasures in this world, where rust will destroy."

Tell me if you have heard this one, “Hey buddy. Have I got a deal for you! This is a zero risk high yield investment which will pay huge dividends. Guaranteed!” Sleazy and cheesy, huh? But don’t walk away just yet. There really IS such an investment …one that will pay dividends forever! In fact, forever is the key word. Once you start thinking in terms of eternity, you will be laying your money down. What am I talking about? An investment touted by no other than Jesus Christ: “Don’t store up treasures here on earth, where moths eat them and rust destroys them, and where thieves break in and steal. Store your treasures in heaven, where moths and rust cannot destroy, and thieves do not break in and steal. Wherever your treasure is, there the desires of your heart will also be.” Matthew 6:19-21

Absolutely guaranteed

There you go. Our investments here on earth will always be at risk. The stock market can fail, banks can fail, the dollar can fail and nations can fail. We foolishly think these investments give us security, but the truth is this: even if all our investments last us our entire lifetime, they will still be worth zero to us when our lives come to an end. A wise financial planner will challenge us to get out eyes off of today and think thirty years into the future. Jesus tells us to get our eyes off of this world and think thirty thousand or thirty million years into the future. According to Jesus, only an eternal investment is absolutely guaranteed to last. Everything else is guaranteed to fail. Does it not make sense, therefore, that we should be taking advantage of Jesus’ offer?

You can’t take it with you.

You may have heard this one, but it bears repeating. John D Rockefeller was one of the richest men who ever lived. After he died, someone asked his accountant, “How much money did Mr. Rockefeller leave?” His classic reply? “All of it.”

The Psalmist agrees, “So don’t be dismayed when the wicked grow rich and their homes become ever more splendid. For when they die, they take nothing with them. Their wealth will not follow them into the grave.” Psalms 49: 16-17

The bottom line is the obvious: investments in this life are temporary; investments in Heaven are eternal. We would do well, therefore, to make eternal investments.

How do we take advantage of this guaranteed investment?

In many ways, heaven is the antithesis of earth. God’s reign is unhindered in heaven while Satan is considered the “god of this world” (2 Cor 4:4). This life is full of sorrow, but all of our tears will be wiped away in heaven. We struggle with sin as long as we live on earth, but we will not even be tempted to sin in heaven. Our investments likewise are turned upside down in heaven: we build our earthly nest eggs by squeezing our possessions tightly, but we can only store treasures in heaven by giving away what we have.

This doesn’t mean that we should give away every penny we ever touch. God expects us, for example, to use money to provide for the material needs of our families (1 Timothy 5:8).  We should likewise be prudent in saving for emergencies and planning for our later years. But make no mistake: EVERYTHING we hang onto is fleeting. Eternal investments, on the other hand, can be made only by giving.

Think “delayed gratification”.

We live in a microwave society of instant gratification, but storing treasures in heaven is the ultimate form of delayed gratification. We are intentionally and deliberately giving away what we have here on earth, a tactic many would consider short sighted. However, think one moment of the ramifications of eternal investing. In his book “Managing God’s Money”, Randy Alcorn poses this scenario, “Suppose I offer you a choice of $1,000 today or $10 million dollars if you wait one year, then $10 million dollars more every year thereafter. Which would you choose?” Only a fool would accept the $1,000 today.

Yes, that year might seem like a long time, but the wait would be worth it. In the same way, heaven might seem like a long time off. But once you get there, won’t you be glad you were willing to forego the temporal treasures of earth in order to enjoy your heavenly investments forever?

Life here on earth is but a blink when compared to the eternity of heaven. The time to start your guaranteed investment is now.

Readers: Jump in here.  Does this seem like “pie in the sky” or something to be seriously considering?

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2. How to Purchase Long Term Care Insurance: Ten Great Tips
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Great retirement will require some ingenuity

For many Americans, the prospect of a dream retirement is fading.  However, those very factors which produce so much gloom can actually make retirement better.  Hold that thought as we first examine the bad news about retirement.

Retirement Pensions are Gone Forever

The days are gone forever when an employee worked for the same company his entire career and retired with a lifetime pension. Industry can no longer afford such extravagances and even government workers are giving up pension benefits as state and local governments nationwide are struggling with huge budget deficits.

The 401(k) is “iffy”

I am a huge proponent of the 401(k) because it forces us take responsibility for our futures. However, with a struggling economy, many companies have cut back or eliminated their match. Without the match, employees are less prone to contribute, thus amplifying retirement shortfalls.

The future of the market is shaky.

Whichever retirement vehicle one uses, if it is dependent on positive stock market returns, the fragility of the market gives little assurance that an investor can depend on having achieved his desired nest egg by his projected retirement date – or hang on to it once retired.

Social security is under funded.

For the first time in 30 years, Social Security will pay more than it takes in this year. Those who run Social Security predict the program will go into the red permanently by 2015 and will run out of money in 2037 unless dramatic changes are made.

How could all of this possibly be good?

Good question. Let’s start by rethinking retirement. Realistically, a life of leisure may not happen for you. But this is not bad. This study indicates that when people retire with little to do, their life expectancy plummets. Why? Evidently work gives people purpose, and people without purpose don’t live as long.

Living your purpose is good.

Reality is that you may need to continue earning an income at a more advanced age than you had previously thought. Therefore, instead of viewing work as drudgery, now is the time to dovetail work and purpose. After all, if you are going to be doing it anyway, why not be doing something that you are gifted at, something that you love, something that meets a need in others’ lives and something that gives you purpose. Your life will have a new vitality and you will not only live longer; you will live better.

Developing ingenuity is good.

With your retirement future hazy, you should develop as many income streams as you know how. This doesn’t mean working 100 hours a week, but it does mean becoming more innovative.   When you allow your creativity to kick in, you will discover both active and passive income ideas — many of which you will be passionate about and will therefore will want to continue later in life. Yes, you need ingenuity, but that is a good thing.

Serving others is good.

“What?” you say, “You challenge me to find my purpose and develop my ingenuity. Now you say I need to be serving others. This is overwhelming!”

My response is that your purpose will include serving others. You weren’t put here on earth to live for yourself. A truly prosperous life is one focused on others, not yourself.

Concluding thoughts

Realistically, your retirement might not come exactly as you schedule it. However, this is not all bad. If you make plans now to find your purpose, become ingenious about your income streams and make serving others a high priority, you will live a rich and fulfilling life.

Allow this quote from James Michener settle deep within:

“The master of the art of living makes little distinction between his work and his play, his labor and his leisure, his mind and his body, his information and his recreation, his love and his religion. He hardly knows which is which. He simply pursues his vision of excellence at whatever he does, leaving to others to decide whether he is working or playing. To him he is always doing both.”

Thanks: My 91 year old Mom, who continued in the work force well into her 70′s, is the inspiration not only for this post, but for me personally.  Thanks Mom!

Readers:  Does the gloomy retirement outlook throw you into a funk or motivate you to be more innovative?  In what ways?

Note: This is a modified version of a previous post I wrote for Christian PF

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2. Are Debt Consolidation Loans a Good or Bad Idea?
3. Credit Card Airfare Rewards: The Good, Bad & Ugly

A reader recently shared these thoughts with me, “My husband and I are from the ‘great depression era’, which always meant if at all possible, don’t go in debt.  For the past 10 to 15 years we have watched people as they lived ‘the American Dream’. To us it was watching them as they lived far above their paycheck. Then reality hit and, by the thousands, have lost everything.”

This letter challenged me to ask, “What exactly is the American dream?”  My ensuing research reveals that this definition has changed over the years — and not for the better.

The original American Dream

America’s Founding Fathers gave us their meaning of the American Dream in the Declaration of Independence: “We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness”…

Note that wealth and materialism were totally absent from this definition.  In fact, many of our founders gave up their wealth to pursue this dream … a dream of a land where the people were free to pursue happiness.  This very pursuit, I believe, constitutes the dream.  It is an ongoing endeavor, for the moment anyone quits pursuing happiness, he also quits dreaming.

The Dream Today

Now…fast forward to today and ask yourself  how you would define the American Dream.  In fact, ask anyone you know how they would define the American Dream.  My guess is that it had something to do with owning your own home.  Assuming I am right, read on.

The Dream Becomes a Nightmare

Many, in their zeal to achieve this dream, purchased too much home.  Then, as the real estate bubble burst, they found themselves irreparably attached to their house, making the ongoing payments as long as they were able or facing the prospect of foreclosure if a hiccup disrupted their income stream.  The dream, for many, has become a nightmare.

But, as horrible as this financial nightmare is, I believe the change of the dream has produced an insidious nightmare which is much more prevalent.  We have substituted brick and mortar for the dreams of pursuing our passions, discovering our gifts and using those gifts to make this world a better place.  In losing the original dream we have compromised the zest for life that America was once known for.  We have also compromised our honor.

Don’t misunderstand me — we own our home, but doing so does not fulfill my dreams.  Like the founders, my dream is to discover and live out my purpose for being here on earth.  I pray that you too will adapt the original American Dream.  Anything less is second best.

That sounds like a nightmare to me.

As I researched this topic, I came across the following blog posts that are well worth the read.

• The American Dream is an Illusion at Free From Broke

• Are You Chasing the American Dream?  Maybe it is Time You Stop. At Redeeming Riches

• Is Home Ownership Still the American Dream? At Frugal Dad

• Selling the American Dream at Little House in the Valley

• Retired Early, In Debt, No Job: When the American Dream Becomes a Nightmare at Fiscal Geek

Readers: How do you define the American Dream?  Has this post changed your thinking in any way?  If so, how?

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1. Dream Home Roundup
2. 102 Adventurers, Pestilence, A Mysterious Native American and Providence
3. Preventing a Tax Nightmare by Preparing for a Disaster Now