Silver Squatters, Botched Rollovers, & Best Cars Under $10k 🚘

Happy Tuesday, HTM family!

Repeat after me:

“I don’t get up in the morning for work. I get up in the morning for ME!”

Yes, work is a big part of your life. But it doesn’t have to control how and when you start each day. You’re the boss of your day, the boss of your feelings, and ultimately your happiness in life.

Keep reminding yourself of the real reasons and things you are living for. Let those be your motivation today.

OK, now let’s chat about money stuff…👇👇👇

TO DO

Write stuff down… ✍️

Budgets, money goals, to-do lists, shopping lists, things you’re grateful for, journaling, positive feedback, etc…

This week: Make things more real by writing them down! Writing = retaining. 💪

FAMILY FINANCE

“Silver Squatters” — Financially Supporting Your Parents 👵

How do you feel about your parents moving in with you later in life?

(Personally, I’m excited. But that’s cause my family is super close.)

The harsh reality is, some of you might not have a choice! — a recent survey shows that 1 in 4 Americans in their 50s are expecting their kids to provide financial and housing support in retirement!

That’s ~25% of folks… Are you prepared for this?

If it’s obvious that your parents are behind on retirement savings, it’s not a bad idea to start taking steps to help them now. A couple of things to consider:

• Start conversations ASAP. Sadly, money is still a taboo topic in many families. But y’all better get over that quick, because ignoring problems only leads to bigger discomfort later. Start soon. Start with the easy stuff. That will enable you to dig deeper in the near future.

• Encourage them to course correct. Your parents might be thinking “it’s too late to save money for retirement”. But that’s absolutely not true! Help them build good savings habits, and encourage debt payoff. They may not save millions before retirement, but any extra dollars they’re able to set aside is better than nothing

• Be specific about how you can help. If it’s housing, be specific. If you plan to pay for XYZ bills, make it known. Miscommunication is the enemy, so make sure everyone is on the same page.

• Help your parents find work they love. Working in retirement may sound like a complete contradiction, but many retirees find it to be a helpful way to bring in extra cash and find new purpose/connection!

• Maintain your boundaries. Helping your parents is a noble thing to do. But remember you need to continue living your life, as well as prioritizing your own financial wellbeing.

Read more: 9 Tips to Prepare for Financially Supporting Your Parents

TOGETHER WITH TRUST & WILL*

Reasons You Should Have a Will… 👨‍💻

Reasons you should have a will:

1. Makes sure the right loved ones inherit the right stuff. 👫
2. You get to legally boss people around from the grave. 😈
3. It expedites the inheritance process. 🕰️
4. Did I mention the ‘boss other people around’ bit? 🤷‍♂️

But seriously, if you don’t have a will, it’s time to make one. Check out Trust & Will. They help create customized, state-specific wills for individuals or couples, all online within minutes.

Don’t wait. You’ll feel superb when this important to-do item is checked off. ✅

INVESTING

The Biggest 401k Rollover Mistake 🙈

This chart from the WSJ is nuts! 👇👇👇

It shows how many people make the classic mistake of rolling over retirement accounts (401k —> IRA) and then forget to invest the funds!!!

Imagine performing a rollover, then checking your balance 10 years later and realizing you’ve just missed out on a decade of investment growth. Ouch!

For any readers with an old 401k floating around, make sure to complete the rollover process correctly…

1. Choose a low cost IRA broker (Fidelity, Vanguard, Schwab are all free and offer low cost index funds).

2. Rollover in a timely manner. Don’t wait months or years to get your funds rolled over. If you need help with the process, check out Capitalize which is a free service that makes rollovers pain-free!

3. Understand the tax consequences. Rolling over money from a 401k doesn’t mean you can “withdraw” funds and just start spending them. If it’s not a qualified rollover (and reported correctly to the IRS), you’ll get hit with taxes and fees.

4. Make sure funds are INVESTED. Once your rolled over money lands in the new IRA, put it to work ASAP. This is the most important step so you don’t miss any time in the market.

Related stuff:

• 💵 Capitalize: Find lost 401ks and roll them over

• 🏡 HTM Blog: 6 biggest 401k rollover mistakes

ICYMI

Noteworthy news…

Compact 🚙
It seems small cars are making a comeback, and it’s all thanks to more budget-friendly prices. Automakers are now revving up production to keep up with smaller/cheaper vehicle demand.

Under $10k 🚘
BTW, Consumer Reports just updated its list of best used cars under $10k for those of you in the market!

Underconsumption 🤑
TikTok’s new trend, #underconsumptioncore, is all about having fun with what you already own, and saying “no thanks” to shopping sprees. Frugality truly is a superpower.

Summerween 🎃
You’ve probably noticed all the big retailers putting out Halloween decorations to get a jump start on holiday sales. As tempting as it is to snag all the fun knickknacks, don’t get tricked into buying crap you don’t need yet!

Overdue 💳
Recent data from the Federal Reserve Bank of Philadelphia shows that credit card delinquency rates surged in the first quarter of 2024, reaching their highest point since 2012. 😳 Credit cards can be a wonderful payment method. But don’t use credit cards if you can’t pay them off, folks!

This is Normal 📈
Great article by A Wealth of Common Sense that help put into perspective the recent stock market turbulence. Keep calm, keep investing!

COMMUNITY

Diminished Value Claim FTW! 🚘

Sharing this insurance win posted in our HTM Facebook group recently👇

Just a reminder if you or a loved one gets in a car wreck… You might be eligible for “diminished value compensation”. This is *in addition* to getting your car fixed up, because typically there’s a market value drop for any cars that have accidents on their record.

Welp, that’s it for now! Wishing you a great week ahead, living your best life! 💪

Best friends out! 🍻