Finance & Banking


For Major Life Events:


ere are suggestions for staying fo- cused and avoiding costly decisions during changing times. Getting married. Newlyweds should


say “I do” to a plan to manage money to- gether responsibly. Before getting mar- ried, a couple should understand each other’s attitudes toward saving and spend- ing money. And to avoid big surprises, they also should know about any major outstanding debts held by their partner. A husband and wife also should set short- term and long-term financial goals.


Buying your first home. For most people, buying a home will


be the biggest expense of their life, start- ing with the initial purchase (including a “down payment” and fees paid to the lender and others) followed by years of monthly mortgage payments, real estate


Ways to Cope Financially During and After a Big Change H


taxes, insurance and maintenance costs. But homeownership often can be a tre- mendous (perhaps your best) investment and a source of tax breaks as well as sta- bility.


A new child. A new member of the family brings ex-


tra financial responsibilities. You can have one fewer thing to interrupt your sleep at night if you get the family finances in shape. Start by getting spending under control (preferably with a budget). Also build your savings accounts for short-term expenses (especially if a spouse will be leaving a job) and long-term needs (in- cluding college tuition costs). In addition, review and update your insurance cover- age (life, health, disability) and wills (to designate who will raise the child and handle finances in case of your death).


The death of a family member. Contact the deceased person’s attorney


and other financial advisors. Before com- mitting to any funeral costs, consult with other family members and the lawyer about any prior instructions or arrange- ments.


Locate important documents, such as


insurance policies and the most recent will (an original, not a copy). Obtain mul- tiple copies of the death certificate, which will be needed to apply for death benefits (such as through life insurance policies or Social Security) and to access bank and brokerage accounts. If the family’s medical insurance is


through the deceased person’s employer, consider options for continuing coverage. Also, if your family has deposits of


more than $100,000 at one bank, and one of the depositors or beneficiaries dies, you should review the coverage to determine whether funds exceed the insurance lim- its. The FDIC’s rules allow a six-month grace period after a depositor’s death to give survivors or estate planners a chance to restructure accounts. But if you fail to act within six months, you run the risk of, for example, joint accounts becoming part of the survivor’s individual accounts, and that could put the funds over the $100,000 limit. Also note that the death of an owner or a beneficiary named in trust accounts can reduce the deposit insurance cover- age. For more guidance about deposit insur- ance coverage, go to the FDIC’s Web site.


A medical emergency. First, carefully review all doctor and


hospital bills and insurance claim pay- ments/denials, because mistakes do hap- pen and uncorrected errors can be costly. If you are unable to resolve a billing dis- pute with a doctor, hospital or insurer, contact your state consumer protection of- fice or insurance regulator for guidance. Think twice before using credit cards to pay for large medical expenses, espe-


40 www.blackeoejournal.com The Black E.O.E. Journal


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