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How to Talk to Your Adult Kids About Your Financial Assets

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At some point in nearly everyone’s life, they have to prepare for a challenging conversation. Speaking with your adult children about your financial assets isn’t always easy. Some believe that their situation isn’t their kid’s business. Others worry that what they have to say will disappoint their children. However, discussing your financial circumstances with your adult children is important. Otherwise, they won’t know how you want your estate managed or might not be aware that you need help. Luckily, it is possible to handle the conversation skillfully. Here’s how to begin.

Have the First Conversation ASAP

The sooner you start talking to your kids about your financial assets, the easier the situation is to manage. Whether it’s letting them know that you have enough available to cover you in retirement – which can be a relief for worry-prone kids – or letting them know what their inheritance may look like, getting the ball rolling is critical.

Even if you don’t have many financial assets, letting your children know now instead of later is wise. That way, they understand where you are today and can help make sure that your future is secure.

Plus, this lets everyone test the waters when it comes to topics like powers of attorney or estate executors. Ideally, you don’t want to make one of your children the executor of your estate if they aren’t comfortable with that responsibility. However, you won’t know if someone is averse to that title unless you talk about it.

By having the first conversation as soon as possible, you are also creating an opportunity. If you’ve never spoken about it before, your children might not know about your final wishes. If you have plans about where your financial assets should go after your passing, telling them now gets everyone on the same page.

Ultimately, these aren’t topics best discussed during an ongoing crisis. Make plans to sit down with your children as soon as you can to get everything moving in the right direction.

Talk to Everyone Together

If you have more than one adult child, getting everyone involved in the same conversation can make things easier. It ensures that all of your kids have the same information, decreasing the odds that there will be any confusion. Plus, it helps you avoid looking like you are favoring one child over another, which can make the situation more volatile.

Ease into the Topic Slowly

For many children, thinking about their parents passing away is hard. If you approach the subject too quickly, their emotions may spike, making the discussion less effective.

While you do have to start the conversation somewhere, try to use a gentle approach. Let them know that you want to plan on the off-hand chance something happens. Also, reassure them that everything is fine today (as long as that is actually the case).

You can also initiate the discussion by referencing new information you may have seen. For example, if you read an article about the costs of long-term care, you can mention that and let your kids know that it got you thinking. Then, just segue into the conversation naturally.

Focus on the practicality of the discussion. Mention that you have a plan and want to make sure it is followed. Try to remove any emotional context from the conversation, concentrating primarily on facts and hard numbers.

At Least Cover the Basics

In some cases, you don’t want to divulge every detail. If you aren’t likely to need financial assistance from your children or have substantial assets and don’t want them to see the dollar signs associated with them, then make sure you cover the basics at a minimum.

Let your children know where you keep all the critical documents. This includes your will, banking and brokerage account details, titles and deeds, powers of attorney, and anything else they may need to move forward should the unexpected occur.

Also, take a moment to summarize your financial situation. Let your kids know if you have enough to manage your retirement or if you might need support from them.

If you have strong relationships with your kids, you can certainly share more. However, covering those topics should be considered a must-do.

Enlist the Help of a Professional

If you are nervous about discussing your financial assets and plan with your children, consider getting help from a seasoned ally. A financial planner or estate attorney can facilitate a family meeting, ensuring you’ve covered all of the details.

By using a third-party, you can decrease the emotional context discussion significantly. Plus, they can help mediate disagreements or put their foot down on points that matter to you most.

Have you ever tackled talking to your adult kids about your financial assets? Did you find the conversation easy or challenging? Share your experience in the comments below.

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How Mental Health Issues Impact Finances

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How Mental Health Issues Impact Finances

I have struggled with chronic, recurring major depression. So, I know firsthand that mental health issues can impact finances. In other words, mental health challenges not only cost us money, but they also affect how we deal with money. Different conditions can impact people’s saving and spending in their own unique ways. Awareness of those challenges can help us to manage our finances better, despite the challenges.

The Cost of Mental Health Issues

Before we delve into how each diagnosis affects a person’s experience of money, it’s worth noting that mental health issues, in general, affect people’s finances. Dealing with those challenges can be costly. In my case, I needed weekly therapy as well as medication to get through the worst of times. Whether or not you have health insurance, those costs can add up.

Moreover, I needed things that can’t quite be tallied up in exact dollars and cents. For example, I needed a strong support system, which meant that I needed to put in time with friends. Until I learned how to structure friend time around cheap and free events, I spent a decent amount of money on meals and movies together. I don’t regret the cost because it helped build the connections.

I also needed a healthier diet with a focus on nutritious foods. Again, I’ve found ways to cut those costs over time, but buying healthy foods started as an expensive adjustment. Nevertheless, it was wholly necessary for my mental health. In the beginning, I also needed regular yoga classes, because that was the only way I could get my body moving. These days I can do yoga at home and take walks for free, but in the worst periods of depression, I needed to pay for classes to motivate me to go.

Each person finds different things that they have to pay to have strong mental health. People with specific mental health challenges each need their unique combinations of treatments, resources, and quality-of-life purchases. For example, I don’t do well living with other people, so I have to find a way to afford to pay to live on my own. Other people are in the opposite boat; living with people saves them money but also helps their wellbeing. Each person is different, but there is no denying that there’s a financial cost to starting and maintaining mental health treatment.

How Depression Impacts Finances

Each mental health issue requires its own treatment. More than that, though, a specific issue can cause a person to deal with money in unique ways. It’s not just the cost of treatment; it’s that the condition affects one’s ability to earn, save, and spend money. Depression often particularly affects people’s ability to earn money. If you don’t feel like you can even get out of bed to take a shower, how are you going to drag yourself to a job? If you do manage that, how will you be productive once you are there? Many people with depression end up losing time at work or quitting work for a period of time all together because it’s just too hard.

How Unipolar Depression Impacts Finances

Depression isn’t just one condition. We’re learning more and more about this every day. For now, we at least understand that depression exists on a spectrum. At one end is ongoing major depression, also known as unipolar depression. At the other end is bipolar depression, previously called manic depression. There are many different forms of depression in the middle, each of which may impact finances in its own way.

When you think of a classic stereotype of depression, you’re thinking about unipolar depression. It’s characterized by a lack of interest in things and a constant “depressed” mood. Additional symptoms include changes in eating and sleeping (typically overeating and nighttime insomnia combined with daytime hypersomnia), inability to concentrate, and thoughts of suicide and death. Clearly, this kind of depression impacts your ability to earn money. If you don’t even want to live, how can you care about working? If you can’t concentrate or remember things, it’s pretty hard to be productive at work.

Often, people with depression will lose time at work. Not only does this impact earning, but it also impacts saving. I, personally, had to dig into my savings and get loans to be able to pay for my treatment and other needs. I was able to maintain part-time work, but I just wasn’t as productive as I am when I’m at my healthiest, and my depleted savings account reflected that at the time.

As for spending, depression didn’t drive me personally to change my spending much. However, it greatly impacted my emotions around spending. Depression eats away at self-esteem and provokes a lot of shame and mental rumination. I thought a lot about my spending, about my inability to earn well or save money, and most of my thoughts were self-shaming. Of course, that only worsens depression. It’s a bad cycle. I had to learn to be gentle with myself about money as part of my process of getting out of depression, which was the only way I could get back on track with earning and saving money.

How Bipolar Depression Impacts Finances

Bipolar depression is characterized by mania. There may be periods of depression, which can affect finances in the same way as unipolar depression does. However, there are also manic periods, during which a person might feel euphoric, giddy, or anxious. They may experience delusions of grandeur or get unrealistically excited about a major project.

Bipolar depression specifically affects spending. In manic phases, people may engage in impulsive, reckless behavior. Gambling, buying and using drugs, and binge shopping can all lead to financial ruin for people enmeshed in a manic period. Of course, when people are doing those things, it can also impact their job security, which could also affect earning money. Likewise, manic periods can cause problems in some housing situations, and changes in housing can have financial repercussions.

Some people don’t engage in obviously reckless behavior like this. However, their delusions of grandeur can lead to high spending. For example, someone who has a brilliant idea for a new invention might quit their job and take out a large loan to fund that idea. When the mania passes, the idea fades, and all of that spending was for naught.

People with both unipolar and bipolar depression may have disorganized finances. During depressive periods, it’s easy to become overwhelmed by money. Therefore, you might not want to deal with it at all. This can lead to failure to pay bills, using high-interest credit cards because you don’t want to deal with switching and other similar issues. In manic periods, you might just not care about that stuff, racking up bills without attending to paying them.

How Other Mental Health Issues Impact Finances

Depression is just one type of mental health issue. Each type affects finances in its own way. Some other examples include:

  • OCD can cause excess spending. For example, if you have contamination OCD (related to anxiety about germs), then you might use a bar of soap only once before replacing it with a new soap bar.
  • OCD can also lead to job loss. For example, if you have a detailed routine before leaving for work, then it can cause you to be late one time too many.
  • ADHD can lead to disorganization and procrastination with money matters.
  • Social anxiety sometimes causes spending on items or experiences to help a person feel like they “fit in.”
  • Research indicates that people with schizophrenia often have limited financial capacity, meaning that some may need assistance with money matters. One study found that 84% of people with schizophrenia say that their mental health issues cause problems with their finances.
  • People with hoarding disorders sometimes also have spending issues. In some cases, this is due to compulsive shopping. However, spending money on extra storage space is another big culprit.
  • People with substance abuse issues can have financial problems due to spending money on their addictions. In some cases, the lack of money can lead to theft and other financial crimes.
  • People with Narcissistic Personality Disorder may use money to control others.

Of course, these are all just examples of how mental health issues might impact finances. Everyone’s symptoms are different, as well as how they handle those symptoms. Someone with major depression, OCD, or another condition can still hold a successful high-powered job. Just because you have mental health issues doesn’t mean you’ll have financial challenges. Certainly, you can’t assume that someone else will have specific issues because of their condition. However, if you deal with mental health issues, it can be helpful to know what some of the common money issues might be so that you can keep an eye out for them in your own life.

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What Happened to Lyft in the Stock Market?

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On March 29, the Lyft initial public offering (IPO) launched on the Nasdaq. Uber is also gearing up for its own IPO, which should happen during the second quarter of 2019. However, Lyft’s performance hasn’t been ideal. The stock’s value actually tumbled below issuance. As of April 30, things don’t look good for the ride-hailing company. What happened to Lyft in the stock market?

The First Four Weeks

April 28 signaled the end of Lyft’s first four weeks on the Nasdaq. While many were optimistic about what the company could accomplish after going public, investors don’t seem very keen to put their money into the ridesharing service.

Demand for Lyft stock was high on the company’s first trading day in late March. The stock debuted at $72. Once it hit the open market, shares hit above the $87 mark on day one. However, Lyft was at $78 by closing.

While Lyft didn’t end on a high note that day, it was still a more than 8 percent gain. However, that modest success didn’t stand the test of time. On day two, it appeared that disaster had struck, with the stock opening around $75 and closing at about $69. That was a fall of 11.5 percent just in that session.

Lyft did seem to rally over the next couple of days but, by April 10, the stock closed near $60, marking a 31 percent decline from the opening prices.

Overall, the stock’s value fell by 4.9 percent during the first week, then tumbled a startling 19.5 percent in the second. The third week wasn’t as dramatic of a fall, but there was a 2.6 percent drop in price.

By the end of the fourth week, the price was down an additional 1.9 percent. While this is the smallest decline, investors likely aren’t thrilled overall.

Bullish Analysts

One of the more surprising points during this period is that many experts were rather bullish about Lyft’s potential. In one case, an analyst stated that he projected Lyft’s annual revenue growth at 32 percent through 2021. On April 23, 14 of 21 analysts covering Lyft considered the stock a “buy” or stronger. Seven of them had a “neutral” stance, while only one offered a “sell” recommendation.

Even with analysts being largely favorable, it wasn’t enough to stop Lyft’s price from declining.

Investor Skepticism

While it isn’t entirely clear what went through investors mind when Lyft’s IPO landed, something left them skeptical.

One possibility is that Lyft didn’t need to go public. The company wasn’t struggling financially, and its future growth doesn’t depend on the stock’s success. Investors might not feel as if they have their hands on an opportunity to get into something amazing.

Another point worth considering is if Lyft didn’t come in at the right price. Maybe the company was overly optimistic, figuring that name recognition and its reputation would spur more interest than it did. Putting a valuation on a ridesharing company is also challenging on its own so Lyft might have shot for the fences or made a judgment based on data that didn’t pan out.

However, if a price doesn’t seem “fair” to the masses, they’ll let the company know, mainly by avoiding the stock or waiting for the cost to tumble before getting involved.

Finally, Lyft may be growing fast, but that doesn’t mean the company is profitable. In 2018, Lyft lost nearly $1 billion. That’s hard to ignore. Between paying driver’s incentives, subsidizing rider costs, and spending a ton on other initiatives (like self-driving technology and electric bikes), Lyft sent a startling amount of money out of the door.

Unless a catalyst gets Lyft’s stock price moving up, it could keep falling. The initial performance isn’t going to leave investors enthusiastic, so it’s hard to say where the price may go if they won’t get on board.

At some point, Lyft’s stock will settle. Essentially, the market is going to dictate what investors deem an acceptable price, and it is something that Uber needs to watch.

Will Lyft’s IPO Debacle Affect Uber’s IPO?

Uber is probably watching Lyft’s stock carefully. After all, Uber is launching its own IPO in the coming months, and avoiding Lyft’s mistakes is likely a big priority.

The Uber IPO valuation may have already gone down. According to some rumors, the company’s aim was $100 billion with share prices between $48 and $55. However, it appears that $80 billion to $90 billion is what Uber is thinking now.

Plus, Uber’s growth rate is behind Lyft’s. Between the less than enthusiastic reception of Lyft hitting the market and a slower growth rate, Uber may have a tougher road ahead than they originally anticipated.

Do you invest in Lyft? Is Lyft’s stock price a concern? Share your thoughts in the comments below.

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Here’s How to Prevent Dementia

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Dementia is a crippling disease that impacts more than 50 million people worldwide. It has been estimated that it may cost the world economy $1 trillion by 2050. Because of its massive impact, health officials have been working diligently to find treatment and prevention methods. The World Health Organization (WHO) has released guidelines to help prevent dementia.

The Perils of Dementia

Each year, another 10 million people develop dementia. Currently, it is an incurable condition. Researchers are constantly working on a way to treat it without any luck. Instead, they’ve switched their focus to preventative measures.

Many different health conditions and factors contribute to your risk of developing dementia later in life. Although age is a factor in developing the debilitating disease, it is not a normal part of aging and it isn’t inevitable either. WHO estimates that one-third of dementia cases could be prevented.

“In the next 30 years, the number of people with dementia is expected to triple,” said Dr. Tedros Adhanom Ghebreyesus, WHO Director-General. “We need to do everything we can to reduce our risk of dementia. The scientific evidence gathered for these guidelines confirm what we have suspected for some time, that what is good for our heart, is also good for our brain.”

The organization released a 100-page report with various recommendations for people to consider.

How to Prevent Dementia

WHO’s advice is common sense: take care of yourself in your younger years to prevent dementia. The health organization suggests getting an appropriate amount of exercise and having a social life. You should also avoid bad habits such as drinking too much alcohol, overeating, and smoking. Additionally, you should treat any existing health conditions like diabetes, high blood pressure, and high cholesterol.

Some research suggests sticking to a Mediterranean diet may be another preventative measure. More importantly, you should eat well. However, Vitamin B and E, and fish oil pills won’t do anything to help prevent dementia, though they claim to.

“There is currently no evidence to show that taking these supplements actually reduces the risk of cognitive decline and dementia, and in fact, we know that in high doses these can be harmful,” said Dr. Neerja Chowdhary of the WHO. You should get these nutrients through food instead.

There are no games or activities that will help you prevent dementia either, despite claims. There is also a lack of evidence to prove antidepressants will help reduce your risk of dementia as well.

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How to Make Over $60K Working from Home

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jobs that can be done from home

Thanks to technological advances, more jobs can be done from home than ever. Between telecommuting employees and freelancers, about 8 million Americans (5.2 percent of the workforce in the U.S.) work from home at least some of the time, based on 2017 US Census Bureau data. Plus, some of the positions are quite lucrative, crossing well over the $60,000 a year mark.

Jobs That Can Be Done From Home—Make More than $60K

If you want to join the ranks of the home-based workforce, you first have to understand that not every skill or profession will help you get there. You won’t be able to do it if all you are doing to filling out surveys; that just isn’t realistic.

Some of the highest paying work from home positions are in the tech sector. Many IT professionals don’t need to interact directly with customers and can communicate with their coworkers online. Plus, logging into systems remotely is pretty simple with the right tools.

Many of these tech roles do require a substantial amount of knowledge and experience. Additionally, most will consider a four-year degree (or beyond) a must-have. But, if you already work as a software developer, business intelligence analyst, help desk/tech support, or something similar, transitioning to a home-based job might not be very challenging. And, when you do, getting a salary above $60,000 a year is pretty plausible.

WFH Jobs—Accountants, Bookkeepers, and Social Media Managers

Accountants and bookkeepers can also do pretty well in work-from-home arrangements. While you will need some education and credentials as well as the right software to start, it is possible to earn a strong salary. In the US, work-from-home CPAs make an average of almost $64,000 a year.

If you are adept at social media, becoming a social media manager could also help you secure a $60,000+ annual salary. Some freelance writers can also pull in at least $60k each year, though that depends on your skill level and if you have expertise in a particularly profitable niche. Some transcribers and translators can also each that salary point.

However, some options don’t require as much experience either. Some people earn over $20 per hour teaching English as a second language even without a teaching degree. If you manage to secure a full-time schedule and qualify for additional incentives or bonuses, hitting the $60,000 mark isn’t out of the question. If you have skills in a particular field, you might be able to tutor in other areas online too, giving you a different path to pursue.

Tips for Landing a Great Work-From-Home Job

As with any job, you want to proceed with caution. Googling work-from-home jobs will give you some decent results, but there will also be some scams in the mix, so you need to be diligent.

If you want to be a remote employee for a company, then heading to sites like Indeed can help you find positions with reputable employers. Just make sure to focus your search on your profession and filter it only to show remote jobs.

For those who would rather freelance their way to $60,000 a year, starting on a freelancer job site could be a smart move. Upwork, Toptal, Freelancer, Guru, and Fiverr all have strong reputations, and they can help you connect with businesses and individuals looking for people with a wide range of skills. Just keep in mind, it can take time to build your freelancing reputation, so, unless you have a strong portfolio of work already, it might take a bit before you cross the $60,000 mark.

Do you work from home? Share your tips in the comments below.

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Mother’s Day: American Moms Are Struggling to Make Ends Meet

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There is no doubt motherhood has changed in recent years. Many American moms went from being stay-at-home parents in the 50s and 60s to full-time career women. Although it may appear mothers are superheroes, in all reality, many of them are struggling to keep up. Here’s why…

American Moms Are Really Struggling

Most of us are celebrating our mothers this weekend and everything they do. However, doing everything is exhausting. Should we really be celebrating the ability to work full-time, take care of the kids and home, when they don’t even have time for themselves?

“This ideal of what it means to be a good mom is to put your child’s needs above your own. An ideal worker in the U.S. economy means being fully dedicated and committed with your undivided attention – that you can come in at a moment’s notice, that you don’t have anything that distracts. This doesn’t work if you have kids,” said Caitlyn Collins, a sociology professor. And American moms are really struggling.

American societal, economic, and technological changes have drastically impacted motherhood. In 1975, half of the American moms were able to stay home with their children. In 2019, 70 percent of households have both parents working. Not to mention, the price of childcare continues to rise (between $12,000 and $14,000, depending on your location).

Moms aren’t getting a ton of help either. Even though fathers have stepped up a bit, the work balance is still unequal between moms and dads in households where both parents have full-time jobs. Additionally, about half of grandparents live more than five hours away, making it difficult to receive help if it is needed.

Combine that with social media and depression from comparing themselves to other moms out there, and lack of public policy, American moms have it pretty rough. Because paid maternity leave is only available to 17 percent of the United States population, half of moms in America take less than two months off after having their child.

Six times out of 10, after they return to work, they are shamed on social media for doing so so quickly (or simply parenting “wrong”). This has led to an increase in cases of post-partum depression, anxiety, and mood disorders in mothers in America. Even celebrities like Kylie Jenner and Chrissy Teigen have fallen victim to this scrutiny.

So, one day a year, we give these amazing women a “thank you” card and a nice lunch. But is that really enough? What else can we do to help these struggling American moms? 

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