It would be great to answer the door and find that giant cardboard check or to look and see that ALL of your numbers hit in the lottery drawing (and those numbers are all on the same row). Even if it’s just a notice that Great Uncle Phil passed away and left you a nice little check, you will still want to make a plan for your new windfall.

1. Any thing over $50,000 means its time to talk to a professional. You need to understand any legal repercussions that you may have from receiving the money (taxes or other liabilities).
2. Take your time and feel your way through the process. Unless the gift or reward came with an expiration date you have plenty of time to sort through your needs, wants and desires before you begin making a move on the money.
3. Think ahead farther than tomorrow. It might be great to purchase that multi-million dollar estate, but do you also have the funds to keep it up once you have purchased it? You have to plan beyond the purchases.
4. Give to others. Set up a plan to help out others in your community (or in your family). You can do it through a number of avenues and this is another time that having professional assistance will come in handy.

It makes no difference if your windfall is a large sum or just a large sum to you. Slow down, think about what you are doing, and make sure it pans out in the long run.

Death is not a subject most people want to dwell on - particularly when it is their own death. That may be one of the reasons so many people put off writing their wills. If you have any property at all and are over the age of 18 then it is a wise idea for you to have a will.

You may not realize this, but if you die without a will then the state gets to dictate what happens to your assets. If you have no living relatives then the state gets to KEEP your assets. Keeping your money away from the government is something you do every day of your life, so why would you want to give it to the government when you are gone?

It doesn’t take much to write out a will, but it might be a good idea to sit down with a lawyer to make sure what you write is valid where you live. Every state has different probate laws.

Once you get your will written out, you will want to revisit what you wrote on a regular basis and any time a major change happens in your life. Having a will and keeping it up to date will guarantee that your wishes are followed through even after you have gone.

More and more people are moving towards self employment as their income choice. Working for self means setting your own hours, choosing your own job, and working in the uniform of home office choice (for many its pajamas). It even seems that the money is much better once you start working for yourself.

Sometimes the money is better. More often than not you are just missing an important financial feature ” TAXES ” and the government always gets its man (or dollar). Self employment taxes are 15.3 percent of anything that you make over $400 in one year up to $102,000 and after that the rate increases. This covers the full payment of Social Security and Medicare (which use to be divided between you and your employer but now you ARE the employer).

There are some exemptions to the self employment tax, and the tax is based on your net income instead of your gross. But it can still become an expensive mistake if you don’t remember to set it aside for tax season.

Setting up a separate savings account for self employment expenses is one way to guarantee that the funds will be there when the government sends you their bill.

I received a letter from my bank the other day telling me they had waved a NSF fee. The problem was that my local branch and my online account had no record of what the letter was talking about. Hesitance was in every action I made when dialing the number on the letter.

The conversation went something like this:

“This is Jane, may I get your account number.”

“No, Jane, you may not.”

Short period of silence and then “then how may I help you?”

I took a moment to explain the letter I was holding in my hand and her only response was another request for my information.

“But Jane, I don’t know who you are.”

“Doesn’t your letter say your bank?” (I’ve omitted the real name)

“But how do I know that you actually are that bank?”

We went around like this for about 30 minutes before we could come to some form of identification so that she wasn’t giving out my information to someone that shouldn’t have it and so I wasn’t doing the same.

It turned out that is was my bank I was talking to and that a seven month old check had been turned away. In the end it all worked out.

This story is important because the bad guys are always coming up with new ways to get your information. Never dial the number sent in an email or even in the snail mail. Instead dial your bank, credit card or lender directly. At least then you will know exactly who is on the other end of the line.

Buying a home is nerve wracking. You can’t help but worry about the price and if it’s too much. The recent troubles in the real estate market do not make the decision any easier. If you are worried about getting the best deal in town then you just need to follow your ABC’s.

A. Save now for your investment tomorrow. The down payment is the perfect negotiation tool. The more money you are able to put down then the more serious you will look to the seller. Making a large earnest money payment with that down payment money is also another way to show that you are a serious buyer.

B. Shop around for the best lender. Talk to banks, loan officers and other companies that offer mortgage loans (many insurance companies now have bank products as well). Find the product and the company that fits your needs and your price.

C. Be willing to walk away. Set your top price and refuse to negotiate above that.

Purchasing a home ” for the first time or the billionth time ” is usually a painstaking process. Just following these three easy tips will help make the process a little easier the next time around.

The language used with insurance can get confusing. It is important for you to understand what you are agreeing to and how that agreement will work if you are going to ensure that you are covered completely.

Here are just a few important terms (concerning automobile insurance) that you need to know:

Liability Coverage - This coverage protects you against any of the financial obligations that might result from an accident. Typically it will cover physical injuries or property damage up to a certain amount. Most states require that all vehicles have liability coverage to protect the other party in case there is an accident.

Uninsured Motorists Coverage - There are times when accidents are caused by individuals who are not insured or that causes the accident and the leaves the scene. Any expenses that you incur from these situations are paid for through the Uninsured Motorists Coverage that exists in your policy (subject to the monetary limits set by your policy).

Exclusions - The part of the insurance policy that lists all of the different situations that will not be covered by the policy. It often includes situations, properties, perils or even persons that are not covered. The Exclusions section of the policy will cover things that are not expressly included in the policy.

Full Coverage Car Insurance - The term implies that everything is covered but in reality there is no such policy. It is most often used for a policy that is more than just liability and is most commonly used by the policy holder to describe the coverage that is held. Insurance companies do not issue full coverage auto insurance policies.

Gap Insurance - This is the policy you need to guarantee that the amount paid in case of a total loss will cover the gap between what you owe on the vehicle and the market value of the vehicle at the time of the accident. If you are making lease or loan payments then this coverage is recommended.

Collision Coverage - This is the portion of the policy (or the individual policy) that will cover the vehicle when there is damage caused by a collision with another car or object or if the car is upset (turned over) regardless of fault. Typically it is limited to the value of the car minus any deductibles.

The other day I was doing some research into survivor benefits because of a situation that has come up in our family. Some of the information I already knew, but some of it was new (and actually rather shocking).

One thing that my father in law did long ago was put my husband on all of his accounts so that things like checking accounts would not have to got through probate or be subject to inheritance taxes. Leave it to the government to figure out how to get there share. It turns out that not all joint ownerships are safe (although there are exceptions like in the case of spouses have joint ownership).

It is possible that when one joint owner dies, the other joint owner will have to pay gift taxes on half of the value of the property that they owned jointly (minus the yearly gift allowance).

This revelation shouldn’t surprise me, after all there is very little in the tax law that makes common sense. But it did remind me why it is important to talk with a financial planner AND a tax professional before making any decisions about my own finances. What the one misses then the other should be able to catch so that I don’t end up owing (or passing a burden on to my family after I’m gone).

One of the top mistakes people make when it comes to retirement is that they don’t begin preparing soon enough. Start making your plans today so that your retirement can be an enjoyable experience and not something to be dreaded.

1. Make a budget - you will need to know how much money you will need if you are going to save up that much money. You can talk to a finance counselor or use one of the many online retirement calculators to determine your savings needs.

2. Diversify your investments - it really is important not to put all of your eggs in one basket (even if that basket is a well spread out mutual fund). Work through several avenues to secure your retirement finances.

3. Diversify your taxes - most people make all of their investments into tax deferred accounts (where you only pay the taxes when you remove the money). Invest in some programs where you pay taxes on the money now. Not only will you avoid paying the taxes in the future but you can also access the money at your own convenience without penalties for early withdrawal.

It is never too early to start preparing for tomorrow. Educate yourself in the process, become consistent in your savings, and start gathering your retirement nest egg now.

The old adage says if you give a man a fish then he’ll eat for a day but if you TEACH a man to fish he can eat for a lifetime. The show “Extreme Makeover: Home Addition” is learning that lesson the hard way. It seems that one of the families it built a home for is about to lose that same house to foreclosure.

I’m all for helping out families in need. Shows like ‘Clean Sweep’ and ‘Clean House’ come in and help people get their homes in beautiful condition. But these shows also try to help people deal with the issues that got them in the position in the first place.

In defense of the ‘Extreme Makeover: Home Addition’ people, many of the homeowners that they help have gotten into the situation through no fault of their own. But if you pour a mansion style home, with new appliances and new toys, into a home that had none of that it is trouble waiting to happen.

Hopefully the show will begin to provide financial counseling to the families (instead of just suggesting it) and maybe even make it a part of the show since so many other families are facing tough financial times these days.

CNN has an amazing story about a family in Atlanta, Georgia trying to sell their home. It’s not the typical real estate story. Although the Salwen’s 1912 mansion has been on the market for a year now, they’re not eager to sell it for the reason you might think. They plan to donate half of the proceeds to help others.

According to the article it all started when 15-year-old Hannah Salwen noticed a Mercedes stopped next to a homeless man. “I said to my dad, ‘If that guy didn’t have such a nice car, then that guy could have a nice meal,’ Hannah told CNN. That simple idea started a chain of conversations that lead to the family putting their $1.8 million mansion on the market.

It definitely makes you think about the motivation behind creating wealth. So you’re saving money, but what are you doing with it? Visit the family’s website, hear their story and see pictures of the home they are trying to sell.