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Money Monday: Getting Started With Estate Planning

By WTOP Staff

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Editor’s note: Money Monday is a weekly column on personal finance, provided by investment advisor Momodou Bojang and sponsored by Arlington Community Federal Credit Union.

As a financial advisor I have the opportunity to help people in many facets of their financial life.

People are eager to have these conversations, yet it’s often more difficult to tackle the hard topics like how to plan for what to leave behind. Whether we like it or not, death is a crucial part of our financial life. Here’s an article that really speaks to this topic and frames this type of financial planning in a more positive light: leaving a legacy.

Leaving a proper legacy has become a science. Here are the basics to help get you started.

A person’s legacy cannot be measured by one solitary event in his or her life. Rather, legacies, like lives themselves, must be measured as a whole. If you’ve ever taken a step back and examined your own life and legacy, what have you found?

Do you feel comfortable with what you’ll leave behind?  How do you want people to remember you when you’re gone? More importantly, how can you make sure people remember you in death, as you were in life? Estate planning has become an important tool in deciding how your life’s work will be viewed. Without it, the courts may decide who gets what. With the proper planning, you decide what individuals or charities receive your assets.

There are a few basic tips to estate planning that will help you formulate a proper legacy. The first, and most basic choice, (but one of the most important), is to choose professionals who can help guide you through the process. Estate planning is tricky and by enlisting the help of a professional you help ensure your planning is done properly and efficiently.

The second is education. By knowing the basics of estate planning, you have a better idea of what you need to do. Here are a few basic tips on what you’ll need to begin estate planning.

Think Ahead: Before preparing the most crucial documents needed for estate planning, it’s important to sit down and decide who you’ll put in charge to make medical and financial decisions for you. You’ll also want to decide who gets what. Picking out beneficiaries and an executor of your estate are two of the most critical decisions you can make. If you have younger children, it’s also important to decide what would happen to them in case of an emergency.

Know which documents you’ll need: In general, it’s recommended that you have a will, a financial power of attorney, a medical power of attorney, and a living will. All of these documents will designate who will make decisions when you’re gone, or if you’re alive but unable to make important choices regarding medical care or finances. Your financial power of attorney will make your financial decisions. Your medical power of attorney will be the person you put in charge of medical decisions, while the living will describes the type of medical decisions you want your proxy to make.

Survey your finances: Make sure you know what you’ll owe when you die, including the costs of probate. Subtract that from your assets and make sure you have a general idea of how much money you’ll have left over. By keeping tabs on your remaining assets, you’ll be more prepared to know what you’ll pay in taxes.

Be ready for anything: When planning your estate, you must be prepared in all areas of your life. From medical to financial decisions and everything in between, it can be an uncomfortable subject, especially when you involve your family in the planning. But by working with a team of professionals, you make sure your estate is covered from all angles.

In the end, you want your legacy to be protected. By carefully planning your estate, you can rest assured that all of the proper measures have been taken to protect your family’s future.

Securities offered through Securities America, Inc., Member FINRA/SIPC. Advisory Services offered through USAdvisors Wealth Management, LLC, SEC Registered Investment Advisor Firm. Momodou Bojang, Representative. Arlington Community Financial Services, USAdvisors Wealth Management, LLC and the Securities America companies are unaffiliated. Securities America and its advisors do not provide tax advice. Please consult with your tax professional regarding your individual tax situation. Written by Securities America for distribution by Momodou Bojang. * Not NCUA Insured * No Credit Union Guarantee * May Lose Value

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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