One mistake that people often make when they start to get into financial trouble and are harassed by creditors or third party debt collectors demanding payment right now is to take loans against a 401(k), IRA or other similar retirement fund. What the debtor fails to recognize is that in Iowa, as in most states,…
As an Iowa Bankruptcy Attorney I have discovered that understanding and applying the exemption laws of one’s state (in our case Iowa) way before one is in financial trouble or heading towards insolvency is extremely useful. People often make financial decisions that covertly challenge their fiscal stability and in the long run turn out to…
As an Iowa bankruptcy attorney I am often met with surprising situations that clients face apart from the bankruptcy. This week a client for whom I am preparing a bankruptcy petition (which is taking time in order to optimize his asset protection) received a lawsuit. It was on a credit card which he originally had…
When one files bankruptcy in any state there are some key factors to consider about your property. You want to have property exempt so the trustee cannot take it, liquidate it and use the money to pay unsecured debt such as credit card or medical debt. There are rules called exemptions to protect the property…
In picking an index fund chose one that has low fees and includes a large variety of different stocks. One very good index is the Standard & Poor’s 500 Index which includes stock from the 500 largest U.S. companies. These companies represent 70% of the value of all U.S. stock. Another and even more diversified fund…
There are innumerable theories, books and seminars on how to invest. People who are trying to make their savings grow typically look to other “successful” sources to help them cultivate their savings. Many of these sources, however, turn out to be hard to understand and follow, despite how great they sound or much they are…
As I discussed in the past, Savings are an essential part of debt management. Remember Savings are 20% of your disposable monthly income. With it you build a reverse pyramid. Stage one is small. You save $1,000 to place and keep in your checking account to provide flexibility. This helps reduce worry each month and…
So far you have calculated 50% of your disposable monthly income (gross income after taxes) for Bare Necessities which pay for the basic expenses you need to live. Many of us are spending too much in this category and in future Blogs I will discuss how to adjust down. But for now to get an…
In trying to gain control of your financial life, you must consider Wants which is an important piece in the three part formula. Remember you allot 30% of your disposable monthly income in order to satisfy this integral aspect of your financial plan. Besides the economic implications, satisfying Wants is fundamentally healthy and necessary to…
The third and last element in the debt relief formula is WANTS. So far we have taken your disposable monthly income (DMI), your gross income minus your taxes, and shown how 50% is for your Bare Necessities and 20% is for your Savings. That leaves a balance of 30% which is for your Wants. If…