Free Website Reveals Your Address History and Names of Relatives (Opt Out)

magIf you don’t like the idea of anyone being able to look up your address history and the names of all your relatives, you may want to enter your name into this website. Depending on the information it has gathered on your from public records, it may list personal information about you such as:

  • Your current and past addresses.
  • Names and birth years of your parents, siblings, cousins, and in-laws.
  • All of their current and past addresses.
  • Any variations of your name ever used.

While all of this information is technically in the public domain, I don’t know of any other website that has it organized in such an accessible manner that is both free and does not require any registration. The website was so detailed that it included addresses that even I had forgotten about, as well as name of relatives that I barely know (which is the intended upside, I suppose). I’m more worried about the downside.

The good news is that the website will delete your information upon request. First, you may want to save whatever information they collected about you into a PDF. Next, I would try visiting this opt-out link directly and following the directions carefully. Alternatively, you can follow the opt-out instructions in this Time article. It only takes a minute, and my name record was removed within 48 hours as promised. Found via Bogleheads.

Free Estate Planning Guide and Workbook from American Red Cross

arc_estateIf one of your New Year’s Resolutions is to create an estate plan for you and your loved ones, here’s a good starter kit. The American Red Cross has a free Estate Planning Guide and Workbook which comes in both electronic fillable PDF form or a paper workbook format if you give them your address. It is roughly 50 pages and includes blanks to store your asset and beneficiary information, make future edits when needed, and print multiple copies to share with your attorney and family members. The guide will help you to:

  • Understand estate planning and the importance of having a will.
  • Gather the information they need to prepare to draft or update your will.
  • Discover ways to minimize taxes and liabilities for your families.
  • Explore the benefits of making charitable gifts in your estate plans.

Here’s a snapshot of the Table of Contents:

  • Why Everyone Needs a Will
  • When to Revise Your Will
  • Get a Head Start on Writing or Updating Your Will
  • Three Pillars of Every Estate Plan
  • Will Planning Workbook
  • Charitable Giving Through Your Will or Other Gift Plan
  • Including the Red Cross in Your Will
  • Making a Gift Outside Your Will
  • Gifts that Benefit You and Keep the Red Cross Strong

The American Red Cross also offers another free PDF resource called Disasters and Financial Planning: A Guide for Preparedness and Recovery.

Happy Holidays from My Money Blog

Earlier this month, we welcomed a third wonderful child into our family. (Yes, I know, the picture on the sidebar is really old…) We are truly blessed. I am also grateful for many other things, including your continued readership. While my posting may be lighter over the next oh… 18 years or so, I am still having a good time and hope that this year brings you a little closer to financial freedom and living a life true to yourself, not necessarily the life others expect from you. Have a joyful holiday season!

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(Having photographers available in the maternity ward was a brilliant business idea.)

Sell Your Halloween Candy to Dentists, Who Donate Them to Troops Abroad

ccDo you let your kids create the memories of Trick-or-Treating but not the subsequent cavities from actually eating all that candy? A nationwide network of over 2,500 dentists will buy back your Halloween candy (usually for $1 per pound, up to 5 pounds) at HalloweenCandyBuyBack.com. Find a local dentist by zip code; I found the locator a bit buggy but there does seem to be at least a few dentists in most metro areas. You can also skip the $5 and donate via mail or drop off at these Operation Gratitude locations.

The candy is shipped to our troops overseas as part of care packages by Soldier’s Angels or Operation Gratitude. The children may also write letters of support and gratitude to the troops. The soldiers often use the candy to build relationships with the local children. Ideally, your children will (1) avoid tooth decay, (2) earn a few bucks (money lesson opportunity), and (3) help brighten the day of a service-member overseas! Here’s an ABC new segment about the site:

7 Essential Money Questions from The New York Times

green_questionThe NY Times has a new essay called 7 Essential Money Questions Sure to Start a Conversation:

What follows are the seven best queries that I could find that tend to stop people cold and get them to open up about whatever money they have and the emotions that wrap themselves around their personal finances.

I found myself answering them in my head, so I figured why not share my answers.

What lessons about money did you learn from your parents?

I would say that I remember frugality being a part of everyday life growing up. We would live in apartments and duplexes, while some of my friends would live in big houses. We rarely ate in restaurants, except on birthdays when I got to go to Olive Garden or Red Lobster. I remember being scolded when I used a paper towel for a task that could have been done with a cloth towel. I was taught to use no more than a dab of shampoo. To this day, I have a visceral dislike of wasting food.

Another thing that stuck with me was that my dad worked hard at a career that he enjoyed, but he could have made more money elsewhere. I didn’t like that he seemed to work all the time, but at least he seemed passionate about what he was doing. Together, I feel like I have combined these characteristics. If you can control your spending, you can be more flexible in your work situation.

What does the word “money” conjure up for you?

Well, for starters money means survival. Food, housing, and personal safety. I am a conservative person that enjoys a feeling of security. By making clear what is need vs. want, I can be confident that I have enough in the bank to “survive” for a very long time.

Above that, money means freedom. Freedom to quit a job with management that cares about short-term profits or metrics more than long-term value or people. Forget you money. Freedom to have more kids without worrying.

How many children would you like to have when you retire?

Three. This is such a personal choice. What’s worse, with fertility problems and adoption hurdles you may not even be given a choice.

How do you think your children feel about that?

I think they’ll be fine. They may have to share clothes, books, toys, and later vehicles. They’ll have to share rooms. Every kid doesn’t need their own room… What’s wrong with bunk beds? I hope they appreciate having siblings.

Raising kids is both so more much difficult and enjoyable than I thought it would be. I used to idealize some ideal “future with kids”. Nowadays, instead of long-term planning, I just try to enjoy the process. Every day usually has a few precious moments and a few difficult ones that test our patience.

Tell me about your financial situation when you first met.

My wife and I met when we were both 18 years old and freshmen in college. Her parents had taken out home equity loans to help fund her education. My parents were also paying for a good chunk of my education, and in addition I was accruing what would end up being $30,000 in student loans. We both had part-time jobs (that’s actually how we met, while I was on the job). Our combined net worth was negative.

What are the most important things in your life?

Family, then friends, then community.

What does the prospect of retirement look like to you?

Here’s my ideal “early retirement” weekday from roughly age 40-60. Wake up early. Prepare kids and send off to school. Work at any job that I enjoy until noon. Eat lunch with spouse and run any errands. Pick up kids and play with/teach/chauffeur them. Have the time and energy to be present with them. Cook at home and eat dinner as a family. Put kids to bed. Read. Go to bed early-ish. On weekends, add in hiking, sports, backyard cookouts, festivals, etc. Travel together as a family for 3-6 weeks at a time in the summer.

Lifetime Allocation Pie Chart: Learning, Earning, and Returning

You always see pie charts used to illustrate asset allocation for portfolios. Stocks, bonds, commodities, real estate, etc. How about a pie chart for deciding how to allocate your lifetime:

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This was one of the “life lessons” provided by entrepreneur Tristan Walker in his Bloomberg profile:

Spend the first third of your life learning, the second earning, and the third returning. I try to shorten earning so I can maximize returning.

Your time on earth is a finite resource. Let’s say you put your life expectancy at 84 years. That works out to:

  • From birth until 28 years old, you are Learning. You are building up your knowledge, skills, and experience. You are building human capital.
  • From 28 to 56 years old, you are Earning. You are converting your human capital to traditional capital – money!
  • From 56 onwards, you are Returning. Once you have enough, it is your turn to give back to your community.

Learning isn’t always done in school. For example, many people will tell you that in your early years, you should take on risks before you develop too many other responsibilities. Start a business, switch careers, or travel the world. Don’t worry about the money in your 20s; your basic food and shelter expenses can be barebones. Invest your time into yourself.

Along the same lines, you won’t stop learning completely at 28 years old, but your focus and priorities may change. As I get close to 40, I feel the growing pressure of providing security for my kids and the pressure of caring for aging parents. In practical terms, you’ll need to invest more of your time into making money. Well, I might change that to earning money and then saving a big chunk of it.

Then one day, hopefully sooner than later, you can move on to giving back in a way that aligns with your personal philosophies. Invest your time towards helping your family, friends, the local community, and the world.

This is a related concept to the Earn, Save, Grow, Preserve lifecyle.

Nickel: Kid Allowance App + Debit Card + Set Your Own Custom Interest Rate

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If you’re reading this, you obviously value financial knowledge and creating a secure life for you and your family. If you have kids, then you want them to develop the same skills. The NYT bestseller book The Opposite of Spoiled explored the many modern ways to teach kids about money. One recommendation for allowances is to split it up into three jars: savings, giving, and spending.

For that saving jar, an additional hack would be to pay your kids interest on their savings. For example, you could pay a monthly interest rate of 10%, which is huge in the adult world, but for a kid you need it to be large enough to be “felt” and hopefully teach them the following concepts:

  • Regular, automatic savings. Let’s say you give them $10 a week that is automatically saved. (They don’t manually move money over every week, it just happens like a 401k plan.) Even with no interest, two and half months later, they’ll have a hundred bucks!
  • Passive income. Now you could introduce the concept of paying interest. When they see their $100 pay $10 in interest at the end of the month, perhaps they will start to understand the power of passive income. “I could keep the $100 in there and still get to spend $10 every month forever!”
  • Compound interest. Now show them how they can get interest on their interest. If they start with $100, don’t take any money out, don’t save a penny more, at 10% monthly interest they will still have $314 after 12 months of compounding.
  • Compound interest + regular savings! If they start with $100, don’t take any money out, keep saving another $10 a week, at 10% monthly interest they will have $549 after a 12 months of compounding. This is starting to become serious money!
  • Passive income revisited. A year later, that passive income isn’t $10 a month anymore, it has become $55 a month! This would be a good time to tell you that parents pay the interest, so if you have a little Warren Buffett at home you should set a cap on interest payments upfront. 😉

There are a growing number of “allowance apps” to cater to this market, but Nickel (iOS only, Android “not yet”) is one of the first services that I’ve seen implement this custom interest rate feature. Designed for kids age 8 and up, Nickel offers a reloadable debit card and a smartphone app for you and the kid. The parent can view all transactions and control things like allowance amount, one-time transfers, and interest rates.

Much like adult prepaid cards with 5% APY savings accounts, there are two buckets of money: the “Card” account which is available to spend via Mastercard debit, and “Pocket” account which earns interest. Here’s a 1-minute video explainer and some screenshots of the interest rate feature:

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Finally, apps are cool, but let’s not forget the core values and character traits that lead to good behavior in general.

Someone Is Doing The Thing That You Decided Couldn’t Be Done

bbootWe are currently planning a 4-week European trip with our young children (age 1 and 3). The most common reactions are “Cool. Wait, you’re not bringing the kids, are you?” followed by “You’re nuts.” At first, we didn’t think it could be done either. It does take a lot of additional planning for car seats, cribs, kid-friendly itineraries, and so on.

While doing some research at a site called My Little Nomads, the author shared a quote by Seth Godin:

One of the under-reported stories of the internet is this: it constantly reports on what’s possible. Somewhere in the world, someone is doing something that you decided couldn’t be done. By calling your bluff and by pointing out the possibilities, this reporting of possibility changes everything.

You can view this as a horrible burden, one that raises the bar and eliminates any sinecure of comfort and hiding you can find, or you can embrace it as a chance to stretch.

That is a great quote that encapsulates why I love the internet. If you want to start your own niche business, pull off home-cooked weeknight meals, take your house entirely off-grid, semi-retire at age 40, or just take your tiny kids on an adventure – someone out there has probably already done it. You may even find an entire online community ready to help you reach your goal. There will be doubters, but all you need to know is that it’s possible.

Teaching Kids About Money: Bi-Rite Market Owners, Father and Son

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This Narratively “longread” about the history behind the hip Bi-Rite Market in San Francisco’s Mission District was an intriguing father-son story.

Part of it involved entrepreneurial parents trying to pass on important financial skills to their children, like this excerpt involving the father Ned:

Every day, a group of homeless would line up outside the store, and Ned would feed them a sandwich and soda. No questions asked; no thank you needed. He was generous to his kids, too, but not without strategy or purpose. He’d pay them twenty dollars a day for their work at the market, a decent wage in the ’70s. If the kids agreed to save their earnings in the bank, Ned would double it. If they didn’t, that was all they got. Over the years, each child managed to save $20,000, thanks to Ned’s matching practice. “That’s how I encourage them to work and save money,” Ned says. “Sometimes you have to do your tricky things if you love your children.”

I found it amusing that when his son Sam decided to start his own small business, instead of worrying about him going broke, that actually made him feel more at ease.

“He was excited that I was going to be in control of my own destiny, even though it was a restaurant,” says Sam. “Pursuing entrepreneurship was following a path that he knew, that he was comfortable with.”

I would think most parents would rather their kid go the “safe” route of relying on a professional degree like lawyer, doctor, finance, or engineer.

I enjoy collecting anecdotes like this. Here are past related posts:

How To Start Your Very First Business by Warren Buffett’s Secret Millionaires Club (Book Review)

startbiz_180While I don’t expect my kids to be the next Warren Buffett, I do plan on encouraging them to start and run their own tiny businesses someday. I’ve previously shared an online cartoon series called Secret Millionaires Club that teaches financial literacy and is supported by Warren Buffett. As an extension of that effort, there is a new book called How to Start Your Very First Business.

I accepted a free review copy of the book and here are my notes.

I think the best question to start with is – why do you want a kid to start their own business? The primary goal is not to make them rich. It’s about helping them to be successful at life in general. Both Warren Buffett and Charlie Munger think this way. Consider the many character traits and interpersonal skills involved:

  • Reliability
  • Honesty
  • Social skills
  • Attention to detail
  • Patience and tolerance
  • Failure and perseverance

The book does a good job of covering the different aspects of starting a business. For example, there are worksheets for figuring out your per-unit profit and your equivalent hourly wage. One area that has light coverage is business licenses, taxes, and legal permits (understandably I suppose). Here is the table of contents, nabbed from its Amazon page.

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Lots of good examples and ideas. There are several case studies of other young entrepreneurs along with additional business ideas in the book. A few examples:

  • Hart Mann started Man Cans, candles that smell like sawdust, bacon, or coffee. (Started at age 13.)
  • Jake and Lachlan Johnson invented and sell customizable bow-ties at Beaux Up. (Started at age 14.)
  • Greyson Maclean sells reusable stickers and cling decals for Lego products at BrickStix.com. (Started at age 9.)

Lots of Warren Buffett quotes and quips. Oldies-but-goodies include:

Protect your reputation. It takes years to build a reputation but only minutes to ruin it.

Decide early in life to make your money by selling things that you really believe are good for the customers.

The book understands that it can’t teach you everything. They really have to go out and do it themselves. There are so many intangibles in real business, this book is just a starting point. Hopefully the book can give them a base, and parents can support their efforts (but also let them fail, and hopefully get back up).

Overall impression. This book would make a great gift for the motivated tween or teenager. I enjoyed the mix of approachable advice, Buffett quotes, and real-world examples of young business-owners. The book says it is intended for ages 9 and up, but you’ll have to decide yourself if the recipient is ready. It won’t be much use if they aren’t ready to take action.

If you’re a parent, you’ll have to look up any legal requirements in your area. The book comes with a free Square reader for accepting credit cards, but the parent will have to sign up for an account first.

Willing.com Review: Free, Legal Online Will Software

I must admit that I procrastinated on setting up a will, much like many others. Ideally, an experienced, skilled estate lawyer would create something customized to your situation. But it is not always clear how to find such a person, or know what a fair cost would be. Maybe we just don’t like the idea of thinking about death.

If you don’t create a will, your state already has a default plan in place (look up the intestacy laws in your state) and it may not be what you would have chosen. Do you want a stranger appointing the guardian of your children? I tried to think of it as a gift to my family. A reader recently told me about Willing.com, a new website that promises a free, legal will in about 10 minutes. Is such a service a good idea?

Here’s what The Consumerist (owned by Consumer Reports) had to say about other DIY will-making software:

Our wallet-watching cousins at the Consumer Reports Money Adviser newsletter took a look at three DIY options for will-making — LegalZoom, Rocket Lawyer and Quicken WillMaker Plus — and found that while all three are better than not having a will, none of them is likely to meet the needs of anything more than the most basic of estates.

I’d never heard of Willing before, but the other software costs $35 and up, so I took it for a little spin and took a bunch of screenshots (click to enlarge).

Overall, the interface was very pleasant and modern and mobile-friendly.

First, they will ask some basic information about you and your family. Names, genders, zip codes, and birthdates, but not Social Security Numbers. I suppose they aren’t required legally? At least it’s one less source of identity theft to worry about.

Next, they will ask you how you want to handle your property…

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.. and final arrangements.

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Who do you want to carry out your wishes?

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When you’re done with the questionnaire, your will is created and customized to your state.

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You can then print or download your complete will as a PDF, and also create an optional living will.

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At no point do you see any advertisements nor do they ask for any payment information. The last screenshot does provide a hint as to the future revenue model for Willing – perhaps they will set up a way for you to prepay your funeral expenses (relieving your family of some stress and money) and get a little cut of that. That sounds reasonable to me if they are providing the will for free. Of course, if you live another 50 years, will you even remember shelling out that money?

I am not a lawyer and thus can’t vouch for the accuracy or quality of the will contents. As the Consumerist article states, one thing to worry about is outdated information if their software isn’t updated regularly. The final instructions tell you to sign the will along with two valid witnesses and that a notary is not required for the will to be legally binding.

The final document produced was only three pages long, although my theoretical situation was pretty simple. As I read through it, I started to see how such software would eventually become free. Indeed, while researching this post, I found several other “free will makers”, although Willing.com had the best user interface and had the least amount of annoying ads.

It may not be optimal, but at least going through the Q&A process will make you aware of the various issues you need to think about. Who will take care of your kids if your spouse dies? Who is your backup heir? Your backup estate executor? Maybe just starting the process of putting your wishes down in writing is a good thing. Otherwise, I can see someone with a simple situation using this software, but don’t know if I could recommend such a service to my friends. If I really cared about how my estate was handled (i.e. I had a significant net worth and/or dependents), I would recommend hiring a lawyer instead. The question then becomes – Is there a better way to find a good estate lawyer than relying on word-of-mouth?

My One-Page Financial Plan: Why Is Money Important To Me?

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onepage0I’ve already shared two nuggets from the book The One-Page Financial Plan by Carl Richards – the importance of getting started and the true value of a human advisor. But what about the title itself?

Before even reading the book, I was impatient and tried to make a one-page financial plan but it didn’t sound right. Even after reading it all the way through, I got a bit lost as besides “one-page plans”, it also tried to cover other big topics like budgeting, investing, and insurance. It took a few re-reads before things finally settled down in my mind. Here are the parts that helped the most:

Your one-page plan simply represents the three to four things that are the most important to you: some action items that need to get done along with a reminder of why you’re doing them.

Having done this with hundreds of my clients, I’ve found no more efficient strategy for solving the problem of how to handle our finances than asking “Why is money important to you?” […] If you’re doing this with a spouse, it’s important that each partner answer the question separately.

The reason I ask my clients this question is because it helps us understand their values. Often, the process of asking “Why?”—“Why is money important to me?” or “Why have I been so anxious about money lately?” or “Just why do I work so hard anyway?”—uncovers deep desires and fears that we are often too busy or too scared to think about. While the process can be uncomfortable, recognizing what really matters to you is the first step toward making financial decisions that are in sync with your values.

Recently, the author shared his own plan on his website – What Does a One-Page Plan Look Like?:

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There are many reasons why my plan (at the top of this post) will be different from the author’s and yours. Our current situation is different, our priorities will be different, our goals will be different.

Why is money important to me?

  1. I greatly value security, sometimes so much that it is irrational. I don’t want to have to rely on anyone else for money or favors. We cut back on work hours to spend more time with kids, but we still want to make more than we spend. It’s not time to touch that nest egg yet!
  2. I greatly value spending time with my family, both on a day-to-day basis and for extended vacations in new and strange places. I have to work hard to avoid getting into a rut where the days and weeks all start melding together. Even if it means lugging multiple car seats and strollers everywhere, I still want to stay curious, make some mistakes, have some adventures.
  3. I want to someday shift my activities such that they more directly give back to my community or some other greater good. I don’t like the idea of just writing checks though, so I need to find a more active and satisfying role. If I could make some money while doing this, that would be great, but otherwise I need to put enough aside that my investments will support me.

The overall point of both this exercise and the book is that improving your financial life doesn’t have to be done perfectly. Just by getting started and putting down your best guess down on paper, you’ll already be better than most. If you see something wrong when comparing your values and your actual behavior, then make some changes. Having done them, I recommend both doing this exercise and reading the book. If your library participates with Overdrive.com, it is available to borrow as a Kindle eBook.