Table of Contents
How to Enter The Classroom xv
Class 1 The New American Dream 3
Making Change
The Dreams of Tomorrow Reside in Today's Choices
The Money Class Curriculum
Class 2 Stand In Your Truth 11
Lesson 1 Finding Your Truth: A Personal Financial Accounting 13
Lesson 2 Living Truthfully: How To Stand Tall In Your Reality 15
Focus on What Is Real Today... and What You Will Need Tomorrow
Live Below Your Means but Within Your Needs
The Pleasure of Saving Is Equal to the Pleasure of Spending
Define Yourself by Who You Are, Not What You Have
Lesson 3 The Foundation Of All Truthful Living: The Power Of Cash 21
Debit Card Rules
The "Life Happens" Fund
Credit Unions: A Great Place to Save
Safety First with Your Savings
Saving for Big-Ticket Items
The Truth Will Indeed Set You Free
Class 3 Family 28
Lesson 1 How to Build Honest Family Relations 31
Opening the Lines of Communication
Lesson 2 How To Raise Young Children To Stand In The Truth 34
Your Priceless Legacy
Set the Right Tone
Imparting Good Values When It Comes to Money
Money Lessons for Children
Money Lessons for Tweens and Teens
Money Lessons for Teenagers Heading to College
How to Handle Money Gifts and Savings
The Three-Option Approach
Lesson 3 How To Create a Financially Honest College Strategy 48
Who Should Save for College
The Best Way to Save for College: 529 Plans
UGMA/UTMA
Coverdell Accounts
How to Invest Your 529 Plan
The College Talk Every Parent Must Have with a High School Freshman
Borrowing Rules for College Loans
The Risks of Private Loans for College
Stafford Loans
PLUS Loans
How to Choose the Right School
Lesson 4 How To Help Adult Children Facing Financial Challenges 64
How to Handle Student Loans That Are in Default
How and When to Help Independent Children Who Are in Financial Trouble
Lesson 5 The Conversation Every Adult Child Should Have With His Or Her Parents 69
Building Family Financial Security Under One Roof
Updating Legal Documents
When a Parent Remarries
Lesson 6 Advice For Grandparents: How to Build a Lasting Legacy 73
Follow the Parents' Lead
Pay It Forward
Give Experiences, Not Things
Class 4 Home 77
Lesson 1 The Truth About Home Values 81
A Decade of Extremes
A Home Is a Savings Account, Not a Hot Stock
Financing Is Cheap, but Not Easy
Lesson 2 When It Makes Sense To Rent 84
The Math of Rent vs. Buy
Advice for Owners Who Now Want to Rent
Lesson 3 The New Rules Of Buying a Home 87
Set a Budget That Satisfies Your Needs
Know Your Income Limits
Aim to Make a 20% Down Payment
A Special Note About FHA-Insured Loans
Special Rules for Buying Condos and Co-ops
Where to Come Up with the Down Payment
Opt for a 30-Year Fixed-Rate Mortgage
Understand the Risk of Distressed Property
Lesson 4 What To Do If You Are Underwater 98
If You Are Underwater and Cannot Afford Your Mortgage
Loan Modificaiton
Short Sale
Foreclosure
If You Are Underwater but You Can Afford the Mortgage
Lesson 5 How To Reduce Mortgage Costs 110
When It Makes Sense to Pay Off a Loan Ahead of Schedule
The New Realities of Refinancing
Refinancing Rules
Lower Your Mortgage Costs Without a Refinance
Lesson 6 The Dangers Of Home Equity Lines Of Credit 114
The Dangers of Rising Interest Rates and Falling Behind on Payments
Home Equity Loans
Lesson 7 Reverse Mortgages 116
Reverse Mortgage Basics
Lesson 8 Investing In Real Estate 119
What You Need to Know Before You Buy Investment Property
What to Do with an Investment Property That Is Underwater
Class 5 Career 122
Lesson 1 Advice For The Employed 125
Build Your Plan-for-the-Worst Fund
Live Below Today's Means
Grab Your Full Retirement Bonus
Make Your Case for a Raise and Promotion Through Your Work
How to Ask for a Raise
Change Your Attitude Before You Change Your Job
Lesson 2 Advice For The Unemployed 133
Cut Your Spending Immediately
Do Not Dip into Your Retirement Savings
Make Sure Your Credit Profile Remains Strong
Do Not Go Back to School to Avoid a Hard Job Market
Get to Work as Fast as Possible, Rather Than Holding Out for a Better Offer
How to Deal with a Steep Pay Cut
A Special Note for Stay-at-Home Moms
Lesson 3 Starting (And Running) Your Own Business 139
Launching a Business: Can You Afford It?
Where to Get the Money to Start Your Business
A Few Words About Micro Lending
Running Your Own Business
When to Expand
When to Close
Standing in Your Truth in Business
Closing Down a Business Responsibly
A Note About the Retirement Classes 153
The Money Navigator: A Special Offer for Readers of The Money Class 154
Class 6 Retirement Planning: Getting Going In Your 20S And 30S 155
Lesson 1 Time Is Your Greatest Asset 159
Getting Started Early
With Lower Returns, Savings Are More Important Than Ever
Lesson 2 Retirement Accounts Explained 161
Retirement Plans Offered by Employers
Retirement Plan Withdrawal Rules
Non-Workplace Retirement Accounts
Nondeductible IRAs
Roth IRAs
Retirement Plans for the Self-Employed
Lesson 3 How Much You Need To Save For Retirement 166
The Retirement Formula
The Best 401(k) and IRA Strategy
A Word on Vesting
Where to Open an IRA Account
Lesson 4 Investing Your Retirement Money 173
The Ups and Downs of the Stock Market
Dollar Cost Averaging
How Much to Invest in Stocks
Choosing the Best Options Within Your 401(k)
How to Build the Best 401(k) Investment Portfolio
Exchange Traded Funds
Bond Investments
Retirement Planning Mistakes to Avoid
What to Do with Your 401(k) When You Leave a Job
Class 7 Retirement Planning: Fine-Tuning It In Your 40S And 50S 190
Lesson 1 Deciding When It Makes Sense To Pay Off Your Mortgage 194
Questions to Ask Yourself
The Benefits of Paying Off Your Mortgage
How to Pay Off Your Mortgage Ahead of Schedule
Lesson 2 Have A Realistic Plan For Working Until Age 66-67 203
Your Work-Longer Game Plan
Lesson 3 Delay Your Social Security Benefit 207
Social Security Basics
Social Security Strategies
Lesson 4 Estimate Your Retirement Income: How Are You Doing? 214
Social Security Benefits
Retirement Accounts
Pensions
Lump Sum vs. Annuity
Lesson 5 Saving More, And Investing Strategies In Your 50S 223
How to Invest Smart
Making the Most of What You Have
Best Investments Outside Your 401(k)
Bond Investments
No Target Funds Allowed
Lesson 6 Plan For Long-Term Care Costs 234
When to Buy
Making the Financial Case for LTC Insurance
Health Insurance, Medicare, and Medicaid
LTC Basics
Class 8 Living In Retirement 248
Lesson 1 Home Finances: Stand In The Truth Of What Is Affordable For You 251
The Affordability Issue
Start the Discussion
Lesson 2 Coping With The High Cost Of Healthcare In Retirement 253
Rising Costs vs. Your Annual Retirement Income
Long-Term Care Premium Increases
Lesson 3 Stick To a Sustainable Withdrawal Rate 255
The Right Rate
How to Make Tax-Smart Withdrawals
Lesson 4 Avoid Long-Term Bonds And Bond Funds 259
What You Must Understand About Bonds
How to Build a Bond Ladder
Beyond Treasury Bonds: Municipal Bonds and Corporate Bonds
Lesson 5 Earn Higher Yields by Investing In Dividend-Paying ETFS And Stocks 264
The Case for Dividend-Paying ETFs and Stocks
Stock Dividend Basics
The Protection of a Stop-Loss Order
How Much to Invest
How to Choose a Dividend-Focused ETF
Tips for Owning Individual Dividend-Paying Stocks
Lesson 6 Double-Check Your Beneficiaries And Must-Have Documents 275
Life-Changing Events
Class 9 The Ultimate Lesson 277
Clearing My Own Roadblocks
The Road Ahead, Not the Rearview Mirror
The Legacy We Create
