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5 Credit Card Myths Hurting Your Financial Future

Five Credit Card Myths Hurting Your Financial Future

 

Convenience and risk all with the swipe of the wrist. Credit cards are a tool that many of us use in order to buy things in a convenient fashion, eliminating the need to carry cash. When used properly this tool can add value to our financial lives. Credit cards offer the ability to buy things now and pay later, build credit and accumulate rewards. However, they can also be used to accumulate debt, huge interest costs, and put you in a financial hole if not managed properly.

Recently, when sitting with a client they shared with us the situation their mother was in and I saw the need to share this information. The client was working with their mother in order to obtain a mortgage for a new home. As far as the kids knew mom should be in a good position to obtain a mortgage, but unfortunately the mortgage was declined. When they investigated further, it was discovered that mom had significant credit card balances which were having a detrimental effect on her debt to income ratio. The children approached their mom and asked her why she was carrying these balances and she explained that she was told her credit score would benefit from having an outstanding balance on her credit cards.

Luckily the children were aware that this was not the case and she was most likely causing a negative effect on her credit score, not to mention the significant interest expenses she was incurring. Mom is lucky to have her children on her side as they are working with her to become debt free and educate her on what the “truths” are regarding credit cards.

This experience ignited the need for me to help bring to light the truth about credit cards. Here are five credit card myths that may be hurting your financial future. 

  • Carrying a balance on my credit card will help my credit score. This is a complete myth and will actually do the opposite, it will hurt your score. The credit bureaus want to see that you can pay your debts and do so on time. The best way to utilize a credit card is to simply pay off the balance each month. This demonstrates that you have the ability to take on manageable debt and pay it off on time. There may be instances where you cannot pay in full and you will want to pay at least the minimum payment. It is always vital to pay on time, paying late will certainly hurt your credit score. Bottom line, not paying your credit card in full because you believe it is helping your credit score is incorrect and you should develop a plan to correct this. 
  • You should not have a credit card and only use a debit card. This myth was born from the idea that with a debit card you will only be able to spend what you have, where with a credit card you can accumulate debt beyond what you may have saved. Though this thought process makes sense credit cards tend to be safer. We are living at a time where data breaches and fraud is on the rise. It is true that both debit and credit cards offer protections against these issues, but credit cards tend to have stronger protections for the card holder. Should you have a fraud while using a debit card (even if you are swiping it as a credit card) the funds could be taken out of your bank account and it may take your bank a few weeks to clear it up. This could tie up the funds in your account and even result in bounced checks or insufficient funds while the fraud is investigated. Fraud on a credit card is not going to cause an issue with your bank accounts as they perform an investigation. Also credit cards often provide additional protections for your purchases that debit cards typically do not.
  • Interest begins to accrue right after my credit card purchase. This is another complete myth with no truth behind it. It is true that credit cards can come with significant interest rates attached to them, but they do not start accumulating until after your payment is due. Essentially by paying your bill on time, you will not incur any interest expense and the credit card will simply provide you with an interest free loan from the date of purchase until the payment is due. This is the ideal way to use a credit card for the consumer, not the ideal outcome for the credit card company.
  • Never pay an annual fee for a credit card. Paying an annual fee for a credit card is not necessarily a bad thing. This is a personal choice and you need to evaluate the cost benefit of the fee. Many cards available today have tremendous benefits attached to them. There are cards available that provide you with anything from additional purchase insurance or warranty coverage, airline credits, internet access on flights, baggage fees, travel insurance, access to premier lounges, access to a concierge, and many other benefits. You need to review what the benefits are, evaluate whether you will use them and decide if the card is worth the expense. The benefits for many consumers outweigh the cost.
  • Having too many credit cards will hurt my credit score. This is another common myth and having several cards can actually help your credit. The credit bureaus will look at the amount of credit you have available and how you are using it. Your score can benefit by having a lower utilization of a higher credit amount. One caveat here, this may not hurt your credit, but it may present a hurdle when obtaining a mortgage. The mortgage company will love your higher score, but they will not be fond of you having access to a larger pool of credit and this could present a challenge. The number of credit cards you have, or will want to have, may depend on the stage of life you are in and what your goals are at the time.

Credit cards can provide you with a great way to pay for things, build credit and ensure against fraud, but there are many myths out there and it is important to understand the facts. We have outlined what we believe to be the top five myths we have seen, but there are many more. It is critical to educate yourself on what is fact and what is myth. You will want to use credit cards in a way that they will enhance and not hinder your financial future.

Mitlin Financial assists our clients in addressing these myths and we would be more than happy to assist you with any questions. Feel free to contact us, Mitlin Financial, at (844) 4-MITLIN x12 if you or someone in your family needs assistance in debunking credit card myths.

 

This article represents the opinion of Mitlin Financial Inc. It should not be construed as providing investment, legal and/or tax advice.

529 Plan, What is that?

 

College Savings

 

In 1996 the Small Business Job Protection Act created 529 Plans, also known as “qualified tuition plans”. This account which allows taxpayers a tax advantaged way to save for education expenses allocated for a designated beneficiary, after 22 years, may be the account that most know nothing about.

According to a recent survey by Edward Jones, only 29% of Americans are even aware that 529 plans are available as an education savings vehicle. One would think this is a scary statistic, but even more frightening is that only 13% of families used 529 plans in 2016-2017, according to a2017 Sallie Mae Report. This is quite a staggering statistic, considering the rising debt being incurred by college students.

When you think about the enormous costs of sending your children to school, which according to theCollege Board is $46,950 for the average private four-year school, you would think that more people would be using all tools available to them to save for college. The 529 savings account can be an excellent tool to begin to save for this lofty expense. The monies saved for your respective beneficiary grows tax free as long as you use it for higher education. Keep in mind that the recently passed Tax Cuts & Jobs Act has added provisions that may allow you to also use these funds for K-12 expenses. You will want to check with your individual state, as your 529 plan may not follow the new tax law.

There is a struggle for most people to balance saving for college and for retirement at the same time. This is a fine balance that needs the attention of proper planning. Although you will not be able to borrow money for retirement, you will be able to do so for college, and you will want to have a plan in place to address both. Not having money in place for your children’s education may have an impact on your retirement down the road, but at the same time, overfunding your college savings at the expense of your retirement accounts will do the same.

The key here is to have a strategy in place that will allow you to save for both. Just like we advise clients to start saving for retirement early, it works the same way for education too. The more money you save for college early on, the less money you will have to add later on because you will benefit from the concept of compounding.

Think about it; if you start working after leaving school and start funding your retirement right away, you will be in a position to lower your retirement contributions when you have children and be able to start allocating the difference to their college funds. Depending on how many children you have and what your goals are for supporting their education, you may be able to shift this strategy back by the time your child is ten years old. Getting caught with a child at the age of eighteen and having nothing allocated for college education will, in most cases, place a strain on your financial situation.

529 plans can be a vital tool in your education funding savings strategy. I think it is disheartening that this tool is not well known and very much underused. It is vital to engage a fiduciary advisor as early on in your life as you can. This relationship will provide you with an advisor that can be in a position to guide you, advise you, and see you through the planning of your life to make sure you are financially prepared for all of the events ahead of you. This will be a relationship that will guide you through the financial ups and downs of the lives of you and your family. The goal is to make sure you are aware of the options that exist and the best ways available for you and your family to save for your financial futures.

Mitlin Financial assists our clients in addressing their college funding needs. We are here to help you instill these concepts within your own family. Feel free to contact us, Mitlin Financial, at (844) 4-MITLIN x12 if you or someone in your family needs assistance in getting started on their plan today.

This article represents the opinion of Mitlin Financial Inc. It should not be construed as providing investment, legal and/or tax advice.

Does It Matter When I Start Saving for Retirement? Yes, it does…

Save Early It Matters

 

Many investors are curious as to when they should begin to invest for their retirement. You will often hear people saying that you should start as early as possible, but what does that mean and how will that help? I wanted to take the opportunity to explain when you should begin saving, if you can, and what the effects can be if you do not.

We would recommend that you start saving for your retirement as soon as you have an income. Income does not necessarily mean a full time job. You could be receiving income as early as you are able to get your working papers. Starting this early will help instill a number of great values in our kids: it will expose our children to the fact that they need to plan for their future, the benefits of investing, tax deferred or tax free growth, and a discipline to live below their incomes. These are all great life lessons that some learn too late.

In order to outline this, let’s look at a real life example. Let’s assume that you have two children; Jane and John. Jane will begin to save at the age of 25, and John will begin at the age of 35. Jane and John will each begin to contribute $5500 per year from their beginning age until the age of 70 and invest it in a way that will compound at an annual rate of 6%. So what would Jane and John have accumulated by the age of 70? Jane’s account would be over $1,200,000 and John’s account would be just shy of $650,000.

This large difference is predominately due to John’s late start. He was affected by the fact that he was not able to contribute as much money and therefore lost the benefit of the extra 10 years of compounding. Both these concepts significantly impacted his long term balance. Jane would have contributed $247,500 over the 45 years she invested, and John invested $192,500 (a $55,000 difference). The key here is that starting early really benefitted Jane and will benefit you too.

Keep in mind that our example does not account for fees, taxes or inflation. I would also like to point out that the likelihood of receiving a 6% return every year is somewhat unlikely and it is more likely that you would have a different rate of return each year.

As you, your children, or grandchildren begin to work (even on a part time basis), be sure to have the conversation about having them “pay” themselves first and begin to think about their future. Setting up a Roth IRA will really benefit them if they are younger and in a lower tax bracket.

In order to illustrate that I practice what I preach, I would like to share a personal example with you: my 14 year old son works for me during the summer months in order to have spending money for the summer and school year. We sat down and discussed what he would be earning and devised a plan that would provide him with the spending money he wanted and funded a Roth IRA as well. Think about how your financial position may be different if you began saving at the age of 14. Not only has this put him in a position to be ahead when planning for retirement, but it has taught him the value of saving and how to manage money. We discussed how to invest the money and he has the ability to monitor his account and see how it is performing. We need to get ourselves, our kids and grandkids retirement ready and this will surely help.

We are here to help you instill these concepts within your own family. Feel free to contact us, Mitlin Financial, at (844) 4-MITLIN x12 if you or someone in your family needs assistance getting started saving today.

 

This article represents the opinion of Mitlin Financial Inc. It should not be construed as providing investment, legal and/or tax advice.

Mid-Year Financial Check

Mid Year Financial Check

 

Almost three quarters of the year is now behind us and before you know it the holidays and New Year will be here. I am not trying to rush things, but at the same time, we want to make sure that you are prepared for what the year will bring in terms of your tax situation. It is important to take a look at your financial situation for the year thus far and make sure you are positioned properly for your 2019 tax filing. You do not want to wait until the last week of 2019 or even April to learn of potential issues you may encounter.

It would be a great idea to reach out to your financial team to discuss any financial events so far this year that were out of the norm. The financial events that have taken place may, or may not, have an impact on your tax standing, but it is easier to review, guide, plan, and protect if they are discussed well before the end of the year. Once your team is aware, of what has happened, they can advise you on your options and propose the best course of action. You are much better off planning for this on October 15th than March 15th when some of your available planning options may no longer exist

As a firm, Mitlin Financial makes it a habit to ask our clients on a regular basis, at least two times a year, if there has been anything in their financial life that would warrant us to make any changes or adjustments to their plan. You would be amazed at some of the things we have been informed of at these meetings. Everything from, “I lost my job three months ago” to “I sold my house and we are moving across the country” have come out of this simple question. You would think these would be things they would be calling us right away to discuss and review the impact on their financial standing; but, unfortunately, life gets in the way sometimes. This simple question has allowed us to review, correct, and advise our clients to the best course of action knowing this new information.

Asking this simple question during our review meeting with clients has had a positive impact on our practice and our ability to help our clients. In many cases, it has allowed us to address potential issues that may have been unintended, but life just got in the way. This will also provide you with peace of mind knowing you have addressed the issues and will not need to wait until the last minute to come up with a solution. This would also be a good time to review year-to-date capital gains and interest income from your portfolio to make sure it is in line with previous years. Should there be a significant discrepancy from the prior year, this is something that should be addressed so you are not surprised with a larger than normal tax bill. This will save you significant time when it comes to the end of the year because you will be able to have a good idea of your current standing and then plan accordingly.

The last thing I want to leave you with, as we enter the end of the year, is to be careful purchasing mutual funds in non-qualified accounts. This has been something that has really caused many clients, and their accounting professionals, a lot of grief. As mutual funds begin to announce capital gains distributions for the year-end it is important to know what the distribution is and when it will be taking place. We have seen clients purchase mutual funds in late October, November, and December and receive huge capital gains distributions, which are taxable because they purchased a fund just prior to the distribution. Imagine owning a fund for a couple of weeks and getting a $10,000 capital gains distribution. This is not a surprise that you want to have, so just be cognizant of any mutual fund purchases before the end of the year that you are making in a non-qualified account. It may be ideal for you to hold off on investing new funds or use an ETF until the distribution has been completed.

The importance of having a review with your financial team is to make sure that you both are on the same page and no surprises will come at tax time. The year-end is crazy enough for most, you might as well make things as easy and problem-free as you can. It goes back to the old adage, an ounce of prevention is worth a pound of cure. 

I would highly suggest that you hold a mid-year check-in with your financial team. This could save you hours of grief towards the end of the year or at tax time next year. Be sure to contact us, Mitlin Financial, at (844) 4-MITLIN x12 to schedule a time if you are not having these reviews with your current financial team. Be sure to share this article with friends, family and business acquaintances who might be experiencing this too. We look forward to helping you, and them, get on the right path and stay there.

This article represents the opinion of Mitlin Financial Inc. It should not be construed as providing investment, legal and/or tax advice.

Mitlin Financial Goes Mobile

Mitlin Financial, Inc. is pleased to announce the unveiling of Mitlin’s new Client Web Portal.  The portal is available to all clients of Mitlin Financial and is available through our website or our newly launched app on both the Apple and Android stores.  

I would suggest you contact us at (844) 4-MITLIN x13 if your advisor does not offer you a mobile option to view your assets.  We can certainly change that for you by becoming a client.

We recommend you download the Mitlin Financial App via the Apple and Android stores, simply click on "Apple iOS" or "Android", whichever is appropriate for you to get started:

                                              Apple iOS™:                                              

Apple icon50

Android™:

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We will be conducting a live demo of the new Portal and mobile app with all clients during your next scheduled meeting. Should you have any questions or concerns before that time, do not hesitate to give us a call at (844) 4-MITLIN x13 so that we can assist you accordingly.

 

Mitlin Financial Webinar Series: Big Business of College - Hans Hanson

Mitlin Financial Inc. presents the Big Business of College With Special Guest- National College Advisor Hans Hanson 
Originally Held April 16, 2019
 
Hans, owner of CollegeLogic will present- Get College Right, Save College Costs Featuring our Game-Changing 3 Principle Approach to Winning Admission Acceptances, Saving College Costs, Getting Desired Outcomes, For Athletes-Playing College Sports
 
Things you will take away from the webinar are:
What do you want to know before buying a house?     (Why does this matter?)
Who’s occupying the “driver’s seat” here?     (Are you sure?)
How do you go on a college visit?   (Why do you do it that way?) 

 

                   This webinar represents the opinion of Mitlin Financial Inc. It should not be construed as providing investment, legal and/or tax advice.
 

Mitlin Minute- Pay Taxes Now or Later

This edition of Mitlin Minute talks about what a person earning non W-2 income should be thinking about.  Not a W-2 employee? When do you pay taxes, now or later? Watch this edition of Mitlin Minute to learn more.

 

 

Disclaimer: This article represents the opinion of Mitlin Financial Inc. It should not be construed as providing investment, legal and/or tax advice.

Mitlin Minute: Syosset HS Presentation

In this edition of Mitlin Minute we provide you with a replay of our presentation to the Syosset HS Investment Club.  We discuss how we became involved in the financial services industry and how we assist people every day.
 
Feel free to recommned our presentation to other schools clubs and organizations.

 Disclaimer: This article represents the opinion of Mitlin Financial Inc. It should not be construed as providing investment, legal and/or tax advice.

Mitlin Minute: Tax Reform

In this edition of Mitlin Minute, we discuss tax reform.  What does the tax reform mean for you?

New taxes will go in effect on January 1, 2018.  Make sure you speak with your financial team early.

Feel free to contact us by emailing us or calling us at (844) 4-MITLIN 
 

 
  Disclaimer: This article represents the opinion of Mitlin Financial Inc. It should not be construed as providing investment, legal and/or tax advice.

Mitlin Minute: The "Power" of a Power of Attorney

In this edition of Mitlin Minute we talk about the power of a Power of Attorney. 
 
Why is this legal document such a powerful tool and why do I need one?  Watch, listen and learn why today. 
 

 
 
Feel free to share this with others that you think will find value in our Mitlin Minute.
 
Feel free to contact us by emailing us or calling us at (844) 4-MITLIN to discuss how we can help you by quarterbacking your team. 
 
  Disclaimer: This article represents the opinion of Mitlin Financial Inc. It should not be construed as providing investment, legal and/or tax advice.

Planning as a Process with Larry Sprung on the Money Savage Podcast

I recently had the opportunity to be a guest on the Money Savage Podcast with George Grombacher.  This podcast gave me the opportunity to discuss how planning is a process and not a one time event.  I hope you find this episode interesting and of value. 

In today's conversation, George and I discuss the following:

1) One of the driving factors that led me to enter the field of Wealth Management

2) How financial education plays a role in your life

3) The importance of planning for your family and buisness

4) My one difference making tip

Money Savage Podcast Larry Sprung

 

 This podacst represents the opinion of Mitlin Financial Inc. It should not be construed as providing investment, legal and/or tax advice.

 

 

The “Power” in a Power Of Attorney

PowerOfAttorney 

 

Planning for your financial future is just as important as making sure you are covered in the present too. The odds of becoming disabled or incapacitated at an early age are alarmingly high. According to the Council For Disability Awareness, roughly 1 in 4 of today’s 20 year olds will become disabled before they retire. Assuming you make it until retirement without being disabled, there is still a high likelihood that you will become incapacitated at some point in your life. In addition to dealing with your health, if found in one of these situations, how will you handle your bills, make investment decisions and handle other financial matters?

The power of attorney (also referred to as a POA) will allow a designated representative of your choosing to step into your shoes, as if they were you, and handle these matters on your behalf. You can also elect to limit the areas they can act, and those that they cannot. It is important that you choose this representative wisely as they have significant power and can essentially do anything you allow them to as if it were you. As an example, your power of attorney -if given the power- could withdraw money from your bank account, sell assets, or purchase items on your behalf. Now you can see why it is important that you select the right person.

Keep in mind that the POA documents may vary by state and we always recommend using a competent attorney to draft them for you so they will serve the purpose intended. This is a time that you would want to rely on your financial team to help you protect yourself from an unforeseen event.

There are also are two types of POA’s: durable and springing. Your goals and objectives will dictate which type would be best for you. A durable power of attorney is one that is in place the minute you execute the document, and therefore, the designated representative has the authority to act on your behalf immediately. The springing power of attorney is a bit more complicated. The idea behind the springing POA is that it will allow your designated representative to “spring” into your shoes when necessary. This will typically require some type of evaluation, by a medical doctor, certifying that the individual is incapacitated and the POA is warranted to “spring” into their shoes. This can, at times, create a hurdle in being able to plan and take care of the financial affairs of the incapacitated person. This added step can cause some vague areas that may be interpreted differently when looking to take care of the person’s affairs. We find that the durable power of attorney, practically speaking, is a better option and creates less headaches at the time the POA is needed.

There are many reasons for which you should have a power of attorney once you turn 18 years old. When you are 18 and are considered a legal adult, it is wise to designate a POA in case you become disabled, incapacitated or simply decide to travel internationally and need someone to act on your behalf in your absence. I know we have discussed incapacitation and disability, but think about when your child went to study abroad while in college. What if you needed to take care of some of their personal financial matters in their absence? This is where the POA would come in and allow you to transact whatever is needed on their behalf.

The POA is one of the most important and powerful documents that you should have. This planning tool has nothing to do with net worth or situation. Essentially, it is key for anyone over the age of 18 to have one in place and available if needed. You have the ability to update it over time so you are not locked into your choice of who you designate as your representative in perpetuity. As your life circumstances and relationships change, you can update this document as well. We would suggest that if you already have a power of attorney you should make sure that it still important to review it and make sure that you have it set up the way you want at this time.

Contact Mitlin Financial at (844) 4-MITLIN x12, if you are over the age of 18 and do not have a POA in place. We can introduce you to an attorney that can address your needs and protect you in the event that you need someone to act on your behalf.

This article represents the opinion of Mitlin Financial Inc. It should not be construed as providing investment, legal and/or tax advice.

The Financial and Non-Financial Aspects of College Planning

financial and non financial aspects of college planning 1454360

The topic of college planning has entered my home in full force. My oldest, who is currently a tenth grader, has embarked on his search for college. I know many of you think this is quite early to begin this, but being his dad is a planner I am sure it is not much of a surprise. Just like we talk about having a plan in place for your financial future to guide you, it is important for the student to have a plan in place for their educational and eventual career as well.

I have found over the years that there are two components to assisting a family through the college planning process, the financial and non-financial. Many wealth managers have a tendency to help families accumulate the assets they will potentially need for their child future education and stop there. I think it is as important to assist the family through the non-financial part too. Let’s delve a bit deeper into these two very different aspects of the college process.

The financial aspects of planning for college are fairly straightforward and include a great deal of assumptions in order to save enough for our children’s education. As a family, it is wise to determine what you plan on contributing to their education. Do you plan on paying for all their undergrad and graduate school regardless of where they attend or at what cost? Do you plan on paying the equivalent of the cost for a State university and anything above that is on your child? These will help you to determine what your expected cost will be in today’s dollars. You then will need to factor in inflation in the cost of school, the return you believe you will be able to achieve on your investments, and how long you have until they will need the money. This will lead you to discern how much you will need to save on an ongoing basis to fund that goal. Like any financial plan, it is important to revisit your goals, objectives and progress each year to make sure you are staying on course.

The non-financial aspects of college are typically a more difficult hurdle for families to overcome. In most cases, we as parents have not been in college for eighteen plus years and things have changed. How do we make sure our children are looking at, visiting, and ultimately applying the best schools for them? In my experience, people typically will spend more time researching everything they need to know surrounding a new car purchase than they will the higher education options their children are considering. Considering the education will cost anywhere between two to six times the price of the car, this needs to change. Not to mention the fact that the education your child receives will be the basis for their entire future moving forward.

We, as parents, really need to spend more time helping our young ones find the “right fit” for their education. I think it goes without saying that a university does not qualify as a “right fit” simply because they have a great football team and/or fantastic weather. My family decided that we needed assistance in this area for my son and we hired a college advisor, Hans Hanson ofCollege Logic. This has been an excellent decision for us and he has already helped our son immensely. Currently, we have a list of sixteen schools with a goal of visiting each one by the end of his sophomore year. After only a few visits, he is starting to see what he likes and does not like about the schools on his list. Through the use of the advisor we have allowed my son to take ownership of the process and have discussions with us about his findings. Ultimately, by having a plan and his advisor to walk him through the process, we feel that our son will truly find a university that is the “right fit” for him and will put him on a path for success following his college years.

College planning is an involved process that contains financial and non-financial aspects that need to be addressed for the benefit of the student. The university your child attends should be a stepping stone to their educational, vocational and financial future which needs you to dedicate time and attention to determine fit. We would be happy to speak with you regarding getting your family on the right track for higher education from both the financial and non-financial aspects. In addition, we are pleased to share our experiences with hiring a college advisor and how it has helped us with this process immensely. Feel free to contact us, Mitlin Financial, at (844) 4-MITLIN x12 if you or someone you know needs assistance in this area.

This article represents the opinion of Mitlin Financial Inc. It should not be construed as providing investment, legal and/or tax advice.

Wedding Bells and Your Wallet

 Wedding Bells and Your Wallet

 

One of the best times of our client’s life is when they or their kids have decided to get married. It means they are embarking on a new chapter in their life, either their own or through their children. This life event typically comes with a hefty price tag. According toValuePeguin, the average cost of a wedding in the US ranges from $12,000 (in Mississippi) to $88,000 (in Manhattan). The cost of a wedding can certainly take a bite out of your financial life.

Traditional wedding ceremonies and celebrations can be hugely expensive, as outlined above, and detrimental to your financial plan. We would recommend that you take a few minutes with your advisor and have them assist you through this financial juggernaut. It is key to determine what type of celebration is in your budget or to what degree you would be able to help your children. This is an expense that you would want to have as part of your overall financial plan. Hopefully it is part of your overall plan and you have a separate savings where you have been setting aside money for this momentous occasion. This would certainly help you reach your desired expectations while not forcing you into debt and hindering your financial goals.

Helping out children tends to be a bit more difficult conversation than speaking with a client that is planning their own wedding. We all want to help our kids and provide them with the best. We have seen some parents sacrifice their own financial stability for the pleasure of their kids. It is important to educate yourself on what you can and cannot afford. We have had our clients use us as the bad guy and inform their children that they only have a certain amount of financial resources, a dollar amount, available to contribute. These are not easy conversations, but ones that will help keep you from making a financial misstep.

There are many ways to celebrate a wedding and it is definitely a matter of preference. Spending tens of thousands of dollars for a several hour celebration may not be the best use of your financial resources. It is important that the happy couple or the parents and children sit down and outline what the expectations are for the cost of the wedding or what they will contribute to the event. Recently, we had a client who asked if they could take a deduction for the expenses they are incurring for their son’s wedding. This is not an option, but it makes you think if they would spend more if it were deductible. There are certainly ways to make a memorable event without bankrupting the family’s financial situation.

Every marriage should start out on the right foot and being in a financial hole does not help a marriage one bit. Please feel free to contact us, Mitlin Financial, at (844) 4-MITLIN x12 if you or someone you know is planning on paying for a wedding, their own or for a child. We look forward to helping you, and them, make the decision that is best for all.

 

This article represents the opinion of Mitlin Financial Inc. It should not be construed as providing investment, legal and/or tax advice.