COA 4131 1st Edition Lecture 14 Outline of Last Lecture I Money Gifts or Investments for Children II The Cost of School Shopping III Reality of What Kids Cost IV What We Pay Our Kids V Tuition at Florida State VI Before Marriage Outline of Current Lecture I Before Marriage II Divorce Current Lecture A Before Marriage a Money and Marriage i Inventory 1 Who owns what a Car house furniture ect ii State Laws 1 Legal union recognized by state or government 2 Community property a Not in Florida b People who live together for a certain amount of time but not married c Cohabitation iii Benefits and Insurance 1 If both parents have insurance usually pick the better of the two 2 Can have their own separate insurances if they want 3 Ex woman and man lived together in a relationship but couldn t get married because her insurance covered her special disease but his did not a Once his insurance covered her disease they were able to get married and be on the same insurance b Taxes i Marriage penalty ii Joint or separate 1 Easier to do joint a Unless very disparate incomes iii Married people get hit more on taxes c Prenuptial Agreement prenups i Becoming more common ii Consult attorney before 1 Can just talk to them about it doesn t have to be permanent if you visit attorney iii Reasons 1 Children from prior relationship 2 Owner of a business 3 Very different incomes 4 Married several times before iv Set it up for a certain amount of time 1 10 years 15 years v Can revisit prenup and revise it vi Shouldn t be thought of as unromantic or rude vii Post nup 1 Married for a few years and realize you should have had a prenup 2 Something changes and change in extremes and you need to protect it a Handicap child b Won lottery c Big increase in income d Weddings i Most expensive part of the wedding is the reception 1 This is where cuts should be made 2 Least expensive is in the backyard someone else s house ii Food is expensive 1 Buffet is more expensive than sit down iii Other costs 1 Dress a Average can be thousands of dollars 2 Tux a Rent or buy 3 Photographer videographer 4 Flowers 5 Brides maids gifts 6 Alcohol 7 Band or DJ a In some cultures woman dances and man throws money on her dress iv Rehearsal dinner 1 Husband s family pays 2 Can be a couple thousand dollars v The older the couple the more likely they are to pay for themselves vi 2008 1 30 000 vii 2009 1 Tapering back viii 2013 1 30 000 ix Destination weddings 1 Hawaii or Florida or Caribbean 2 Who pays for plane tickets and accommodations a Have to think of these things before 3 Older couples like these x Who pays for honeymoon 1 Usually husband s family e Marriage i First time brides 25 years ii First time grooms 27 years iii Two year gap is typical in America but not in other places 1 Has been this way for hundreds of years here iv More educated you are the older you are when marrying v Decisions to make B Divorce a First time marriages 11 years b Numbers highest for i Men 30 34 ii Women 25 29 c Questions to be settled i Alimony 1 Happens in about 14 of cases a Not typical 2 Usually men to women but can be other way around ii Attorneys mediators certified divorce planners 1 Hire an attorney 2 Mediator a Cheaper form of an attorney b Attorneys may have mediators on their team iii Engagement ring 1 Who should have it a Technically the man but is usually fought about i Sentimental plus value ii If it is in the man s family more likely to go to him iv If woman changes her name back have to change everything 1 Birth certificate v Liquid vs illiquid 1 Liquid like cash is easy to divide 2 Illiquid is much more difficult d Financial effects i Drop in income 1 Used to two combined incomes but now only one 2 Women tend to have bigger drop ii Child support 1 Pay per month 2 Usually man pays to woman 3 Usually up to age 18 and does not include college 4 Child support gap iii Family support 1 Combined child support an alimony 2 Given to the adult 3 Typically man pays to woman 4 Can be temporary a Spouse gets education or training until the person gets a job and support themselves i If want a doctorate or go back to school one class a semester to make him pay for example b Or until person remarries i People will cohabitate instead of marrying to keep getting that money iv Estate planning in second marriages v Widow er hood vi Collecting life insurance 1 Put beneficiaries 2 If you divorce have to change this or that person you divorced can get everything a People forget C Social Security a Monthly check i Based on marriage or occupation b Longer you live the more money you get back c Have to be married for ten years in order to collect spouses social security i Don t divorce in 9 years wait till 10 d 66 years old for older people i If retire at 60 you will get less money for the rest of your life e Today it s 67 years old for us i Talks to move it to 70 years old f 44 million Americans 1 out of 6 collect some kind of Social Security Benefit i Since people are having less children scared the number may change to 1 out of 4 g Retirement benefits i Benefits for divorced men and women D Medicare a Medicare i Age based ii For elderly b Medicaid i Low income c Can be elderly and low income and get both i Those in nursing homes d Average age of death i 72 for men ii 79 for women iii Going up E Living Arrangements and Care Options a Daily care living options i Can live at home 1 Most people want to live at home ii Independent living 1 Can have someone you pay that will come and check on you iii Assistant living 1 Live on own but have group meals and activities iv Adult day care 1 Have food and activities during the day and pick them up at night 2 Like child day care v Want to make sure you are with same age group 1 Don t want old with oldest old vi Nursing care 1 Over 100 000 2 Very expensive 3 Insurance may cover some of cost but not all of it F Charities a Legitimate i Church American Heart Association etc ii Make sure it s recognizable iii Want to get a receipt or proof 1 Can be used for taxes b Tax benefits i Can take money off of taxes
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