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July 3, 2012
Three Things You Need In Your Name
Are you financially ready to age?
Only 48 percent of women feel financially prepared to reach 75, one study found.
But, we know you like to plan ahead!
So, here are three financial documents every woman should have in her own name, according to Brooke West, a private financial advisor at SunTrust Investment Services:
Your own personal Credit History. Establishing credit history separate from your spouse is crucial in case of your spouse’s death, or divorce. Having a credit card solely in your name can accomplish this. You won't build your own credit history if you're simply an 'authorized user' or supplementary card-holder on his account.
A joint credit card account is not foolproof. It can lead to expenditure disagreements during marriage, and in the event of divorce. Before taking out a joint credit card, be sure you’re willing to take responsibility for your spouse’s potential irresponsibility.
This will impact your own credit score!
A Durable Power of Attorney. This document allows you to name someone to handle your financial affairs if you’re incapacitated, or traveling out of the country for an extended period of time. These include paying bills, buying or selling securities and filing tax returns. Once in place, it's usually executed at the same time as your Will.
A Life Insurance policy. Working women with family reliant on their earnings will need their income replaced, once they are unable to work. This could help to pay down debts and ensure your children are provided for. Taking out a Life Insurance policy in your name is the best way to ensure this.
Bonus PINK Link: Why a financial planner is not only for the mega-rich.
Have a question? Ask our expert here.
Which financial documents do you have in your own name?
By Ruchika Tulshyan
“Anyone pretending [s]he has no interest in money is either a fool or a knave.”
Leslie Ford
*Supporting images from FreeDigitalPhotos.net, David Castillo Dominici and JMD Photography.
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Comments
To the Expert!
I have fantastic credit and have always paid every bill on time. I am now on my husbands credit card and other accounts. My name is on these as well. Is this okay? Seems I should still have great credit and do not see the point of getting a card in my own name that I have no need to use. What do you advise in a case like this??
Debra, Fla
Tapping into Retirement
I am retiring in 6 months, i would like to retire "debt free" and i find that i have a few "bills" really nuisance credit cards that i might not be able to otherwise pay off before then. Would it be beneficial to tap into my TSP savings plan (government's 401K) to pay them off before retirement where my pay will be somewhat less?