Issue link: https://www.epageflip.net/i/808722
Whilenotalwayseasy to think about, an inher- itance is a part of the fi- nancial pic- ture for many baby boomers. That was just one of the topics that popped up in my inbox this past week. Dear Mary: Before reading your book "Debt- Proof Living," I believed we were doing just fine with our money. Recently, my husband's father died and we received a small inheritance. We sat down to decide how to handle this money. I pulled out the book and showed my husband the chapter on the 10-10-80 formula and the information about the Freedom Account. We figured out our ex- penses. We were shocked to discover we've been spending almost $1,800 more than we make each month. I guess we didn't notice because we would take a little out of sav- ings to cover expenses as needed. At this rate, all of our inheritance would be gone in no time. Needless to say, I became rather depressed as we started reducing the outgo to balance our expenses with our income. We are looking at every area of spending and have al- ready found so many ways we could make the adjustments. My husband actually thanked me this morning for all the work I've been doing on our budget. He always wondered why it seemed we were making good money but never able to save any. Now we know. I am telling you all of this to say thank you! I know it will take work, but at least we are on the right track. I never would have figured this out if it hadn't been for "Debt- Proof Living." I'll keep you posted on our prog- ress. — Kimberly Dear Kimberly: Your letter reminded me of an interesting statistic I came across recently, which said that it takes an average of 17 months' time for a person to com- pletely spend an inher- itance. Aren't you glad you won't be part of that statistic? So am I! Thanks for writing. Your letter made my day. Dear Mary: My hus- band is an insulin-depen- dent diabetic. We have $78,000 in student loans and a $76,000 mortgage. If he dies before the stu- dent loans are paid, the outstanding balance will be forgiven. We cannot get life insurance on him. Should we work on pay- ing off the mortgage be- fore the student loans? — Angie Dear Angie: Under the circumstances, it does make sense for you to concentrate on paying off the mortgage quickly while staying current with the student loan payments. You didn't say whether you are employed. If you are and the loss of your income would place your husband in financial hardship (which is, by the way, the only reason for life insurance — to re- place income for those who are dependent on it in the event of your de- mise), you need life in- surance. If his diabetes is well-managed, there's every possibility he will outlive you, but his abil- ity to earn enough to handle both debts could be greatly diminished. Dear Mary: I am a 70-year-old single male with a decent income who faced the stark real- ity of bankruptcy. I have spent my entire life doing everything wrong when it comes to finances. While rearing my family, we lived well but incurred a lot of stupid debt. I have never saved; I have sel- dom invested wisely; and I have given consistently, though at times very un- wisely. My poor aware- ness of the proper way to handle money left me as an old man groping for a way out. With a debt load of over $36,000 on a fixed income, I entered a con- sumer credit counseling services debt-manage- ment program. Shortly after, I saw an ad for your book "Debt Proof Liv- ing." I bought it and have read and reread it. I wish that I could have been ex- posed to this wisdom as a young man. To know that "money is not to spend, but to manage" has changed my life. I will be debt-free in 44 months. I can't be- gin to express to you my gratitude. Thank you for giving me hope. — Billy Dear Billy: You have no idea how much you have encouraged me. I am so proud of you. And you af- firm what I so strongly believe, that there's al- ways hope and a way out. I think you'll be debt-free sooner than you think. Thanks for reading my book. I am so happy to know that it was a cat- alyst of change in your life! My only concern is what I will do with all the letters I get from 70-year-old single women who want your address. EVERYDAYCHEAPSKATE Handling an inheritance requires a game plan By Internal Revenue Service The Internal Revenue Ser- vice reminded taxpayers to- day that unclaimed fed- eral income tax refunds to- taling more than $1 billion may be waiting for an esti- mated 1 million taxpayers who did not file a 2013 fed- eral income tax return. But timeisrunningout.Toclaim this money, taxpayers must file a 2013 federal tax return by April 18, 2017. The law provides most taxpayers with a three-year window of opportunity for claiming a refund. If they do not file a returnwithin three years, the money becomes thepropertyoftheU.S.Trea- sury. The law requires them to properly address mail and postmark the tax return by April 18. Some people, such as stu- dents and part-time work- ers, may not have filed be- cause they had too little in- come to require them to file a tax return. They may have a refund waiting if they had taxes withheld from their wages or made quarterly es- timated tax payments. Some taxpayers could also qualify for certain tax credits, such as the Earned Income Tax Credit (EITC), but they need to file a tax return to claim the credit. Low-and moderate-in- comeworkerswhoseincomes fallbelowcertainlimitsoften qualify for the EITC, which for 2013 was worth as much as $6,044. The income limits for 2013 were: •$46,227 ($51,567 if mar- ried filing jointly) for those with three or more qualify- ing children; •$43,038 ($48,378 if mar- ried filing jointly) for people withtwoqualifyingchildren; •$37,870 ($43,210 if mar- ried filing jointly) for those with one qualifying child, and; •$14,340 ($19,680 if mar- ried filing jointly) for people without qualifying children. There is no penalty for fil- ing a late return for those re- ceivingrefunds.TheIRSesti- mates that half the potential unclaimedrefundsareworth more than $763. The IRS may hold 2013 re- funds if taxpayers have not filed tax returns for 2014 and 2015. The U.S. Treasury will apply the refund to any fed- eral or state tax owed. Re- funds may also be held to offsetunpaidchildsupportor pastduefederaldebtssuchas student loans. Current and prior yeartax forms and instructions are available on IRS.gov. Taxpayers who are miss- ing Forms W-2, 1098, 1099 or 5498 for tax years 2013, 2014 or2015shouldrequestcopies from their employer, bank or other payer. Taxpayers who are unable to get missing formsfromtheiremployeror other payer should go to IRS. gov and use the "Get Tran- scriptOnline"tooltoobtaina WageandIncometranscript. TAX TIPS IRSremindertotaxpayerswhohaven't filed 2013 returns: Time is running out Altacal Audubon pro- gram and field trip activi- ties for April are below. All activities are free of cost unless otherwise indicated and open to the public. For questions or further infor- mation about specific ac- tivities, call Wayland Au- gur at 519-4724 or write to wba@acm.org. Chico Creek Nature Cen- ter, 6:30 p.m. Monday, April 17 Join in a screening of the documentary, Break- ing Point: Time is Run- ning Out. The Salton Sea has reached it's breaking point, and time is running out. The worst environmental disaster in U.S. history is quickly approaching, yet very little is being done to stop it. A casualty of the "water wars" in the South- west, California's largest lake is disappearing. The receding Salton Sea reveals a toxic mix of fine dust and chemicals that is threatening the health of millions. It's also one of the most important places for birds in the Western United States. More than 400 spe- cies of birds make regular use of the Salton Sea, and it has been designated an Audubon Important Bird Area of global significance. Altacal Audubon Society in conjunction with Califor- nia Audubon presents this gripping 60-minute doc- umentary film with a dis- cussion to follow hosted by Desiree Loggins, Central Valley/Sierra Chapter Net- work Manager for Audubon California. Limited seating available. Tricolored Blackbird Surveys — April 7-8 Join again for Tricol- ored Blackbird surveys. These near endemic Cen- tral Valley bird species are incredibly interesting in their breeding behavior. By the time you see them colonizing breeding sites in the area they may be on their second or third clutch, having bred earlier, more southerly. The birds breed in large colonies, but depending on their cycle, can be very quiet and cryptic, so a sur- veyor might not see much activity. Or you may see hundreds of birds stream- ing to find grasshoppers and back to feed their nestlings. The "trics" are proposed to be listed un- der the Endangered Spe- cies Act because of habitat loss and agricultural prac- tices. The aim is to find where the birds are nesting and help preserve habitat. Meet at 9 a.m. at Flume Street office. The group will survey till 4 p.m. Half- day surveyors are welcome. Bring lunch, water, binoc- ulars. Write to Avifan59@ gmail.com for more infor- mation. Spring Bird Song Hike — 7 a.m. April 29 By early May most of spring migrants have ar- rived from Central and South America, and they are exuberantly proclaim- ing their virility. This is the finest time of year to savor the beauty of their songs and learn the keys to iden- tifying them by their voices. Join bird song connoisseur Scott Huber on a leisurely amble amidst nature's sym- phony. Meet at the Chico Park n' Ride, East lot. Water Wise and Habitat Friendly Garden Tour — 9 a.m. to 4 p.m. April 30 A Springtime garden tour in Chico, sponsored by Altacal Audubon and the Mt. Lassen Chapter of the Native Plant Society. The gardens on tour will feature many bird and pol- linator stewardship fea- tures for visitors to learn about. Native plants and attractive water-conserv- ing landscaping will be fea- tured. Regular registration $10, student and low income $6. ALTACAL AUDUBON Program and field trips for April By Justin McCuin SocialSecuritymanagerin Redding Social Security is with you through life's journey, putting you in control of your finances and future. With this in mind, we have made getting a replace- ment Social Security Ben- efit Statement even eas- ier. Now you can instantly print or save a replacement any time you want. That's control! The Benefit Statement, also known as the SSA- 1099 or the SSA-1042S, is a tax form Social Security mails each year in Janu- ary to people who receive Social Security benefits. It shows the total amount of benefits you received from Social Security in the pre- vious year so you know how much Social Security income to report to the IRS on your tax return. An SSA-1042S is for a noncitizen who lives out- side the United States and received or repaid Social Security benefits last year. If you currently live in the United States and you need a replacement form SSA-1099 or SSA-1042S, simply go online and get an instant, printable re- placement form with a my Social Security account at www.socialsecurity.gov/ myaccount. If you already have a my Social Security account, you can access your on- line account to view and print your SSA-1099 or SSA-1042S. If you don't have a my Social Security account, creating a secure account is very easy to do and usually takes less than 15 minutes. Keep in mind, your So- cial Security benefits may be taxable. Visit www.so- cialsecurity.gov/planners/ taxes.html if you have other substantial income. Securing today and to- morrow doesn't have to be difficult, and Social Secu- rity continues to improve our customer service with easy-to-use online fea- tures. Find out more about what you can do online at www.socialsecurity.gov. SOCIAL SECURITY As tax day approaches, get your benefits statement online Friends and Supporters of the US Air Force Monu- ment Project are working hard to complete fabrica- tion of the US Air Force Monument this summer. It will be officially dedicated at the North- ern California Veter- ans Cemetery in Igo on Veterans Day, Nov. 11. About half of the funds needed to cover expenses have been raised. Between now and mon- ument completion some- time this summer, the other half of required funds will need to be raised. The public is asked to consider making a dona- tion to the project or or- der an engraved paver that will be placed at the base of the monument. To see all the ways to help out, visit http://usairforc- emonument.com/make-a- donation. AIR FORCE Monument at the Northern California Veterans Cemetery in Igo this year CONTRIBUTED Example of inscribed paver bricks. Mary Hunt To know that "money is not to spend, but to manage" has changed my life. 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