NEW CASTLE —
Dear Dave: I’m going through a divorce, and I’m about to buy a $600,000 life insurance policy. My 9-year-old daughter would be the beneficiary. I need a trustee, but how do I pick a good one? — Marie
Dear Marie: First, your daughter wouldn’t be the beneficiary. You would leave it in a trust for her benefit. And I’m not sure I’d depend on an ex-husband to handle something that requires this much integrity. You’d be better off hiring a good attorney to execute the trust upon your death, or you can look for a bank that has a trust department. Once you decide on a trustee, you must remember to clearly and specifically state what you want done with the money. Don’t say to invest the money appropriately, because what a banker views as an appropriate investment and what I view as an appropriate invest are usually very different. A banker might put the money in CDs, or certificates of deposit, while I’d probably look at something like mutual funds, which have a much better rate of return. In many cases, a trust for a child is put in place to pay for their first car, a medical situation or their college education, but this is completely up to you. The balance of the money might go to them when they reach age 21, while they receive a monthly stipend for food and other essentials while they’re younger. I’m proud of you for thinking ahead, Marie. I know divorce is hard, but your little girl is lucky to have such a good and caring mom on her side! — Dave
Dear Dave: How do you feel about using an online bank for your emergency fund? — Jared
Dear Jared: I don’t think that’s a problem at all in most situations. Just make sure you do a little research. Know who you’re dealing with and that they’ve got some strength. A bank that is known as a “click and mortar” — one that has a physical location as well as online — would be my preference. Some of them have great debit card programs that includes debit card rewards and high-interest checking accounts, too.
When it comes to an emergency fund, I like the idea of keeping it in a separate money market account. That way you get money market rates, plus you can attach check writing privileges to the account. Then when an emergency comes along, you don’t have to worry about shuffling money around. You can just write a check out of the account. Problem solved! — Dave
(Follow Dave Ramsey on Twitter at @DaveRamsey and on the web at daveramsey.com.)
All About You ...
Related Photos
-
For years Dave Ramsey has been the host of the popular ‘Dave Ramsey Show’ on radio stations across the nation. Now, his financial advice column is carried by more than 300 publications. It will appear each Friday on The News website.
Discussion
Dave Ramsey: Picking the right trustee
- All About You ...
-
-
Lori Brothers: Body awareness can help manage stress
Are you an “inny” or an “outy”? I’m not referring to your belly button, even though the concept also applies there. I am talking about how you manage your stress. Do you internalize or externalize?
-
Sarah Stright-Hartley: Top trends for men as the weather warms
We frequently talk women's fashion around these parts, so today I wanted to give the men a bit of a shout-out. Men's fashions are less likely to change year to year, but there are still "trends" each season that men will find in stores. To the right you'll find some of the top trends for spring/summer 2013.
-
Your Tax Money: Four districts undecided on vo-tech budget
Four school districts are still deciding whether to support the Lawrence County Career and Technical Center’s 2013-14 budget. The New Castle, Wilmington, Mohawk and Ellwood City school boards are waiting until June to vote on the proposed spending plan as they contemplate a growing debt the center owes to six of its eight member school districts.
-
Making a Difference: Volunteers put up home for young mother, son in three days
The Blitz was on this weekend in New Castle. Habitat for Humanity had a “Blitz Build” for its latest Lawrence County house at the corner of Newell and Madison avenues in Mahoningtown. Over Thursday, Friday and Saturday, concrete block was laid for the basement, the ground floor was constructed, the roof was built and walls went up.
-
Culinary Conversation: A day in France— or close to it
Here’s some advice: If your spouse packs your lunch, never complain about the contents. I wasn’t actually griping. I just noted that it lacked excitement. The response from spouse was — our kitchen isn’t the Ritz Carlton.
-
Dave Ramsey: Avoid college loans if you can
“Dave Says" is a weekly column featuring financial advice from nationally syndicated radio host Dave Ramsey. His column is filled with timely, relevant questions and answers taken from actual letters and calls on Ramsey's radio program, “The Dave Ramsey Show.”
-
Lori Brothers: Be ready to stay healthy during storms
At any time during the spring and summer, we may get a signal from our local officials that there is inclement weather that can turn threatening. It is always important to pay attention during alerts to assure that your family, including your pets, are safe in the event of an emergency such as tornado, flood or power outage.
-
Sarah Stright-Hartley: Looking for stylish way to pack your possessions? It’s in the bag
One of the most personal things a woman buys is a handbag. It holds all of her prized possessions. So when shopping for a new bag, there are a lot of things to consider. Size, color, quality, fabric and length of use. Is she looking for something to use year round, or something that can be changed each season?
-
Kali Davies-Anderson: I’m now a year older — and a lot wiser
On May 7, I turned 28 years old. I understand this is still considered “young,” but I feel as though I have lived many lives in my 28 years. And in those many “lives” I have learned vast and various lessons.
-
Making a Difference: Custodian makes clean sweep of kids’ hearts
When Croton Pre-Kindergarten Center students recess for summer vacation next month, “Mr. Pete” will walk out the door with them. And it will be for the last time.
- More All About You ... Headlines
-
