Life Changing Events and The Fair Tax

Money-Guy 09-23-2009

So it has been about two weeks since our last show and, if you have listened to the most recent shows, you know that the reason for this temporary absence is because my wife and I have recently added a new member to the Preston family. Our new baby girl arrived healthy and happy and, other than the many sleepless nights, has been an absolute joy.

As I’ve been sitting awake and tending to the needs of an infant, my mind has had time to wander and think about an appropriate topic for this week’s show. Not only that, but I’ve also had time to do some in depth research on The Fair Tax podcast I promised you a few months ago.

Well through my wanderings and research, I kept coming back to all of the things that would change with the addition of this new child. I finally decided that it would be very appropriate, and convenient, to talk about considerations that need to be made when an individual goes through a significant life change.

Almost all of us at some point will go through a marriage, divorce, birth, death, or other life changing event that can have a very real and immediate impact on our financial lives. As you listen to the show I will cover some thoughts you may want to have as you encounter these life changing events. Some of these thoughts include:

• Life Insurance
• College Savings
• Estate Planning such as Trusts and Wills
• Titling of Assets
• Beneficiary Designations

As I alluded to above, I also had some time to begin my research on the very popular Fair Tax concept. After hundreds of pages of documents, numerous phone calls, a couple of books, and tons of websites, I finally realized that, in its current state, the Fair Tax is really more of a theory right now than an actual plan of action. There are so many moving parts that it is hard to do a true analysis of the credibility of this new tax system. However, I made some assumptions and  constructed some spreadsheets that I think you will find compelling. What I determined, however, may not be what you were expecting and may not even be something you agree with. If that’s the case, then GREAT! Please leave comments here. I want to be very open and tell you that I don’t have this whole Fair Tax issue figured out, and I’m not sure if anyone does at this point. Even staunch proponents such as Neal Boortz have different views than that of the Fair Tax website.

If you have any insight or thoughts, please leave them here. I’m am very anxious to hear your perspectives and to gather your thoughts!

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