What is your opinion on this?Financial?

Two aspects here: 1) Manage the existing financials 2) More financial inflow. I talk about what I do for PFM (Personal Financial Management)
I am more personal financial freak. I dont want a penny of others. I value each penny of mine.
I have been using a software called Quicken for over a decade. It has been an amazing tool which has been managing my personal financials very nicely. I have been making money with Quicken by very carefully allocating the inflow across out flows and investments.
It would be very boring at first to get used to Quicken. But once if you put it together correctly, it really drives you instead of you driving it. Now its fully automated for me. All transactions gets into my Quicken online itself(BTW, Quicken got two versions. one desktop application another is their online version. I use only the desktop version. I dont trust the online version since our confidential financial info sits in THEIR servers. Even I dont eFile my taxes too, just paper file). Even Quicken gives me an estimate on what would be our final taxes and where to move money to reduce the taxes etc. Its not the right tool for LAZY at the first. You have to keep more and more personal interest to get it to at least a good starting shape. Once you are done, its an easy ride.
Even I manage my Indian accounts with that too(automatic currency conversion happens too).

On the second part which is increasing the inflow of money, its up to the individual's attitude and interest to make money, America provides unlimited opportunities if you lift your yeass off your lazy feet and move on..
Good luck for your friend and her for her family.

 

since there are no restrictions as to spending money on parents etc, why not withdraw some money every month and put it in a different account. involve his parents, brothers discreetly and ask them to put in some words to make him see sense. It is true, if kids are American citizens, eduxation can be pretty expensive in India - heard this from a lot people. If he doesn't do it - she Must.

 

I feel some men think a lot about future life - in the sense if he has taken property loan then he has to repay it for next 15-20 yrs. Will I have this same good job based on this economy? As wife not working I should take care of all the responsibility of education, health and expense. With loan will I be able to take care of this?
Will I have peace of life? Now life is going smoothly with no monthly payments on FD/Mutual funds so why to take risks when everything going smooth.

Indeed he has to think all of these aspects ; but for wife she thinks no saving, no property - what is the future lying for us? She is also true.

It is wife's duty to explain things in a better way to her husband like paying the rent will be same as paying EMI.
If something not good then sell this and we can go back to India or look for apt. She can ask money as her monthly pocket money towards home and can do FD/Mutual funds whatever she is interested.
Some or the other ways. I think she can better ideas from her mother as every woman will came across this phase.

 

529 plans for kids and mutual fund savings on friends name should be a beginning. If he is willing to give her an allowance then she should start with $500 or less in mutual fund and at $100 in 529 plans. Any financial planner can help with this.
If possible she can buy a flat in India with monthlyEMI. That can be later rented and sold in future after prices go up. One cannot change an individual so she should stop pestering him and take some positive steps herself.

 

i would suggest plan 529 for education. it yields good returns, it is investment for education expenses and can be used only for that. you can also use it for your own education - not only kids - we invested in 529 when i was studying.

Apart from that, how much does your friend's hubby put into 401k? If she can, ask him to put the maximum into it, even if company doesn't match as much. it saves taxes and can build a nice nest egg for the future - specially since it seems like he intends to live in the USA.

Another area is property - ask him to buy a home - instead of renting - there are quite a few benefits to buying a home - the monthly payment goes towards your own property instead of the home owner's pocket. (this is a clincher - ask her to use this statement - why pay someone else?) tax breaks on interest on mortgage, credit for property taxes available - actually reducing the cost of home ownership.

either they can buy a bigger home OR they can but 2 condos (of course depends a lot on where they live, their monthly income, credit ratings etc etc) BUT assuming all the other factors being conducive - instead of investing on a single home - can buy 2 condos, live in one - rent the other. there are tax breaks available for HOA fees, expenses incurred on rental property etc.

Options for the financially savvy are innumerable - If the husband is not money conscious, the wife MUST take the lead - I would suggest, ask her to investigate various options, borrow books from the library, read up on the internet and keep putting into Dh's ears. it has to be a gradual process, a little time lost in the process of conditioning him will yield results in the long run. if she nags now, the train can go in reverse.

 

oh I see, just saw this post - she has already been tagged 'nagging wife'- she must be more careful now.. the train is in reverse