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hey everyone welcome to the 2-minute
money manager I'm your host Stacey
Johnson this answers brought to you by
money talks news calm serving up the
best in personal finance news and advice
since 1991 a question today comes to us
from anonymous and anonymous says is pre
paying your funeral a good idea well I
got three things for you anonymous thing
number one what Spri paying your funeral
really mean well you heard of prepaid
tuition programs where you pay for
tuition now or your kids little and then
you know you've locked in that rate so
when your kid gets to college they are
their tuitions already paid same thing
with this you're paying your funeral now
in today's dollars so that when you you
know when your funeral time comes around
it's already paid for
now it's so just like prepaid tuition
only a little creepier okay thing to the
cons of preacher the pros of prepaying
your funeral obviously there's an
advantage to pre paying your funeral in
the sense that your loved ones are
already going to be torn up so now they
wanted to think about this you're going
to get exactly what you want it's
already gonna be paid for and you're
gonna take a lot of the emotional stress
from those you leave behind those are
the pros thing - what are the cons well
there's lots of cons first of all these
contracts are you know they vary from
funeral part of funeral parlor what if
it goes bankrupt you're gonna be able to
get your money back you might might not
have to read the contract what is it
gonna earn interest your money are gonna
earn interest
well it might might not got to read the
contract and what have you changed your
mind what if you move to another place
what if you no longer want to be buried
you want to be cremated I mean there's a
lot of things that can happen so by and
large there there's more cons as far as
I'm concerned than there are pros
which leads made a thing number three
what should you do well how about
getting a life insurance contract or
maybe already have one make sure the
beneficiary is somebody you want it to
be I mean you might have had your your
ex-wife on there five years ago now put
on your new wife you know whatever and
you can also do pay on death bank
accounts in other words it automatically
goes to your heir on your death doesn't
mean they're they were forced to use it
to pay for your funeral at least the
money will be available
that way so my advice invest your money
make sure your loved ones know what you
want this is the main thing make sure
they know what you want and then invest
the money and don't get one of these
contracts that's my advice okay guys
that's it for today
hope you enjoyed it see you next time
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