Unlocking Opportunities: How AI Legalese Decoder Empowers Parents to Guide Their Post-Graduate Children Navigating Entry-Level Jobs from Home
- September 13, 2023
- Posted by: legaleseblogger
- Category: Related News
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Facts:
Current Financial Situation:
Our daughter is currently under a 2-year contract that pays her $45,000 annually. This contract provides her with full health benefits which is a great advantage. Additionally, she has a 401k plan with no match, but she contributes 3% of her salary towards it. She doesn’t have any student loans or other bills to worry about, making her financial situation quite stable. Furthermore, she possesses a substantial emergency savings account of $10,000, and a Schwab Roth IRA with $2500, specifically invested in a target fund. Moreover, she possesses a discover credit card with an established credit history, and she is responsible enough to pay off her balance each month.
Future Plans and Goals:
It is our daughter’s goal to eventually move to a higher cost-of-living area and live on her own, possibly with roommates to share expenses. It is important to consider that she will need to purchase a used vehicle within the next 2 years, although this is not a priority while she is living with us.
Creating a Budget:
Considering our goal to instill good saving habits in our daughter, we aim to create a budget for her as if she were living on her own. This will allow her to practice budgeting her expenses and saving money independently. However, we now face the question of where she should allocate the “bill” money to be saved. This is where the AI Legalese Decoder can come in handy.
How Can AI Legalese Decoder Help?
The AI Legalese Decoder is a useful tool that can assist in deciphering complex legal documents and contracts. In our case, it can help us better understand her current contract and its terms. By having a clearer comprehension of the contract, we can ensure that she is optimizing her financial potential and taking full advantage of the benefits offered. This will enable her to allocate her income efficiently and make informed decisions about where to save her “bill” money.
Allocating the “Pay Yourself First” Money:
To encourage our daughter to prioritize saving, we propose that she sets aside 10% of her take-home pay as “pay yourself first” money. This amount, after considering taxes and other deductions, should be directed towards building her long-term savings, such as her emergency savings account and Roth IRA. These are both excellent options due to their accessibility and potential for growth.
Managing the Budgeted “Bill” Money:
As for the budgeted “bill” money, since our daughter doesn’t have any bills to pay while living with us, it can be treated as additional income. We suggest that she channels this money towards various savings goals. For instance, a portion can be earmarked for her future vehicle purchase, ensuring that she will have a substantial down payment when the time comes. Additionally, she can allocate funds towards her emergency savings account or her Roth IRA to further bolster her financial security and long-term investments.
Overall Savings Strategy:
While the main objective is to save as much as possible, it is vital that our daughter establishes good saving habits and strategically places her savings in appropriate accounts. With the help of the AI Legalese Decoder, we can gain a clearer understanding of her contract, ensuring she is aware of all available benefits and provisions. By prioritizing both short-term and long-term savings goals, she will be well-prepared to succeed financially in the game of life. Any additional suggestions or insights for effectively managing her finances are greatly appreciated!
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Using AI Legalese Decoder to Simplify Legal Language and Enhance Access to Justice
Introduction
In recent years, the legal field has been grappling with the challenge of complex and convoluted legal language, also known as legalese. This language barrier often hampers people’s understanding of their rights and obligations, limiting their access to justice. However, advancements in Artificial Intelligence (AI) have paved the way for the development of tools like AI Legalese Decoder, which can play a vital role in simplifying legal language and bridging the legal comprehension gap.
The Problem with Legalese
Traditional legal documents are notorious for their excessive use of jargon, archaic terminologies, and long, confusing sentences. Such language is not only incomprehensible to the average reader but also excludes individuals with limited education or language skills from understanding their legal rights fully. Consequently, this language barrier perpetuates inequality and prevents marginalized populations from accessing the justice system effectively.
AI Legalese Decoder: How It Works
AI Legalese Decoder is an innovative tool that utilizes machine learning algorithms to decode complex legal language into more straightforward and plain language. By analyzing vast amounts of legal texts, contracts, and case law databases, the AI model learns patterns and structures inherent in legalese, enabling it to identify problematic phrases, outdated language, and convoluted sentence structures.
As the AI Legalese Decoder processes legal documents, it breaks down complex sentences, replaces technical jargon with simpler terms, and provides user-friendly explanations of legal concepts. Not only does this make legal documents more accessible to the general public, but it also saves time and effort for professionals such as lawyers who need to interpret legal language frequently.
The Impact on Access to Justice
The advent of AI Legalese Decoder has significant implications for access to justice. By transforming complex legalese into plain language, this tool empowers individuals to understand legal agreements, contracts, and statutes without relying heavily on legal professionals. This helps level the playing field, enabling individuals to be informed participants in legal processes, negotiations, and decision-making.
Furthermore, the AI Legalese Decoder can facilitate self-help legal resources and platforms, enabling individuals to navigate legal procedures, understand their rights, and access necessary legal services more efficiently. By simplifying legal language, individuals can save money on legal fees, gain confidence in asserting their rights, and make more informed decisions.
In addition, AI Legalese Decoder offers benefits to legal professionals. It serves as a valuable tool for lawyers, judges, and other legal practitioners, allowing them to communicate legal concepts clearly to their clients. By avoiding misunderstandings and likely disputes resulting from confusing legal language, the decoder improves communication and streamlines legal processes.
Conclusion
The transformative potential of AI Legalese Decoder in simplifying legal language and enhancing access to justice cannot be understated. By breaking down language barriers, this tool ensures that individuals from all walks of life can understand their legal rights and obligations. Moreover, AI Legalese Decoder helps reduce burdens on the legal system and empowers individuals to navigate legal complexities independently, fostering a more equitable and inclusive society.
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Is she taking lead of these plans too? Because if not, it may fall apart once she moves out. It’s great that you’re helping so much, so I hope my comment isn’t seen as overly critical.
IÔÇÖd recommend maxing out her Roth IRA at this point if she has no rent or any bills at the moment
Really appreciate that youÔÇÖre trying to help her be financially responsible and set her up for success.
However, weÔÇÖre talking about an adult (prob aged 20-24). She has to take ownership of this project. She should be googling and talking to older family friends about their experiences. She needs to make the first draft and all the revisions of the plan and get your feedback.
I had a mum who helped write all my papers through high school. When I got to college, I couldnÔÇÖt do anything on my own. Supporting her as she does this herself will give her better tools.
1. The 10% starts in a HYSA. But since she already has $10k in that (assuming it’s high yield and not one of those 0.5% accounts), consider adding a money market account to Schwab since her IRA is already there. Most funds require a $3k or so minimum to open. Once she has another $3k, toss it in an index fund of some sort.
2. Start charging her rent. $1000 or so a month will help her understand how quickly the money disappears when you’re paying your own bills. Once she determines where she’s going to live and how much it’s going to cost each month, up it to that amount, explaining that you’re planning on returning it all once she moves out but that this is a good test run.
1. Return it all when she moves out.
3. Congratulate yourself for raising a kid who is doing this well at such a young age.
There is a lot of good advice in this thread so IÔÇÖm going to take a different stance and tell you a little bit about my own life.
My parents didnÔÇÖt teach me too much about money. I got my first checking account at 13 or so and my mother taught me to balance it and if it was even a penny off it was the end of the world to her. LetÔÇÖs just say she was overly crazy about this stuff and I never wanted to spend money form it.
My parents taught me to save because otherwise IÔÇÖd be poor like my cousins that canÔÇÖt afford their taxes on their house in a very below average cost of living city. So I never wanted to spend anything.
My parents were middle class probably upper middle class and my dad was pretty good at spending money when he felt like it because his parents grew up in the depression and never spent anything ever. So much so that they wouldnÔÇÖt spend the gas to see us 30 minutes away because it was too far and wouldnÔÇÖt call until after bedtime (9pm) when long distance was free. My grandparents on both sides never babysat me, took me to a baseball game or even a movie.
Needless to say my relationship with money was basically only spend it if you have to or If you really want something for years then itÔÇÖs ok to buy.
This mentality was strangely different from my GF and now Wife where I didnÔÇÖt want to buy a house until I had all my debts paid off, didnÔÇÖt want to get engaged for the same reasons, etc. I almost missed out on a lot of life.
So i would like to remind you to make sure there is a fund somewhere that is called ÔÇ£Self InvestmentÔÇØ because without that life just isnÔÇÖt worth living sometimes. It took me a while to learn that and a bit longer to be ok with it.
For my daughter (27) who has been living back home since she got her degree and who we don’t charge rent, we made a deal that no rent for us, but she would set up a tax sheltered annuity and put in the equivalent to rent in it every month. Our goal for her is for her to save up for three or four years and then let it grow. When it is time for rent to be paid, she’ll already be used to paying it (into her annuity)>
first question is. what are her expenses? if you dont know, ask her and get it. literally every dollar being accounted for. its annoying when people ask for help here and their literally budget outline is:
“i make 4k a month before taxes. spend 1k in rent and 2k in groceries, entertainment, eating out, games, savings. what can i do?”
literally make everything a line item.
Do you require her to pay rent? or anything else to help with the expenses while she lives at home?
She should max out 401k and Roth IRA. She may not be able to after she moves out but no reason not to right now.
I think she should have an emergency fund. For the longest time I used to automatically send 20% of my paycheck to savings – she could do that to the emergency fund and its a habit she can continue going forward. Put it in a HYSA.
The rest I think you should have her invest. I like the idea of mutual funds, most of which have a $3k minimum and are long-term fairly safe. Since she would also be contributing to an emergency / move out fund she’d have cash on hand but this will also let her get a good start on investing.
For her
Start here: https://www.reddit.com/r/personalfinance/wiki/commontopics. https://old.reddit.com/r/personalfinance/comments/1462q69/personal_income_spending_flowchart_enhanced
For you
Banks and CUs: https://www.doctorofcredit.com/high-interest-savings-to-get/amp/ https://www.reddit.com/r/personalfinance/wiki/banks_and_credit_unions
Put her rent money in a high yield account then you can give it to her when she moves out
At her income, she should be putting more than 3% into a retirement vessel and she should be using a Roth IRA not a 401(k). A Roth will be easy to max every year with no rent and she can start an emergency fund too.
I just came here to say congratulations on being a gold star parent. You are setting her up to be so far ahead of the curve. Remember this can be stressful for a young adult however, and she still deserves some fun money every now and then if she’s living at home, she should enjoy these years if she can.
This thread is full of helicopter parenting. She’s ~22yo with a college degree. Start being her adult friend and back away. Lightly suggest that you are here for advice and help.
Treat her like an adult and make her pay all her own bills such as cell phone, insurance, car and charge her a small rent (that you save and return when she moves out).
Me personally, I would find out what it cost for a studio or one bedroom apartment in the area where I live then estimate what the monthly utilities would be cell phone, internet, electric, water, gas, the whole nine.
After calculating all that, that is what I would charge her for rent. You’re not keeping the money, but you’re getting her into the habit of paying these bills. I would see about getting a CD that yields a high interest rate or even a savings or checking account, that has an interest rate of 2.5 or higher. She would make her payment to this account on a monthly basis.
Her personal savings, 10% should go into an account that she has access to, and if need be required two signatures to remove money. No access to this account via debit card.
Definitely max out the Roth IRA if possible. She’s young, and those early contributions will grow big with time.
The 10% should go in her savings. Get ÔÇ£budget moneyÔÇØ you should take and set aside. When sheÔÇÖs ready to move out, give it back to her so that she can furnish her new place, but a car, or bolster her savings.
I would put her “bill” money in a high yield savings account. Save up enough to cover six months of her simulated expenses and then dump the rest into the 401k. With your daughter being so young that money will compound beautifully.
Her 10%, I imagine will be spent right away so keep it in a checking account.
Might as well simulate buying a car. Shop around for the type of vehicle she wants to buy take the cost of the vehicle plus fees divide it into the time she will continue to live with you and have her put money into the HYSA as a “car fund”.
Work on improving her credit score as well for when she decides to rent. Lots of tricks you can use, for example making her an authorized user on one of your credit cards. That will give her all your credit length and will give her a boost.
You’re an awesome mom! Few parents take the time to teach their children about finances.
In addition to rent, I like the idea of contributing a “car payment” to herself for a future car purchase. This will flex that savings muscle for shorter-term purchases. I suggest allowing her to take over some of her smaller bills, cell phone service, or something similar. Cheap way to dip her toe in the water for hard deadlines and such and being responsible to someone other than parents.
I suggest have her pay her fair share of house hold expenses. Figure out career goal . If it more education then find a local college and look at her options. Now is the time to do that. If it is advancement in her career look at the companies she wants to work at to advance then make a plan to take what ever position they have to get her foot in the door. Researching the cost of living in the companies area save up to 6 month of expenses. Then start applying and be ready to move asap.
I if I had her opportunities if you are open develop a family plan. Family is the only thing to rely on in this world.
Make sure emergency fund is in a HYSA (~5-5.25%) or if staying home over the 2 year period maybe consider a CD (5.5%+).
Imo lifestyle with or without roommates should be sustainable on post-move income. Not an ideal situation to be spending down savings from living at home to survive. For this reason, IÔÇÖd suggest increasing retirement contributions (max Roth IRA, bump up 401k (with no match) slightly. Save any additional for moving expenses, car (may not need depending on HCOL), vacations, etc..
One of the best things I did was max my 401k my first two years out of college. I was able to put away $37000 those two years and compound interest has done it’s thing. That two years of savings is going to provide me with income for close to five years of retirement.
I would seriously consider doing some simple excel to show her what can happen to a 401k with 40 years of growth.
She needs to figure this out on her own (with guidance). She should be making this post on Reddit and coming up with plan. If you doing all of the work, your enabling her.
When I finished school and lived at home, my parents taught me:
1. max out my IRA
2. put 15-20% (if not maxing out) in my 401k, even use a roth 401k (if you could) since I was making so little
3. put money in a CD (I passed and found HYSAs instead.)
What I did on my own:
1. put some money aside into a HYSA as if I was paying rent (less than market but still a reasonable amount)
2. paid my car bill/some regular expenses, or put the money aside if my parents paid it for me (since she eventually needs a car, teach her to put money aside for it starting now, basically build it into the budget she doesn’t yet have)
3. paid off my own credit card early each month, I treated it more like a debit card, but point is I kept up with it to never have fees.
4. eventually opened different savings accounts for different purposes, one could be emergency, another could be if I ever saved for a down payment, expensive trip, whatever goal I might have.
It helped a lot when I finally moved out on my own I had a safe amount saved up to not need to go to my parents in emergencies, and continue to budget pretty well.
Have her pay you rent and a portion of the bills so she can get acclimated to the idea of budgeting for it. Save all that money and give it to her when she moves out
OP, I bought a house for my eldest to rent from me when she decided to move out after college. If she had desired to stay in her current area permanently, I would have eventually sold the home to her (for FMV). While sheÔÇÖll be moving next year to an area I donÔÇÖt want to buy a home in, IÔÇÖm considering hanging onto the current home, in case she returns in a few years.
Depending on where your daughter intends to move and what she might anticipate earning in her new locale, is a similar deal financially possible for you?
If she has $10k in savings already, you’ll want to actually invest the 10% pay yourself money
$10k –> HYSA
10% –> low fee S&P 500 fund or ETF (Vanguard VOO e.g.)
bill money –> split between CD and S&P 500
The biggest lesson and ‘a ha’ moment for me was finally understanding compound interest in real terms, for both loans and retirement savings. If she wants to get a car make sure you walk her through an amortization schedule for a loan to illustrate how much the ‘real’ cost of the car would be if she makes minimum payments. Conversely, you can teach her how saving money early in retirement accounts can compound to major gains by the time she’s of retirement age, both valuable lessons that all young adults should know.
My parents taught us to budget starting the summer after we turned 14. Basically they got us first jobs somewhere that would take care of us and said that the general rule would be that if we wanted non-essentials like a Videogames, we had to buy them ourselves unless it was part of our birthday or Christmas.
It was liberating, 15 year old me could go up to the Gamestop and buy the new Xbox360 on launch day. No begging, persuasion, questions or criticisms. If I wanted something, I could have it so long as I paid for it. A few thousand dollars went a **long way** at that age.
It was also enlightening, because when 15 year old me ran out of savings in February, I lost most of my petty luxuries until the school year ended and I could go back to my summer gig.
The moral of the story is that rather than manage our money for us, they setup a low stakes environment where we were allowed to succeed or fail and bear the (mild) consequences. That was a much better lesson to learn as a teenager than it would have been as an adult, but at a certain point you have to stop micromanaging your kid.
If your fear is that she’ll throw all your lessons out the window and go on a wild spending spree, it’s better to let her crash and burn now than once she moves out and the consequences are much higher.
29F here, no kids but I do live in a VHCOL area and can share what IÔÇÖve done.
Seems like $10k is a pretty decent emergency fund, but I would have her keep it in a HYSA, these are usually online only banks, but most have fast transfers.
50/30/20 is a good rule of thumb to get her in practice.
– 50% of her take home are needs, so this should go to a separate account or you holding it as this is housing, utilities, groceries, necessary transportation.
– 30% are wants
– 20% is for saving and investing. Since she already has an EF and 50% of her income being saved as ÔÇ£needsÔÇØ, I think maxing her Roth IRA at $6,500 would pretty much be 20% annually for her.
So ill start by saying it sounds like she is in great shape and it’s good that you guys are attempting to help her out. A lot of people are kind of insulting or insinuating you’re being controlling but from what you’ve said it’s all her money she earned in her accounts and I wish my parents had been smart enough to assist me in any manner. I had to leave at 18 due to familial issues and it definitely affected my life in a negative manner.
now on to the advice. if she has no real bills at this and she has goals and things she absolutely will need money for in the future I recommend more savings accounts.
I suggest giving them specific names and coming up with set values for how much she will need to put into them per month as her “bills”. Per the rules she should not touch this money until it is time for her to move out and onto new things.
I personally recommend 1 account that she pays into for her car at about 350-500 per month. this would be an example of how a car payment can feel when you’re also paying for car insurance as well.
account 2 would cover all other bills she isn’t currently paying for. Find an example of the rental cost of what she is looking for and adjust to account for roommates. do the same for electric, water, internet, and if she will be using any subscription services add those as well.
I dont know the area very well but I would suggest a minimum of 700-800 to account for all of these and I’d probably go higher but that depends on how cheaply she is willing to live.
I would name those accordingly as Car payment & Rent/utilities.
The 10% you suggested she use on herself is a good idea and I suggest leaving that in her main account and she can spend as she desires, I mean, it is her money after all.
Obviously this is all on her to actually commit to but if it goes well then in 2 years she should have over 8K to use for her car purchase and the other account should be close to, or over, 20k which can be used for deposit, unexpected moving costs, furniture, additional funds for the car purchase, etc. anything left in the account after that I’d suggest putting 70% into her actual savings account and then maybe using the other 30% on something she actually wants. something frivolous that will make it feel worthwhile to dedicate that much time to something like this.
welp that’s my 2 cents (more like a whole ass dollar after reading it over again)
hopefully you guys find something in all these comments that helps you out.
>We also want her to get in the habit of paying herself first. Thinking 10% of all take home pay.
Let her decide this herself. It’s entirely her choice.
Another way to think about this question, where do you put your 10%?
>We want to put together a budget like she is living on her own and need ideas on where to put that ÔÇ£billÔÇØ money.
Charge her “rent”. Maybe ramp it up month by month, but put a ceiling at whatever the current average rent is. Take all of this collected money, put it in a HYSA that your daughter doesn’t know about. When she finally moves out, give her back all the money in that account as a going away present.
Charge her rent and stick it in a HYS account. Gift it to her when she moved out.
Based on what youÔÇÖre saying, you already put her leaps and bounds ahead of most of her peers
I might have a bit of a different approach than most but I never was taught about money as a kid. What I found most helpful is a checking account with a bill bucket feature like with Ally. Every time I get paid I move them accordingly (transfer to HYS, house bucket, car, food , utilities, travel etc) basically assigning every single dollar a job. With those dollars assigned she will now be able to see what she has for what and where, without over allocating it. The goal would be to have fully funded buckets for six months of living prepared when she moves out.
I had no financial training, had to learn myself. Started getting it right in my late 20s.
I personally wish I’d maxed Roth IRA every year when I was young since it has the lowest maximum so you can’t do much to catch it up later, it has the most long term tax advantages/least short term tax advantage (which is fine when you’re early in your career and in a lower tax bracket).
Unfortunately I didn’t come from a family with high financial literacy, so I didn’t learn those lessons till I was almost 30 and had an employer that started offering 401k with matching.
TLDR; Roth IRA is my vote for the 10% pay yourself (current annual max is $6,500, so legally the whole 10% could go there).
Why doesn’t she put it in her 401k? If she has an emergency fund, she should save it in a tax-advantaged way (probably roth 401k if she can).
Ally does a cool feature where you can make different buckets of savings accounts where you can allocate a portion of your contribution towards these buckets. For example whenever she wants to get a home/rental apartment she can send a portion of her take home pay to the housing bucket. ItÔÇÖs just budgeting into a savings account. I think you will make more money in the stock market personally but some people will do 3 month T-Bills to get more of a return in a short-term period.
Your daughter is a college graduate, which means she is at least 20, probably older. Why are you still managing her money as if she were a child?
You are not going to be around forever to guide her. She needs to learn how to stand on her own two feet.
Firstly, kudos to you for setting up your daughter for success. My parents did a similar thing for me and its allowed me to create a good life for my family.
I saved aggressively w/o paying rent to my folks and then used the funds to buy my first home, a condo, where the monthly mortgage payment (including hoa fees and property tax) was equivalent to the monthly rent. This was ten years ago (2008-2012 where i lived at home) and it might not be feasible in todayÔÇÖs market, but having a hard asset has done wonders for me.
Perhaps consider investing in etfs. I personally like Vanguard (vtsax). Also look into treasure bills/cds for guaranteed returns on your cash while you are accumulating. Excited for you and your daughter 🙂
She should pay you rent and set up an emergency fund and a move out fund. Help her set up her retirement accounts at work. And then back off. Offer her advice, discuss savings and retirement savings, but let her do the work. She is an adult and you need to think of her as one. Her goal should be to move out and have an independent life. Please remember to stay out of her personal life and her relationship with her boss and coworkers, except to be a nonjudgmental supporter for her.
Tell her to visit a financial counselor (not an investment advisor) to build a plan. You shouldn’t be doing anything.
100% of focus should be on raising income. $45k isnÔÇÖt enough.
Why are people assuming the daughters doing nothing. Maybe theyre just working together? Yall are weird
Have her contribute more to her 401k while she’s this young. When I had very little bills, I upped my contribution to 10%. It’s still set at that + employer match. I got used to not having that money and the compounding interest from time in the market will be an amazing return for her.