Saturday May 19, 2012
My sister called today. She is a teacher in Missouri. She is contemplating a move to Texas. She mentioned that if she moved, although she knew she shouldn't, she could possibly cash out her Missouri Teacher's Retirement and use the money to put down on a house.
I don't think I let her finish her sentence. My interruption sounded something like this,
"No. Absolutely not. You will not cash in your retirement account."
She tried again, "I know I shouldn't but..."
"This is a direct order. I forbid you. You will NOT cash in your retirement account."
"Ok, ok, let's talk about something else."
Will she listen? I don't know. I mean really, who I am to issue orders?
Your retirement money offers two valuable advantages.
- Tax Deferral
- Creditor Protection
Learn more about these valuable benefits in What to Know Before Cashing in a Retirement Account.
Most are foolish if they touch their retirement money for ANY reason other than retirement.
You don't want to be a fool, do you?
Keep in mind, cashing in your retirement money is different than rolling it over to an IRA. Rollover: good. Cashing in: bad.
Learn more: What is an IRA Rollover? 5 IRA Rollover Rules to Follow
Friday May 18, 2012
I've had several conversations over the last few weeks with people who wanted to hire me to tell them what to invest in right now. My first question for them was "Have you read any books on investing?"
I ask this question, because in an hour or two it is impossible for me to impart 17 years, 30-60 hours of continuing education a year, a CFP® designation, and over 100 financial books worth of knowledge on you.
I can tell you what to do, but you're not going to understand why. And when you don't understand why, you're likely not going to stick with the plan. And then it's not going to work.
My recommendation for several of these people was to invest in the purchase of three specific books, and invest in the time to read them.
The books are:
One couple had a great question in response to my suggested reading list. They asked "It seems different investment books espouse different approaches as if each approach is best, and after reading a few I'm still left not knowing what to do. What's different about these books?"
What a fabulous question!
These books are about the PRINCIPLES of investing. Combined, they truly contain everything the average investor needs to know.
With all of these conversations, I suggested they call me back once they had read the books, and then we could schedule an hour or two of time to develop specific recommendations. To do it any differently, I feel, would not lead to long term success.
Learn more in the article What Should I Do With My Money?
Wednesday May 16, 2012
WHAT: Live Web Chat on Kiplinger.com. Chat will be hosted by three advisors from the National Association of Personal Financial Advisors (NAPFA) who will be available to take questions on financial topics ranging from retirement planning to college planning.
WHO: NAPFA Financial Planners (NAPFA is an organziation of fee-only financial advisors. Fee-only means they do not sell insurance or investments nor do they receive commissions from the sale of any financial product.)
WHEN: Thursday May 17, 2012 from 1pm to 3pm EST (LIVE)
WHERE: Go to Jump-Start Your Financial Plan
EXTRAS: Participants may leave questions or comments any time before or during the live chat or go back afterwards to see a transcript of the chat.
Readers will also be able to ask for advice and view questions and answers through the Kiplinger and NAPFA Facebook pages or by utilizing the #JumpStartRetire hashtag on Twitter.
About Kiplinger Live Chats:
Through live Web chats, Kiplinger.com's team of experts is able to interact with readers on an individual basis, providing them with tailored, one-on-one advice. Kiplinger.com also believes its readers can benefit from other readers' questions and answers. The chat topics vary every week, with retirement and financial topics ranging from home buying to investing to social security and investing for income. Weekly live Web chats typically occur on Thursday afternoons, but times are susceptible to change.
Sunday May 13, 2012
Mistakes cost you money. All mutual funds are not alike. There is a strategy as to what type of fund to place in which account to lower your tax bill. There is research that shows which funds are likely to have the highest returns relative to their peers. Use your money more efficiently. Learn how to avoid these 5 mutual fund buying mistakes.
