David asks…
33, married, no kids, no mortgage?
Me and my husband do not want kids and enjoy the life of renting. We dont’ really have any debt except for one credit card and one car note. We also have a home I received from my grandfather but my father lives there now and keeping it up to date.
We would like a good retirement life with just the two of us.
I work for the state and so does my husband…
What do you guys recommend to save now? I know nothing of stocks, bonds, etc..
What do you recommend?..thanks
financi4 answers:
Pay off your credit card.
I paid mine off and ended up with 800+ scores
I read that charging things you need like food or gas each month
and paying in full, is the best way to use credit
Look for a credit card that gives you cash back
Carrying balances reduces your credit – and makes you poor from paying interest.
Also, pay off that car note – and save to pay for your next car in cash.
Cash is king when buying a car – you can knock off at least 25% off the price.
Second:
google retirement calculator
do not go through the one that your local bank offers
they will always tell you that you are not saving enough
so that you will invest through them
fidelity.com, bankrate and schwab.com have nice ones.
Never open an IRA through a local bank, they charge fees
open one through a discount broker – free
Make sure you have 6 to 9 months salary in a savings or money market.
After all that, visit schwab.com and look around their site.
They have a savings account that offers 2%.
You can also open a ROTH or a tax deductible IRA with them.
In this market, I would just buy cd’s – free to buy and sell
No fees ever – like local banks love to charge.
One more note:
with schwab you can link your current checking account with them.
You can move money from your checking (and back) by using moneylink – also free to use.
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Paul asks…
Do you believe we should strengthen our financial education at our kids high schools?
I am amazed at how many people do not know how the financial world is made. The emerging markets, asset management, commodities, mutual funds, hedge funds, annuities, stocks, bonds and mortgages must be common knowledge for when you’re in high school I believe. That’s a big oversight in our education system. Each student must know how and never expect an “expert” tell you as Financial is history. You have to know for yourself.
This is a capitalist society, which is good, but it also means caring for oneself.
I think we should take as many finance classes as we can, no matter what your line of work and / or your field of study. If you are not good at economics or statistics, more reason to take these classes and paying attention. Having a financial blind spot you will have some unpleasant surprises in the future. Know how to work the financial sector affects you in every way.
I just think if this was taught A LOT more in are High Schools they can learn and prepare for our future by learning how to make money for the long run. It will have a great affect lowering the amount of people who lives under poverty and strengthen our country. If we have kids learn financial education in schools around the country I can see a future where our debt can go away and we can be a stronger country as a whole.
financi4 answers:
FINALLY, someone who sees this as a problem! It’s about time the USA got decent financial education, instead of spewing talking points gathered from one pundit after another.
George asks…
My aunt left a trust fund for her siblings-they have all passed before her-how does it work now?
I know that it is supposed to be divided between the siblings children but is that by child or by what the siblings part was–as some have 5 kids while others have 1 or 2? And how long does it usually take to settle a trust as there is also stocks bonds and property involved? Never been through this before and have no idea what to expect-Thank-you for any insight Char
financi4 answers:
Kinda depends on how the trust was set up.
Is there an executor? If so, then they would make these judgment calls.
Otherwise, if it’s not spelled out in the trust, I would simply divide the trust up between the next lower tier of people…numbers are unimportant.
So if there are 10 grand kids, then there are 10 shares. But a lawyer ought to be able to read the documentation and cite the law.
The important thing is not to go to court over this. And it can get there very fast.
But to split up the trust by dead sibling is a little ridiculous.
Now, stocks and bonds can be easily sold. Property (especially right now) is much harder to sell. Effectively, who ever is managing the trust can either
1. Award it if it’s value is equal to a share of the inheritance.
2. Liquidate it and award the proceeds.
3. Hold on to it, if the trust has provisions to do so.
James asks…
Girls 21-25, would you date anyone 30 or over?
(I apologize for posting this in the Married section, but I got a bunch of rude and immature answers from teenagers in the Dating section)
Okay, in a nutshell, my girlfriend and I decided after 6 years we were just plain sick of each other, and split. Thank God we didn’t get married or have children, because THAT would have been messy in terms of divorce, child custody/support, etc.
Anyway, after 8 months of going solo, I decided I want to try dating again, but here’s my problem: In August, I’m turning 30 and frankly it makes me nervous. I feel like I’m being shoved into a whole different club of people I can’t really relate to: Previously married, homeowners, 2-3 kids, custody battles, interests in stocks, bonds, politics, etc. Me, I’m really not at that level yet, I’m still more into working just to pay the rent and just having fun on my free time–in fact, I had so much fun in college, I’m going to start on another degree to compliment the one I already have.
How do girls 21-25 feel about dating men 30 and over? Or am I just going have to try to getting used to dating women my age or older?
Meeko: I’m really sorry you lost your apartment, that must have been tough for you. I hope things get better for you–best of luck!
financi4 answers:
Awww not all women are old hags at that age lol…
I’m 26 and I’m not like that. Heck I still live at home with parents because the economy screwed me over and I lost my apartment. Though I am an adult.. It feels like I’m a teenager haha
So yeah I’d feel awesome dating a 30 year old… I would prefer it. Guys in their 20’s are still immature in my opinion.
Richard asks…
If I were a President would you vote for me?
Here are my policies.
Education
Introduce a school voucher system, also called an education voucher, it is a certificate issued by the government, which parents can apply toward tuition at a private school (or, by extension, to reimburse home schooling expenses), rather than at the state school to which their child is assigned. Because Rich parents have a choice of schools for their kids; poor parents should have the same choice. Competition between schools is increased, leading to greater efficiency and results in all schools. Private schools have a better history of getting results in teaching information and values than public schools. Those parents who send their kids to private schools must in effect pay twice; i.e. their taxes pay for public schools that their children don’t even attend. More private schools would provide opportunities for specialisation; for example, schools could provide extra expertise in sports training, liberal arts, college preparation, and so on. More money is put back into the private sector rather than squandered at the Department of Education and other wasteful government bureaucracies. This can save the tax payers alot of money and in the long run will increase Tax revenue in the long term as more people will be educated in other words more jobs.
Social Security
I will allow a Opt out system and privatize Social security for the young. As It will give poor people a better chance to retire wealthy. It makes up for inevitable benefit cuts that must eventually be made to the system. The stock market should get an initial bump in value. People are given a personal stake in the U.S. economy, providing extra incentive to help their companies and the nation as a whole to do well. Personal responsibility and ownership are injected into citizens’ plans for retirement. Stocks & bonds are historically safe in long-term diversified portfolios (as evidence by their existence in every major government/union/corporate pension & retirement fund). Billions of dollars will be injected into corporate investment, leading to an economic stimulus, Note this is deiffern’t from a state sponsored stimulus.
Foreign Policy
I will end the nation building, Policing the world, stop fianancing this Empire we can’t afford and bring the troops back home, stop all foreign aid. Start a universal Free trade act to allow our markets to obtain access to foreign markets thus increasing are competitiveness globally. Get out of all entangling alliances, be friends and neutral with all nations.
Legalising Marijuana The drug generally isn’t more harmful than alcohol or tobacco if used in moderation. Limiting the use of the drug intrudes on personal freedom. Legalization would mean a lower price; thus, related crimes (like theft) would be reduced. There are medical benefits such as the those for cancer patients. Street justice related to drug disputes would be reduced. It could be a source of additional tax revenues. Over 50% of all Police funding goes towards fighting drugs, Police and court resources would be freed up for more serious crimes. Drug dealers (including some terrorists) would lose most or all of their business. The FDA or others could regulate the quality and safety of drugs. Like sex, alcohol, or cigarettes, marijuana is one of life’s little pleasures for some people. Aside from recreational drug use, Cannabis has several industrial and commercial uses, as over 25,000 products can be made from the crop. Drug busts often trap young people in a flawed system that turns them into lifelong criminals.
Energy independance
America’s oil shale reserves are enormous, totaling at least 1.5 trillion barrels of oil. That’s five times the reserves of Saudi Arabia! And yet, no one is producing commercial quantities of oil from these vast deposits. When you look at natural gas from methane hydrates, the numbers are staggering. It has often been said that the energy from the methane hydrates in the U.S. vastly exceed the energy found in all the coal, oil and conventional natural gas in the U.S. combined. One estimate of U.S. methane hydrates is 200,000 Trillion cubic feet – close to 9,000 years of supply at current U.S. consumption levels. We have 300 years worth of Gas in the US, we need to tap into the sand oil and shale reserves. As president I will remove all regulations that prohabit the extractions of these sources.
Economics
Drastically reduced federal government to help spur American business, 10% reduction in the federal work force, while pledging to limit his presidential salary to $39,336, lower the corporate tax rate to 15% from 35%, end taxes on personal savings and extend all Bush tax cuts. allow U.S. firms to repatriate capital without additional taxes, eliminate the Departments of Education, Commerce, Energy, Interior and Housing and Urban Development, remove the Income Tax, substitute it with the Fair Tax. Cut 1 trillion in 1 yr, Allow Puerto Rico to join the US &
Health Care
Repeal ObamaCare and end its unconstitutional mandate that all Americans must carry only government-approved health insurance or answer to the IRS. Allow purchase of health insurance across state lines. Provide tax credits and deductions for all medical expenses. Exempt those with terminal illnesses from the employee portion of payroll taxes while they are suffering from such illnesses or are incurring significant medical costs associated with their conditions. Give a payroll deduction to any worker who is the primary caregiver for a spouse, parent, or child with a terminal illness. Ensure that those harmed during medical treatment receive fair compensation while reducing the burden of costly malpractice litigation on the health care system by providing a tax credit for “negative outcomes” insurance purchased before medical treatment. Guarantee that what is taken from taxpayers to pay for Medicare and Medicaid is not raided for other purposes. Make all Americans eligible f
financi4 answers:
Point of order: if you were president, there would be no need to vote for you.
Second point of order: the president cannot make law, only congress can make law. Thus, you, as president, would do (precisely, I counted twice) none of those things. You might provide those options to members of congress for THEM to submit as bills (because the president cannot directly introduce bills), but you would do precisely bupkis.
Now, if you were dictator, you would A) also need no votes, but B) be able to do everything you mentioned. Which makes ever so happy that I live in a democracy, no matter how astonishingly inefficient (by design) it may be.
Joseph asks…
I’m 27, no kids, not married, and have no major debt,with $30K in the bank and want to invest?What should i do?
I know very little about stocks and bonds, and not sure about the risk. I’m looking for a great way to invest and make a profit; whether it be strictly stocks and bonds, starting a business, or just letting it collect interest in a IRA or high yield savings. Anyone have any suggestions?
Thanks Guys!! I actually just purchased a home. I’m federally employed and at 15%, I am maxing out my TSP(401k). I’m not scheduled to retire for another 40+/- yrs and there is no way at this rate, I see myself waking up at 5am working everyday for a few more centuries. Therefore, I would like to start now so that maybe in the next 10 yrs, i could sit back and let my money work for me. Just a thought.
financi4 answers:
I suggest you…
1.pay off whatever debt you have
2.maximize your contributions to your 401(k) or IRA
3.review and update as needed your insurance requirements (i.e. Heath, property – at age 27 and unmarried, no kids, you probably don’t need life insurance, however it is often advised, especially if you can find a policy that accrues cash value)
4.keep 3 to 5 months’ worth of expenses in cash or very liquid assets as a safety net (lean toward 5 months unless you are in a very secure job)
5.investigate some no load mutual funds (use a broker – i.e. Fidelity, Ameriprise) or a banker if you are uncomfortable choosing on your own – be sure to let them know your risk profile. Although you may be somewhat risk averse (simply because you are unfamiliar with investing), you are young and can thus “afford” to put at least a small portion of your money into growth stocks/growth companies. Be sure to diversify your holdings, and think long term.
Best of luck to you..
Mark asks…
Investment help: I am 35 yo, single with no kids. I have 8k to invest.?
I don’t have much knowledge of investment in anything. What is the best thing for me to do with my money? Should I buy stocks?, mutual funds?, bonds? real estate,? land? or anything else you can think of? rentals maybe? I don’t make a lot of money, and I am concerned about being taken advantage of. Please give me advice, and please don’t try to direct me to something that you may have a financial interest in. I need honest, unbiased advice.
thank you
financi4 answers:
Be realistic, you are not going to be able to invest in land, real estate or rentals with 8k.
What to invest in depends on how risk adverse you are, it sounds like you are not willing to risk losing this money so stocks probably aren’t the best bet for you.
Mutual Funds: Still reasonable level of risk but generally the people doing the investing in a good mutual fund buy such a diverse range of shares that you money is pretty safe and the returns are better than what you would get in the bank or from bonds
Bonds are virtually risk free and have a guaranteed return – this of course means that the return is going to be smaller than you could earn elsewhere but that’s the trade off with low risk investments.
Naturally it’s gotta be your call.
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