I AM GOING TO ASSUME THAT MOST OF MY READERS
ALREADY HAVE PURCHASED A HOME BECAUSE THAT IS THE AMERICAN DREAM. IF YOU ARE STILL RENTING, YOU MIGHT WANT TO CHECK
THE ADVANTAGES (OR DISADVANTAGES) OF OWNING RATHER THAN RENTING WITH YOUR BEVY OF FINANCIAL ADVISORS.
July 15, 2006 ARE YOU READY
TO START INVESTING ON YOUR OWN?
You will not be ready for investing until you have
paid off all those high interest loans such as credit cards, (cut those things up except one for emergencies) loans
such as auto, boat, motorcycle loans etc.. I assume you already have enough term life insurance to protect your
family from your sudden death or disability. Second mortgages with high interest rates? Pay those off. Attempt
to get those variable rate mortgage loans into fixed loans. This is one home mortgage refinancing event I agree
to; if you absolutely have to, get a little cash and pay off those credit cards with the cash. (Don't cheat and
buy any "stuff" with that refi cash)
Now, take a deep breath and relax. You might
just be ready to start an investment program in addition to any company or governement pension plans, ira's and 401K
plans etc.. (I assume you will attempt to take FULL advantage of any tax exempt plans through your work before
you start to invest any extra funds on your own)
It may be time to seriously consider a financal
counselor; this stuff can be tricky. Some people, however, prefer to manage their own portfolios.
(I am not one of them because I don't have enough background)
A LIVING WILL MIGHT HAVE PREVENTED THE TERRI SCHIAVO PROBLEM.
These web sites claims you can do your own living will; I can't vouch for them,
but you might want to check them out.
Living wills are generally very simple and inexpensive based on my experience with
them. They consist of a couple of pages of boilerplate language and a place for people to sign and a place for a witness
to sign. Some HMO's even have them available
March 19, 2005 Ken A. says:
"The single biggest favor you can do for your younger readers is to point
out that they, and they alone, are responsible for their financial well being and security in their old age. It's
not the job of government; it's not the job of their kids. People must come to understand that they have to provide
for their own retirement. A sound investment plan, practiced religeously during working years, will achieve the desired
goal. But in order to have it, you've gotta make the decision to do it. And once the decision is made, it must
not be recended."
The "confession" below is an example of finding a financial problem and taking steps
to fix it.
July 15, 2006 - CONFESSION TIME
My wife and I had to go to a financial councelor only once in our lives; He was the
credit union advisor where she worked. He approved a substantial (for those times) five year loan to pay off all credit
cards, a new boat, new truck, and certain other bills on which we were overextended.
We had to agree to stop using credit cards (plus cut up all existing credit cards and not
replace with new ones) and pay off every outstanding debt except our mortgage on the house. In doing so, he arranged
to withhold a certain amount of money out of my wife's check every payday until the loan was paid off some five years later.
We never even saw that money.
He then highly recommended we should continue to have that same amount taken out from
her check even after the loan was paid off and put it in an investment fund. His theory was by that time (five
years later) we will have learned to live within our means by being forced to sit down and budget the left over money
after necessities (food, mortgage, utilities, insurance, clothing etc..)
As you can guess, new furniture, new cars, vacations, expensive entertainment and unnecessary
luxuries took a back seat and was only available if anything was left over. We learned to live within our means plus
saved a little every year; it was a rough five years, but we survived and still lived a normal life. (The boat sat in
the garage almost the whole five years because we had no money to buy gasoline for it)
We never got in financial trouble again because we learned the difference between what
we really needed and what we could actually afford. By the time I retired, everything was debt free including our house
and we haven't borrowed a penny from anyone since then.
copyright 2005 Phil S.
PLANNING FOR YOUR RETIREMENT? Check out this web site for assistance.
THINKING ABOUT A REVERSE MORTGAGE?
I have already gone on record about the ills of refinancing your house;
why would I even consider a reverse mortgage for anyone? Well, before we get any heavier into this subject, you might
want to read up on what exactly is a reverse mortgage by clicking onto these web sites by AARPand HUD:
NOW, DON'T RUN OUT AND GET ONE OF THESE WITHOUT CONSULTING AN ATTORNEY, CPA OR FINANCIAL ADVISOR!!
THEY HAVE SOME HIDDEN PITFALLS, INCLUDING EXPENSIVE, AND ARE NOT FOR EVERYONE!!!
These things generally apply to a very few elderly people who own
their homes, don't want to move, but don't have enough cash to live one. I will attempt to discuss the pro's and con's
of these in later articles. This is just to start getting you up to speed on what these things really are.
INQUIRIES (and answers) FROM PEOPLE LIKE YOU
7-18-06 Steve asked the following and needs an answer
from somebody in the know:
Phil, I have a question I've been pondering for some time!
What is the future of the 35mm film camera now that digital has become so popular? I've had 35mm film cameras for
years, and I want to continue to use them because I feel you lose the creativity of photography with digital when you can
manipulate your pictures on the computer to look any way you chose.
However, digital does have many things going for it over film
cameras. But, creativity will never be one of them! Creativity
comes from the mind, and what you feel and see through the lens, and not on the computer screen when you get home.
I feel the film camera is going the way of the typewriter, and
so many other things we have always taken for granted.
Is it time to retire the film camera, and either stop taking pictures,
or embrace digital technology?
Any thoughts on this subject?
Steve
Answers anybody????
Running Out of Oil Reserves?
July 19, 2006
