June 09, 2022
Listen to Podcast Episode:
On today’s podcast of Ask Suze & KT Anything, Suze answers questions about canceling credit cards, better savings options, car leases, robo advisors and so much more!
MUSIC: (Music Intro)
KT: Good Morning Suze. Today is June Nine.
Suze: That's my KT!
KT: Do you believe? It's already like summer starting June 21 is the official summer date, isn't it?
Suze: Oh now you're asking me things. I don't know. That should have been my quizzie. B ut I think you are absolutely correct there. Good morning Miss Travis and welcome everybody to the Ask Suze and
Suze: podcast we're good. That we're not swimmers. You know those swimmers that synchronized swimming, we wouldn't be able to do that, would we?
Suze: Do you
Suze: all know that KT can swim... Now, our pool
Suze: is 70 ft long and the reason that I did a pool that was 70 ft long, is that the one thing that KT loves more in life than anything other than me
Suze: to swim laps and she's not this person who has a pool s o it looks good.
Suze: This woman gets in that pool and for essentially almost one hour
KT: almost every day unless it's really raining and thundering.
Suze: But she swims 40 to 50
Suze: laps, which means a lap is, it goes one way and back the other a length is if you just go one way
Suze: and I just sit there and watch her
Suze: for like an hour doing this at full speed. So fabulous that she can do that.
Suze: I on the other hand,
KT: float, we
KT: like floaters.
Suze: So everybody wants to know how my birthday was
KT: Fabulous. Suze. Actually, I was worried because we didn't make any special. We didn't do anything special, Colo made a little barbecue for us late in the afternoon of all her favorite
KT: sausages and things that she just treats herself to every now and then. It was just really a very delightful, quiet day, uneventful.
Suze: And I want to say once again, thank you for all the truly heartfelt emails that I got so many and so many of you
Suze: are writing me, telling me no, no, Suze don't feel bad about your mom if you didn't listen to my birthday podcast, it was really about my mom and dad and it's not that I feel bad about it.
Suze: It's just something when you recognize something in your life
Suze: where you could have done better.
Suze: Okay. At least I've recognized it.
Suze: And I wanted to pass on that recognition to all of you who are still lucky enough to have your parents or one parent or whoever, maybe that person in your life
Suze: so that you just think about it. And you know KT, what was so great to me is we have a really great friend by the name of Mags, who we work with and she said that she was on her way to visit her mom and she listened to that podcast twice before she went in to see her mother
Suze: to just remember, yeah, her mom is older and what that might be like for her and it actually changed her attitude and how she was with her mom that day. Great. Right, alright. Should we start?
KT: Yeah, let's do it June nine baby
Suze: baby baby baby baby
KT: My first question is from Abraham.
KT: Hi Suze. My credit card recently started charging annual fees
KT: I want to cancel but
KT: My oldest account. He's had it for 18 years and I have a relatively high credit limit. Would it be best for my FICO to keep this card or cancel it?
Suze: That should have been your quizzie.
KT: Keep it.
Suze: You would tell him to keep it?
Suze: (Suze makes the "wrong answer" sound) S orry maybe that shouldn't have been your quizzie.
KT: I thought we don't want to cancel or close down a credit card. That old.
Suze: let's go to Suze School really quickly right here. Now everybody
Suze: a Fico if you don't know what that is that is your credit score. Your legitimate credit score that 80% of lenders actually look at before they give you a loan and assign an interest rate to that loan. Your Fico or your Fair Isaac Credit Company, that's what that stands for. That created credit scores way back when
Suze: the higher your Fico score the lower your interest rates, the lower your Fico score the higher your interest rates you all want a Fico score of about 7 60 or above. The highest is 8 50. Just so you know
Suze: however Abraham
Suze: the reason that I told KT she wasn't correct in her answer is because
Suze: they started to charge you an annual fee
Suze: And in my opinion no credit card is really worth paying an annual fee unless you are getting tremendous benefits from that card.
Suze: Like two of you can fly at the price of one, whatever it may be. So you have to really think twice about is the fee worth keeping that card?
Suze: Obviously you don't think so or you wouldn't have written into me
Suze: while it is true that it may be your oldest account.
Suze: The time that you own a card,
Suze: The length of it is only worth 10% of your Fico score.
Suze: So if you close it down it's not going to hurt you that much on any level.
Suze: Also you say you have a relatively high credit limit of $17,000
Suze: Only you know if you would ever need that credit limit
Suze: because you may find yourself in a situation one day where if you close it down, you go, oh my God, I wish I hadn't because I lost my job. I need access to money. So is it possible for you
Suze: to replace that card
Suze: with another card that doesn't charge an annual fee but also will give you a high credit limit
Suze: so that you still have availability to money in case something goes wrong.
Suze: Normally I would say absolutely close it down.
Suze: But you have to remember if you need that credit limit and you can't replace it, then don't close it down. Then KT would right.
KT: So we're both right,
KT: we're both right.
KT: Gave him two options. You gave him a reason.
Suze: Yes, I of course I always give,
KT: here's a third reason. What if you call the credit card company and say listen, I we've been doing business together for so many years.
KT: I'm now going to cancel because you're charging me that.
KT: They could
KT: avoid that. So give it a shot. I would
KT: Well now look at what we have.
KT: Okay. Next question is from Willa. Hello, I'm 54 years old with only 65,000 of savings.
KT: I have no additional debt
KT: But I don't have a 401K. Or any other savings.
KT: Should I buy stocks or just look for a high yield savings account?
KT: I'm afraid to lose the little I have. If I invest everything.
KT: That's the answer,
Suze: KT, what is the most important word in that question?
KT: I'm afraid.
Suze: I love you so much.
KT: I said she just answered it herself. She's afraid of losing the little bit that she has. So don't do it. Don't invest in the stocks.
Suze: But Willa, here's the thing. You need to know
Suze: that fear, shame and anger
Suze: Are the three internal obstacles to wealth.
Suze: They will cause you to spend more money than you should.
Suze: They will cause you to sell when you should be keeping something or buy when you shouldn't be purchasing at all.
Suze: You have $65,000 of savings. And that is it. So I would not be putting any money in the stock market honestly right here and right now this stock market while still could go up for another week to or another month
Suze: in the long run, I think you're going to see it go down a lot further. I think we are in a downward long term trend just so you know,
Suze: However, listen to my podcast on April 17 on series I bonds
Suze: and you might want to put some money in a Series I bonds if you don't want to tie up your money at all, you then would be purchasing two year, three year, five year treasury notes that could pay you very close to 3%. So at least you could be making some amount of money. Also with $65,000 of savings, I would absolutely be taking advantage of
Suze: the ultimate opportunity savings account with Alliant Credit Union,
Suze: you can just take $100 a month, put it in every single month into an Alliant Credit union savings account through my
Suze: alliant dot com
Suze: and look for me when you go there and you'll know then you're in the right place. You put $100 a month in every month.
Suze: Not only will you earn the .75% interest they're currently paying on it,
Suze: But at the end of 12 consecutive payments,
Suze: They'll give you $100, you would need about $18,000 in that account today
Suze: to earn $100 of interest. But with $100 bonus,
Suze: You can do it on just $1,200 after one year. Listen to the end of this podcast and it tells you in detail everything you need to know. But those are the things that I would think about doing with my money
KT: Now. Suze. Listen carefully. This next question I think you just answered.
KT: This is from Stephanie
KT: who's also a fellow Gemini. She's turning
KT: Turning 38 years old this week.
Suze: What were you doing at 38, Ms Travis?
KT: Oh my God I was at the height of my Hong kong amazing career.
KT: I was
KT: on fire at 38. Really unbelievable,
KT: So anyway
Suze: How come you never asked me back?
KT: What were you doing in 38 Suze.
Suze: Well if you've read any I might. Yes I do and I wish I didn't write, I had just been ripped off by one of my employees remember that and it was a horrible year for me. But that's besides the point. Okay
KT: So let's go back to Gemini's ready. So this is Stephanie.
KT: So listen to what she's asking everyone because Suze just gave her the answer
KT: I want to confirm to ensure I understand correctly. Suze, should I continue to dollar cost average into the S& P 500 E. T. F. And individual diversified stocks like I have been for the last few years meaning she's following your advice,
KT: I am over 10 years away from retirement and still have time for my portfolio to bounce back in full like it has historically.
KT: she's 38.
KT: that that portfolio will bounce back in full
KT: like it has
KT: historically. And
KT: hopefully her assumption will be correct
Suze: usually she should she keep doing that because usually KT normally and who knows what normal is anymore. Right from the top of the market to the bottom of the market till it returns to the top again. Can be anywhere from 3.5 to 5 years.
Suze: Right? So it just depends. She has more than 10 years. She's fine with
Suze: Keep it your in the S&P 500.
Suze: Obviously you may know that I like the Vanguard total stock market index better than the standard and poor's 500 index because the vanguard total stock market index E. T. F. By the way invest in far more stocks than just the standard and Poor's 500.
Suze: So that's why I'd like to go that way. But either way you're fine. All right.
KT: Okay. Next question is from Polly. Hi Suze. I'm at the end of a car lease I owe 20,000 and I have 8000 of equity in the car.
KT: I decided to buy it even though it's not exactly what I want.
KT: My question is should I refinance some
KT: of it
KT: Or pay it off and hold onto the money. I don't have any credit card debt and I have $50,000 in the bank. My monthly living expenses are about $3500.
KT: Thank you, Polly.
Suze: Should that be your quizzie.
KT: um I can guess what she should
KT: do. Yeah,
KT: she should buy the car.
KT: By financing it or paying it off in full?
KT: I think she should pay it off in full
Suze: (Suze makes the "correct answer sound). We're gonna call this KT's quizzie podcast.
KT: But she only has 50,000 in the bank.
Suze: Yes, but she says in here
Suze: Right that she has 50,000 in the bank and her monthly living expenses are $3500.
Suze: So she's close to, if she pays off $20,000 that still leaves her $30,000 in the bank. She now doesn't have a monthly payment on this car. Number one. Number two. If she then still has
Suze: $30,000 in there, she's pretty close to a one-year emergency fund. So she could be fine because she would then take the money that she would normally be paying for the car payment, put it back in her emergency fund and before you know it she'll be right back up
Suze: Her $50,000
KT: And you know what else I was thinking
KT: if she
KT: strapped or is in big trouble, the price of cars right now for even a used car, she could sell it.
Suze: Well, one of the reasons KT that I would want her to buy this car right now is she probably bought it three years ago or at least it three years ago before car prices went so high.
Suze: So her
Suze: buyout price was determined
Suze: three years ago.
Suze: So I'm sure if she bought that car and she turned around and sold it right now she could make money on it if she wanted to. Absolutely. However, used cars. Everybody are starting to come down. So now they will start to be more affordable again. Next question, KT
KT: OK. This is from Carla
KT: and this is a sweet question, Suze. How do I transfer my ira from my bank to a Roth ira.
Suze: You have the most compassionate look on that little face of yours,
KT: Tell Carla What to do?
Suze: All right, Carla? Because KT thought this was such, such a sweet, innocent question.
Suze: And the one thing that I want all of you to understand is
Suze: don't ever be afraid to ask any question
Suze: because I get it.
Suze: That's me. I live with KT. No,
KT: I ask her questions like this all the time. All day long. I say Suze, what if I wanted to do this? And she looks at me like, are you crazy? Don't you know, and I don't
KT: so I'm not
Suze: There you go. So it's
Suze: important. But
Suze: I never look at you like you're crazy.
KT: No, but sometimes,
KT: you know, I'm never embarrassed and and all my life, even life before Suze, I was the first one usually in a room to ask a question. So people are afraid to ask questions.
Suze: Yeah I want you all to feel free to ask any question that you want. Also I'm asking all of you to have tremendous patience by the way
Suze: Because I did a webinar about a week ago or so and we had 55,000 people in one day. We got 6500 questions.
Suze: So it's impossible really everybody for me to keep up on all the questions and answer you personally like I was doing way back when. So just just know that if you want to write in and ask a question, either join me on the women and money app by going to google player apple apps and download it and there. We post a lot of pictures of the family here and what we're doing that I do not post on instagram or facebook just so you know
Suze: or you can send in a question to ask Suze podcast at gmail dot com. And Suze is S U Z E.
Suze: And so listen closely because you never know when you're going to hear it on this podcast.
Suze: Now, back to Carla, I almost forgot here what I was doing.
Suze: Okay Carla, all you have to do is open up a Roth ira at the institution, the financial institution that you want to have your Roth ira with
Suze: I would suggest either Charles Schwab fidelity td Ameritrade a discount brokerage firm like that.
Suze: Then what I would do is after you have done that have that company that you set it up with, contact your old company where your I. R. A. Is from your bank and they will do a custodian to custodian transfer where they will take the money
Suze: and have it directly deposited into your Roth I. R. A. But please know
Suze: that when you convert money because what you're technically doing is converting from a traditional ira that you've never paid taxes on to a Roth ira.
Suze: If you convert the entire amount at once you will owe taxes on that entire amount.
Suze: If you only convert half you will owe taxes on that amount. So just make sure you understand the tax ramifications of converting before you do this.
KT: Okay. Next question is similar from Kimberley.
KT: Hi KT and Suze in the recent webinar Suze mentioned Treasury notes. Can we buy these within a Roth ira
KT: or is it
Suze: Quizzie time, KT
KT: Totally separate (Suze makes the "wrong answer" sound),
Suze: A Treasury Bill Bonder Note. You can buy in your I. R. A. You cannot buy an I Bond within an Ira or a Roth Ira.
Suze: So all you have to do to buy a Treasury Bill Bond or Note
Suze: and I still think they're fabulous places to put money
Suze: within a retirement account that you want. Absolutely safe and sound. And the easiest way to do that is just purchase them through your broker wherever you happen to have your account set up.
KT: So Suze, the next two questions
KT: Alright are
KT: from June and Justin
KT: interesting, right June and Justin. So these two questions from two complete strangers are similar and I'll just read the first one.
KT: Hi Suze, I recently got a promotional email from vanguard to try their digital robo advisor for free for 90 days. I know your opinion on personal advisors, which I don't need to repeat here and then she put in brackets
KT: nobody cares about your money as much as you do.
Suze: you think a robo advisor is going to care about it more?
Suze: Just joking, go on. Okay.
KT: So wait. So however, since you regard Vanguard highly, I was curious if you might have a different opinion
KT: robo advisors and to be fair to Justin, Justin has been following you Suze since he was 26 now he is 41
KT: he recently got caught up on your podcast and wants to know your opinion on robo advisors. There you go June and Justin.
Suze: So, you have to know the fees that are involved with the company that you're doing a Robo advisor with
Suze: And is it worth it for you to do that. So here we go June, you before you do this with Vanguard because you're not gonna know anything over these next three months
Suze: the way, you know, an advisor is a good advisor and I don't dislike all financial advisors
Suze: by any means. I've always said if you have a great financial advisor,
Suze: right, you should share that name with everybody, you know,
Suze: because they're really worth their weight in gold. But many financial advisors are nothing more than salespeople Truthfully that tell you to buy variable life, universal life or whole life insurance or they put you in mutual funds that have a load on it or I could go on and on. All right. So
Suze: it's not that I don't like advisors, I just like great advisers that care about you more than the money that they make, Right? So there we go on that.
Suze: I would call Vanguard and I would ask them
Suze: What is the fee after the 90 days is up
Suze: Because again, you can't judge them in 90 days and they know very well once you start doing something for 90 days, you're just probably gonna leave your money there and that's how they're gonna make their money.
Suze: So are you better off buying things on your own? Like index funds, things like that
Suze: than using a robo advisor that has a fee.
Suze: So the same thing goes with Justin Justin, you should ask
Suze: the Robo Advisor that you're interested in what their fee is. Now, this is what I can tell you
Suze: when compared to most advisors, robo advisors have been equally doing just as great
Suze: just so you know, but my real thing that I would love for you to do is to become your own advisor, make your own decisions, learn about how to do it, what you should do. So that empowers you so that you just don't feel like
Suze: you know you're on automatic here. But again, robo advisory firms have been doing very well over the long run.
KT: That's good to know because here's a question from Mary who doesn't have a good advisor in my opinion. Suze, I'm turning
KT: years old
Suze: 72 everybody - one year older than me
KT: encouraged. Ready? To get an indexed universal life insurance.
Suze: So you've already answered your question, my dear Mary, in that you're being encouraged.
Suze: What does that word encouraged mean?
Suze: You know it's not advised to it's been encouraged and when somebody uses that word like you did in this email I read into it, I read into it that you have an advisor that keeps telling you to do this and you don't want to do it. So they keep encouraging you to do it over and over again. But your gut
Suze: is telling you don't do it
Suze: At the age of 72, Why do you need a life insurance policy at all?
Suze: There's a cost to life insurance. A company just doesn't give you a death benefit because they're nice to you, you pay them to have that death benefit.
Suze: So is there a reason at the age of 72 you should have a death benefit?
Suze: And because you are older and I can say that now because you're only one year older than me. So but because we are older now, our insurance, the cost of insurance within any
Suze: Insurance policy is going to be higher so I wouldn't be doing this and why wouldn't touch it with a 10-foot pole. But you already know that. Why don't you ask your advisor if you do it, how much commission they're gonna make? Just try that one on for size. Alright go on.
KT: This is from Angela with the state of the economy and stock market would it be best to draw the money out of my 401K and put it in a regular savings account.
KT: I'm 59. My husband is on disability. We're trying to help my mom and his dad. So we're usually strapped for money. We can't afford to lose my 401K. Even though it's not a large amount.
KT: there you go
Suze: Angela. It is true with the state of this economy and the stock market,
Suze: I would be staying away from stocks right now because it seems like you really really need this money
Suze: And you may need it sooner than later and you want to keep it 100% safe and sound
Suze: Within your 401K. The first question is is there an investment within your 401K. Where you could invest this money and keep it safe and sound
Suze: there might be a money market account. There might be something like that. If there is not
Suze: and you are not working anymore for this company, then I would be doing an ira rollover with it
Suze: because you don't want to pay taxes on this money right now. You're still too young to be taking money out of it At this point in time, I would do an IRA rollover with it at a discount brokerage firm such as Td Ameritrade Fidelity, um, Schwab e- trade, whatever it may be. And within there you could buy certificates of deposit or you could buy treasury notes or bills. If you are still working for this company,
Suze: then ask your HR person, can you do a partial distribution or can you do a distribution from this? 401k. Into an ira rollover while you are still working with them
Suze: and do what I said to do a few seconds ago.
Suze: But if you can't afford to lose any money,
Suze: it should not be in the stock market at all at this point in time.
KT: Okay, here we go. Everybody. Guess what time it is. It
Suze: is quizzie time. Now, KT and everybody listening. Because this quizzie is not just for KT. It's for all of you.
Suze: This is a different kind of quizzie.
Suze: This is a quizzie. W here I want all of you to pretend you're me,
Suze: poor things. Anyway, pretend that you're me
Suze: and people ask
Suze: me and now you a question that really has more to do with life and decisions than just money
Suze: because the one great thing about the Women and Money podcast is it's not just about money. It's about life, it's about relationships. It's about your fears of life. Everything
Suze: because that makes up
Suze: your true wealth. If you ask me.
Suze: So here is your quizzie. And you're going to have to think about this KT.
KT: Okay, We're all going to put on Suze hats.
Suze: Hi, Suze and KT.
Suze: I really need your advice as I'm stuck in what feels like a hopeless situation.
Suze: I am 60
Suze: divorced and retired in 2016. Unfortunately, before I found your advice,
Suze: I own my home with no mortgage. It's worth $300,000.
Suze: The house is more than I need
Suze: and I would like to downsize and move to a warmer climate. But I feel trapped.
Suze: My mother is 82 and lives independently nearby in her own large home.
Suze: She leans on me a lot and needs my help for driving her and various things around the house.
Suze: She wants to stay there at least until her cat dies.
Suze: I really want to sell while the housing market is up. But I feel too guilty
Suze: to move to another part of the country.
Suze: I don't want to sell and rent here because I don't want to spend money on renting.
Suze: Also, I could not live in the same house with my mother as I would become a raving maniac. Should I go ahead with my plans? Please help me Suze. I value your advice. Thanks for all you and KT do.
KT: That is not difficult to answer Suze. She's 60 years old. You've got to put yourself first. You need to make yourself a happy camper in order to even have a future happy relationship with your mom. Do not feel guilty,
KT: sell the house,
KT: move to Florida where we live, which is great. And guess what? Your mom's going to buy a little cat carrier and come and visit you when it's freezing in that big house. You need to live your own life. You absolutely, you'll regret and you'll be miserable along with
KT: you know the relationship you have right now with your mom, you need to put yourself first. End of story.
KT: End of story Suze.
Suze: God, that you so surprised me with that answer.
KT: No, I believe that
Suze: there's no right or wrong answer by the way for this situation. Everybody, I
KT: think that that you have to be true to yourself. I'm learning that as I get older and older and older. That if you cannot
KT: yourself first and your needs and your happiness and your peace of mind, you can't share that with others.
Suze: But how do you think she would feel
Suze: if she sells her house she goes and she moves and now her mother gets sick. Now there's nobody to take care of her mom. Then you know her mom hurts herself.
KT: No. Her mother sounds like she's stubborn. She doesn't want to move from a big house or even consider relocating
KT: because the cat comes before her daughter. That's how I read it.
KT: There you go. Comes
KT: before her daughter
KT: And this daughter really she's 60 years old. She's divorced, live again. You're still young.
KT: yourself first. And if mom gets sick or mom needs help guess what? Get on a plane and come back and help her for a week,
KT: move her out to where you are.
Suze: Here's what I would have answered this quizzie.
Suze: I would have said you're an adult and your mother is an adult
Suze: and you need to sit down with her
Suze: and you need to tell her how you're feeling.
Suze: You need together to make a plan.
Suze: And I just think if your mother could give you her blessings and say okay honey
Suze: do that. It would make it easier on you because then you wouldn't feel so guilty
Suze: if she begs you not to go and says things like that.
Suze: Then you have to figure out what you need to say back to her.
Suze: You need to say mom come with me,
Suze: let's both relocate. Let's both go to some place and take advantage of this high real estate market and things like that.
Suze: But I think this is a question that nobody can answer for you but you
Suze: because you're the one who has to live with the ramifications of your decisions and you have to feel really good about them because otherwise you're going to sell your house, you're gonna move your mother's gonna make you feel guilty every single time you talk to her
Suze: and somehow you're not going to end up enjoying the fact that you did this.
Suze: So you have to come to a decision with your mother as to how are both of you going to live your lives as you get older
Suze: as to what you should do with it
Suze: and go from there.
Suze: But there's no right or wrong answer to this question.
KT: Stand in your truth,
KT: stand in your truth.
KT: Think about it.
Suze: I know that KT but she can stand in her truth and still tell her mother what her truth is
KT: and her truth is that she really wants a change in her life.
Suze: I get that KT, I get that. But as adults and they're both serious adults right now,
Suze: you need to have a conversation with your mom.
KT: I agree with that. And if your mom doesn't want to listen or share or communicate, then you have to make that decision. That's right for you.
Suze: I... I don't know what to say to that and I don't know what to say that only because I'm now replaying the podcast that I did on my birthday and the regrets that I had
Suze: right and my my main regret was I didn't understand what my mother was going through. So that's all I'm gonna say. You might want to listen to that podcast and make your decision from there. Alright, everybody now on Sunday
Suze: we're gonna have Suze School.
KT: What are you going to talk about?
Suze: It's gonna be kind of a technical Suze School
KT: and what topic
Suze: may be dividend, paying stocks and how they really work, because I don't think people understand that
Suze: or I'm really in to people knowing
Suze: triggers in the market that they should look for
Suze: that will indicate for them if they should sell or buy or what they should do if they're in a situation where they either have money to invest or they need money from stocks that they have
KT: do both.
Suze: I don't know if I have enough time and
KT: do dividends first and then go into the triggers because not a lot of people people ask Suze all the time, what should I do?
Suze: And by the way, I'm just going to go back to this for one more second for those of you because I do look at all the emails that come in or I try to
Suze: those of you that are asking really long questions about your own personal portfolio. What do I think about this E. T. F. This mutual fund, this thing that you have. How are you please don't write that because I can't answer them. There's no way I can answer that. So I wish I could be every one of yours' Personal financial advisor,
Suze: you never know one day I may artificially intelligent myself to do that. You never know, right. But but there's no way for me to do that. I just want you to know. But I am so grateful that you take the time to write in. Alright? So until Sunday, KT,
Suze: what do we want to say to everybody?
KT: Be safe, strong and
Suze: secure. We love you all so much. See you then. Bye bye.
MUSIC: (Music Out)
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Answer Yes or No to the follow statements.
I pay all my credit card bills in full each month.
I have an eight-month emergency savings fund separate from my checking or other bank accounts.
The car I am driving was paid for with cash, or a loan that was no more than three years, and I sure didn’t lease!
I am contributing at least 10% of my gross salary to a retirement plan at work, or I am saving at least that much in an IRA and/or regular taxable account.
I have a long-term asset allocation plan for my retirement investments, and once a year I check to see if I need to do any rebalancing to stay on target with my allocation goals.
I have term life insurance to provide protection to those who are dependent on my income.
I have a will, a trust, an advance directive (living will), and have appointed someone to be my health care proxy.
So how did you do?
If you answered yes to every item, congratulations. If you are working on improving on a few items, I say congratulations as well.
As long as you are comitted to truly creating financial security, I applaud you. If that means you are paying down your credit card balances, or are building up your emergency fun with automated payments, that’s more than fine. You are on your way!
But if you found yourself saying No to any of those questions, and you’re not working on moving to Yes, then I want you to stand in your truth. No matter how good you feel, you have some work to do before you can honestly know what you are on solid financial ground.