Financial planning

The following segment first aired on KEDM 90.3 on September 9, 2015

The following segment first aired on KEDM 90.3 on September 2, 2015

Question: I should get about $2000 a month from Social Security when I retire, hopefully next year. I’ve got about $300,000 in my 401(k) plan. Everybody I talk to says I ought to be able to get $1000 a month off that. I’m just double checking with you, but it sounds to me like I’m all set.

Answer: It comes as a shock to most folks entering retirement that they need two kinds of money in retirement.

Question: My wife and I have been married four years and we are expecting our first child. We both work and are both committed to being financially responsible, but we are having a disagreement.  I think we need significantly more life insurance on me in case something happens. She agrees we need some on me, just not as much as I think we do. She says we don’t need to spend money on that much insurance – that we should save it instead. What do you say?

Answer: Happy Valentine’s Day!

I’m happy to see you both “arguing” over how much to love each other. Because that’s really what life insurance is – love, in tangible form.

The following segment first aired on KEDM 90.3 on August 26, 2015

Question: My brother stole money from my parents 30 years ago. He said he was borrowing it, but he never paid it back. After they died, the stolen money was never brought up and the inheritance I got was the same as him. This has always been a sore spot with me. I won’t be around much longer to enjoy that money, but my kids might get something out of it. Do you think he owes me the money, or the money plus interest? How would I figure that?

Answer: Lost opportunity cost.

The term is used in economics to describe the true cost of something lost, stolen or wasted.

The following segment first aired on KEDM 90.3 on August 19, 2015

Question: All I hear is China, China, China and the stock market keeps falling deeper and deeper into a hole. I’m seeing my portfolio lose money it seems daily. What should I do?

Answer: “A schedule defends against chaos and whim.”

Or so says Pulitzer Prize winner Annie Dillard. She probably meant that as a call for daily discipline as a writer, but I see much wisdom for investors as well.

The following segment first aired on KEDM 90.3 on August 12, 2015