The News Star columns

Originally published in the News Star and the Shreveport Times on Sunday, June 28, 2015.

Question: How do I know if I need long-term care insurance? It’s so expensive.

Answer: What’s so expensive? Long-term care insurance…or long-term care? 

Originally published in the News Star and the Shreveport Times on Sunday, June 21, 2015.

Question: I am considering switching jobs, which would mean more money, but also more travel. My wife and I have three small children and she is concerned about how my traveling might affect our children. I would give us a “C+” on how we’ve managed our money so far, but we’re doing OK. Being a good father is very important to me, but I tend to think more money each month would make me more relaxed when I am with the kids. What do you think?

Answer: Quality time is a myth.

Originally published in the News Star and the Shreveport Times on Sunday, June 14, 2015.

Question: I have an IRA with an insurance company. A man sold it to me years ago, but I haven’t heard from him in years. It has stocks and bonds in it but the papers also say something about an annuity. It’s actually done pretty good these last few years. What do I have and should I keep it? 

Answer: It sounds like you own something called a variable annuity. And it further sounds like your variable annuity has been put inside an IRA. Let’s examine this puzzle one piece at a time to see if you’ve got what you need.

Originally published in the News Star and the Shreveport Times on Sunday, June 7, 2015.

Question: I’m just about to start in my company’s 401k. I’m super excited, but I am also concerned. I don’t want to mess this up. So what are the biggest mistakes you’ve seen people make with their 401k and how can I not do that?

Answer: James Joyce called mistakes “the portals of discovery.”

Originally published in the News Star and the Shreveport Times on Sunday, May 31, 2015.

Question: I keep hearing and reading that I am supposed to be diversified in my investments. I feel dumb asking, but what does that even mean? 

Answer: Last week we looked at diversification of the assets that make up your investment portfolio. That’s what most folks think of when the term “diversification” is used.

Originally published in The News Star and The Shreveport Times on Sunday, May 24, 2015.

Question: I keep hearing and reading that I am supposed to be diversified in my investments. I feel dumb asking, but what does that even mean? 

Answer: The dumbest question is the one you never ask, so thanks for asking! 

Diversification is a risk reduction tool. 

Originally published in The News Star and The Shreveport Times on Sunday, May 17, 2015.

Question: I’ve got about three month’s living expenses in a bank account. It kills me to have all that money in a place that pays me exactly zero interest. Is there a problem with putting this money in a mutual fund? 

Answer: Yes, that would be a problem in my view. 

Originally published in The News Star on Sunday, May 10, 2015.

Question: Neither my wife nor I were raised in a home that taught us much about how to handle our finances. We are starting a family and we want to teach our children to be responsible with money. Tips?

Answer: First, don’t overreact. Whenever I hear a young parent say they want to avoid a deficiency in the way they were parented, I fear an overreaction. A little bit goes a long way in this area with children.

Originally published in The News Star and The Shreveport Times on Sunday, May 3, 2015.

Question: My wife is worried about us running out of money in retirement. But I don’t see any point in being rich when I’m too old to enjoy it. Where’s the balance here? 

Answer: We need to talk about the retirement smile. 

Originally published in The News Star and The Shreveport Times on Sunday, April 26, 2015.

Question: My CPA shocked me this year with the news that I owed the IRS more than half the income I earned. He said it had to do with my investments. I switched brokers last year, but I don’t understand why that mattered. They tax you for that?

Answer: You may a victim of your own success.