The News Star columns

The following column was published in The News Star on Saturday, September 13, 2014.

Question: I will be retiring in about a year. I’ve talked to a few different advisors. The one I like the best charges higher fees than any of the others, but I really like her and think I would work well with her. I keep reading on financial websites and blogs how important fees are and how they can really impact total returns on your investment portfolio. Which do you think is more important, the fee or the advisor?

Answer: You have to decide if you are purchasing a commodity or a specialty item.  

The following column was published in The News Star on Saturday, September 6, 2014.

Question: My wife and I are really trying to cut back and get a budget going. I’m looking at all the money I’m shelling out for insurance and I’m saying we’ve got to cut back. We just can’t afford all that. But what kind should we cut first?

Answer: Whenever someone raises the twin topics of insurance and affordability, a little red flag goes up in my little brain.

The following column was published in The News Star on Saturday, August 30, 2014.

Question: My daughter is headed to college in just a few weeks. I have paid for most everything during her high school years and we will do the same during college. She is naturally frugal, so I’m not worried about her overspending. Do you see a problem with me sending her to college with a debit card and just keeping up with her spending so it doesn’t get out of hand?

Answer: Yes, I see a huge problem.

The following column was published in The News Star on Saturday, August 23, 2014.

Question: I want to get things lined up for my retirement. I’m close enough where I don’t think I’ll be taking any big risks in my retirement plan. But how should I invest my money in my retirement plan once I do retire? And how do I get money out?

Answer: Like most questions I answer, I begin with “get a plan.” In this case, a retirement income plan.

The following column was published in The News Star on Saturday, August 16, 2014.

Question: I want to get things lined up for my retirement. I’m close enough where I don’t think I’ll be taking any big risks in my retirement plan. But how should I invest my money in my retirement plan once I do retire? And how do I get money out?

Answer: First, allow me to bark at the moon and say that, in my opinion, you don’t have money in a retirement plan. You have money in a retirement account.

The following column was published in The News Star on Saturday, August 9, 2014.

Question: My husband and I have started talking about getting a little place on the lake. But I just keep feeling guilty that we are wasting money on ourselves. I know if we had a lake house we could share it with other people, have family there and other things. Is this too extravagant?

Answer: It sounds like you’ve got item number one on your wish list.

The following column was published in The News Star on Saturday, August 2, 2014.

Question: We’ve got the last kid graduated from college and we’ve probably got ten or fifteen years left before we both retire. It’s going to be close, but we should make it. Having said that, we’re thinking about building our dream house. How crazy is that? Is it dumb to take a mortgage into retirement?

Answer: The dumb part would be entering retirement with no financial flexibility.

The following column was published in The News Star on Saturday, July 26, 2014.

Question: I’ve done a pretty good job of building up my 401K and I think I’ve got plenty of money in there for when I retire. But how much can I take out each year? Is there some limit on that?

Answer: Legally, no. Practically, yes.

The following column was published in The News Star on Saturday, July 19, 2014.

Question: My car is embarrassing. The paint is chipping, part of my bumper is literally wired on and it blows more smoke than a train. When I talk to my husband about getting a new car, he says we can’t afford one. But that’s ridiculous…we make plenty of money. He just hates to spend it. What do I do?

Answer: The difference between affording and hoarding is usually fear. And fear usually thrives in the absence of facts.

The following column was published in The News Star on Saturday, July 12, 2014.

Question: I own a business and my son has been with me in it for about ten years. I would like to think that one day I could go to the house and he could run it and eventually inherit it from me. But it just doesn’t seem like he’s catching on to what it will take to run this business. It takes a lot! It would break his heart to not get the business one day, but I’m not sure he can handle it? What do I do?

Answer: Do you feel like you’ve got to choose between your son and your business? A broken heart or a broken business? Some choice!