Shreveport Times columns

Question: I got a voicemail message from the IRS telling me that they are suing me and telling me to call a phone number. I don’t know what to do. I’m afraid it is a scam artist. But if it really is the IRS, I don’t want to get into trouble. Can you tell me what I should do?

Answer: Your instincts are correct. This is a scam.

First, I do not believe the IRS calls, tweets, texts or uses Facebook, Instagram, social media, instant messaging or smoke signals to communicate with a tax payer who owes money to the US Treasury. They send letters (remember those?) via the US postal service. And if the matter is weighty enough, the letter will come certified.

Originally published in the News Star and the Shreveport Times on Sunday, July 5, 2015.

Question: I am in my early 30s and the sole breadwinner for my family. We both want her to be able to stay home with our children, so I need to get some life insurance on me. How much should I get and how long should the term be? And how does it work if something happens to me?

Answer: What’s the middle ground between “rich” and “wretched?” Maybe “just right?”

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 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.