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Newbee

Clueless

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Hi,

Here is a good book for beginners:

 

http://tinyurl.com/yokxwt

 

This new edition will be out soon. The authors of the book post on this forum:

 

http://www.diehards.org/forum/index.php

 

I agree that TIAA-Cref is your best option. The other vendors have very high fees. It is your money. You earned it. There is no sense in giving it away. This investing stuff is a lot easier than medical school. You just need to save, have a diversified portfolio, and keep fees low. Don't listen to your friend and play the market. You create wealth over time by investing. Don't try to get rich quick. It is possible, but unlikely. Tony has saved a million dollars on a teacher's salary by saving. You will have no problem creating wealth over time if take the time to become familiar with some basic concepts. Take responsibility for your money and ask questions here and of a fee-only financial advisor. Best Wishes.

 

Joe

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Guest TR1982

The problem I have with this thread, kev, is that you and tony are only looking at what she gave you. As the thread went on, more and more about her situation came out. No reasonably good financial planner would start out dealing with a young person in the area of retirement planning. The first areas she should deal with are issues such as risk management, debt management, and cash reserves. Once those areas are considered, then you can deal with retirement. You guys are advising backward and that's why I think the advice is questionable. BTW, gender can be really important in the planning process. ###### often chose to stay home if they have children. That would definitely impact planning scenarios.

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TR

If she wanted to learn about her life passages she could read the famous "Passages: Predictable Crises of ###### Life by Gail Sheehy (Author). She doesn't have to pay an advisor to tell her these things. She is an educated ######. She was the one that asked about her retirement plan and we accomodated her request.

 

Frankly, I think she would do better staying away from them completely and do it on her own. I posted a research article a while back that pretty much made it clear that those that received financial advice from

advisors actually accumulated less than those who did it on their own. They even gave figures and it was not flattering to professionals.

 

I can certainly tell you that the imposters I ran into were certainly not helpful to my bottom line . Not one bit.

This culture is littered with "experts" I have not been impressed with most experts I have met. If we are willing to learn on our own we can be experts too. There is no vault full of financial planning secrets that are available to planners and advisors only. As you can tell I believe in personal empowerment above all.

 

I agree with Joe that this is not rocket science so please stop making it seem so. If clueless does contact

a financial planner I hope she is lucky to find an honest one. Then it might be O.K for her.

 

Tony

 

 

The problem I have with this thread, kev, is that you and tony are only looking at what she gave you. As the thread went on, more and more about her situation came out. No reasonably good financial planner would start out dealing with a young person in the area of retirement planning. The first areas she should deal with are issues such as risk management, debt management, and cash reserves. Once those areas are considered, then you can deal with retirement. You guys are advising backward and that's why I think the advice is questionable. BTW, gender can be really important in the planning process. ###### often chose to stay home if they have children. That would definitely impact planning scenarios.

 

 

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The problem I have with this thread, kev, is that you and tony are only looking at what she gave you. . . No reasonably good financial planner would start out dealing with a young person in the area of retirement planning.

 

 

 

Silly me for only looking at the information she gave me. In the future, I will utilize my powers of psychic ability to give general advice based on information that is not given to me.

 

You are right, no reasonably good financial planner would deal with a young person based on one aspect of their financial picture - such as retirement. That is why I suggested finding a reasonably good financial planner, which I am not. And, as tony pointed out, she ASKED about retirement planning - not marriage, life or family advice.

 

The advice others have given has been general and honest - education, lower fees, advocate for yourself, and look into a fee only planner who will guide you without the interest of commissions and hidden fees.

 

What is your advice TR?? Maybe a nice mix of variable annuity sub accounts, some whole life insurance and a good mix of front loaded funds. Try to get the annual expenses up in the 2-4% range if possible, so that she can get "good service" from her agent/advisor??

 

If we were spewing out specific funds, specific numbers, specific asset allocations, you would have a point that we are giving advice based on limited information. But, we are telling her to LEARN MORE before she does anything. Telling her that life insurance companies offer overpriced/underperforming options as compared to her ONLY low fee choice (tiaa cref). It is not rocket science - it is true. Telling her to get an advisor without a hidden agenda is also good, general advice. Telling her to read some books . . . . . all good, general advice that will allow her to find out what is best for HER and her situation.

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Hi guys!

 

Thanks again for all the advice. I really do appreciate the links especially and I will be sure to check out Malkiel's book also. It really helps to be directed to a specific source and the more I read the better I get to know this material. I'm sure I'll be back again when I have more questions stored up...

 

Until then,

 

NewBee

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Hi Newbee,

 

With both the family and an extremely busy career are real obstacles to learning about finances, my hat is off to you. I am sorry you have so little support at home. I cannot understand why anybody would you not want you to learn something about finances or object to putting some money in an IRA and to pay off debt, for crying out loud! When you learn about finances or the mere mention that you want to save and pay off debt rather than spend, spend and spend more, you will learn who your real friends are. It’s funny how this thing called MONEY brings out the best or the worst in people and they don't even know it. But you cannot change people, only you can change.

 

Malkiel's book is a classic and a hero around here. Everybody on this thread, except our "resident" financial planner TR1982, gave you excellent suggestions to continue your education.

I wish you well,

Steve

 

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Good luck to you. You seem like a smart young lady. Please accept my apologies for all the bantering back and forth. I used to find it irritating but it does serve a purpose in that the person asking the questions gets different perspectives. In the end its helpful.

 

 

Take care,

 

Tony

 

 

 

 

 

 

 

Hi guys!

 

Thanks again for all the advice. I really do appreciate the links especially and I will be sure to check out Malkiel's book also. It really helps to be directed to a specific source and the more I read the better I get to know this material. I'm sure I'll be back again when I have more questions stored up...

 

Until then,

 

NewBee

 

 

 

 

 

Kev,

 

TR is just yanking our chain. He knows that we are on the right track. Its just hard for him to admit that we are above average in financial acumen.

 

And to not come across as arrogant with that statement , I best qualify that by saying I have so much more to learn.

 

Tony

 

 

 

 

 

 

The problem I have with this thread, kev, is that you and tony are only looking at what she gave you. . . No reasonably good financial planner would start out dealing with a young person in the area of retirement planning.

 

 

 

Silly me for only looking at the information she gave me. In the future, I will utilize my powers of psychic ability to give general advice based on information that is not given to me.

 

You are right, no reasonably good financial planner would deal with a young person based on one aspect of their financial picture - such as retirement. That is why I suggested finding a reasonably good financial planner, which I am not. And, as tony pointed out, she ASKED about retirement planning - not marriage, life or family advice.

 

The advice others have given has been general and honest - education, lower fees, advocate for yourself, and look into a fee only planner who will guide you without the interest of commissions and hidden fees.

 

What is your advice TR?? Maybe a nice mix of variable annuity sub accounts, some whole life insurance and a good mix of front loaded funds. Try to get the annual expenses up in the 2-4% range if possible, so that she can get "good service" from her agent/advisor??

 

If we were spewing out specific funds, specific numbers, specific asset allocations, you would have a point that we are giving advice based on limited information. But, we are telling her to LEARN MORE before she does anything. Telling her that life insurance companies offer overpriced/underperforming options as compared to her ONLY low fee choice (tiaa cref). It is not rocket science - it is true. Telling her to get an advisor without a hidden agenda is also good, general advice. Telling her to read some books . . . . . all good, general advice that will allow her to find out what is best for HER and her situation.

 

 

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Guest Sierra

 

Hey Dr.:

 

As a member of the ORP only the employer is required to contribute. You may contribute if you wish but not more than the employer's rate. Additionally, you may contribute on a voluntary basis to a 403(b)7 Custodial Account for investment in no-load mutual funds as well as a 457(b) account.

 

Correction: Somone erroneously asserted that TIAA-CREF is not an insurance company. TIAA is a legal reserve life insurance company organized in 1918 in the State of New York. CREF is its wholly owned subsidiary established in 1952 to fund the nation's first variable annuity.

 

Joel

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Guest Sierra

Hi again

 

Thanks for all the advice. Most helpful is the recomendation to look at TIA-CREF more closely. I also did get the feeling that I would need to look at meeting with a financial advisor, I just feel "out of my league" when speaking to finance savvy people and hate that feeling, as I am not used to it.

 

You now, Newbee, know how us patients feel when we make an appoitment to see a doctor.

 

Peace and Hope,

Joel L. Frank

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Sierra,

 

Yes you are correct but it is still her best choice

 

 

 

 

Hey Dr.:

 

As a member of the ORP only the employer is required to contribute. You may contribute if you wish but not more than the employer's rate. Additionally, you may contribute on a voluntary basis to a 403(b)7 Custodial Account for investment in no-load mutual funds as well as a 457(b) account.

 

Correction: Somone erroneously asserted that TIAA-CREF is not an insurance company. TIAA is a legal reserve life insurance company organized in 1918 in the State of New York. CREF is its wholly owned subsidiary established in 1952 to fund the nation's first variable annuity.

 

Joel

 

 

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Guest Sierra

Dear Newbee:

 

It is a no brainer to save as much as you can on a tax deferred basis. The higher your gross salary the more advantageous it is. PAY YOURSELVES FIRST! Work out a budget. If you see you are depriving yourselves of things that are important to you, you can always reduce the amount. By and large once you start on a salary reduction plan you become use to it and love it!! "Try it, you'll like it"

 

I wonder if your future life partner understands the result of saving pre-tax dollars. Example for him not you: $15,000 of gross pre-tax dollars is saved in his name. If he did not save the $15,000 he would have paid about $5000 in addtional tax. So the deal with the tax collector is: taxpayer is willing to contribute $10,000 and the tax collector will throw in the $5,000 (current tax) for a total of $15,000 individually owned and controlled by your husband. THIS IS A NO-BRAINER!!

 

Peace and Hope,

Joel

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