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May 22, 2007
Podcast for 5/22/07: Highlights from KRLD live show
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Kim Snider takes calls from listeners on KRLD-AM (1080) in Dallas-Fort Worth.
MP3 Download: Hi (128k) | Lo (24k)
Length: 18:50
Notes:
00:55 Brad calls in. He's 37, has 3 kids, and is free of student loans and credit cards. College funds are taken care of, and he has 3 months of savings. Kim says he's ahead of his peers, and his first step should be to increase his savings to 6-9 months' worth.
04:10 Kim explains why she doesn't agree with the philosophy that you can afford to take more risk when you're younger.
05:22 Janet, a teacher, asks about annuities in her 403(b) plan. Kim explains what a 403(b) is and how there are numerous things you can do inside those plans. Kim says she's not a fan of mutual funds, but sometimes that's all you get in a 403(b), so she recommends her online class "How To Turn Your 401(k) Into A Million-Dollar Nest Egg." She also says never, never buy a variable annuity and anyone trying to sell you one in a tax-deferred account like a 403(b) is committing financial malpractice.
08:35 Rod is about to be an empty nester. He's 55, he sold a 25% interest in his business and has $175,000 cash he wants to invest. He and his wife don't have much put away for retirement, and he wants to know what to do. Kim says he should build up his emergency savings fund. The retirement plan he should start, since he's self-employed, is a SEP IRA. After maxing out his SEP, he should put money away in a taxable account.
12:05 Dave says he and his wife live on half of their take-home income. He stopped maxing out his 401(k) because he thinks they'll be in a higher tax bracket when they retire. He wants to know if this is a good move. Kim says the tax tail shouldn't wag the investment dog -- work on what you know today. A lot can change by the time Dave retires, so Kim says he should still max out his 401(k), even with the future tax implications. There are also other advantages to tax-deferred investments beyond the tax advantages.
14:58 Mike has a 401(k), and he's done better than he expected over the last couple of years. He asks if he should pull money out of mutual funds now and jump back in later when market conditions are better. Kim says don't attempt to time the market. She says first figure out your objectives, your risk/reward profile and your temperament, then figure out a long-term plan based on those 3 things. Then stick to that plan -- only change the plan when your objectives change, which should be very infrequently.
Resources:
Kim Snider Financial Communications
"The Family CFO's Guide to Investing" (event calendar)
"How To Turn Your 401(k) Into A Million-Dollar Nest Egg"
Kim Snider, Kim Snider Financial Communications, Chronim Investments and/or Snider Advisors make no representation that the information and opinions expressed are accurate, complete or current. The opinions expressed should not be construed as financial, legal, tax, or other advice and are provided for informational purposes only. Call 866-952-0100 to request the Snider Investment Method™ Owner's Manual, which includes a description of the Snider Investment Method, investment objectives, risks, suitability and other information. Please read and consider carefully before investing. All investments are subject to risk including possible loss of principal.
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Focus of This Blog
Kim Snider is an author, speaker and host of Financial Success Coaching, Saturdays at noon, on KRLD Newsradio 1080, Dallas - Fort Worth. This blog is primarily devoted to empowering individual investors with information to help them be good stewards of their money. Above all, it is about achieving true financial success. Kim's book, How To Be the Family CFO: Four Simple Steps to Put Your Financial House in Order is in bookstores now. Order yours from Amazon or other fine booksellers today.
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