How To Invest Your Money By Doing The Obvious


How To Invest Your Money By Doing The Obvious 1

How To Invest Your Money By Doing the​ Obvious!
I was busy baking cookies and washing up dishes when the​ phone rang .​
As I​ juggled dish towels,​ phone cord and running children the​ voice on​ the​ other end told me that she was a​ client from over a​ year ago and promptly started updating me on​ the​ financial status of​ their family .​
It was lots of​ great news on​ how they were out of​ debt,​ they had only their house to​ pay off and they were steadily working on​ increasing their savings.
I was congratulating her and her husband for their diligence and hard work when we​ got to​ the​ reason for her call .​
They had just found out about a​ Wonderful investment opportunity and they wanted my opinion of​ the​ company and the​ situation .​
Normally,​ I​ totally revolt at​ telling people what to​ do with THEIR money .​
First off,​ I’m not a​ trained financial professional and always defer to​ such people in​ these sorts of​ situations .​
Secondly,​ I​ don’t know all the​ hopes,​ dreams and goals you have as​ a​ person for your money,​ so why should I​ give you direction on​ what to​ do with YOUR money?
However,​ since I​ had coached this family before I​ listened politely as​ she breathlessly told me of​ this incredible financial opportunity and how they were seriously considering taking the​ $5,​000 they had worked to​ save for over a​ year and invest it​ with this one company .​
I​ then calmly asked,​ Okay,​ but have you and your husband maxed out your IRA contributions for this year? There was a​ pregnant pause on​ the​ other end before she meekly said,​ Um .​
No .​
Well,​ before I​ would spend dime one on​ any investment,​ I​ would make sure that I​ had made use of​ the​ maximum allowable contributions to​ all the​ tax advantaged accounts the​ federal government gives us .​
I​ then asked her to​ call her accountant about what sorts of​ retirement accounts were available to​ them and verify what the​ allowable amounts were and to​ contribute to​ those first before launching all their savings into this other organization.
This is​ the​ point,​ my frugal friend .​
I​ know it​ isn’t sexy and bold and exciting,​ but the​ accounts that are IRAs,​ 401k’s and 403b’s are a​ wonderful and steady way to​ invest in​ your future .​
Before you go for riskier investments,​ go with what works first! Go with the​ OBVIOUS! Are you doing the​ obvious? Are you investing with accounts that are tax advantaged for you? If you don’t even have a​ retirement account open,​ then make your first investment goal that you open one this year .​
If you’re married make sure you have one open in​ both spouses names .​
Don’t jump at​ the​ quick buck with all your hard earned money .​
Go with the​ safer and less-sexy investments first .​
Once those have been maxed out,​ then look around with the​ extra money you have to​ invest in​ other things .​
But,​ of​ course,​ you’ll chat with your accountant or​ financial planner about this before leaping into anything,​ right?
As further evidence for the​ less-than-sexy investment strategies,​ I​ was reading an​ article in​ Money magazine (January 2007) .​
In it​ there was an​ interview with multi-millionaire and financial planner Charles Schwab .​
He was asked this rather simple question: If you could give one bit of​ financial advice to​ someone who’s just starting out,​ what would you say?
Mr .​
Schwab answered,​ Buy index funds and ETFs .​
That might not seem like enough action for a​ 25-year old,​ but it’s the​ smartest thing to​ do .​
Put most of​ your energy into your work and learn to​ communicate .​
I​ think the​ people who become really successful are those who sense what others are feeling and how to​ make them comfortable.
Thanks,​ Chuck!



How To Invest Your Money By Doing The Obvious



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