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Judith's Blog |
| "You Can Do It!" I just interviewed Don Young, YOU CAN DO IT! And he convinced me that You Can Do It!. The best thing he said is start with a road map. You wouldn't get in your car, you wouldn't drive from Chicago to New York, without putting it into the GPS system or having a map in front of you, or certainly knowing what major highways you're going to go on. So it is with financial security. And understand and appreciate after you get your road map what the value is in compound interest. It's just like making a 7-layer cake or a 9-layer cake -- the first dollar you put in starts to earn interest and every dollar on top of that earns interest as it goes along. It's really like building a house -- a stack of bricks -- one on top of the other. Secondly or thirdly, Risk and Reward is a really important issue and certainly all of us have lived through Risk and Reward. But what I didn't know about was Target Date Funds, which are funds you can start investing in at any age and are broad based like Index Funds. And you can put it on auto pilot so at different stages of your life -- for example, when you're thirty and you're on the bottom rung of the career ladder, where you're going to want to play a little bit more with stocks -- so maybe you'll have a 70/30allocation. Meaning 70% of your money in stocks, where there's more risk, and maybe 30% in fixed income bonds, where there is a guaranteed interest coupon -- much less risk, also much less growth. And so, then as you get into your 50s or 60s, and you're pre-retirement, you're going to want to think about going back to 50/50. In real retirement, you might be 70/80. But this auto pilot concept which doesn't' sound so interesting, sounds very safe. It was Warren Buffet, the Oracle of Omaha, who said, "The best holding pattern is forever." And John Bogle, who's also very well respected at Vanguard Fund, who said, "While you're sitting down and trying to figure out what to do, the best thing in your investments is to do nothing." | ||
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More about "Getting Your Money's Worth"
As the title of the show, "Getting your Money's Worth" implies, the show concerns itself with gaining value as a consumer of education, health services or, indeed, as a tax payer. Everyday consumer spending will be included. The dialogue may not present solutions, but certainly will present alternatives in an entertaining and colorful way with experts in their respective fields. |
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