Some articles that caught my eye this week…
One great way to teach your children is to simply involve them in your financial activities, in an age appropriate way of course. If you are paying bills, get them to help. Involve them in your purchase decisions. Take advantage of teachable moments. Look for them. It is very important that when we turn our children loose on the world, they have the knowledge they need to take care of themselves.
Good news if you are looking to buys a used car this year.
401K’s are becoming more and more critical as more companies are doing away with pensions, and social security has its well known issues. But once we have some money saved, it can become a tempting target when we need money for something. However, unless you need the money to prevent a bankruptcy or a foreclosure, it is never a good idea to pull money out of your 401K.
You may save a few minutes on your commute, but how much do those minutes cost you?
Very good overview of how these work. Certain kinds of annuities can have a place in some instances, particularly for those that are very nervous about the stock market and tempted to pull their money at the wrong time. The problem with annuities is they can have very nice commissions for the sales person selling them. Therefore, less than scrupulous sales people sometimes push them in cases where they really aren’t the best solutions. There is also a wide variety of options in annuities and some are much better than others. The primary key when it comes to buying any kind of investment product is understanding fully what you are buying. If your sales person isn’t willing to take however long it takes to answer all your questions and teach you fully how the product works, find a new sales person. If you can’t explain it, you don’t understand it well enough to bank your retirement on it.
Sometimes small steps can make a big difference.
Fun link of the week:
Out of the mouth of babes as they say. (Plus it made me smile.)