February 2010 Archives
I'd like to ask the audience!
Where do you get your financial information? Recently I've encountered folks, who as they explained recent financial steps they've taken, have cited "they say to.... put 0 allowances on your W-4 for a bigger refund, it's OK to borrow from your 401K because you're paying yourself interest..." For a long time I've wondered who "they" are and why "they" were qualified to provide financial information/education. You know, the guys at work, the ladies you have lunch with, your brother-in-law. Contestants in the TV game show 'Who Wants to be a Millionaire" are offered various lifelines as they work their way through increasingly difficult multiple choice questions in their quest to win up to a million dollars. These lifelines include asking the audience, double-dip, 50-50 and ask the expert. When it comes to seeking financial information, you aren't limited to one of each of these lifelines, you can seek qualified financial advice (ask the expert) but many people still seem to rely on asking the audience for their help. Your advisor should ask you as many questions as you do of them. They should be familiar with many aspects of your situation to make the best recommendation, not just provide you with a cookie cutter answer. So while your quest may not be to win a million but to save and invest to attain a net worth of a million, limit your lifeline use to just one and often - seeking qualified professional help!Final answer!