I remember the first time I helped a colleague of Tony’s switch out of a horrible 403(b). Tony had come to me aghast over what he had seen; an annuity with 4% in fees and longstanding surrender fees. We had no idea that this was not the exception to the rule; nor did we realize that this would become our full-time obsession. Here was an educated, savvy woman who had absolutely no idea how badly she was being ripped off. It turns out that there were many more teachers, just like her, who had listened to recommendations from esteemed (but ignorant) colleagues. One-by-one they formed a chain of the blind leading the blind and, in spite of their intelligence,they all went right over the same cliff. Secretly I wondered if I could have been one of these people, if I didn’t know what I knew. The answer is probably. Let’s face it, most people would rather not spend their free time researching where they should squirrel away funds for a rainy day some decades into the future. If Read on...
Matters of the Heart
I learned, at a fairly young age, that life can change as quickly as it takes a heart to beat. It was the day before Thanksgiving, 1973, when my father suffered a heart attack. He was 56 and I was 8. As the sole breadwinner, I am sure all the worries he had about caring for his wife and seven kids (four of whom were minors) were pinging in his head, keeping time with his rapid pulse rate. Thankfully, after several weeks in the hospital, he was allowed to come home in time for Christmas. It was a gift; but frankly, the anxiety over his health issues would haunt me throughout his lifetime. Fortunately, he lived into his late eighties; but having no way of knowing that he would be blessed with longevity, I began the egg-shell walk that would span decades. It took me well into my adulthood before my fears eased up a bit. Perhaps experiencing milestones that I worried might never come, like having my father walk me down the aisle, allowed me to exhale. And now, at the age of Read on...
Destination Unknown?
Imagine you’re about to set out on a road trip. You would absolutely need to have an idea of where you wanted to go – north, south, east, or west. You would have to work within the confines of how much time you had for this trip – that would determine how far you could go. Your financial goals are no different than that road trip; failing to plan means planning to fail. Even if you haven’t given retirement much thought, in terms of what it looks like and feels like, chances are you have an idea of when you would like to have the freedom to walk away. For those of you bemoaning that you will need to work until you die, it’s time to see if that is really true or simply your worst fear taking over and freezing you in your tracks. But, you have to set your goals. You have to make this a priority. The trouble is, unlike the mortgage payment or electric bill, there are no immediate ramifications if you don’t take the time to do this. It is important, but it is not Read on...
A Plan to Overcome Panic Paralysis
The first time I discovered the power of panic paralysis, my husband and I were on the verge of moving out of a one-bedroom apartment and buying our first home. We had been aggressively saving to buy our freedom from our landlord. I liked stock-pile mode: we controlled it; and it was relatively simple – we put aside as much money as we could and we were able to go at our own pace. We were building something, together. But the prospects of turning all that money over made me feel beholden to the bank and more out of control. “What if the oil burner blows, the transmission on the car gives out, the roof springs a leak and I find out I’m pregnant – all in the same week?” I would ask my husband at 11 pm on a work night, just as his head was hitting the pillow. To his credit, he didn’t run away; but he didn’t indulge me, either. “We’re not having this conversation before bed,” he would sigh. One night he had had enough and said, “Fine. We don’t have to buy a house. We Read on...