Wednesday, 9 July 2014
Financial Tips Corliss Group Online Magazine - Top 7 Financial Tips From Nancy J. Lapointe, Navigate Financial
I was asked at a social wine event, “What are the most important tips you have learned that people typically don’t know, but need to know?” That is a loaded question and very subjective. Basically, you are asking me what I think people need to know and giving me permission to get on my high horse. That sounds like fun!
1. At age 70 ½, Required Minimum Distributions are not an option on some IRAs. You have to take the distribution. However, you do not have to spend the money.
2. Credit cards are loans and could have very high interest rates. Avoid paying credit card interest.
3. Income is income and money is money, so leaving money in a low interest account, while paying a high interest credit card seldom makes sense, even if the money in the low interest account came from your Grandmother. Pay yourself back at zero interest and get rid of the credit card interest.
4. A Home Equity Line of Credit is not an emergency fund. It is an open loan with interest and it must be paid back. It is a good stop gap measure as you build up a proper emergency fund for you situation. An emergency fund needs to be accessible and be cash or cash equivalent. An emergency is an event out of your control such as accidents, illness, etc.
5. An emergency is not paying your property taxes or getting new tires. Those are expenses of living and you should plan for these types of costs.
6. A car is a mode of transportation and not a reflection on your self esteem. Be reasonable in buying depreciating assets.
7. A CERTIFIED FINANCIAL PLANNER™ (CFP®) Professional and a Broker are not interchangeable. If the CFP® Professional is practicing according to the CFP Board of Standards, he or she is consistently striving to integrate the client’s plans with the client’s activities. A broker is trained to manage investments and to focus on performance and investment related opportunities.
Nancy LaPointe is a financial advisor located at Navigate Financial, 4520 Intelco Loop SE, Suite 1D, Lacey WA 98503. She offers securities and advisory services as an Investment Adviser Representative of Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser. She can be reached at 360-628-8175. This communication is strictly intended for individual residing in the states of AZ, CA, GA, IA, MT, NM, OH, OR, WA. No offers may be made or accepted from any resident outside these states due to various state regulations and registration requirements regarding investment products and services.