-------------------- Thursday, August 19, 2004 -------------------- Financial Wisdom For Our Elders Let's face it, a great many of us eventually will need to line up someone to help manage our finances as we get older, a point I make at greater length in today's column - http://letters.washingtonpost.com/W7RT04537A85E84658B4F3FB27FC80 Recently I wrote about how I've had to help a great-aunt manage her large estate. It has been quite a learning experience. I chronicled the problems I've encountered thus far in a column last Sunday. (See "To the Rescue of an Old Saver - http://letters.washingtonpost.com/W7RT04537A45984658B4F3FB27FC80 ," Aug. 15) That column generated a lot of mail. In today's column, I tried to answer a couple's question on how to pick the person to manage their money if they become ill or unable to handle things by themselves. But what if you don't need help managing your money? What if you're older and you just need a little guidance? Thankfully there is plenty of advice out there. In fact, Dodie Theune, a certified financial planner with the Pennsylvania-based Bryn Mawr Trust Wealth Management, says if you find yourself suddenly widowed or divorced there are some simple steps you should take to make sure your finances are straight: 1. If you receive life insurance or a lump sum divorce settlement, the first thing to do is set aside an emergency fund, generally six months' expenses. It's better to save than be sorry. 2. Pay off any nondeductible loans, such as a car loan and all credit card debt. And don't be tempted to help everybody in your family get rid of their debt. Far too often I hear from senior citizens who end up giving their grown children money to pay off bills. As hard as it may be, you need to take care of your financial needs first. Keep in mind, your baby isn't a baby anymore. 3. Get your investment advice from a professional. Please don't act on advice from relatives or friends, whose only financial training comes from watching CNN. To find a professional check out this column: "Planning to Get Financial Advice Is a Good - http://letters.washingtonpost.com/W7RT04537A55884658B4F3FB27FC80 " (Oct. 9, 2003).Let's Keep Chatting I always have leftover questions from my online discussions. Here's my answer to one I didn't get to this week. (You can read the chat transcript here - http://letters.washingtonpost.com/W7RT04537A15B84658B4F3FB27FC80 .) Arlington, Va.: We're about to sell our condo, which is going to go for at least $100,000 more than we paid for it about three years ago. Rather than put all of the profit into another house, a close look at our finances has us convinced that we should use about half to pay off every debt we have (except for student loans) and then use the rest for a down payment. We love the idea of being essentially debt-free and by paying off everything, we free up enough money to carry a higher mortgage with a nice cushion to spare. But whenever we talk about this with anyone (parents, realtors, etc.) they are horrified that we wouldn't put all of the profits from one house into another. Is there a real reason not to follow our plan? A: My advice is to stop asking other folk what you have very carefully decided to do with your money. Really, personal finance shouldn't be a team sport. Sounds to me like you've got it all figured out (except I'm not sure why you want to still hang on to the student loan debt). The old conventional wisdom was to put down as much as you can on your home. But if you're young or have children or other higher debt, it might make more sense to use the money to have a cash cushion, to put in a college fund or -- as you have decided -- pay down debt. If it will make you feel better (and you'll have an answer for the naysayers), read this column: "Sometimes a Mortgage Is Worth Paying Slowly - http://letters.washingtonpost.com/W7RT04537A25A84658B4F3FB27FC80 " (Feb. 16, 2003).Paragons of Parsimony I love the ingenuity of penny pinchers. This week's tip comes from Bruce Pearson of Philadelphia. He wrote: "Perhaps you play tennis or some other sport and use elastic terry cloth sweat bands on your wrists? You know, the kind that lose elasticity after a few washings and become worthless. My alternative -- cut the ribbed tops (the cuff) off my wife's colorful worn out cotton socks. Slip one onto my wrist, fold it over once or twice, and play away. Even after years of use, those wristbands never lose their gripping power. Meanwhile, they soak up perspiration and add a spot of color to your outfit." And to think I just use old socks to make puppets for the kids. You are welcome to e-mail comments and questions to [EMAIL PROTECTED] - [EMAIL PROTECTED] . They may be used in a future column or newsletter with the writer's name unless otherwise requested. -------------------- Advertisement Get your news just the way you like it. - http://letters.washingtonpost.com/W7RT04537A14584658B4F3FB27FC80 Add your favorite columnists and topics to a washingtonpost.com newsletter delivered to your in-box each morning. It's a free and easy way to make sure you never miss a thing. Personalize your e-mail today - http://letters.washingtonpost.com/W7RT04537A24484658B4F3FB27FC80 and enjoy customized articles tomorrow. -------------------- COLOR OF MONEY Rescuing an Old Saver - http://letters.washingtonpost.com/W7RT04537A94784658B4F3FB27FC80 If you think you may need to help your elderly relatives with their finances, don't be shy about having the money talk -- soon. Today's Column: Financial Planning for the Elderly Requires Hard but Necessary Choices - http://letters.washingtonpost.com/W7RT04537A04684658B4F3FB27FC80 More Color of Money Columns - http://letters.washingtonpost.com/W7RT04537A54184658B4F3FB27FC80 -------------------- PROTECT YOURSELF ONLINE Computer Naivete Costs A Bundle - http://letters.washingtonpost.com/W7RT04537A64084658B4F3FB27FC80 The meltdown of my home computer was my fault, the result of having switched to a high-speed Internet connection without installing a firewall or heeding those pesky warnings to download critical updates for Windows and anti-virus software. Take Care to Guard Your Windows - http://letters.washingtonpost.com/W7RT04537A34384658B4F3FB27FC80 When to Leave What Closed - http://letters.washingtonpost.com/W7RT04537A44284658B4F3FB27FC80 Computer Users Need a Good Backup Plan - http://letters.washingtonpost.com/W7RT04537A24D84658B4F3FB27FC80 Skepticism Is the Message for E-Mail - http://letters.washingtonpost.com/W7RT04537A34C84658B4F3FB27FC80 'SP2' a Must For XP Users - http://letters.washingtonpost.com/W7RT04537A04F84658B4F3FB27FC80 -------------------- COMPENSATION REPORT The Region's Highest-Paid Executives - http://letters.washingtonpost.com/W7RT04537A14E84658B4F3FB27FC80 Pay for the Washington area's top executives rose significantly last year, reversing the downward trend that set in with the 2001 recession. -------------------- CASH FLOW Basing Car Insurance Risk on the Individual - http://letters.washingtonpost.com/W7RT04537A74984658B4F3FB27FC80 One of the long-running complaints among people who buy automobile insurance is the way carriers lump drivers together based on general characteristics -- age, sex, where they live and so on -- in setting prices. More Cash Flow Columns - http://letters.washingtonpost.com/W7RT04537A84884658B4F3FB27FC80 -------------------- MUTUAL FUNDS Bad News Is an Opportunity - http://letters.washingtonpost.com/W7RT04537A44B84658B4F3FB27FC80 Thyra Zerhusen, manager of the $375 million ABN Amro Mid Cap Fund, likes to invest in companies when they're reporting disappointing earnings. Research Mutual Funds - http://letters.washingtonpost.com/W7RT04537A54A84658B4F3FB27FC80 -------------------- Personal Finance News and Columns - http://letters.washingtonpost.com/W7RT04537A47584658B4F3FB27FC80 Business Section - http://letters.washingtonpost.com/W7RT04537A57484658B4F3FB27FC80 Market Indices and News - http://letters.washingtonpost.com/W7RT04537A27784658B4F3FB27FC80 Get Stock Quotes - http://letters.washingtonpost.com/W7RT04537A37684658B4F3FB27FC80 Create/Manage Your Portfolio - http://letters.washingtonpost.com/W7RT04537A87184658B4F3FB27FC80 Find a Job - http://letters.washingtonpost.com/W7RT04537A97084658B4F3FB27FC80 Find or Sell a Car - http://letters.washingtonpost.com/W7RT04537A67384658B4F3FB27FC80 Find or Sell a Home - http://letters.washingtonpost.com/W7RT04537A77284658B4F3FB27FC80 -------------------- E-Mail Newsletter Services To sign up for additional newsletters or get help, visit the E-mail Preferences Page - http://letters.washingtonpost.com/W7RT04537A57D84658B4F3FB27FC80 To unsubscribe, visit the E-mail Preferences Page - http://letters.washingtonpost.com/W7RT04537A67C84658B4F3FB27FC80 (do not reply to this e-mail). For feedback, send mail to [EMAIL PROTECTED] - [EMAIL PROTECTED] Finance Newsletter . For advertising information, send mail to [EMAIL PROTECTED] - [EMAIL PROTECTED] Newsletter Feedback . To subscribe to the print edition of The Washington Post newspaper, click here - http://letters.washingtonpost.com/W7RT04537A37F84658B4F3FB27FC80 Privacy Policy - http://letters.washingtonpost.com/W7RT04537A47E84658B4F3FB27FC80 -------------------- Copyright 2004 The Washington Post Company http://letters.washingtonpost.com/W7GT06B97A06484658B4F3FB27FC80 [Non-text portions of this message have been removed] ------------------------ Yahoo! Groups Sponsor --------------------~--> Make a clean sweep of pop-up ads. Yahoo! Companion Toolbar. Now with Pop-Up Blocker. Get it for free! http://us.click.yahoo.com/L5YrjA/eSIIAA/yQLSAA/BCfwlB/TM --------------------------------------------------------------------~-> Yahoo! Groups Links <*> To visit your group on the web, go to: http://groups.yahoo.com/group/kumpulan/ <*> To unsubscribe from this group, send an email to: [EMAIL PROTECTED] <*> Your use of Yahoo! Groups is subject to: http://docs.yahoo.com/info/terms/
