WHAT TO DO ABOUT SO MUCH TO DO

I only hear from some of my friends when they are all tangled up about what to do about so much to do. I know they love me and I love them too, so no offense because I only hear from them when they have so much to do and need to know what to do. I got home last evening and saw one of those friends’ name and number on the caller-ID. Just as always, I cared enough about her to pick up the phone to see how things were going. She had a number of questions about what to do with her various retiremen

t accounts accumulated via her work in a number of jobs. We discussed what she had and her plans for the future.

Her divorce was now final and she was coming to grips with what had been a very painful ordeal. However, she had good news. She had met a man during her first year as a divorcee and was now engaged. She had never been so happy in her life. The new husband-to-be was not unfamiliar to her. She had known him when she was about 16, but neither had paid much attention to the other. Now their children were grown and they had both survived a divorce and were looking towards retirement. A couple of trips back to her hometown in Maine, had her planning a move in the next 3 years when they would be married.

I have over the years tried very hard to direct her to a good financial advisor. She said, “I tried that but it just doesn’t feel the same. They don’t know me like you know me. No matter what stupid stuff I have done with my finances or with my life, you only say – how can I help. I trust your counsel and it has served me well.” Of course, I was very pleased that I could help my friend, but what she said also gave me some food for thought.

I have been doing training seminars for Financial Advisors for sometime now and for this very reason. Federal employees need financial advice and they need individuals who thoroughly understand the nuances of the Federal Employees Retirement Systems. There are a lot of rules, regulations and guidelines that these employees need to understand early in their careers so they begin to prepare for a smooth future.

We stayed on the phone for about 2.5 hours with my last advice to her being — don’t have your resources spread out over too many accounts because first and foremost it makes it difficult for you to manage and keep on top of things. Second the majority of your money needs to be in a qualified defined contribution plan that cost you the least in administrative fees. We also talk about IRAs. Your risk tolerance is very low, so there is no need for you to delve into the rise and fall of the market. You intend to retire in 3 years so play it safe by protecting what you have. There is no reason for you to play the game of get rich quick by making investments that may or may not give you a return on your money. The economy is still not where it needs to be and compounding works best with the more time you have.

She has a pretty decent nest egg all things being equal and from where she sits, I think she will be fine. She is giving up the big house and moving into a one bedroom until she makes the final move to Maine. There is no need to keep the big house with the huge mortgage and all the upkeep expenses. She is there rambling around in that big house alone and getting rid of it is a wise thing to do in her case. There is no splitting proceeds between she and the ex-husband. He wanted her to have the house in the divorce settlement and it is totally paid off.

She is starting anew and her future looks pretty bright. My next call from her will be to apprise me of the wedding details. I will pack my bags and fly off to Maine to celebrate the next half of my friend’s life that calls me when she needs to know what to do about so much to do.

P. S. Always Remember to Share What You Know.

Dianna Tafazoli