Jewish World Review Sept. 29, 1999 /19 Tishrei, 5760
DEAR R.N.: The more funds you allow to be managed by one planner, the more important a client you become. If you were to split the money up, you would be reaching "ho-hum" status in terms of the amount of money invested. I would be very careful in choosing the individual, but I would give him or her the entire amount of money to handle. This way your financial planner will earn more money, and in turn, your portfolio will receive more personal attention.
DEAR BRUCE: Everything I have read about preparing for retirement indicates maxing out your 401(k). I have received different advice from a financial planner. I am a 43-year-old single mother with three children and my own home. He says that since I am in the lowest tax bracket possible -- head-of-household with children and a mortgage -- I should not be tax-deferring my money until a point when I may be in a higher bracket. He suggested that I take the little taxes now and invest my monies in avenues that grow tax-free, such as the Roth IRA and stocks. He advised that I should only invest in the 401(k) when the company's matching contribution ceases. -- D.L., El Dorado Hills, Calif.
DEAR D.L.: Hang on to this guy -- he is good at what he does! I agree with him on every point. Tax deferment is good if you are in a higher tax bracket, but if you are not it makes no sense.
DEAR BRUCE: For several years now I have been reading about people investing in Treasury Notes. Can you tell me where I can go about getting information on purchasing these notes? I have asked many people, and no one seems to know. -- B.K., Portage, Mich.
DEAR B.K.: The nearest Federal Reserve Bank in your area can tell you precisely how to go about purchasing these notes. A Treasury Note is an intermediate-length document, with the shortest being bills and the longest being bonds. Most banks offer this service for a relatively modest commission to purchase whatever treasury instrument you wish. You should know that since the purchase of these notes is done on an auction basis, the exact interest rate will not be known by you until after you have made your
09/27/99: Adult children should help out