AMMO Needed. -quickly

**Russ** · 08-07-2008, 02:27 PM

First, I don't need to hear "why do you have a financial planner?" it's a long story and don't want to get into it...

What I do need is this:

We are going to see ours tonight and I know the subject of Roth IRA's will come up and why aren't we putting anything into them.

"I want to pay down debt first" will be my answer and it's good enough for me. I understand why I need to pay it down.

I think it will be 2 against 1 tonight. My wife and him vs me. And you know he will make the argument of: "How is that working, paying down your debt?"

Of course, it worked and then we quit and that will be his que to jump.

So, give me your best advice to deal with this tonight.

oh, it's 2:30 and my meeting is at 4.

**Greebo** · 08-07-2008, 02:34 PM

"We were paying down our debt before. We quit. Now we are as financially unstable today as we were before we started. Putting money into retirement will lock up that money, and we will continue to be financially unstable from a day-to-day basis.

I understand saving for the future is important, but if we don't have a solid foundation to build upon, I don't believe it will do us any good to save up for tomorrow. Right now, if something happened to either of our incomes, what would we do? Go into worse debt? Pull out that retirement money with possible serious penalties?

I need for us to be out of the risk zone we're in now, so I can be sure my wife is in a good place if anything ever happens to me."

**Greebo** · 08-07-2008, 02:35 PM

Also - what the hell good is it to invest at 10% when we pay 20% in interest?

**Greebo** · 08-07-2008, 02:35 PM

Oh Almost forgot...

So why don't you have a financial planner?

greebo runs away quickly

**Russ** · 08-07-2008, 02:36 PM

Thanks man, I owe you a cold one.

**Russ** · 08-07-2008, 02:36 PM

Originally Posted by Greebo

Oh Almost forgot...

So why don't you have a financial planner?

greebo runs away quickly

So much for that cold one.

**rachelj** · 08-07-2008, 02:48 PM

Our 1st financial planner - we never fully agreed with. He, too, wanted us to invest a lot of money. We did some, but we also started paying off our mortgage on our "starter home". He thought that wasn't smart. Well, to us debt is debt and the only kind of "good debt" is NO DEBT

You don't always have to be on the same page as your Financial Planner. You and your wife DO have to be on the same page.

**Russ** · 08-07-2008, 02:57 PM

Originally Posted by rachelj

You and your wife DO have to be on the same page.

We will find out in a little bit how much our "talk" has sunk in. I think she is stuck on why we haven't paid off debt if we haven't put anything in our Roth.
We just got out of the debt reduction habit and added more.

I'm telling you folks... Don't quit reducing your debt, even when you get close. KEEP GETTING RID OF IT!!!

**Russ** · 08-07-2008, 03:02 PM

Originally Posted by Greebo

Also - what the hell good is it to invest at 10% when we pay 20% in interest?

I tried something like this on him before. I asked him if there was any investment that could could guarantee me 5.9% and of course his answer was "no". 5.9% was the interest rate on a loan I had and paid it off 2.5 years ahead of time. To me, I made 5.9% on that money.

**blitzen** · 08-07-2008, 03:21 PM

Fire your FP. We're all the financial planner you need, baby!

**Russ** · 08-07-2008, 03:31 PM

Originally Posted by blitzen

Fire your FP. We're all the financial planner you need, baby!

I agree 100%.

**mikandmari** · 08-07-2008, 03:43 PM

"Also - what the hell good is it to invest at 10% when we pay 20% in interest? "

Despite what these Wall St-type people say... making 10% is not likely over the long term! In fact, we didn't contribute anything to our Roth IRAs this past year. I moved the little bit we did have into a safe fund where it is earning next to nothing.

Tell that 'expert' financial planner you don't care what he/she says, you worked hard for that money, why gamble it away in this economic environment? Paying off debt is a sure bet!!

**Greebo** · 08-07-2008, 03:50 PM

Originally Posted by mikandmari

"Also - what the hell good is it to invest at 10% when we pay 20% in interest? "

Despite what these Wall St-type people say... making 10% is not likely over the long term!

You have that backwards.

Over the short term, losing money is easy in the market.

Over the long term, in good funds, you can find investments which have averaged over 10%.

http://www.smartmoney.com/fund-scree...nners&cid=1122

See page 2

**COUNTRYBUMPKIN** · 08-07-2008, 03:55 PM

Um Russ, First of all, you have hired and are paying him. There is no reason for you to have to fabricate anything with him. Be upfront an honest! If you are dissatisfied with him then fire him and find a new one. Dh and I did this and we now have a financial planner that we feel very comfortable with.

**angrypuppy** · 08-07-2008, 04:01 PM

Let us know how it goes. We have been putting off getting a FP, because we assume they will put more emphasis on accumulation than debt reduction. For us the reduction will let us live more free.

I look at my parents who have saved a substantial amount of money, but still have debt. With out the debt they would be home free. Witht the debt, they will still have to be careful with the remaining money during retirement. If they had focused on the debt and then saving I think they could be in about the same position in regards to investment, but would feel much better about their financial position during the next stage of their life.