Some great Groups discussions

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The Wesabe Groups community is continuing to grow and provide better and better advice all the time. The “Paying It Off” group has passed 1,000 members, and the “Saving Up” group isn’t far behind. Here are just some of the highlights from the past couple of weeks:

Pay debt or continue building savings? in Paying It Off:

Based on personal experience and some of the things I read, I think that having a $1000 emergency fund is sufficient to cover most true “emergencies” (unexpected doctor bill, car accident, etc.). I would then take the rest of the money and throw it at the debt. No, you aren’t making money on the emergency fund, but that isn’t the point. If you turn to credit cards every time there is an emergency you defeat your efforts to pay down the debt. The emergency fund acts as a cushion that protects you from hitting the credit cards again. —ryanweb

Bills and accounts, together or separate? in Just Married! (or soon to be):

Congrats on having the separate checking accounts!! Having worked in financial institutions for years, I can’t tell you how many couples I’ve seen dig themselves a hole because they were doing their daily purchases off a joint checking account and somebody forgot to tell the other person what they were buying…and next thing you know it’s bounced check city. —nyle8720

Investing and the Sleep Point in Simple Investing:

I traded individual stocks for a few years and was constantly watching the market. Always had to have my stock ticker going at work. Was updating my portfolio trackers and spreadsheets all the time. Constantly scouring the investing forums I frequented…etc… Bleh…what a waste of time and of my life… I still don’t know to this day whether I ever did better or worse than average. Now I just do Index Fund investing at Vanguard. Occasionally I’ll rebalance when one of my asset classes gets out of wack, but honestly I probably only do that once or twice a year. I don’t watch the market daily…I only update my figures when I get the quarterly reports…etc… I just don’t worry about it anymore. —DRjunkie

$39,794.90 in Debt, but Make $240k in Paying It Off:

I once had the pleasure of working on a software project to “profile” customers for a mid-size regional bank. The idea was to try to gauge the income and spending habits of customers to separate them into distinct categories. These categories would then be used to determine what products and services customers would be offered. The most surprising thing that I learned while working on the project is that income really doesn’t have a whole lot to do with actual wealth. I can remember looking at the profiles of people who were earning $400-$500k a year with virtually no savings to show for it. The expenses these people had were incredible but they were literally living one or two paychecks from complete financial ruin. …and I also remember seeing profiles of people who looked to be earning less than $100k/yr but had accumulated massive amounts of wealth. Guess my only point is that high income doesn’t really make you wealthy or financially secure. As the OP suggests, it really only means you have a lot of nice toys. —mxmiller

Which profession(s) do you reccomend? in Saving Up:

Wow, the responses I’m getting are really great, thanks so much for all your inputs, they are truly helpful. I would just like to say that I think Wesabe has an incredible community filled with knowledgeable helpful people. Thanks again! —Valium

One Response to “Some great Groups discussions”

  1. Michael J. Fitzgerald, CPA/PFS, CFP, MsT Says:

    Hello everyone,

    I wanted to introduce myself. My name is Michael J. Fitzgerald, CPA/PFS, CFP, MsT and I am a Registered Investment Advisor. I help clients design a income replacement plan to help them reach their goals. I do not sell anything, a Registered Investment Advisor is legally able to give recommendations on investments, stock brokers and insurance sales people are not. Always ask if your advisor is a fiduciary, that means that they can not have undisclosed conflicts of interest. Also, if you are going to look for an advisor, I would want someone who has meet the minimum and at least obtained the Certified Financial Planner designation. Did you know that you do not even have to have a high school degree to be a stock broker. Do your research and always ask your advisor, how they plan on helping you to replace 100% of your income so that if you wanted too, you could retire within a 5 year period. If they do not know the answer, how do you expect them to show you how to become wealthy, if they can not even do it themselves?

    Best of luck,

    Michael J. Fitzgerald, CPA/PFS, CFP, MsT
    100% Retirement Income Replacement Strategies
    http://www.fitzfp-llc.com

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