Questions and Answers
I am a 61 year old woman and I only have about $10,000 in an IRA mutual fund with VanGuard. Is there any way that I could make it grow? Could I change it to a Roth or invest some of it? Or is that not practical?
I am not working now, but I plan to in a year, because I am taking a course in medical transcription at home.
— Rosemary Sheehan
Your account with Vanguard will grow-- how much
depends on which fund you have the money invested in. There are 50 or more
funds including stock, bonds or money market accounts-- all called mutual
funds.
If this is your total retirement savings and you
plan to use it next year, it will not grow very much. If you will not use
the money for 5 or more years I would recommend a fund such as the Vanguard
S&P 500 which is an index fund of the 500 largest companies. You
will get market returns. I must also state that there is some investment
risk whenever you choose to invest in the stock market as it can go down as well
as up. Since the 1920's it has averaged about 10% increase per year.
I cannot be more helpful without knowing more
about you and where the money is currently invested.
Solomon Levy CFP
Answered by Sol Levy
I enjoyed the kickoff of the website last night, it was very informative.
As a CPA, I would like to know if I could provide some material to your website. I have given talks at local senior centers on Record-keeping and Document retention, as well as discussing "Taking Control of your Financial Affairs" to support groups for spouses and children with loved ones in Assisted Living Residence.
I have a very keen interest in mature adult issues and would like to help where I can. I am developing an accounting practice that caters to those +50 years in age. I am an active licensed CPA in PA and live in Meadowbrook in eastern Montgomery county.
I can be reached at 215-990-9023 or at razcpa@hotmail.com
Thank you
Bob Zipperlen
— Bob Zipperlen
Bob,
Thank you for offering your services. I for on may want to refer some question to you that would be tax complicated beyond my current knowledge.
I also think that your Record Keeping and Document Retention documents would be good to have on the website as a link for people to see them and print them for your use. If you have some written documents on Taking Control of Your Financial Affairs that are relatively self explanatory these too may be useful on the site. I would be willing to work with you and get them ready for use if they are not in an appropriate format.
I am sorry we did not meet last night and have a chance to talk but look forward to working with you.
Sol Levy
Answered by Sol Levy
I'm looking for a financial planner. There is no one in my circle who can refer me to one. I have found the website www.plannersearch.com, which lists financial planners in the area. My problem is that I don't want to just cold call to find someone. Any suggestions?
— Lew
Lew,
Planner search is the best vehicle to use to find a financial planner. If this site did not have a page on what to look for in a financial planner I would refer you to the Phila Tri State FPA site
www.fpanet.org/plannersearch/about_ps.cfm This page describes what to look for.
When new clients start working with me, I want to meet them to see if they are the kind of client I can help and want to work with, and this first meeting gives the client a chance to get to know me to decide if they like my way of working and my philosophy of planning and investing. You need to take the time to do this since all planners are not right for all clients. Some planners will not charge for this introductory meeting.
You also need to be clear if you want a financial plan and are willing to pay a fee for the plan and for the advice. These are fee-only planners. Other planners will do some planning for free if you do your investing with them and they will make their money from the sales charges on the products they sell. You usually find these planners in a brokerage firm of some kind or an insurance firm. You have to make sure that this person will listen to what you need and want done and will use the appropriate investments for you.
Some planners will charge a fee for the plan and if you hire them for the investments management this is a separate contract. The way this is calculated will depend on your planning needs and the dollar amount of your investments.
The CERTIFIED FINANCIAL PLANNER™ is one of the best professional designations for a general planner who has an understanding of and an acceptance of the planning method. If you have a very specialized need, some planners focus on that area of work like small business,education, divorce planning etc. Often a general financial planner will work with some other professionals if a part of your need is outside their realm of competence.
I hope this is helpful to you.
Answered by Sol Levy
Years ago I had a Fleet credit card that I used. When the APR got too high on that card I paid off the balance and stopped using the account... but I never closed it.
Since then, Fleet merged with Bank of America. I recently got a letter from them telling me they have changed the terms of my Cardholder Agreement. The real significance here is that I've been reminded of this other card that has no balance on it.
What's better for my credit rating... for me to close this account or leave it open but not use it? I think years ago someone told me that if you close an account that might be bad for your credit... but I'm worried that leaving one open without using it for so long might be harmful to my credit too.
— Ted Goldberg
Ted,
I am not sure what the best answer to this is. It is
generally recommended that an individual not run up credit card
debt. However if you are not using it and don't plan to use it
than close it. I do not think it will matter.
Now that you are married and if you think you may need to borrow
for a house or other major need a good way to build a good credit
rating would be to borrow some funds from a bank or credit card and pay
that loan back over a period of a year on a regular basis. One of
the things that is looked at is the regularity and timeliness of paying
off credit cards or loans. A bank loan would carry lower interest
than a credit card. Unless things have changed if you have never
borrowed and paid back a small loan it is harder to get larger loans
like a mortgage. The system sometimes seems like a catch
22.
The other general recommendation is that you get your credit
ratings from the services that keep them once a year and make sure
there are no mistakes on them or correct them if there are errors.
Hope this is helpful
Sol Levy
Answered by Sol Levy
Is there computer software out there where I can input my finances and objectives and get a some idea of how things might play out for me?
— Dick Goldberg
The two programs that I am aware of for the general public are the Qucken Financial Planning Program which is part of their Suite of programs and MS Money. Both of these programs are relatively inexpensive and are easy to use. There are many professional programs which can cost from hundreds of dollars to thousands of dollars.
There are many web sites run my mutual funds that will help you with some planning software. T.Rowe Price is one of them. Many funds have them especially for retirement planning. Mutual funds that offer 529 educational plans will often have planning software to calculate and estimate college costs in the future and how much you need to save to meet your goal.
Sol Levy
Answered by Nathan Gasser
