Today’s Mission:

Everyone has a junk drawer somewhere full of odds and ends. We’ll talk about the six financial things you probably have sitting in a drawer somewhere as well and what you need to do to dust them off and make sure they’re put to use. Then, J’Neanne talks about student loans and the ripple effect they have in the financial world.

(Click the featured times below to jump forward in the episode)

The Briefing

  • [26:47]Getting To Know You: J’Neanne shares a memory from a trip to see Chuck Mangione playing jazz in D.C.

Strategy Points:

[2:10] – Six Things Wasting Away In Your Financial Junk Drawer.  

  • Most of us have a junk drawer, and many of us have a “financial” junk drawer as well.

[4:01] – Old Life Insurance Policies.

  • This is one of the most common things wasting away. A lot of people don’t understand what they have. Bring in your old policies to understand their purpose. Pay attention to your beneficiaries, and keep them up-to-date. Know what you have and how it works.

[7:20] – Outdated Will Or Estate Plan.

  • Probably half of baby boomers don’t have a will. This could leave their heirs with a mess. Review your will every five years or any time there is a major life change (death, divorce, etc.). Consider also the medical directive and medical power of attorney.
  • An estate plan is an all-encompassing document, whereas a will is a set of instructions. On any assets it will otherwise default to the spouse or partner survivor.

[9:56] – Social Security Estimate Received During The Clinton Administration.

  • Look back at your old Social Security benefit statements. The rules have changed, so you need to get a current statement to determine when the best time is to collect social security. Double check their recorded numbers of income against yours.

[11:42] – 401(k) Statements From Your Last Three Employers.

  • You’re getting a ton of paperwork and have no idea on the investment strategy. As you get older, more paperwork is more confusing. You should figure out if you should consolidate these into one IRA.

[12:44] – U.S. Savings Bonds.

  • A lot of savings bonds collect dust. If they are beyond the point that they are earning interest then you need to sell them. Savings bonds are great for a specific period of time, but generally speaking it is often inefficient.

[13:49] – A Vacant Lot Purchased Years Ago As An “Investment.”

  • If the land hasn’t increased in value in 15 years and you have no plans to move there, it’s time to sell it. Have a purpose for all of your investments and assets.

The Grand Plan:

The Spy Kit:

Click the image to get a free retirement rescue toolkit.

More Intel:

The host: J’Neanne TheusContact – Call: (443) 718-6310

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