As I continue this discussion over the next several weeks, you will acquire a sense of understanding on how money works, the effectiveness and usefulness of your money. It is important to remember that way too much emphasis is put on the “rates of return” outcome and too little on the characteristics of money and how it can really work for you.
There are a number of designations that the money you have right now may fall into. You can have IRAs, 401Ks, Roth IRAs, defined benefit programs, SEPs, mutual funds, bank savings, CDs, Stocks, permanent life insurance, your home and real estate. You may be able to think of more but these are the most common types of designations associated with the type of money you have.
Now that we have determined the types of money you have, let’s explore the characteristics that define the ideal and/or perfect savings or investment. The first of 12 characteristics is “RISK.” Do you desire a strategy with high risk or minimal risk? The obvious answer would be you desire “low or minimal risk” if this would allow you to achieve your ultimate financial goal.
Each week for the next several weeks, I will define additional characteristics that make us the twelve characteristics of the idea/perfect savings or investment strategy.
Now, let’s have some fun, make a list of the other 11 that define the ideal strategy and submit your entry to Susan of Troy Daily News at firstname.lastname@example.org. Whoever gets the most number correct will win a $50 gift card for La Piazza restaurant. In the event of a tie, Susan Funderburg will draw the winning entry on Wednesday. March 16. All email entries must be submitted by Monday, March 14, to Susan’s email at email@example.com. The winner will be announced on my column next week.
At the conclusion of this segment, I will prepare a list of the types of money and compare each of them to the ideal/perfect characteristic. It will be a great exercise for each of you to list each of your accounts and compare them to the ideal strategy. You will discover how your money is working for you, the efficiency and effectiveness of each strategy.
In the meantime have a safe week and I look forward to continuing this segment next week.
Steve Temple is a senior partner with Ohio Financial Center with locations in Dublin and Troy. With 22 plus years in his industry, he has written numerous columns both locally and nationally.