Monday, September 10, 2012

WHEN A PENNY SAVED IS NOT A PENNY EARNED. Ask The Money Maven: Straight-Forward, No-Nonsense Talk About Your Money

By Melanie Hasty-Grant

More than eighty per- cent of my clients are retired seniors. Most were very good savers. However, many were “not so good” investors. They grew up on CD’s when CD’s actually paid something. Now it seems that many seniors feel they are up a creek without a paddle. Retirees, who have been at other financial institutions, that come in to visit with me these days are looking for answers. Many have been in CD’s but with the continuing low rates, they cannot afford to live off of the interest. It is very discouraging to them that they are starting to have to spend down some of their principal to live. With inflation being more than 3%, and their CD rates paying less than that, they are finding that in fact a penny saved is not a penny earned. So they are venturing out from the tried....and not so true, to find answers about what to do. What they are not looking for is some young whipper-snapper in some fancy-smancey, high rise office selling them the short end of the stick!

Having been in the business of helping folks for more than 20 years and dealing with mostly retirees, I understand the needs and concerns of seniors very well. They require a very conservative strategy. Most cannot afford the swings of this volatile market. While many understand and are willing to stomach a mild degree of risk, they would much rather ride the Cinderella’s Golden Carousel than the wild, rip-roaring, double-loop-de- loop Matterhorn!

They come to me in search of honest, down to earth advice. Many are very fearful, and rightfully so, of being sold something that they don’t understand and being locked into some investment where they can’t get their money out. They have experienced snake oil salesmen in the past and are weary of being sold a bill of goods! We sit down and talk with each one about the positives and negatives of each investment option. Every investment has positives and negatives, even CD’s. Our clients know what they are. We discuss in clear and detailed terms the cost associated with any investment. All investments cost something; even CD’s. The bank makes money with your money when you buy a CD. We discuss any potential risk of a particular investment. All investments have some kind of risk, even CD’s (inflation risk). We discuss expectations about returns of each different investment option. We shoot straight with folks. We want them to have a clear, unbiased understanding of what their options are in order to make informed, intelligent decisions about their money. With all the greed of the big banks and Wall Street, and all the corruption in Washington, you deserve someone who is looking out for you on Main Street. Because now more than ever, who you trust and what you invest in matters!

For more information go towww.waterstonewealth.com or call 918-272-1120. Melanie Hasty-Grant, Experienced Licensed Professional Counselor and Managing Principal at Waterstone Private Wealth Management. Securities offered through LPL Financial Member FINRA, SIPC.
*The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investments may be appropriate for you, consult your financial advisor prior to investing.
*Third-party posts found on this profile do not reflect the views of LPL Financial and have not been reviewed by LPL Financial as to accuracy or completeness. 

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