Learn from other people's mistakes READ THIS OFTEN
STUDENT writes:
"Thank you again for your help,"
___________________
MONEY PROF responds:
My pleasure IF you're serious, glad to do it.
Reread this often.
I know at this point it looks like I'm getting side tracked on investing training BUT I'm not. I'm not worried at all about you learning proper and prudent investing. I'm much more concerned about the BS excuses for not putting the money into your IRA, or other retirement accounts.
This below is not to be negative, but to try to get you to learn from other people's mistakes. And for you to understand where I'm coming from:
Why this concerns me is past bad experiences: a few examples: On one of my "projects" I really thought I had 100% succeeded. The "student" put money in an IRA, and put money into a work 401K EVERY paycheck for over 10+ years. It was invested wisely and got good returns. I was actually bragging on the great success I had. Then all my training on investing didn't matter as evidently I didn't do enough "excuses are BS" training. Her BS excuse was to take $10,000 out of IRA for her wedding. ( why $10,000 is had to withhold min. tax AND 10% penalty to IRS out of the $10,000 !!!!!!!!!!)
Next BS excuse: at the time she did this said she would put extra in to make up for it, never did. And the final major BS excuse changed jobs and said she needed money so wouldn't put money into 401K for a few months and then start.............. that was 3 yrs ago!!!!!! ( I guess as bad as this is, it beats the crap out of the ones that don't put any money in.) :(
A different story: Member sounded interested as had emailed me on wanting to learn about investing. So I did the IRA emails, some emails on investing 101 etc. ( BTW: for your management training, the above is the hardest to read as the person is not lying to you, they're lying to themselves) Etc. Set up the AG Edwards acct. She made 2 small deposits and then said she didn't have enough money to do an IRA. !!!!!!!!!!!!
( always had money to have a drink with friends, or go shopping, yes, vacation etc.)
This was one of my favorite BS excuses: lived like the above for years, then when I "pushed" her on the excuses are BS theory she wanted to discuss that it wasn't true as she was buying 13 cent soup on sale, and not shopping. YES, she was, but for a few weeks. The cause of being broke was previous 3 yrs, NOT 3 weeks!!!!!!!!! :(
The good part about the above story is this Student is back & giving it a fresh shot. In process of setting up payroll deduction to a 401K plan at work. I think ( hope) learning to accept excuses are BS. :)
Then there is the young man that put money into IRA for 2 years. ( this one isn't so sad for me as I had very minimal time into this one, but sad for him) then he was moving out of area. so said he would stop auto deposit for 2 or 3 months and then start. That was over a year ago!!!!!!!!! The other BS on this story is he started very small and saying he would increased deposits in time, never did. :(
The last example I'll give you is I got this person to put money into a work 401K for several years. Left job and rolled it into an IRA. Never made deposits to IRA in the last 15 years, but at least had a few bucks that was growing.
( so small though in correlation to age that will definitely be standing by the mailbox waiting for SS check. :(
A few years ago her husband told her that if she would take $15,000 out to use towards a car, he would put the money back in. ( I don't think lying to her, I think lying to himself) I explained to her the taxes AND the penalty. She took it out anyway, and after about say 5 years $5,000 of the $15,000 was put back in. And none since then :(
Yes, I do have success stories and will give you some of those at a later date.
I hope that this batch of members end up following the wisdom of this old guy. Who didn't learn all of this by being smart but by learning from mistakes. I want you to learn from other people's mistakes and NOT your own.
Reread this often.
Learn from other people's mistakes.
"Thank you again for your help,"
___________________
MONEY PROF responds:
My pleasure IF you're serious, glad to do it.
Reread this often.
I know at this point it looks like I'm getting side tracked on investing training BUT I'm not. I'm not worried at all about you learning proper and prudent investing. I'm much more concerned about the BS excuses for not putting the money into your IRA, or other retirement accounts.
This below is not to be negative, but to try to get you to learn from other people's mistakes. And for you to understand where I'm coming from:
Why this concerns me is past bad experiences: a few examples: On one of my "projects" I really thought I had 100% succeeded. The "student" put money in an IRA, and put money into a work 401K EVERY paycheck for over 10+ years. It was invested wisely and got good returns. I was actually bragging on the great success I had. Then all my training on investing didn't matter as evidently I didn't do enough "excuses are BS" training. Her BS excuse was to take $10,000 out of IRA for her wedding. ( why $10,000 is had to withhold min. tax AND 10% penalty to IRS out of the $10,000 !!!!!!!!!!)
Next BS excuse: at the time she did this said she would put extra in to make up for it, never did. And the final major BS excuse changed jobs and said she needed money so wouldn't put money into 401K for a few months and then start.............. that was 3 yrs ago!!!!!! ( I guess as bad as this is, it beats the crap out of the ones that don't put any money in.) :(
A different story: Member sounded interested as had emailed me on wanting to learn about investing. So I did the IRA emails, some emails on investing 101 etc. ( BTW: for your management training, the above is the hardest to read as the person is not lying to you, they're lying to themselves) Etc. Set up the AG Edwards acct. She made 2 small deposits and then said she didn't have enough money to do an IRA. !!!!!!!!!!!!
( always had money to have a drink with friends, or go shopping, yes, vacation etc.)
This was one of my favorite BS excuses: lived like the above for years, then when I "pushed" her on the excuses are BS theory she wanted to discuss that it wasn't true as she was buying 13 cent soup on sale, and not shopping. YES, she was, but for a few weeks. The cause of being broke was previous 3 yrs, NOT 3 weeks!!!!!!!!! :(
The good part about the above story is this Student is back & giving it a fresh shot. In process of setting up payroll deduction to a 401K plan at work. I think ( hope) learning to accept excuses are BS. :)
Then there is the young man that put money into IRA for 2 years. ( this one isn't so sad for me as I had very minimal time into this one, but sad for him) then he was moving out of area. so said he would stop auto deposit for 2 or 3 months and then start. That was over a year ago!!!!!!!!! The other BS on this story is he started very small and saying he would increased deposits in time, never did. :(
The last example I'll give you is I got this person to put money into a work 401K for several years. Left job and rolled it into an IRA. Never made deposits to IRA in the last 15 years, but at least had a few bucks that was growing.
( so small though in correlation to age that will definitely be standing by the mailbox waiting for SS check. :(
A few years ago her husband told her that if she would take $15,000 out to use towards a car, he would put the money back in. ( I don't think lying to her, I think lying to himself) I explained to her the taxes AND the penalty. She took it out anyway, and after about say 5 years $5,000 of the $15,000 was put back in. And none since then :(
Yes, I do have success stories and will give you some of those at a later date.
I hope that this batch of members end up following the wisdom of this old guy. Who didn't learn all of this by being smart but by learning from mistakes. I want you to learn from other people's mistakes and NOT your own.
Reread this often.
Learn from other people's mistakes.
posted by MoneyProf at Tuesday, February 22, 2005
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