Last Sunday, I went to hear the Dalai Lama speak.  He talked about how, when we are afflicted by powerful emotions like fear and anger, our perceptions become clouded and distorted.  And when perceptions are distorted, we cannot see clearly, we may not discern the truth, and we have difficulty acting wisely.

These are important words for our time.  When we are in a state of contraction and paralysis, we can’t see the truth about our options, our opportunities, our actual financial situation. Look at your numbers.  Review all your expenses and see what is really true.  What can you actually afford?  What should you give up?  Many of us are engaged in catastrophic thinking  which is fueled by listening to the media.  But until you actually look at your numbers, you won’t know with any certainty how bad (or not) it is.  Looking at the truth will ease your mind (have you noticed that your fear creates situations that are usually far worse than reality?).  Look at the truth of your cash flow and your assets and liabilities.  Acknowlege your untapped skills and creativity.  Then you will have the confidence to shift your perspective and discern opportunities.

Q : What can I do about a federal student loan that should have been paid a long time ago.  I owe 10,000 initially, but the loan has advanced to well over that amount in interest rates.  The Feds turned the loan over to a collection agency who will not negotiate.  I would prefer to pay the actually amont without the interest.  Also, the statue of limiitations in Maryland is 3 years, but I am told this does not apply to federal school loans although its be handed to a collection agency.

What advice can you give me to get this money paid?  Since the collection agency is not the federal governtment can the statue of limitations apply here?

A : Contact www.CCCSstl.org for answers to your questions.  Then read my book and do the exercises so you stay out of debt.

How do you feel about maintaining mortgage debt, assuming we can afford
that monthly payment.

Advisors seem to fall on both sides, those that say yes pay off your house
and those that say not to make that you’re first priority.

Thanks,

S

A:

Do expertise, experience, and education (the 3 E’s) actually help you make extra money when it comes to investing?

Mark Kritzman of MIT just completed a  20-year study of mutual fund managers from 1/1/89 – 1/31/09.  Despite their 7 –figure salaries, their research staffs, their MBAs and PhDs,  only 3% of these fund managers were able to beat the S&P 500 index over this period.

When one simply buys all the companies in an index like the S & P 500, rather than analyzing which companies to buy, one earns higher returns virtually all the time.

Yes, there’s the possibility of reaching the top 3% if you happen to be lucky enough to pick the right manager.  But if you give up the desire to be in the top 3%, you can virtually guarantee that you will out-perform the average professional.   And then, of course, there’s the peace-of-mind and ease that comes with letting go of anxiety and stress around finances.  That’s a priceless benefit.

Not only does doing (practically) nothing (as in the S & P 500 index) make you more money, but my  Rainbow Portfolio™ takes the S &P  to an even higher level.  This is because the ultra-diversification of the 14 asset categories makes you even more money and lowers your risk.  Check it out in my book.  Or call Abacus for more information:   1-866-558-2372.