Q & A : 4000.00 in debt plus car loan of 8000.00….

Posted on May 11th, 2009 in Excersises, General, Investing, Q & A | 1 Comment

Q :
I am a 52 year old woman and in 1980 I broke my back and was paralyzed from the waist down.  Wayne Dyer came to see me and encouraged me to walk again and I do but am in constant pain.  It is difficult to work alot. I collect worker’s comp and make a small amount on my own.  I am now 4000.00 in debt  plus my car loan of 8.000 dollars.  I am barely making it and have trouble not flying into fear.  What  suggestion can you give me to stay calm and not so scared.

~C.V.

A :

  1. Find a friend who has no agenda with each others  financial ally or money mentor and meet 4 times a year w/this person to review your finances.
  2. Start collaborating with your friends; you might surprise yourself with a new source of income.
  3. Do the Intentional Spending statement that’s on my website, under tools and resources on the home page.
  4. Read my book – it is all about getting out of fear and into your creativity and wisdom around money
  5. Do the money breath everyday that’s explained in book.

Good luck and remember that there are billionaires in poor health who would envy your situation.

Question and Answer

Posted on February 25th, 2009 in Investing, Tips | 1 Comment

1. I have some money in an e*trade savings account that was going to be invested, but decided to wait and research best investment strategy for these times. Where is the safest place to keep cash reserves right now?

The safest place for short-term money is in Treasury money market funds like the one that Vanguard offers.  The safest place for long-term money (money you know you won’t spend in the next 5 years) is in a diversified portfolio of domestic and international equities along with high quality bonds.  The big risk to investing long-term money in treasury bonds is inflation; this means that your money may have less purchasing power over time.

2. If you had a sum of money to invest right now and had to choose between real estate and a diversified investment portfolio, which direction would you go?

Always do the diversified portfolio as long as it includes 14 asset classes and not just the usual 5 asset classes.  This is the money madness mistake that we all have made, including the Wall Street know-it-alls.  Never put all your eggs in one (or even several) baskets.  Nobody can predict the future, so the diversified strategy is the best, albeit, the most boring strategy.  Boring is looking really good right now!

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