A Nurses Financial Question:
A nurse reader emailed me recently with a question. They had a buyer for their home, and wanted to know what to do with the money that would be coming in. They are concerned about the current economy, and wanted to know the safest place to put the money.
Of course, I was ready to pounce.
My Initial Financial Suggestions:
- Make sure you pay off your credit cards, your car.
- Make sure you are careful when purchasing your next home to get a good buy. Put at least 20 % down and finance for no more than 15 years……
- Make sure you have life, and health insurance, and are building a college fund if needed…..The usual stuff!!!
The Nurses reply:
Well didn’t I feel like a fool when the reply came in:
- They live in another PAID FOR home. They have another rental property, PAID FOR!
- They have no credit card or car debt, or any other consumer loan.
- They own land with planted pines-PAID FOR!
- They have a lake home- bought when a friend was going under- at a great price. They have a small mortgage on it. The mortgage is being taken care of by renting the lake home and their other rental.
- They are not fully funding their 403b, or IRA’s. (finally, something I could work on!)
- Kids are grown and on their own.
I wrote back-“What the hell do you need me for-you need to be writing The Millionaire Nurse Blog!”
This couple both work in the health care field, her husband is in allied health as well-so we aren’t talking about huge salaries. They just live conservatively. And invest their money in what they can see, and understand.
This is exactly what I am trying to teach. Anyone can become “wealthy” by today’s standards, if they take the time to have a plan. Put money aside month by month, and let the money grow.
Dr Dean’s Recommendations:
Now I certainly had further advice for them, in the “for what it is worth” department:
- Develop a more formal plan for their money-know where it is going before they get it.
- Use their 403b’s to gain the match from their employer.
- Know where their IRA’s fit regarding their overall investments. Not just forgotten.
- Diversify: Someone who has most of their net worth tied up in real estate, needs to make sure their other investments, in their IRA or 403b, aren’t in a mutual fund, heavily invested in real estate.
- Make sure they have an estate plan, with a will and durable power of attorney.
- Make sure they have identity theft protection.
- Make sure the rates they are paying for insurance are competitive.
In short, make sure they are covering the small details, before they become big problems.
I also offered to put their situation out here, on the world wide web-so other financial experts can help me make suggestions.
Anything I have left off? What do you think?