Have an Extra $410 or even $24,000?

by Galia Gichon on December 9, 2009

$410 is an amount that stands out – right? If you overspent this amount or if it showed up as a wrongful charge on your bank statement, you would be inclined to do something about it. These days, we have so many task and issues to deal with that even that dollar amount might not be dealt with right away when you open your statement. So what would help you deal with the issue RIGHT AWAY?

Online banking is a case in point. The benefit of online banking is that if the charge shows up on your bank statement, you can file a claim RIGHT AWAY and start dealing with the issue immediately.

A client saw this amount from time to time on her bank statement when she opened her mail and knew it was a wrongful amount. She realized she needed to deal with it right away but two kids and working full-time got in the way. One of her homework assignments in working with me was to start paying her bills online and create a weekly money day to tackle those financial issues that keep us up at night. As soon as she logged online to her bank, she sent an electronic notice to her bank about the wrongful charge and it was taken off immediately. Since there were 3 amounts like this, she saved over $1,200! Nice chuck of savings right?

Smart women don’t get caught “wasting” $24,000 – right? Well, looking at another client’s SEP IRA recently, I saw $24,000 languishing in a money market earning 0.20%. Since she is in her 30’s and can’t touch that money until at least age 59 ½, that money should NOT be in a money market. With potential inflation at 3% a year, she is actually “losing” money every year by not investing it. Even if she is nervous about the stock market, this money could be in a no-load, low-expense ratio bond fund that earns more than 3%. Not sure where to find those mutual funds? Give us a call or check out Vanguard.com. Don’t let this happen to you. Be smart and take a peek inside your IRA or 401k. The majorities of my clients keep more money than they should in cash/money market in their retirement accounts and have many years before they can touch them. Go ahead, protest and then open your statement to prove to me how “smart” you are!

{ 0 comments… add one now }

Leave a Comment

Previous post:

Next post: