All right. A lot of you have been emailing
in your questions about financial situations.
And today we're going to reach
into the inbox and take some time
to answer those with a specialist.
Of course, we do this from time to time.
Joining us again, money and business
expert Derek Kinney to go through the inbox
with us here on this Tuesday afternoon.
Thanks for being here again, Derek.
Hey, Jason, I look forward to this.
Thanks for having me.
I do too. I always like to see,
you know, the things that are, you know,
affecting people's lives and and they
write in some really good questions that
I think apply to a lot of other people.
So let's dig right in here.
We're going to start with Enrique from
Addison, who writes I'm worried my job,
they've announced layoffs at my company.
What should I do, Derek?
It seems like we hadn't been hearing about
that a whole lot in the hot labor market,
but it could happen.
What should Enrique do?
First of all Enrique,
my heart goes out to you and
the first thing is do not panic.
The second thing is go talk to your
boss and find out is everyone affected.
Is this going to be a voluntary
thing and let them know.
Look, if push comes to shove,
I want to keep working here if you do
and enforce that and emphasize that
because often times they may say,
you know what,
we can find a way to keep you
because not everybody has the
same desire that you do.
But financially though now you want
to tighten the belt immediately
and you want to work on only
spending money on required things
and cut the optional things to
build up some cash reserve.
I call it opportunity money to help
you make better decision decisions.
If you lost your job,
you wouldn't have to jump
for the first thing.
That may not be the best job for you.
That's a good idea.
You're getting leaner, getting in shape,
just in case you're tested here.
So our next question comes
from Amanda from Grand Prairie.
She says we're in a credit card
crunch and barely able to make
the minimum monthly payments.
I don't want to panic,
but what should we do?
I think a lot of people,
at least according to the figures
relating to credit card debt right now,
can identify with this one.
Derek, what do you tell her?
Well, Amanda, first of all,
the key is that you're on top of things
and you're aware of the problem.
That's step one. Step 2 is call your
credit card companies immediately.
Because the music the credit card companies
love to hear are the words I want to pay you.
I need your help to do it as opposed to
waiting till panic mode when the bill is
due tomorrow and there's no money to pay it.
So call the credit card company.
Let them know. Look, we want to pay it.
We're in a tight spot. See if they
can reduce the monthly payment down.
Maybe reduce your interest rate down,
waive a fee here or there.
The bottom line is the credit card
company wants to keep your business.
More importantly, Jason,
they want to get paid.
Money talks.
And so by calling them right away,
you stand the best chance to
rework the deal and give you some
flexibility in the short term.
And they're happier with that because at
least they're getting something from you.
Let's get to Rich in Fort Worth,
who sends in a question.
I have been offered an early
retirement buyout from my company.
How do I know if it makes sense to accept it?
You know, a lot of people might jump at these
things when they see that dollar figure.
How does he know something like that, Derek?
Now, first of all, the fatal mistake
that most people make when they
get a large lump sum of money,
They assume the stock market will keep doing
what it did last year or most recently.
So they may assume, well,
I could live on 10% of what I get paid out.
Here's the new reality.
You want to assume about 2 1/2 to 3%
withdrawal because what that does is in
years where the market drops and your
advisor tells you don't spend too much,
that lets the money not run out.
So you want to ask yourself,
could you live on about 3% of that
amount per month or would you want to
take that possibly and get another
job that's better suited for what you
want as you're closer to retirement?
So there's no perfect answer for each person,
but make sure that you're not
assuming the market will earn more
than it reasonably can.
All
right, let's close out with this one here,
Derek. I really like this on a lot
of people find themselves in this
when they're in a relationship.
This is from Owen in Westlake, he writes.
My wife and I are in constant
conflict over money.
I think she saves too much.
She thinks I spend too much.
How do we stop all the conflict.
I'll let you handle that one because this
is a big conflict for a lot of couples.
Well for money expert to to
priest and rabbi and counselor.
Here I go. Jason, you know,
it's interesting because money is one of
the biggest issues that couples have.
And until they get a plan,
it's going to be hard to really have
the best marriage they possibly can.
So here's what I would tell you to do.
Find common ground.
Go out to your favorite coffee shop.
Go out to a restaurant and say, honey,
I know we have a lot of conflict.
Let's write down on a sheet of
paper what are the goals that we
both share and begin to craft
a plan of things you agree on.
Then figure out ways that you can
each give and take a little bit to
get closer to the common ground.
Once you find common ground,
most relationships are sound
and you are giving some advice here,
some relationship advice and Money Advice.
Sometimes those are one in the same.
Derek. As always, thanks a bunch for
coming on and answering all these. My
pleasure. Thank you, Jason.