HoweEnterprise.com
March 9, 2020
Annuities great for salesmen, not usually for investors Hey Taylor - I am about 46 years old and I make about $90,000 a year. I was told that an annuity Taylor would be a great Kovar investment for me. I know that it deals with insurance products, but is this something that I should do? - John Hey John - Since I don't know your entire financial situation, I can't say for sure if this is something you should do or not, but I can tell you why I am not a fan of annuities for the vast majority of people. According to the American Association of Individual Investors, the average annual fee for an annuity is 3 percent, and that doesn't include any management fees that your advisor may charge. In addition to those high fees, if you need your money back before the lock-up period ends in seven to 10 years, you will face extremely high surrender charges. I don't know about you, but I don't like the thought of giving my money to someone and them charging me a huge fee when I need it back. Annuities pay great commissions (over 10 percent in some cases) to the salesperson, which is why they are pushed on just about every single person who walks through their door. I believe that for the majority of investors, a well-balanced portfolio of stocks and bonds tailored to your specific goals is the best, and most cost-effective, investment approach. Hey Taylor - I'm 16 and I just got my first real job. I'm only making $7.50 per hour and I want to start saving for the future, but I'm not sure where to start. My parents pay for my car insurance and phone, so I don't have any bills. What should I do? - Kelsie Hey Kelsie - Congratulations on getting your first job and for having the forethought to save some of that money for the future. For every paycheck that you
make, put 40 percent into a savings account, have fun with 50 percent, and then give the last 10 percent away to charity. Not only will this allow you to enjoy some of the money you are making now, but it will also help you get into the routine of saving a good portion of your income. The last 10 percent is something that you won't hear from a lot of financial advisors, but it's important as it teaches you that no matter how successful you get, there are others in our community who are less fortunate and need help. If you keep using this simple budget for the next two years, you'll be surprised at how big of a nest egg you will have to open up your first investment account when you turn 18. Taylor was raised by good ol' blue-collar workers and following in their footsteps led him to take on massive debt at a very young age. It didn't take him long to realize having debt wasn't his cup of tea, and he worked his tail off so he could enjoy financial freedom and independence. As an entrepreneur and financial professional, his work has been quoted and published in a variety of different media on topics such as financial management, budgeting, saving, business, investing, and more. Read more about Taylor at GoFarWithKovar.com Legal Disclaimer: Information presented is for educational purposes only and is not an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. To submit a question to be answered in this column, please send it via email to Question@GoFarWithKovar.com or via USPS to Taylor Kovar, 415 S 1st St, Suite 300, Lufkin, TX 75901.
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Living with children I’ve learned a new word! My daughter informs me that according to some mothers I am guilty of “mom-shaming” John and should be Rosemond ashamed of myself. I am a unashamed mom-shamer because I happen to believe that just as there is one proper way to go about training a dog (of any species), there is one proper way to go about raising a human being to responsible adulthood. That one proper way consists of three fundamental rules: Rule One: Love unconditionally. Rule Two: Discipline with unequivocal, unwavering, calmly intolerant authority. Rule Three: Keep love and authority in a state of reasonable balance. The third rule is violated by parents who follow the advice of parenting expert John Lennon, who proposed that in the raising of a child, “love is all you need.” The real-world fact is that when love is not balanced by proper discipline, it mutates into enabling, a state of relationship that is damaging to both parties. On the other side of the parenting coin, when discipline is not properly balanced by love, it becomes abusive in one way or another. Parenting expert Chrissy Teigen, who acts and models on the side, is sick and tired of mom-shaming. She maintains, “There’s no right way, and everybody turns out fine…we just need empathetic and loving people in this world… people who are going to be understanding of other people… As long as you teach them that, then who cares?” Who cares? Me, for one. In the first place, there is a right way and the children of parents who deviate from the right way do not all turn out fine. Second, the world needs parents who get it that the proper discipline of a child is an act of love for one’s neighbor.
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Full disclosure: My Hollywood agent is currently talking with Teigen’s agent about a proposed television show we’re calling “Battle of the Parenting Experts.” Negotiations have stalled because of her insistence that I never mom -shame her. Excuse me? That’s like asking Batman to give up his cape. Teigen admits to being so much in love with her two children (with political pundit John Legend) that she is “insufferable.” Looking back, I’m so glad my mother was not insufferably in love with me. I was not an idol in her life. I looked up to her (she was a single parent for most of my first seven years). She did not look up to me. Her example taught me respect for women. Courtesy of Mom, I learned that women who are worthy of respect do not enable their children; rather, they insist upon right behavior. I also learned, as a child, that there are not endless, equally valid variations on the concept of right behavior. Instead, there is usually one and only one right way and endless variations on the wrong way. For example, “You’re welcome” is the right response to “Thank you”; “No problem” is wrong. So is “Uhhh” or a grunt of any other sort. Children don’t deal well with idol -hood. Invariably, children whose parents make idols out of them become insufferable. They demand tribute and if they don’t get what they demand within five seconds of demanding it, they make everyone within earshot pay a terrible price. Anyway, I accept that in the eyes of some mothers and parenting experts like Chrissy Teigen, I’m a mom-shamer. Personally, however, I think the comparison to Batman is much more apt. Family psychologist John Rosemond: johnrosemond.com, p John Rosemond has worked with families, children, and parents since 1971 in the field of family psychology. In 1971, John earned his masters in psychology from Western Illinois University and was elected to the Phi Kappa Phi National Honor Society.
