I thought that it would be a great post to list some of the questions that we got during our financial peace seminars at Kingdom Bound 2011. It was great to be there and we have already been asked to be back next were. We hope to see you there! Listed below are some of the most common questions that we were asked. If you have any questions please feel free to email us at firstname.lastname@example.org, give us a call at 877-58-PEACE (73223) or leave your question in the comment section below.
Question: Do I stop paying on debt to fund a rainy day fund (emergency fund)?
Answer: First let me be clear, we never tell you to stop paying on a debt unless you can not maintain your four walls (food, shelter, transportation and clothing) and even then we want to still pay as much as you can on the debt. What we do want you to do is stop paying extra to get your baby emergency fund ($1,000) in place and then go back to paying extra on your debt using the debt snowball. Once you the debt snowball is complete then start saving for your big emergency fund (3-6 months of expenses).
Question: I have extra money, should I invest n stocks, ETF's, foreign currency, or get a lake house I can enjoy?
Answer: Man, that lake house sounds good! But really I want to you to look at mutual funds and paid for real estate. This questions is always a tough one without asking you a ton about how do you make, what investments do you currently have, what is your net worth? Just remember to Keep It Simple Stupid (KISS) with your investment plan. If you can not explain it to 5th grader than do not do it!
Question: I am a NYS employee do I need a 403B?
Answer: Well, I hate to be the bearer of bad news but state employees do not have 403b's…..but you do have 457 plans. They are similar in the structure just different names because you work for the government. Yes, I do want you investing in your 457 plan, but only once you get to baby step 4 (15% of your household income into retirement). I would try using a Roth IRA first and then put whatever you have left over to get to the 15% into your 457 plan.
Question: If you have money in the bank should you pay off your debt first?
Answer: If I were your I would keep $1,000 in the bank (baby emergency fund) and use the rest of the savings to get rid of as much debt as you can. Just remember once you start this process you must commit to becoming debt free. It works but the commitment can be scary.
Question: Do you come to churches for nay of these types of seminars?
Answer: We cerntainly do. We have 2 hour, 4 hour, 6 hour and 4,6, or 8 week seminars that we perform at various churches and workplaces. Check out our seminar page by clicking here.