  |
|||
|
|
|
||
|
Posted by Paym Bergson Oct 18, 2007 |
So what's financial planning got to do with career planning?
Everything.
No financial planning will severly limit any type of career planning - for now AND in the future. Planning on that second career when you leave your paying job? Well, little or bad financial planning will mean you will have a second career - but not the one you chose or were hoping for.
My husband and I had heard about this type of planning or investment over two years ago - his plant was closing, and we had to make a choice - transfer to another plant (and keep working, and the pension stays where it is); or take the payout - which also meant taking the pension (or the part he was entitled to take). We found out the government does NOT let us re-invest that money - and only part of that pension could be transferred into another pension type of plan. Some of the other workers had heard of this type of re-investment, and were planning on using their "payouts". We listened to the advisor, who was very persuasive, and who even tried to convince us to invest with or wihout the payout - meaning take out a mortgage to use as investment (as one way described in the book here).
It sounded too good to be true - and not that it is, but you MUST be able to ride out any potential bad times, when your mortgage interest is higher than your investment interest (and yes, that can and does happen).
So just be careful. We did not do the investment, as the company told us to look for our own mortgage.
Caveat Emptor.
__________________________________________________________________
Copyright October 12, 2007. Paym Bergson & Suite 101. All rights reserved. Any unauthorized use of this material will constitute an infringement of copyright.