So do I. Congratulations on realizing your need and setting out on this journey of learning about your money and how to work with it effectively. There are two basic issues ... one is your income and how to deal with it to make each of those dollars coming in work most effectively. The other is your asset base and how to manage it to make it grow well, working harder for you than for the other guys ... and avoiding having too much of snipped off by the purportedly big-deal managers to slip into their pockets. Better to learn what you're doing, over the years, and become your own manager! Pay yourself those fees that they charge (probably wise to deduct the cost of some of your mistakes, as you learn). In the investment group that I've attended monthly for about 7 years, we call them the tuition fees in the University of Learning How to Manage Your Own Money! I bought some equity-based mutual funds over 20 years ago, charging 2.5% of the value of the current asset value of the account, annually. When you multiply 2.5 by 20+ ... what do you get? 50% of the value of my asset, right? Is that the original asset amount? No - the creeping value of the asset as it grew, over time. I started a thread (I think over on KT) a couple of weeks ago asking whether people had ever seen stock certificates grow like rabbits! Had a person bought 1 share of JNJ at the beginning of 1970 (I'm using this for illustration, not suggesting that you should buy it, or not buy it) about how many shares would they think that they'd own, now? If you go to Yahoo->Finance and put JNJ in the "Get quotes" box at upper left, you'll get a page that shows a lot of info about current situation of the shares, including a chart at lower right of the stock price movements today. Clicking at a long-term period under that chart will show you share prices over your choice of various periods ... plus info about several stock splits - twice 3:1, and 4 times 2:1. What does that produce? 1->3->9->18->36->72->144 ... right? Price in 1970 $180./share (in dollars each of which was "worth" a lot more than each dollar is now). Current price about $63.00. That is, $180. grew to about $9,072. How do you like them apples? Not only that ... I read somewhere a while ago about a numberof stocks which had increased their dividend annually for 25 years ... I think JNJ has increased theirs annually for 40 years, if I'm not mistaken. Which adds some sugar to the applesauce, right? When did you ever hear of a Guaranteed Investment Certificate acting like that? Also wise for you to learn to deal with both income and assets in a tax-effective way. If you can reduce taxes now, often a good idea to do so, if the system at issue is useful in your case. Deferral is frequently a good idea, as well, when available. In Canada, a number of people look at the current rate on a GIC and at the rates paid by a stock, and say they like the interest rate better than the dividend rates usually offered. But when Canadians earn a dividend on a Canadian stock, the tax rate used to be lower, and last year the system of calculation changed to make it even lower again. I can't believe how many Canadians I've run into over the years who didn't know that! Quite often ignorance carries a substantial price. I think that I've said to thousands, over the years, that learning how money works is an interesting hobby ... **that pays well**!! (I've said it so often, around here, that I think that people must be getting sick of hearing it!) Not only that, if you put your dollars into a investment where their numbers are guaranteed not to shrink ... they're almost always guaranteed not to grow either. I bought a stock over 40 years ago for about $4. and change, which at that time paid about a (tax-advantaged) nickel or a dime. Over the years the value of that stock has gone up, down and sideways. I could have sold it last May for about $107. ... and it pays me an annual dividend now of $3.48. There's one catch - it has been doubly involved in the U.S. sub-prime mortgage debacle. The share price dropped to the $80.s, then recovered to near $100., then slipped back into the $80.s ... and in the past few weeks, as the sub-prime issue got more complex, far-reaching and distressng, the share price dropped down through the $70.s, into the $60.s, closing since the first of the year in the $60.s ... and I suspect that the dividend rate will likely be cut. Am I about to sell it? No. I paid $4.20 over 40 years ago, and if I sell now, I deduct the $4.20 amount that I paid from the current $68.20 or so, leaving me with $64.00 capital gain. I divide that by 2, leaving me with $32.00 on which I must pay tax at my usual rate (i.e., added to the top of my other income this year). But it does leave me with the other $32.00 realized free of tax. However, I'm getting close to 80 years of age (79 next Wed.) and my current tax bracket is lower that will be the case if I leave all of those assets intact till I kick the bucket - for then some of them will be taxed at lower rates, but after that's used, others will be taxed at higher rates until they get to the top rate, and my executor will have to pay that on some of those realized capital gains, then. Also ... since I have no spouse (to which the tax-deferred retirement account could be transferred, tax-free at the moment, to be added to her assets, to provide her with income and on her death to have the residue added to her income and taxed then, at whatever rate) they'll be added to my income in that year, as well. Likely taxed at top rate. I've thought of selling some of the stocks that I've held for years, in order to have the taxable portion of the capital gain taxed now, at my usual lower rate ... ... but if I do that, I have fewer dollars to re-invest, to go on not only growing, but adding to earnings in those years, until my demise. As it is, I add those $3,000. or so that I'm required to withdraw from my tax-deferred retirement account annually to my annual income. Do you think that I should follow the advice of some hot-shot financial advisors who tell how to get that payment out tax-free? Borrow $50,000. to invest it in a variety of stocks, using well over $100,000. (I wish!) of stock certificates as collateral, making it a fully secured line of credit, at interest of 6%, i.e $3,000. per year, using my $3,000. annual payout from my retirement account to pay the interest. My deal with the lender is that I pay interest only on the loan. As the loan is used for investment, the interest is deductible. As an old fart that doesn't want to take heavy risks, I invest in some quality Canadian stocks - paying about 3% interest, and as they are taxed at low rate, I have about 2.5% after-tax income, which in other circumstances I would use to help pay the interest on the loan. Suppose I'd borrowed that money 15 years ago, paying interest only through those years. If my Dad died and left me $50,000. as a legacy, and I took it to the bank to pay off the loan, how much would I owe them? That'd be $50,000., right? That would have bought a lot of good things, 15 years ago ... much more than now. I gained from inflation. Suppose you'd put $50,000. into the bank, 15 years ago, and the bank paid you the agreed upon rent on your money, in the years between ... and you went to collect the value of your GIC today ... how much would the bank give you? Right! Exactly $50,000. That would have bought a couple of good cars, 15 years ago ... not now. I gained from inflation ... you lost. Such strategies should be used with discretion, taking into account various possible scenarios, some of them quite unattractive, with the operator able to deal with them without serious inconvenience. I never want to see my friends get margin calls on such loans, unless they're able to meet the shortfall, whether with other assets ... or immediate cash. Good wishes for using both your income and assets increasingly skillfully! As you have further questions, feel free to ask. If some of them seem a bit too private for you to feel comfortable with discussing in this public place, I'm sure that several of us who have responded here would be pleased to offer you our opinions should you contact us privately. ole joyful

When my husband had chemo, our insurance paid 80%, just like Medicare. Our portion of the bill was $30,000. Luckily we could pay it. Now that we are on Medicare, we keep the other insurance to pay the 20%, good thing too. My DH has had 2 other cancers with expensive treatments. Thanks to Agent Orange. We would never trust his health to a the Dept. of Veterans Affairs or a Veterans Hospital.

Hi again cupajoe, I've said to many over some twenty years as a personal financial advisor, "Learning how money works is an interesting hobby - that pays well". Unfortunately, life and health insurance will cost you more, as well, if you're a smoker. Sorry to add to your bad news. Here's an idea, though. Write down the name, phone number and email address of everyone that you know, current, past, etc. Preferably on your computer, for ease of editing. Also, keep a backup, in case hard drive crashes. Write down all the info you know aboutr each: training, type of work, interests, hobbies, other interests, etc. Soon you'll form a habit of remembering such info when you hear it, then adding it to your database on return home. You can ask some questions here and there - but not so numerous and strongly that people will wonder whether you work for the FBI (if you're a U.S.er). When you need something in your life, some info, etc., go to your database to see whether someone that you know may have some relevant information to offer. Most folks like to be consulted about issues that interest them. If you know some funny little stories, tidbits of info that might be of general interest, etc. send out a message to the folks on your email list. Or to some of them, if you think some might be interested and some not. If you offer some helpful hints at times, people will come to look forward to your messages - possibly develop it into a newsletter. Soon some will contribute to the messaging system. If they value your info, when you ask them for something, they'll give it with alacrity. Next time you consider buying a new car ... don't. Nor buy a used car from a dealership, either. Check your database for "mechanic". Ask a couple of them for some basic suggestions to help you easily weed out poor quality cars offered privately. And whether they'd check out some candiddates for you that pass your prelimiary test. If they take one quick look, listen to the engine and tell you to get out of there with that piece of crap - pay them $10.00. If they check one out a little, pay them $20.00. If they like one that you bring and give it a fairly thorough check, give them $50.00. If you pay them $200. total to look over ten or so vehicles, and get one that saves one trip to the garage for repairs - you'll have saved more than the fee. Seven years ago I bought a little Dodge Colt, 1.5 litre engine, standard transmission, 138,000 km. (about 87,000 mi.) on the odometer from a mechanic friend, for about $2,700. Recently it turned over 300,000 km. (185,000 mi.). I've had to put a number of repairs on it, including replacing a cylinder head gasket recently that cost nearly half of my original cost. But I have enough confidence in it that I'm considering taking off on a 6,000 mi. journey soon, without fearing that it may give me trouble. That car owes me nothing. In the meantime - I've been able to put some money aside so that I can buy a replacement, when required, for cash. Renting money from someone else reduces my lifestyle. I will borrow money to purchase capital goods, assets - but not on consumer items. Yes, a vehicle is a capital item - but it deteriorates much faster than, say, a table, which may sell after a number of years for about what one paid (granted, in reduced-value dollars). Or a home, whose value may well increase over a number of years. In Canada, that increased value accrues to the owner who has occupied it throughout the period with no income tax liability. If you get a nice large ego-boost from driving around in a tin can that looks a lot like last year's model, and has drive train much like last year's - maybe you got a bargain when you bought a new car. My ego doesn't need that kind of boost, thank you. In travelling through a rural area the other day I saw a "Fresh Eggs for Sale" sign. Bought a couple of dozen, have one at home and one at recently deceased step-uncle's farm that I'm watching over till it's sold, where I often eat. They were really large - some so big that the carton labelled "Large" eggs sometimes won't close. So, in passing the other day I bought four more dozen - that I'll offer to neighbours - either at the $1.50 that I paid (reglarly over $2.00 in stores) or at a price part way between. Hope this helps with your problem. I'm afraid that I can't be of much further help - for smokers do love making those dollars - go up in smoke. Love ya, old pal cupajoe. joyful guy

If the credit card bills are coming home to roost, like the vultures, following the Christmas binge ... ... and you don't know what to do ... ... where to find the money to pay them off??? Here's an idea that may help. And just think - you'll very likely qualify for a bonus!! Well - it may be long-term ... ... but it's really important - or could be ... ... better health!! Longer life ... with a more interesting, enjoyable retirement ... ...(using your pension credits yourself - rather than letting someone else and family enjoy them, while you lie mouldering in that small box, six feet under the grass). Stay on top of the grass! Enjoy it! ole joyful