Money Matters Radio Show #836

Notes for January 28, 2007

Deals for your cash. Courtesy of the Bank CD Blog comes the following news:

6% Savings Account at HSBC on new money invested January 29 to April 30th, 2007. After April 30th the money earns the regular rate - which now is 5.05%.

Ending January 31st - 6.25% CD at the Pentagon Federal Credit Union. Check out this link - you don't have to be a military person to buy this CD. But the clock is ticking. (Posted January 28, 2007)

6.25% CD and coming soon 6.0% 15 month CD at Navy Federal Credit Union.

Mike mentioned the Vanguard and other dividend index funds. Details on this web site at http://www.moneybulletin.com/Detailed/421.shtml

Mike talked about finding a good financial planner. In addition to his firm, Mike says you can find similar fee-only planners through the organization made up of fee-only planners with high standards. NAPFA at www.napfa.org.

Once again, questions about Delta stock. How much might it be worth when Delta emerges from Chapter 11. Answer – nothing. Callers admitted buying the stock on speculation and were surprised it would be worthless. Delta itself has made it clear the stock will be worthless. As for the potential of a takeover, those talks involve other airlines and Delta’s creditors, not the common stockholders.

Questions about proper asset allocation. Mike pointed out that it is not percentages inside a pie chart. Asset allocation is dollar amounts invested to meet your specific goals and objectives. Forget about 11.4% in international and 12.3% in small cap value. Maybe you are young and you should have 80% in a simple stock index fund, or if you are older --- maybe you need 60% in income producing securities paying 7%. Again, get with a fee-only planner to determine independently what you should get for you.