By Sheryl Rowling
SAN DIEGO–With students all over the world returning to school following summer vacations, we thought we’d provide the basics of a course on money and the people who use it.
Q: Does the type of person you are play a role in how a person manages finances?
A: Of course! Who you are has an impact on how you conduct all aspects of your life – finances included.
Q: Nu, do you have advice for how different types of people should face their financial issues?
A: I thought you’d never ask! Let’s take a look at some different types of people:
Alter Kocker – You have a tendency to be too conservative, wanting to put your entire portfolio into bonds. Unless you are planning on kicking the bucket soon, your portfolio won’t keep up with inflation. Be sure to add some stocks and other equities into your investment mix.
Gonif – Eventually your pyramid scheme will get you in trouble. Remember Bernie Madoff?
Macher – Your lofty ideas for timing the market and picking the hot stocks will cost you money in the long run. Stick with a disciplined, diversified approach.
Maven – Congratulations! You work with a qualified investment advisor and adhere to your diversified strategy. You are a smart investor.
Meshugener – No, you can’t put all your money into wildcat oil wells!
Shlemazel – No, you can’t just bury your money in the back yard. Assuming it doesn’t get stolen or rot away, you will lose purchasing power from inflation.
Kibbitzer – Mazel tov on winning the lottery!
Nebbish – Even you can retire eventually. Just be sure to save regularly and invest wisely.
Nudnik – Calling your advisor every day is pointless. You are in the market for the long-term returns; try not to worry about each day’s volatility.
Tsaddik – Try using appreciated stock for your charitable contributions. You will get a deduction for fair market value and not pay tax on the gain. Then you can afford to be generous while still setting aside money for your own future.
Yenta – Don’t worry about what everyone else does. Stick to your strategy and watch your money grow!
I hope this helps you to identify your money personality while learning some useful advice! Zei Gezunt!
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Sheryl Rowling is a certified public accountant, personal finance specialist, and principal of Rowling & Associates. She may be contacted via sheryl.rowling@sdjewishworld.com …