Getting started in personal finance

Getting started in personal finance

Host : OK, I'm interested and ready to invest through my retirement account right now. Where should I start?

David : First I'd stand back and figure out where you are right now. A mistake I see some people make is they get too anxious to invest before they've got some other things in order. Recently I did a little work with a gentleman who had been through a bankruptcy.

He had a balance on two credit cards, but he was wondering which mutual funds to invest in. Because of his previous bankruptcy, he was paying 24 percent on one of his credit cards.

I said "Hey, you have got to pay off those credit cards first and then check out your insurance situation before even thinking about investing in mutual funds."

Host : Do your programs provide help in these areas?

David : Yes. My audio program on introductory personal finance covers budgeting, housing and shows how to get the most out of health, life, and other forms of insurance.

Then after you get some of these basic things in order you can start thinking about securities.

Host : OK, so if I've got a reasonable balance sheet and my housing and insurance are in order, I guess it's OK to move to securities. Are mutual funds the way to go?