Pick Your Community: | Hopkins | Muhlenberg | Daviess | Christian | Fayette | Henderson | Lakes | McCracken | Warren | Webster

Dave Says-Feb. 2, 2014

dave says1KENTUCKY (2/2/14) – This week Dave discusses how to protect yourself and diversification.

Dear Dave,

I’ve heard you say to never give collectors access to your checking account. Does that include payments with a debit card too?

Susan

Dear Susan,

Absolutely! If you’re doing something like scheduling utility payments to come through your debit card or out of your personal checking account, that’s perfectly fine. But collectors are looking to get as much as they can on a bad, late debt. Never, under any circumstances, give them electronic access to your account.


I’ve been doing financial counseling for a long time now, and I’ve seen numerous situations where collectors have taken more than the agreed-upon amount from someone’s account once they gained access. This sleazy move left people without the money to pay their rent, the electric bill or even groceries. In fairness, the collection business does have a few good people in it, but it also has a high percentage of people who are scum—especially on the credit card side of collections. Some of them will lie and even make threats. It’s a huge problem.


There are other, much safer ways to handle these kinds of situations. Send a money order overnight or wire the cash to them. You can also send a cashier’s check. Some folks have even used a pre-paid debit card that isn’t attached to any of your accounts. This isn’t my favorite way to handle things, but it’s better than giving them the opportunity to clean you out and mess you over!

Dave


Dear Dave,

I’m a little worried about investing in the market due to volatility. Are there safer investments?

Matt

Dear Matt,

You’re right; the market is volatile. It’s not a volatile as some things, but you have to remember that anywhere there’s money to be made—including long-term investing—there are ups and downs.


For instance, I like real estate. It’s not as volatile as the stock market, but there are no guarantees. We experienced that big dip over the last few years, and it was probably one of largest dips ever in the real estate market, except for the Great Depression.


Aside from real estate, I also like mutual funds. When it comes to these, one way to smooth out the volatility of the market is through diversification. That means you spread your money around instead of investing in one or two things. That’s how I handle my mutual funds, and I recommend others do the same. Spread your investments across these four types of mutual funds: growth, growth and income, aggressive growth and international.


I can’t say it enough, Matt. There are no guarantees when it comes to long-term investing. But diversification can help make the ride a little bit smoother!

Dave

Dave Ramsey is America’s trusted voice on money and business. He’s authored four New York Times best-selling books: Financial Peace, More Than Enough, The Total Money Makeover and EntreLeadership. The Dave Ramsey Show is heard by more than 6 million listeners each week on more than 500 radio stations. Follow Dave on Twitter at @DaveRamsey and on the web at daveramsey.com.

Disclaimer: The content supplied by columnists and letters to the Editor on this site does not in any way, shape or form, implied or otherwise, necessarily express or suggest endorsement or support of any of such content, statement, or opinions therein. SurfKY News does not necessarily adhere to or endorse content provided by outside non-staff sources.

© Copyright 2014 SurfKY News Group, Inc. All rights reserved. This material may not be published, broadcast, or rewritten without permission. SurfKY News encourages you to share this story by using one of the social media links below.

Most Read This Week (Site-Wide)

August 17, 2014 4327

Greenville Police Conducting Traffic…

in Top Stories by Wes Miller
August 18, 2014 3930

Man Injured in Early Morning WKP Accident

in Top Stories by Rita Dukes Smith, SurfKY News Director
August 18, 2014 3630

Owensboro Board of Commissioners…

in News by Beth Cecil
August 20, 2014 3482

Park Avenue Trespass Call Leads to…

in Top Stories by Madisonville Police Department
August 18, 2014 3461

Unlawful Solicitation

in News by Sgt. J.D. Winkler

Most Read Stories from Hopkins County

August 20, 2014 3482

Park Avenue Trespass Call Leads to…

in Top Stories by Madisonville Police Department
August 18, 2014 2599

Madisonville Man Charged for Shoplifting,…

in Top Stories by Madisonville Police Department
August 20, 2014 1440

Dawson Springs Woman Arrested for Driving…

in Top Stories by SurfKY News
August 18, 2014 1402

Madisonville Firefighters Recognized for…

in Top Stories by Rita Dukes Smith, SurfKY News Director
August 20, 2014 1128

Theft at Pennyrile Park Apartments Leads…

in Top Stories by Madisonville Police Department

Most Read Stories from Owensboro

August 18, 2014 3630

Owensboro Board of Commissioners…

in News by Beth Cecil
August 18, 2014 3461

Unlawful Solicitation

in News by Sgt. J.D. Winkler
August 18, 2014 3387

RiverArtes Opening at OMFA

in News by Owensboro Museum of Fine Art
August 19, 2014 2844

Free Arthritis Exercise Program will be…

in News by Woody Maglinger
August 19, 2014 2711

Municipal Art Collection on Exhibit at…

in News by Mary Bryan Hood

Most Read Stories from Muhlenberg County

August 17, 2014 4327

Greenville Police Conducting Traffic…

in Top Stories by Wes Miller
August 18, 2014 3930

Man Injured in Early Morning WKP Accident

in Top Stories by Rita Dukes Smith, SurfKY News Director
August 18, 2014 3387

Luke's Flea Market Vendors' Home Away…

in Top Stories by Charles W. Riley II, SurfKY News
August 18, 2014 3203

'How Dry I Was'

in Top Stories by Rita Dukes Smith, SurfKY News Director
August 19, 2014 2439

'Another One Bites the 'Duct'

in Top Stories by Paul McRee, SurfKY News

SurfKY News Group, Inc. Central Office & Printing Division
1125 Nebo Rd.  •  Madisonville, KY 42431  •  270.452.2249 (fax)
Main Number: 270.452.2727 (phone)  •  Printing Division Direct Line: 270.821.8600 (phone)

SurfKY Owensboro News Bureau
920 Frederica St. / Suite 210  •  Owensboro, KY 42301  •  270.683-8060 (phone)


Contact a member of our staff: www.surfky.com/contact
Copyright © 2014 SurfKY News Group, Inc.  •  Terms of Use  •  Site Map

social 03social 04social 22social 21social 06