This older video is making the rounds on the internet again. It is hysterical and yet so frustrating at the same time. The thing that jumps out at me is how the “client” is convinced that one pot of money (her IRA) is going to fulfill so many roles: pay for retirement, pay for her son’s college education, buy a new car and also buy a condo. This is a common situation and I’ve caught myself doing the same thing. If you are trying to keep your financial thinking clear, you need to keep different pots of money in different pots. Even if you don’t physically maintain separate accounts, the same $50,000 can’t be your down-payment fund and your emergency fund and your savings for a new car.
I hope this made you laugh. Have a great weekend!