Intro music. Fades.

Narrator: Hello, I'm John, and welcome back to PreRetiree Lane. Last time we were here, Ron and Ava Maynhard were going to meet with Ava's old friend Austin Bryant. Austin is a financial planner. He's going to help Ron and Ava get started on their retirement savings plan.

Austin: You've done a good job of getting all of your financial papers together for me, Ava.  Insurance...I see you've got a whole life policy that covers you both. You've got your transaction accounts, a couple of CDs...even some savings bonds.

Ava: I've tried to keep track of things.

Austin: Since you're both about 40, what I think we need to do is take a good look at your budget and figure out where we can get some money to put away in something like a Roth IRA, although you're getting close to the income limit for that. Then we also need to get some money working for you in mutual funds that could provide some real growth.

Ava: Our budget's pretty tight-

Ron: When we sell my folks' farm, we'll have money to-

Austin: That's good, Ron, but what if you can't get what you think the property is worth? What if your parents need care in a facility for a long period of time? That will really cost you. Plus, you've got taxes to pay from the proceeds.

Ava: Ron, honey, we just can't count on that farm to take care of us. We have to take responsibility ourselves.

Narrator: That's right, Ron. You never know. I didn't expect to die at Stu and Marta's party...and you can't count on anything you don't do for yourself.

Ron: How are we going to buy out your parents' business if we're saving every other penny?

Ava: I talked to mom at the reunion. She supports what we're doing. They're going to change their will so that our inheritance is the business, not money. That's how we'll ‘buy them out.'

Austin: We'll need to plan around that then.

Ron: Yes, yes we will.

Narrator: Ah, give her a hug, you big lug.

Austin: By the way, Ava, is your friend Mercedes married?

Narrator: I knew there was some spark there! Time to go check in on Mercedes.

Sound of voices, people at dining tables, and movement. We're inside a restaurant.

Narrator: Nice bistro...linen on the tables, fancy. There's Mercedes. Must be that Bob fellow with her. He's her fiancé. Seem to remember he's a realtor.

Mercedes: The Williams' are trying to drag me into something I don't want to get involved in. I don't want my finances or reputation wound up in their business.

Bob: You're going to have to get out of there.

Mercedes: But how can I? I don't have the money to go out on my own...well, I guess I could sink every penny I have into it, raid my retirement savings, my emergency fund. But then my budget, my plans go up in smoke.

Bob: That seems crazy. What about a small business loan?

Mercedes: I'm still fighting my way out of that identity theft situation, remember? My credit record still has to be cleaned up. Until then, I can't get a loan.

Narrator: That's a tough break. It can sometimes cost hundreds of dollars or more, and several years to recover from identity theft. You really need to do everything you can to protect yourself.

Cell phone rings.

Bob: Bob Campbell...I've shown them 30 homes. What's the problem? What more can I do? Fine, let them go...I'll check in later.

Mercedes: Bad news?

Bob: You know the story. Work and work with people, then they don't buy. It's been a tough year so far. Talk about budgeting. It's a challenge to work on commission when money doesn't come in regularly.

Mercedes: I suppose that means I shouldn't bring up what I was going to bring up.

Bob: That is?

Mercedes: I was going to ask if you wanted to be my partner, invest in me opening my own title insurance business. We could work together, even maybe find a mortgage broker to affiliate with.

Cell phone rings.

Bob: Bob Campbell...They want a showing right now? All right fine, I'll be there in 20.

Narrator: Maybe he needs to turn that thing off once in a while.

Bob: Listen, Mercedes, this is an...interesting idea. I'll have to talk to my lawyer about it-

Mercedes: Your lawyer? It's me, Bob.

Bob: This is business we're talking about Mercedes, not splitting a dinner check. I'm not sure what you're thinking about is even legal--might be a conflict of interest. You can get a taxi home, right?

Narrator: He just left a 20 on the table for her and walked out. This relationship is in trouble. And speaking of trouble, I've got to see about Stu and Marta.

Marta: Stu, How was the golf?

Stu: (short) Fine.

Marta: Listen, Stu, I know you're upset about this whole business at work, the pension fiasco. But honey, we've got some savings, and thank God, you've got your 401(k), so this may be a bump in the road, but we're going to be fine.

Stu: No, we're not fine. There's something you don't know, Marta. I don't have as much as you think in my 401(k).

Marta: What are you talking about? You've been socking money away in that for years. It should be--

Stu: I spent a big chunk on membership at the country club, okay? You signed the loan papers...(patronizing)...or don't you remember?

Narrator: Oh Stu, , you told me about that, too. A 401(k) loan can come in handy, but it can really hurt your earnings over the years to not have that money invested.

Marta: (angrily) Stu, how could you?! You told me that was a perk from your job! You know I've trusted you with money. I've never nagged about it. I just sign whatever you ask me to!

Stu: What does it matter now? My plans are ruined. I don't have enough to retire on.

Marta: We don't, Stu. I can't believe you'd do something this irresponsible...and then keep it from me!

Stu: I don't have any answers.

Marta: We've got to get help. We've got to figure a way out of this...this situation you've gotten us into. (pause as she regains her composure) Maybe that friend of Ava's could help us. That planner.

Stu: I don't know ... worth a try.

Narrator: You need to talk to someone, Marta. And soon.

END

Published March 28, 2008

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