Over the course of one week five years ago, the U.S. financial system was brought to its knees. Throughout the show, I tell you where we stand five years after this momentous week, when it comes to jobs, income, housing, stocks and much more!
To recap the action over that horrible 7-day period in September 2008:
- 4 investment banks vanished (Lehman Brothers declared bankruptcy, Bank of America swallowed the ailing and near-failing Merrill Lynch, and Goldman Sachs and Morgan Stanley were forced to become bank holding companies in order to access the government’s discount window)
- The government bailed out global insurance giant AIG
- There was panic in the money market fund industry after the Reserve Primary Money Fund “broke the buck,” dropping below the standard $1 per share valuation
- The Treasury Department introduced the first version of TARP, which was intended to grant the government the authority to purchase $700 billion of mortgage-related assets for two years.
Meanwhile, listeners were equally as interested in NOT repeating past financial mistakes. Margaret from MA started us off with a question about where to invest the proceeds of a CD that is coming due. Kevin followed up with a retirement planning question: how to create a stream of income from a $500K nest egg?
Joe from IN needs to access funds for his daughter’s education: which should he tap first?
Reeves from MO and John from KY are both in their 20’s and starting their first retirement accounts. We discuss their options and the advantages/disadvantages of 401 (k)s and Roth IRAs.
William from WI wrote in about a good problem: a large estate. If you are fortunate to have an estate larger than $5.25 million (for individuals) there are a number of options for addressing your potential estate tax.
Thanks to everyone who participated and to Mark, the BEST producer in the world. If you have a financial question, there are lots of ways to contact us:
- Call 855-411-JILL and we'll schedule time to get you on the show LIVE
- Send an email: firstname.lastname@example.org
- Tweet me: @jillonmoney