Category Archives: Detective Frank Money

Higher Education ROI

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Here’s something I didn’t have to worry about when I went to the school of hard knocks…ROI. That stands for ‘Return On Investment’ when deciding to continue studies with higher education.

The days from the classic film, Animal House, are over. Attending college for 6 years partying. We all know about the spiraling higher education costs per year can go well above $30K! I can safely say graduating with a 4-year college degree in Liberal Arts has gone out with the horse and buggy.

So before going into high debt you should ask yourself what will be my return on the investment I make on my major? How many years will it take to pay back my loans in the field I’ll be working in?

Will the job you get after getting the degree pay off with you making more money over time?You’ve heard the saying ‘Time is Money’? Well in this case it’s ‘Is My Return Be Worth Investing The Extra Money’?

It’s probably a good idea to limit the total amount of debt to one year’s starting salary when it comes to college loans.

It’s okay to pursue your interests but also give yourself a good honest talking to, and a little detective work wouldn’t hurt either, as to whether this investment really going to be worth it for me. Check me out on your local public television station – my show Talkin’ Money Minutes is seen nationwide.

The Magic of Compounded Interest

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As my daddy used to tell me, “Detective Frank Money, never under estimate the power of Compound Interest.” We were very close, especially when it came to this subject – you might say we had a ‘Compounded Father-Son Relationship’.

A perfect example comes from another wise man, you may have heard from him, Benjamin Franklin.

Franklin decided to leave about $4,550 at the time of his death each to his native hometown of Boston and adopted hometown of Philadelphia on the condition that it gather interest for 200 years. Franklin believed 200 years was the maximum length of time any person should be able to control assets from beyond the grave.

It could have theoretically reached well over $78,000,000 if the two cities had never spent any and had managed it well.

The point of Franklin’s experiment was trying to illustrate the tremendous power of compound interest for future generations. The longer you keep your money invested, the more amazing the power of compound interest. So start saving today, and put your money to work for you! You’ll have a case with a happy ending

Granted we’re not going to be around in 200 years to see our money grow, but if you start investing when you’re young, invest wisely, you’ll be able to enjoy retirement later on down the road due to the power of compound interest.

Remember, don’t work hard, put your money to work for you and that’s called working smart.

Insurance is the Policy Here

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When you think about it, and I often do because that’s my job as Detective Frank Money, that there are a heck of a lot of insurances out there: homeowners, auto, life, health, flood, dental and if you’re still in college living off campus, rental insurance. Like changing tax laws, insurance rates and coverage change, as well.

Insurance is the perfect definition for Risk Management. And insurance is another facet of being financially literate.

It’s always a good bet to have the proper insurance to protect you, your property and your loved ones from harm. Now that’s good financial literacy.

Peer Pressure

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No matter which way you turn someone wants you to spend more of your money. On your cell phone, social media, movies and the endless ads on TV, you’re nobody without that expensive cologne or how much you can save on a 10 day trip to Italy.

This is Detective Frank Money and I’m telling all you college kids on a tight budget to stick with the plan! Don’t go showing off to your friends by picking up a tab or eating out every night.  Think of your college days as a great warm up for practicing financial literacy when you’re a full time adult with a mortgage, kids, car and braces.

You’ll do fine if you just repeat after me…”Separate checks, please!”

Investing for Retirement

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I know, I know, it’s a long, long way off: “I’m young, I have plenty of time.” -or- “OMG, I’m 55 years old and the only savings I have are in the coffee can on the bureau”.

I’m Detective Frank Money and my answer to that kind of reasoning is, excuse my French, baloney! The time to start your retirement is NOW – whatever your age! Believe or not, it’s the most expensive purchase you’ll ever make.

Have you seen how much everything cost today? Houses and condos starting at 350K and up; the average car is moving above 30K; and we’re all familiar with the cost of higher education. Don’t count on these prices coming down any time soon.

So it’s your responsibility to understand and execute investing, tax saving, company matching and automatic deposits from your paycheck.

Take immediate steps to make retirement savings something that is automated, so you don’t even think about it. If you work for a company that matches your retirement contributions, that’s like free cash!

If you don’t want to take my word for it, start practicing saying: “Do you want fries with that?” when you’re 65!