“Problems cannot be solved at the same level of awareness that created them.” – Albert Einstein

So.

I have several “investment products” in addition to my 401K.  I have a traditional IRA rolled over from my Federal pension program.  I have a Roth IRA.  And I have a tax-deferred annuity.  In a stroke of unintended genius, I closed my brokerage account last February to buy our last car.  I would have lost over 50% of that account in the market crash.  At least now I have a car to show for it.

But I digress.

I called my financial advisor because I wanted to start diverting some of the money that I currently put in my 401K into my Roth account.   We discussed that this was a pretty good idea for all kinds of financial-ese reasons having to do with taxable vs. nontaxable accounts and maxing out your pre-tax benefits, blah, blah, blah.  But we were all in agreement that this was A Good Thing, and I filled out the reams of prerequisite paperwork and everything was in place.  

Or so.

I thought.

Until December when I realized that the money was going, not into the Roth, but into my traditional IRA.

 Okay.  Honest mistake.  I called her up – “No big deal.  I can deduct that one payment anyway. Just get it fixed.  Yes,  the Roth account.  Please change the payment over to that one.  Yes.  Next month?  Okay.”

Soooo.

Imagine my surprise, when I look into my checking account and it looks a bit low.  And I check back through my records, and, lo and behold, instead of changing the payment over, she DOUBLED the amount being taken out.  

IN JANUARY.

POST CHRISTMAS JANUARY.

HIGH HEATING BILL JANUARY.

And now I don’t know where the hell it is going.

Is the doubled amount going into the IRA?

Is half going in the Roth and half in the IRA?

What.  The.  F.

Now.   People.  I am just a lil’ ole middle class kinda person.  With just three investment accounts that she manages.  THREE.

You have a one-in-three chance of getting it right, and she failed TWICE.

And just now, the financial collapse of the free world makes total sense.

January 15th, 2009 at 4:30 pm
4 Responses to “I think I finally understand the financial crisis…”
  1. 1
    Cinnkitty Says:

    And to think..that chick gets PAID to handle your money and others too. Scary huh? Freaking scary!!!

  2. 2
    JuanGrande Says:

    I would need a new financial advisor.

    I have little patience for folks that mess with my money.

    “Ooops! My Bad!” dosen’t cut it.

    Juan

  3. 3

    What he said. Yikes!

  4. 4
    Steph Says:

    Everybody makes mistakes – god knows I make my share of them – and I try to keep that in mind when stuff like this comes up. But it’s really hard to remain patient when it’s your finances and health involved.

    We got a new car with a loan through the credit union, and they set it up to pull the payments out of Himself’s paycheck automatically.

    In doing so, they also managed to set it up so that his paycheck went to his savings account rather than his checking account.

    Fortunately, he checks his account regularly and when his paycheck “didn’t show up”, he was able to figure out what was going on BEFORE anything started bouncing.

    Rolls eyes.