“How can I politely express that I cannot afford the expensive city without totally hijacking her planning process?” the friend asked.
Again, read what Amy said.
But I want to hear from you. What would your advice be to these two women? Send your responses to the Color of Money Question of the week to firstname.lastname@example.org. Be sure to include your full name, city and state. Put “Morning Money Quarterback” in the subject line.
Family Financial Fights
Do you have some family financial drama you want to resolve or avoid all together? If so, I can offer some advice on how to work through your issues.
Send your Family Financial Fight stories to email@example.com. Be sure to include your full name, city and state and put “Family Finance” in the subject line.
There will be no e-letter next week. I’m taking time off to celebrate the holidays with my family.
The e-letter will return Thursday, Jan. 3, when I’ll be hosting my first Color of Money online chat for 2013. My guest will be C.C. Chapman, author of the December Color of Money Book Club selection, “Amazing Things Will Happen: A Real-World Guide on Achieving Success and Happiness.”
Here’s the link to my review of the book.
If you can’t join me live, hope you can submit questions early or read the transcript later.
“Federal Reserve to the Rescue”
For last week’s Color of Money Question, I asked: “What do you think of the Fed’s move this week to stimulate the economy by linking its actions to specific economic targets?”
Here are some of your responses.
“While this action might be helpful to some segments of the population, it certainly is not helpful to senior citizens and people who are savers,” wrote Marie Weiss of Greenbelt, Md. “With interest rates so low on CDs and savings accounts, this segment of the population will continue to experience diminished revenues with no hope of staying even with inflation (even if inflation is at an historic low).”
Nicole Leonard of Baltimore said: “I think that even though the Federal Reserve is supposed to be detached from politics, they made this unprecedented move to try to give some assurances to the world and businesses in case Congress is unable to come up with a solution to the impending ‘fiscal cliff.’ There aren’t many preemptive moves that the Federal Reserve can make and I’m sure they are very aware of the economic devastation that will occur if Congress doesn’t stop playing chicken and solve this self made problem.”
Sandra Wade of Chapin, S.C., said low interest rates does nothing to address the issue that it’s much harder to get a mortgage.
“If lenders would find a middle ground on lending standards, we would see an improvement in the housing market, even if interest rates were a little higher,” Wade said. “This policy also kills the interest rates we get on savings, which will negatively impact us for years to come as there is no interest to compound. And though banks are borrowing at next to nothing, they have not lowered credit card interest. I’m not sure this is much of a ‘rescue.’”
Tia Lewis contributed to this report.
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