Don't assume anything -- It rarely works

A few dozen columns ago, or maybe a bit more, I wrote about the fact that one shouldn't gamble with their financial instruments. Making an assumption based on an inherent fear is gambling especially when you fail to read and understand what protections you are afforded by the terms of the instrument. If it turns out to be "Greek to you" seek help from a trusted professional in the field. If doing something like that makes you nervous remember you are acting to prevent a loss. That loss would be yours!

Life works better when you understand from the start what you are doing and do not have to worry during the term of the financial commitment that something awful might happen.

When you decide to take action make sure you can "sleep with the result"! I advised my attorney to take a 15 year fixed loan when he came to me to refinance last year. I suggested he roll all of his debts into the mortgage and pay everything off in 15 years. His monthly savings would be about $1500 and he would actually be paying down everything he had owed in a manner he had never experienced. He did what I told him and three months later he called and begged me to put him into a 30 year fixed. Although he was saving better than $1500 a month the size of the one payment, his mortgage payment, frightened him, and after weeks of anxiety he went back to something that ended the pain. Who knew?

I am not a swami or guru but merely someone who deals with a fairly large amount of people on a daily basis and have seen and heard almost everything that one could imagine. Therefore I feel pretty comfortable in writing this column and telling you not to assume anything. Study, ask questions and be fairly confident you have looked at both sides of the equation before you act. Do not let irrational fears guide you and never, never ever get yourself into something that goes against your nature, your personality or your beliefs. The pain isn't worth the gain.