JRT FOUNDATION

One of my neighbors, Susan, had inherited stock in a Bank from her grandfather. She was living off the dividends which amounted to about $100,000 per year. A nice supplement to her Social Security. During the financial crisis years 2007- 2009 this bank was bought by another, the dividends were cut, then cut again untill they were Zero. The annual income therefore went to Zero. She was emotional attached to the stock and should have diversified by selling some of it and buying other income producing stocks or mutual funds.

Another neighbor, Nancy, was left an estate of over $2million after her husband died. She spent extravagantly and invested in many high fliers during the dot com boom. She borrowed on her house and after 5 short years needed to sell before it was foreclosed. She did not know how to prepare a budget and live within her means. Also took unnecessary high risks.