What do a former stockbroker, a dog and a Sacramento comedian have to do with managing money?
That unlikely trio is the face of "MoneyTrack," a nationwide PBS show on personal finance that airs in the Sacramento region Mondays at 7 p.m. on KVIE Channel 6.
Pam Krueger, a former broker turned TV financial journalist, and her co-host Jack Gallagher, a veteran comic and PBS personality, crisscross California and the country, talking with "real people" while dispensing advice from financial experts.
Next week, Krueger and Gallagher will appear at the California Summit on Financial Literacy in Sacramento. We caught up by phone with Krueger in Tiburon, where she lives with her 6-year-old Labradoodle, Chloe, who's a regular on the show.
Q: You spent nine years as a stockbroker before getting into financial TV. Were you uncomfortable in the role of broker?
A: I became a manager and learned a lot, sitting with all the angry, disillusioned clients. They actually thought they were getting really thoughtful prudent, financial advice. Instead, they were dealing with a salesperson who needed to make transactions. I have brokers who are friends. But we don't talk about the brokerage industry.
Q: Your show focuses on "everyday" people, like "Mr. Earl," the Baltimore parking lot attendant who never made more than $12 an hour but is now sitting on $500,000 in retirement savings after years of careful investing. What's important about such stories?
A: We all learn from other people and hearing their stories. It gets people's attention. Like Damon Williams, the 14-year-old in Chicago who started investing when he was 10 and now has $50,000.
Q: What's your advice for those panicking about their declining stock and mutual fund portfolio? Lots of people want to dump everything in despair over plummeting prices.
A: It's a wake-up call. It's not a call to action. If you're losing sleep because you don't have enough savings, or your 401(k) statement is screaming at you, it's time to get up close and personal with your investments. Assess what you have. Remember the biggest rule in investing: Diversification wins all battles. A knee-jerk reaction to financial drama usually costs you money.
Q: There are thousands of financial how-to books and any number of so-called experts out there dispensing financial advice. How do people clear through the clutter?
A: Get rid of all the extremes, like "The World Is Ending: Prepare for the Worst Recession Ever" or "You Can Make a Zillion (By Reading this Book)." Whether it's a bookstore or a financial investor, go for common-sense advice with realistic expectations.
Q: Lately we've seen a rash of phony "foreclosure" experts who purport to help with troubled mortgages. What tips can you give consumers to avoid getting financially fleeced?
A: We have a Scam Alert on every single show. What's rampant right now: Con artists who put ads on radio and TV, posing as lenders, "guaranteeing" that you'll get a loan, regardless of credit score. Don't pay anything over the telephone. Find out who you're really dealing with.
Every state has a regulator that can tell you whether the deal is really real. (In California, it's the Department of Corporations.) Go to www.NASAA.org, which has scam alerts on a state-by-state basis.
Make sure you own a lot of different, high-quality stock, not all your employer's stock. If you're totally baffled, sit down and discuss the basic concepts.
Q: What's the biggest money mistake that you see?
A: The most expensive mistake is blindly handing over your savings to a so-called financial expert, expecting some kind of voodoo money magic.
I'm not saying advisers can't work with you. … The good ones are teachers. … I'm really down on salesmen posing as financial advisers.
Get someone who is fee-only, not working on commissions. Check with the Department of Corporations, (866) 275-2677, or www.corp.ca.gov to see whether the person has been fined, audited or had any complaints filed. If your financial adviser is not listed in any financial database, you want to run.
Q: Americans love their plastic and sometimes seem allergic to saving. How do we change that?
A: I honestly don't know that we can change the behavior. It gets down to good debt and bad debt: Good debt is for anything that will grow in value: a mortgage, an education, a car if it helps you get to work. Bad debt: when you go … to a high-end Italian restaurant and three months later you're still paying. Q: How did Chloe become the show's unofficial mascot? And, is she nicer to work with than Jack Gallagher?
A: We're trying to talk about our homes, our lifestyles, not just Wall Street. She reminds us to keep it real. I'll just say this: Jack's never bitten anybody – at least so far.
Have a personal finance question? The Bee's Claudia Buck can be reached at (916) 321-1968.
