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Financial Planning
Start planning and stop worrying!
A Gallup poll showed that 60% of those surveyed worried about their financial
future.
There are a few simple steps you can take to help reduce your worries:
- Put aside a set amount regularly in savings or other
investments. The compounding of earnings can be substantial. The longer
your investment period, the greater the beneficial effect of compounding. Click
here to calculate how fast your savings can grow.
- Invest in what you know. The better informed
you are, the better your investment decisions will be. If you don't want to learn
about investments, consider hiring a money manager and paying him or her to do
your investing for you.
- Diversify your investments. Have some of your
money in an investment that is easily converted to cash in case of emergencies.
The old adage "don't put all your eggs in one basket" is excellent
investment advice.
- Prepare an annual balance sheet (a list of all
your assets minus all your debts) to determine your net worth. A comparison of
your annual balance sheets will show you whether you're meeting your financial
goals.
- Plan where you want to be financially by retirement age. Over
90% of Americans must rely on the government or others for assistance during
retirement. With proper planning and diligence, you can be among those who can
retire in comfort. Click
here to calculate how much you need to save for retirement.
- Update your plan regularly. Review your financial
plan often and adjust investment choices when necessary to keep your plan on
track with your financial goals.
- Don't use credit to purchase consumption items. Wait
until you can pay cash for things which decrease in value. Borrowing money to
purchase a home is usually a sound idea. Using credit to purchase household furnishings
is not.
- Pay off your credit card balance every month. Your
credit card should be used for convenience, not as a source of long-term financing.
Credit card interest rates are much too high.
- Monitor your investments to maximize your after-tax return. The
difference that a 2% greater return can make in the growth of your investments
is dramatic. Click here to
calculate the monthly yield required to reach your savings goal.
- Have your insurance agent do at least an annual review
of your insurance needs to determine that you are neither under- nor
over-insured. Be sure to contact your agent when you buy or sell any property.
For assistance in your financial planning, contact us.
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