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 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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