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Start planning and stop worrying!
In a recent Gallup poll, 60% of those surveyed said they worried
about their financial future. There
are a few simple steps you can take to help reduce your worries.
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Put
aside some 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.
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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.
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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
good advice when it comes to your investments.
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Prepare
an annual balance sheet, a list of all your assets
minus all your debts. A comparison of your annual balance
sheets will reveal your success at growing your retirement
funds.
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Plan
where you want to be financially by retirement age.
The calculators listed below will help you determine your
savings requirements. Once you know how much you need to
save, put your plan into action. Over 90% of Americans must
rely on the government or others for assistance during retirement.
With proper planning and diligence, you may be among those
who can retire in comfort.
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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.
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Monitor
your investments to maximize your after-tax return.
Use the calculator below to compare the long-term results
of different interest rates. The differences can be dramatic.
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Have
your insurance agent do at least an annual review of your
insurance needs to determine that you are neither
under- nor over-insured.
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The
Magic of Compounding!
If you could have one of the following as your pay for thirty
days' work, which would you choose? (A) $10,000 or (B) a penny
the first day, two cents the second day, four cents the third
day, eight cents the fourth day, and so on, with each day doubling
on out to 30 days.
The $10,000 sounds very attractive,
but the fact is that the penny doubled each day for 30 days adds
up to over five million dollars. Of course, that is 100% interest
compounded daily, a rate not available to most working folk. Nevertheless,
you see the power of compounding your earnings.
Here
are some easy-to-use calculators.
Do you know how much you need to set aside to fund a college education
for your child?
How much must you save each month
for your retirement?
What will your Individual Retirement
Account (IRA) be worth when you get ready to start drawing on
it?
You can get rough answers to these
and other questions very quickly by using the following calculators
and a few estimates on your part. If we can be of help or answer
questions for you, please call us.
Please call or e-mail
to receive a FREE copy of our financial planning brochure. |
