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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) to determine your net worth. 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 can 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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Pay off your credit card balance every month. Your
credit card should be for the convenience of purchasing, not a source of permanent
finance. The interest rates are much too high. |
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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
difference that a 2% greater return can make in the growth of your investments is
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. Be
sure to contact your agent when you buy or sell any property. |
Financial Planning