Staff

8
Jan

Financial Resolutions for 2019

Financial Resolutions for 2019

The holidays are in the rearview and the New Year is just over the horizon. As everyone starts the New Year off with positive changes and new annual goals, make sure your finances are one of them! Don’t let your financial dreams fall out of reach by checking out these 4 financial changes you should promise yourself as you head into 2019.

 

  1. Create a budget: According to a recent study on fool.com, over 57% of American households do NOT follow a budget. In fact, 36% of Americans feel budgeting is too much work and not enough reward. A good budget should only take upwards of an hour to set up, and at the most, 30 minutes to revisit each month. The difference between a well-planned budget and not having one at all could be missing your financial goals!
  2. Pay off Unhealthy Debt: Every debt is different, from school loans to credit card debt and more. To eliminate your debt effectively, don’t look at the amount of debt, but the different rates you are incurring interest. Whichever debt has the highest interest rate, pay this off first. Also investigate cutting expenses to pay off debts faster!
  3. Build Emergency Fund: Do you have enough money to pay for a $400 emergency? If so, you are better off than 40% of Americans. Emergencies and accidents don’t come with a warning and can happen anytime, anywhere. Before finalizing your financial goals this year, make sure you have a minimum of three months’ worth of living expenses saved away.
  4. Boost your retirement savings: If you are planning on living off Social Security as your only income once you retire, don’t. When Social Security was created, it was designed to replace roughly 40% of the average workers pre-retirement income. In fact, the average person will need DOUBLE that to live comfortably. Now in 2019, Retirement plan contributions have increased, which is more reason than ever to start saving more for your retirement goals. In addition, look at other ways to receive guaranteed income, like an annuity or IUL.

 

While the year has just started, rock your finances so you can start saving like it’s 2020! By saving more, creating a financial budget, and overall increasing retirement assets, you can start building your dream retirement, NOW. Before reviewing your current finances, reach out to a financial professional to see how they can help build your financial legacy.

 

Content derived from financial website, The Motley Fool (www.fool.com).

Disclosure: This information is provided as general information and is not intended to be specific financial guidance. Before you make any decisions regarding your personal financial situation, you should consult a financial or tax professional to discuss your individual circumstances and objectives.

The post Financial Resolutions for 2019 appeared first on Adult Financial Education Services.

Provided by: Adult Financial Education

1
Dec

8 Year-End Financial Tips

8 Year-End Financial Tips

Twas a few weeks before Christmas, and all through the house, not a person was over-spending, not even  on decorations for the house.

Receipts and bills were paid and filed away with care, in hopes of a fresh financial start to the New Year. Retirement funds were nestled all snug in their accounts, while payments and savings would grow that amount.

And while taxes can be less with charitable giving, also pull an annual, free credit report to make sure my 2019 finances are winning.

When out from my phone arose such a clatter, I look at the caller ID and see it’s my Financial Planner!

Away from work I flew like a flash, into Christmas break, time to meet with my advisor, fast!

The meeting was scheduled, for the day after the snow and while it might be cold, my Advisor says my end-of-year finances were looking bold!

When, what to my wondering eyes did appear, but my advisor with 8 tips for an amazing end to the year!

And they whistled, and shouted, and called them by name:

  1. Pay off your debts!
  2. Pull A free credit report!
  3. Create a Christmas budget!
  4. Save on your taxes with Charitable giving of course!
  5. Make Pretax contributions so save on taxes even more!
  6. Build a financial calendar for the upcoming year!
  7. Contribute more to retirement so you can do what’s best for your family and you!
  8. And most importantly, meet with your financial professional for an annual review!

 

But I heard them explain, as they drove out of sight

HAPPY CHRISTMAS TO ALL AND TO ALL A GOOD-NIGHT!

From our family to yours, we wish you Happy Holidays! If you haven’t already, schedule some time to go over your 2018 finances with a financial professional!

 

*Content provided SimplicityMarketing.com

Disclosure: This information is provided as general information and is not intended to be specific financial guidance. Before you make any decisions regarding your personal financial situation, you should consult a financial or tax professional to discuss your individual circumstances and objectives.

 

The post 8 Year-End Financial Tips appeared first on Adult Financial Education Services.

Provided by: Adult Financial Education

1
Nov

4 Must Know Financial Terms

4 Must Know Financial Terms

The holidays are upon us! And with the holidays comes the fun tradition of holiday shopping! Just as you should plan when shopping, you should also plan of when dealing with finances. Although Financial Literacy month isn’t until next year, we wanted to get a head start by celebrating Canada’s Financial Literacy month, November! Before meeting with your financial planner, check out these 4 must know financial terms:

Asset Allocation

This is the most widely utilized investment strategy and is a crucial step when developing a financial plan. Asset allocation aims to balance risk and is built based off an individual’s financial goals, risk tolerance, and investment horizon. There are three main asset classes-equities, as well as fixed-income, and cash and equivalents; which all have different levels of risk and return, so each will behave differently over time. Since everyone’s finances are different, there is no simply formula to find the right asset allocation. Meet with a financial professional to see what allocation method would be best for your unique financial situation.

Indexing Strategy

An investment strategy that allows you to closely mimic the performance of the index you’re invested in. This strategy allows you to participate in a percentage of upside potential and have little to no participation to the downside risk that you would normally see in the stock market. While there are several different Indexing Strategies out there, consult with a financial professional to find the best one for your financial goals.

Tax Deferrals

In short, Tax deferral is a legally acceptable way of putting off taxes. When you invest, the goal is to make a return on your money, and depending on tax brackets, you may have more opportunity for growth if you choose a Tax deferred account like a Roth 401(k). Tax deferral is all about long-term income and long-term planning. Tax deferral is a great way to maximize your hard-earned money but has many variables to consider like tax bracket and where you are on your financial journey.

Roth

There are two main types of Roth’s, a Roth IRA and a Roth 401(k). The main difference between a Roth account and traditional account is how they’re taxed. With a traditional IRA for example, you pay income tax when you withdraw the money, where as a Roth IRA, you would pay taxes up front and receive qualified distributions tax free. Depending on where you are on your financial journey, Roth accounts are a great way to minimize tax reductions on income in qualified plans.

Bottom Line:

There are thousands of financial terms, some more important than others. While this is only a short list of some prominent terms, it is best you consult a financial professional to better understand what these mean, and how they can be utilized to help you on your financial journey.

*Content derived from Investopedia.com and Wealthpilgrim.com

Disclosure: This information is provided as general information and is not intended to be specific financial guidance. Before you make any decisions regarding your personal financial situation, you should consult a financial or tax professional to discuss your individual circumstances and objectives.

The post 4 Must Know Financial Terms appeared first on Adult Financial Education Services.

Provided by: Adult Financial Education