{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

15 Steps to Financial Secutiry

15 Steps to Financial Secutiry - By EEAEB TEMPIE GUSTEE...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: By EEAEB, TEMPIE GUSTEE , NewhoLuseL News S . , BIRMINGHAM —— very few ; weeks, Jerri Gray hosts an all: female dinner seminar and teaches women about debts, investments and budgeting. ' The name of her sessions? , “A Man Is Not a Financial LPlan.’ ' LN . It’s an event Gray started last year when she noticed _ that many Women, especially older Ones had the men in , their lives handle all their money matters“ ane di— vorCed or wido en had no clueaw ‘ “That' 13 why the udden ' 111151152111 the baby boomers are aging. We re living longer, and guess what -— we re going , to be left with a whOle lot 0f Women Who don Lt knOWL What L, ' to do if We’ re nOt careful,” said ' Gray, an investment profes- , s10nal and Co~owner of NEXT Financial Group InC.’ s branch in B1rm1ngharn : . , , Candace Bahr, fo der Of the Women 3 Institute Ior , Financial Education and a ' partner of Bahr Investmen ‘Group in southern said that based onh‘ » ence and resOurces, 68 per cent in Women have said they haVe no idea 110W much mon— , ey they will need IOr retire— , a; , . ment and only 20 percent have established a nest eggL : goal _ Gray and Greg Powell, presi-' L“ dent and Chief executive offi- / , cer of Fi-Plan Partners' In '- 1 , HoOver, offer 15 basic tips : L__that woLmen-j—«and, yes, men 7, ,eneedtokno h ir: I ' money: . 5 __ 3 l. Regardless of your 1n- i come and net Worth, you , ‘ need a plan. YOu can put it to-LL ; _ L, gether yOurselI using tools oII , . the Internet or you can meet with a financial planner. Es— ' Ltablish a budget, identify yOur L 'Lz' goals and develop a strategy 2.11131 rid of credit card debt. Although sOme would advise paying Off the card . with the highest debt or high- est interest rate, Gray said , you should payoff the Card L with the lowest debt first. 5‘It’ s emotional ” she said. “When you pay off that first Card, you feel elation You want to keep going}? , Try to pay as much as your budget will allow, said Gray , , Once you have paid Off that y ’ card, apply the money you were paying on the first card toward the card with the next lowest debt, and so on You _; shou1dn’ t start investing until , you have your debt under , contrOI I 3. If you haven’t started ‘ saving any money at 1111,1131 to save at least $20 a week If you start trying to save a large ’y amount of money every week, you will eventually feel the V _ '~ ' pinch and stop saving, Gray said. But if you start out small, L you will get used to it and like the results. , , For example, if a L40-Ly ear-old Woman saves $20 a week and puts it' In a mutual fund that has an 8Lpe1Lcent growth rate, _ she Will hpave $82, 744 by age L .65, said Gray. ' ‘ 4. HaVe money saved m’ an; account that will cover at L L ' least three to six months of living expenses in case of emergencies. That money , should be easily accessible and' in an account like a sav— .L I ings 01 money market ac- , _ m count. Y0ur 401(k)115 nOt _ ' there for “dipping? into IOr emergencies. It’ s for your re— ,- tirement 5 Learn What it takes to as cure financial aid, student , loans, scholarships and other ’1 funding if you plan for your children to go to college d g to Powell. Gray y parents make the L mistake of funding thei1 ’L , child’s college education be- fore funding their own retiree . :: ment. 6.1315111111511112, the maxi ,L L 3 mum alloWabLle to your ’ ' ' ' r - 401(k). Most companies Will ' ’ , ' match a portiOn of yoUr con— tribution, said Gray’ 7.14st about LadditionalL' ln- _L,L ve'stment plans, such as a :1 Roth IRA, traditional lRA or _ ;_ 5 ~ any other tax-deferred plan that’s stricuy for '1 etirement, , , d Powell ' pyon se eat an [IRA tha u1ts yoUr goals and . objectives to help grow your . ' mOney. You can put as little as $59 in a Roth lRA, for example. 8. Start getting certain le- ‘ gal documents, like a poWer of attorney, drawn up so ‘ your family will avoid finan- ; cial roadblocks (10me the ,1 road. A power Lof attorney leL- 7- f gally anthorizes someone to 1 L ’ . step in and LCOnduct business '1 on youir behalf if you are inCa— , pacitated, s_a1erray Also, ' ake re’ y have a will and 9.1111112“ m—depthtalk with your parents about hoW 7' they Will take" care Of them- Selves as they age. Get proac- » Ltive Land find out: Do they have long- term care insurance? A . » Will? A living Will? Funeral and burial plans? A power of attor- ; ney? Ask about Iam1ly assets. 1 The list goes on. '- If a parent dies, you n L LL .know the locat10n of docu~ w LL ,ments ' 111.511.1111 looking at 11mg; L 125m care insurance for your? . f‘self When you are about 59. It , can c0ver assisted living, 1n~ .1 , home care, nursing homes, ., _“ skilled nursing serviCes and perhaps even training of a ”family member to provide your care, Gray said. ii. If your company offers life insurance, team hoWL _ L much coverage you have. As— 1 suming you haVe no Othe1 as— ‘ sets, you should have “coverage that is 10 times your L' salary. For example if you _ , ‘ L make $40, 000 annually, you L 1 Would need $400, 000' 1n life may, L surance cove1 age according ' ' 3 10 Gray 12 KnoW hoW 11111211 you'll . need to live off when you re- '2 f tire. Find out whether your , , ,_ , pension and savings will keep € [up with inflation. Gray said ‘ _ ‘ studies now show you Will 6 need 80 percent to 100 per— , Cent of your cur1 ent annual 1n-_’L ' come upon retirement 13. If you decide you Want , L ,1 [a financial planner, 100k for a, red flags. Do these yOu inter— 7 view spend more time talking fabout their firms than finding , out about you and your 1 needs? They should want to , . ask you onestions about your - ' financial vision and yQUr mop-i: ‘ ey, said PoWell. Also, ask ’ -_ friends and check refe1 ences , ;; du1ing your search, and be ; ,surey you get a breakdown of all fees involved. 14 Make finances La family affair. Don t be in the dark , about household b111s,ac__ ’ 731011111th2- mortgage and V, ‘L ;;.r5ucl1. If one person handlesL all , .the household finances, tell 3- that peLi son you d like to learnL L how to handle things Also, educate your children at an , early age on the 1mpoi tance of , _ saying money, said Powell. 15 Get a bee credit report ‘L ,1 each year at W. annualLCre- , ' , ,ditreport. com. CheCk it I01 L , ‘ any d1screpanc1es and report ‘ those immediately. Protect , ' . yourself against identity theft} ...
View Full Document

{[ snackBarMessage ]}