U.S. recession may be over but economic challenges clearly still
exist. The good news
is that the gross domestic product has grown consistently,
consumer spending has held up, and business spending is slowly
stock market continues a slow but steady ascent.
If this expansion continues as expected, it should foster
the further recovery of economies worldwide.
But how does this all affect you personally on a day-to-day
basis? There is
“the economy”, and then there is your personal economy.
Do you have a personal economic forecast?
you suddenly need to purchase braces for your 13-year-old child. Does that throw your balance sheet into a tailspin?
Or maybe you are dealing with complicated savings issues,
trying to work simultaneously toward many short- and long-term
goals. Are you buying
a new home? Having a
baby? Caring for an aging parent while saving for your child’s
education or your own retirement? Like interest rates and
corporate earnings in the larger economy, events such as these in
your personal economy are interconnected and greatly affect each
financial “big picture” is affected by a variety of life
events. These are the
specific events on which you must focus your planning to gain
control of your financial future.
best long-term defense against personal economic instability is to
have a plan or in other words a personal economic forecast.
However, according to a recent survey from the Employee
Benefit Research Institute, workers as well as retirees say they
spent more time in the past year planning for holidays and social
events than planning for retirement.
Half of all households have not even calculated how much
money they will need to save by the time they retire.
over the long term with a financial advisor to get sound,
financial advice that’s personalized to you, your unique
situation and your individual goals.
He or she can help you put the pieces of your
financial puzzle together by focusing on those aspects of your
life that you can control.
are some major life events that many of us experience, and some
investment decisions that you may want to consider to get you
started in taking control of your personal economy.
you get your first real job:
a savings account to build a cash reserve.
a monthly retirement fund and make regular monthly
contributions, no matter how small.
you get a raise:
your contributions to your company-sponsored retirement plan.
after-tax dollars in municipal bonds that offer tax-exempt
your cash reserves.
you get married:
you want to buy your first home:
you have a baby:
your cash reserves.
your life insurance.
or update your will.
a college fund.
you change jobs:
your investment strategy and asset allocation to accommodate
your new salary and a different benefits package.
your distribution options for your company’s retirement
savings or pension plans.
you reach age 55:
any life stage:
provide liquidity for emergencies, have a cash reserve in a
money market fund, traditional savings account or CD that
equals three to six months of your living expenses.
you can tolerate a little risk, you should have a portion of
your portfolio in stocks to help protect your savings from
being devalued because of inflation.
investment decision should include tax considerations, and you
should be aware of the taxable status of your investments
(taxable, tax-deferred or tax-free) when setting up and
reviewing an investment strategy.
information is provided for informational purposes only.
The information is intended to be generic in nature and
should not be applied or relied upon in any particular situation
without the advice of your tax, legal and/or your financial
advisor. The views
expressed may not be suitable for every situation.
Express Financial Advisors Inc. Member
American Express Company is separate from American Express
Financial Advisors Inc. and is not a broker-dealer.
This communication is published in the United States for residents of
North and South Carolina only; and this advisor is licensed only in
the states of North and South Carolina."
Roy P. Janse
Financial Advisors, Inc.
IDS Life Insurance Company
1150 Haywood Road
Greenville, SC 29615
Phone: (800) 554-0805 x141
Fax: (864) 234-7139