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AGS
FINANCIAL
SERVICES |
Gary
F. Restall |
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Finances
for a New Year
Gary F. Restall,
RFP, Registered Investment Advisor Money Matters |
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How do you fare? Looking ahead, have you established any financial "New Year Resolutions" to correct some of last year’s carryover concerns? Financially, many people do not plan enough. With this article, I would like to encourage you to think about your finances from a complete perspective. A mathematician might say that the whole is equal to the sum of the parts. First, many professional financial advisors recommend that you should have at least 6 months of Cash Reserve on hand. This means that should an emergency (which usually comes when one least expects it ... and can least afford it) or an opportunity come along, you can withstand the unexpected or cash-in on your good fortune. The next area is Debt Management. It is also a huge area to review this time of the year. If you have any consumer debt, such as credit card unpaid monthly balances, various consolidation or personal loans, or any debt not-deductible from your taxes, you should try to eliminate it. Paying down on or paying off certain debts could be an immediate and guaranteed huge non-taxable return on your investment. Continuing in your quest to review your financial well-being, consider your Risk Management and Estate Planning. Consider ALL of your risks and your potential needs - 1. human - health, dental, vision, both short and long-term disability, long-term-care, life, etc. 2. property and casualty - auto or vehicles, homeowners or renters, umbrella, etc. 3. goal funding and/or other purposes - home buying, education, charitable gift-giving and/or estate planning, etc. How much does each issue require in dollars now and in the future? Keep in mind inflation. What portion can you self-insure vs. what portion do you want to pass on to a third party, i.e. an insurance company to insure? How can you, or would you be willing to modify your lifestyle or your individual situation to eliminate or reduce some of your risk? If so, how and what would the results be? If you died prematurely, would your estate be public knowledge and would it be divided the way YOU would like? Do you care? Do you have a will yet, and, if so, when was it last updated? Is it funded or just legally prepared? Based upon your decisions, have you given your heirs increased worries, taxes, and other burdens? After your Cash Reserves, your Debt Management, your Risk Management, and your Estate Planning is in place, then you can jump into what many call the "fun" things of finances - Investments, Taxes, and Retirement. Are all three types of money that you may need (taxable, tax-deferred, and non-taxable) in the proper balance for your situation? Have you coordinated your investment portfolio with your retirement portfolio for sufficient diversification and tax management? Have you taken into consideration your age, your risk-tolerance, your spouse’s portfolio, the length of time your investments are working, the purpose for each investment and how long you will need the resultant accumulation once you start drawing them down? Putting this all together, do you have a Master Game Plan where you evaluate each area mentioned above in conjunction with the other areas as a whole? Or is it a hit-or-miss approach addressing individual areas one-by-one? Are you the do-it-yourself type or do you need assistance from a professional? If not a do-it-yourselfer, and a professional is needed, what type is appropriate for you? Should it be one that looks at the whole situation and coordinates needs with specialists as needed, or multiple individuals that specialize just in certain areas? Whatever your need, someone is there. I have raised many questions that each person/family needs to think about seriously and review periodically. A new year is upon us. Where do you want to be this time next year? In 5 years? In 10 years? In 30 years? .... Why not start planning with the WHOLE in mind ... now? # # # Gary F. Restall of AGS FINANCIAL SERVICES is an independent full-service Registered Financial Planner, Registered Investment Advisor, Insurance Broker, and Long-Term Care Consultant. His company is local in Northboro and can be reached for additional questions. You may also visit his educational website www.agsfinancialservices.com.
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