Time for a Reality Check
The past year has certainly taken a toll on our investments. We have watched our brokerage accounts, retirement accounts, and even our homes take a hit. We are not defined by our paychecks or our bank balances, but an uncertain future is difficult to deal with. We have selected articles and tools for this month's web-site that we hope will help you understand investment basics and help you establish financial goals for your future.
The basics are still true:
1. We all need to be personally responsible for our own financial future.
2. You need a cash emergency fund, even if it only earns .25% at the bank
3. You can't spend more than you make, at least not for very long.
4. If it sounds too good to be true, it probably is.
6. Understand what you are buying before you invest. If the stock market roller coaster makes you ill, get off! Several articles are included to help you understand investing.
7. Opportunities abound in this economy. Stocks are cheap. Want to retire in Phoenix? Now may be the time to invest in your "snow bird" future.
8. We know of an investment that will guarantee an 18% annual return. Paying down a credit card that carries an interest rate of 18% is the same as getting that return on the money you invest. Don't refinance your home or take money out of retirement to pay off credit cards. You'll probably end up doing it again. We have included calculators to help you establish your debt reduction goals.
9. Diversify. Balance your investments with cash, mutual funds and real estate. If you like real estate, don't invest in one geographic area. It's nothing short of insanity to have all your retirement assets in the same company where you work.
We hope these links will help you get started. Please let us know if we can help. We're here, year-round, to serve you.
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