Ten vital financial tips to take you through 2010
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(ARA) - The few short months between New Year's Day and tax day offer an outstanding opportunity - and, for many of us, strong incentive - to take steps to improve our financial standing. The distraction of the holidays is over, and the arrival of tax forms brings into sharp focus the need to take charge of our finances.
Financial planner and commentator Jonathan Pond, who works with Savings Bank Life Insurance Company to educate consumers on financial matters, offers 10 financial tips to help you get on track - and stay there - in 2010:
1. Forget hitting the lottery or making a killing in the stock market. The path to getting rich is to replace conspicuous consumption with inconspicuous simplicity, Pond advises. "Most financially successful people never made a lot of money," he says. "But unlike those who think that buying more things will make them happier, the successful people learned to be happy with what they had."
2. Eliminate old debt and avoid new. "Outside of borrowing to buy a home or fund a college degree, debt does little more than impair your financial well-being," Pond says. Imagine a debt-free life, and take whatever steps needed to make that vision a reality.
3. Instead of following the crowd with your investments, focus on balancing safety and risk. Successful investors build a solid foundation of safe investments, then invest part of their money in stocks, which over the long run should provide nice returns despite inevitable ups and downs.
4. Include guaranteed investments like deferred annuities and other insurance products that provide guarantees as part of your investment foundation. If you're retired, look for annuities that guarantee a lifetime income.
5. Despite the housing crisis, your home will still prove to be one of your best investments in the long run, especially if you can pay off the mortgage before you retire.
6. Emphasize tax advantaged investments and strategies, like contributing to retirement plans and owning a cash value life insurance policy, to avoid paying higher taxes.
7. Your career is your most lucrative investment. Do your best to excel in your chosen field. If you are considering a career change, be sure to take advantage of the experience you already possess.
8. While life insurance can help protect your family from life's uncertainties, most families have gaps in their coverage and overpay for what they have. Make sure you acquire the right amount of insurance at a reasonable cost. If you have children, life insurance will be essential at least until they finish college and possibly even longer.
9. Don't be discouraged. "It's easy to believe those who proclaim that our financial lives have been permanently impaired," Pond says. "But we've survived tough times in the past and you will survive this recession." While you should consider new approaches to financial well-being, many of the old ones are still relevant, like living below your means and diversifying your investments.
10. Make the most of the coming economic recovery. "As the economy mends, more opportunities to improve your financial life will be available," Pond predicts. "But whenever you are about to make a money decision, ask yourself if the action will make your financial situation safer."
You can find a variety of financial services resources, organized around major life events like getting married, having children, buying a home, etc., at the Learning Center on SBLI's Web site. You'll find TV programs, Web casts, white papers, articles, videos and more, including a Web cast featuring Pond. Visit www.SBLI.com.
Courtesy of ARAcontent
EDITOR'S NOTE:
Jonathan Pond, known as "America's Financial Planner," is one of America's most trusted and knowledgeable financial experts and a pioneer in bringing low-cost personalized money guidance to American households. As an objective and entertaining observer of the financial planning scene, Pond has appeared on network and cable television, including CNN and NBC's Today Show. His 16 public television specials and 11 books have been critically acclaimed for their effectiveness in providing useful and understandable financial guidance to people of all financial circumstances. Pond is a paid spokesperson for SBLI.
About SBLI:
SBLI, Savings Bank Life Insurance was established in Massachusetts in 1907 and has its headquarters in Woburn, Mass. SBLI sells its products in more than 30 states and dominates in issuing insurance coverage and policies in its home state of Massachusetts. SBLI offers affordable term life insurance, in addition to whole life and fixed annuities. SBLI's insurance professionals can help customers assess their needs, determine the amount and type of insurance needed, and answer questions customers may have. To learn more about SBLI, visit www.sbli.com or call (888) GET-SBLI.
SBLI and The No Nonsense Life Insurance Company are registered trademarks of The Savings Bank Life Insurance Company of Massachusetts, which is in no way affiliated with SBLI USA Mutual Life Insurance Company, Inc. © 2010 The Savings Bank Life Insurance Company of Massachusetts, Woburn, MA. All rights reserved. NAIC #: 70435
Courtesy of ARAcontent
