By Kelley Caponigro
Assistant to the Chairman & CEO
It can be easy to overlook your financial future when you’re busy living your life. However, it is important to consider how you want your life to look down the road, and how to turn that vision into a reality by planning strategically. Here are some common concerns regarding finances that many people experience. Do any of these sound familiar to you?
CONCERN: Debt
SOLUTION: If plastic is your weakness and you have multiple bills, pay down the credit card with the most interest first. Once the debt is paid in full, cut up the card, freeze it in a block of ice, or lock it in a drawer; take the necessary actions to prevent future use. Keep in mind that, unless you’re being charged a ridiculous annual fee, cancelling a card is not always the best move and might actually hurt your credit.
Student loan payments are a very different kind of debt. Skipping a payment can be detrimental to your credit history. Visit FinAid.org, an excellent resource filled with information to help you decide on the best payment method.
CONCERN: Family Finances
SOLUTION: Will your children have the monetary woes you did? Have you helped them to create a healthy relationship with money? What will their financial future look like? It’s never too early to have “the money talk” with your children. By teaching them the importance of saving and budgeting, you’re creating excellent financial habits that can last a lifetime. Once they’re a bit older, introduce your children to your financial advisor. Similar to a family doctor, you trust this professional with your own financial well-being, why not have them take care of your children’s financial health as well? For more ideas, delve into, “The Opposite of Spoiled: Raising Kids Who Are Grounded, Generous, and Smart About Money,” an excellent resource by Ron Lieber.
Ensuring that aging parents are financially secure can be just as worrisome. With health concerns, living expenses and safety issues, care taking is a full time job. Check out our recent article by Managing Director and Registered Financial Gerontologist, Rosanne Rogé, for some helpful tips on how to financially assist elderly loved ones.
CONCERN: Marrying Marriage and Money
SOLUTION: It’s a well-known fact that money and financial issues have become the number one cause for divorce. Ironically though, most couples do not discuss money before tying the knot. Just as you found out each others likes and dislikes, find out if your partner is a spender or saver, what their financial goals and values include, and how much debt they’re carrying. Money isn’t the most romantic topic, but having a plan in place and updating the plan as your life together unfolds can set you up for financial satisfaction. Finding a financial advisor that you both trust is also an important factor.
CONCERN: Longevity and Retirement
SOLUTION: Will you have enough money to support yourself in retirement? Many folks fear the stock market due to its volatile nature, but a well-diversified portfolio can help calm the rough seas of the market. Portfolio diversification is the act of investing in different sectors and stocks in order to reduce overall risk. An experienced financial advisor will be able to measure your specific risk tolerance and create a portfolio that’s within your comfort zone. In addition, be sure to prepare for life’s unexpected expenses, like health issues or natural disasters. As a whole, we are living longer, healthier lives. Be sure to organize your financial future for the changes ahead.
We urge you to ask the “hard to ask” questions, and to discuss your specific vision for the future. Most importantly, plan for the unexpected, and understand that there are many different options for saving and growing wealth. With the right road map, the future you imagine can be achieved. Contact one of our Senior Wealth Advisors today to discuss your options at 631.218.0077 or at info@rwroge.com.
