Place Trade Financial, Inc.
Brought to you compliments of Sarah M. Place, MBA

June 2005   Saturday, February 4, 2012
Managing Your Finances

Financial information is everywhere, and sifting through it all is complicated. Like most of us, you may feel that the information age has succeeded in bombarding you to the point of "overload." Nevertheless, successful management of your finances today is the key to the lifestyle that you and your family will enjoy -- or endure -- tomorrow. I know that procrastination is a greater enemy to you than the twin killers of inflation and taxes. So it is critical that you establish and continually build upon a framework or plan. The elements are not complicated, but are the least-covered financial topic around. You can read all about the detailed specifics of financial vehicles and strategies, but may be left wondering when and how you should use them. If so, feel free to call or e-mail me. I would like to be of assistance in helping you join the minority who feel in control of their finances, not controlled by them.

 
Make Rebalancing a Habit
We all know we should rebalance our portfolios periodically to ensure they stay in line with our targeted asset allocation. Why, then, is it so difficult for us to do this? The primary reason is that rebalancing goes against our basic instincts. With rebalancing, you are generally selling those investments performing well to purchase those that are underperforming, which just doesn't seem to make sense. It might help to remember that by rebalancing, you are following a fundamental investment principle - you are buying low (those investments that are underperforming) and selling high (those investments that are performing well).
[FULL ARTICLE]
 
Taxes and Your Investments
One of your portfolio's largest expenses is probably taxes. Ordinary income taxes on short-term capital gains and interest income can go as high as 35%, while long-term capital gains and dividend income are taxed at rates not exceeding 15% (5% if you are in the 10% or 15% tax bracket). One way to help keep your portfolio growing is to invest in a tax-efficient manner. Some suggestions include.
[FULL ARTICLE]
 
Investing Tips
Realize that saving and investing are two different concepts. Saving involves not spending current income, while investing requires you to take those savings and do something with them to earn a return. Saving often becomes easier when it is separated from the choice of where to invest. Find ways to make saving as automatic as possible, perhaps through payroll deductions or monthly checks to an investment account. Then you can take your time to research and select specific investments.
[FULL ARTICLE]
 
Watch for Slowing Growth
Reports of slowing growth or earnings declines can severely punish a stock's price. So you aren't surprised by this type of news for your stocks, look out for three warning signs when you review financial reports. If a company experiences one of these red flags, it doesn't necessarily mean it will have sales or earnings disappointments in the future.
[FULL ARTICLE]
 
Keeping Our Emotions in Check
The biggest obstacle in making good investment decisions is probably our emotions. Numerous studies over the years have found that investors have certain psychological biases that get in the way of making purely rational decisions. Check to see if you are guilty of these common biases.
[FULL ARTICLE]
 

Sarah has over fifteen years experience in the financial services industry. She received her MBA at St. Mary's University Graduate School of Business in San Antonio, TX and her bachelor’s degree in Economics–Finance at Bentley College in Waltham, MA. The firm she founded, Place Trade Financial, Inc., (Member NASD, SIPC) is an active member of the Securities Industry Association (SIA).

Feel free to contact Sarah via e-mail at
sarah@placetrade.com
or visit our Web site
www.placetrade.com
 

SUBSCRIBE

Feel free to enter a friend’s e-mail address to receive a free copy of my newsletter. You can also remove your name from my mailing list by clicking the remove button.


Add a friend’s name
Remove your name
Send as HTML
 

ARCHIVE
May 2005
April 2005
March 2005
Published by Sarah M. Place
Copyright © 2005 Place Trade Financial, Inc., Member NASD/SIPC. All rights reserved.
This newsletter intends to offer factual and up-to-date information on the subjects discussed, but should not be regarded as a complete analysis of these subjects. The appropriate professional advisors should be consulted before implementing any options presented. No party assumes liability for any loss or damage resulting from errors or omissions or reliance on or use of this material.
TELL A FRIEND