Brought to you compliments of Sarah M. Place, MBA
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February 2007
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Thursday, September 9, 2010
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Is It Time for Your Annual Checkup?
Just like we need a physical checkup from time to time, we also need a periodic financial checkup. As situations change in our lives, we need to make sure we are on track to meeting our future needs.
Many people think that by contributing to a 401(k) or individual retirement account or investing in certificates of deposit, they have taken care of their finances. However, financial planning encompasses much more than that. As our objectives and life circumstances change, our needs change as well. One of the functions of financial planning is to evaluate these changing circumstances and adjust your plan to continue to meet your needs. This is why an annual checkup is a good idea.
Think about these questions: “Am I paying too much in taxes?” “Will my retirement nest egg allow me to be comfortable in retirement?” “Are my investments meeting the goals I set for them?” These are just a few of the things you should consider when deciding if you need a financial checkup. Also think about any life changes that have occurred, such as the birth of a child, a marriage, or a job change. I recommend that we get together annually to talk about these types of issues.
It’s always comforting to know you are on the road to a healthy financial future. Please call or e-mail me if you are in need of a financial checkup.
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Practical Implications of Investment Theory
Many investment principles used to develop
investment portfolios derive from one investment theory - the
capital asset pricing model. What exactly is this theory, and
how does it apply to your investments? The capital asset pricing model was developed
over 50 years ago by Harry Markowitz, who won a Nobel Prize for
his work. His theory centers on the concept that adding an asset
to a portfolio that is not highly correlated with other assets
in the portfolio can reduce the portfolio's variation risk.
[FULL ARTICLE]
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Using Average Returns in an Investment Program
When setting up an investment program, the
assumed rate of return is typically an average annual return for
some historical period. While that is generally viewed as a conservative
approach, there are some problems with using an average return.
[FULL ARTICLE]
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What Are ILITs?
Typically, irrevocable life insurance trusts
(ILITs) have been used to help pay estate taxes through the use
of life insurance proceeds not considered part of the deceased's
estate. The trust receives the life insurance proceeds free of
estate and income taxes. But with the uncertain future of estate
taxes, you may wonder whether ILITs are still a valid estate planning
strategy.
[FULL ARTICLE]
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Debt Free in 2007
Increasing debt levels can make it difficult
to achieve your financial goals. If a significant portion of your
income is going toward debt payments, that leaves less available
to put aside for your financial goals. While it may be difficult
to achieve debt-free status when you own a home with a mortgage,
it is a reasonable goal to owe no debts other than your mortgage.
To help you with that goal, consider the following steps.
[FULL ARTICLE]
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How Much Do You Need for Retirement?
One of the most critical factors in determining
how much you need to accumulate by retirement age is how much
annual income you'll need in retirement. But if that retirement
date is years or decades away, it may be difficult to come up
with a reasonable estimate of your income needs.
[FULL ARTICLE]
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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
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Published by
Sarah M. Place
Copyright © 2007 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.
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TELL A FRIEND
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