So, many of you know that my other half is a financial advisor...and for those of you that know me you might ask "how did Natalie ever marry someone whose job is to make sound financial decisions?" I love to shop, and truthfully the thought of cutting back on my spending habits is not an easy thing to swallow, but I must say that I take a great amount of comfort in knowing that someone (Jeremy) is looking out for our future and planning for us. So yesterday I was sifting through my mail and received a statement from his company along with a brochure called Financial Focus. I typically throw these things out, but something made me read it and I think it contained some pretty good advice. I know that the stock market can be a scary thing to invest in these days, but there are all sorts of options and what's more is that history has proved that as an economic system, capitalism tends to swing from good times to bad and bad to good, therefore it is a cycle and good economic times will come again. I know that lots of us make these goals for the New Year to loose weight or get out of debt, so I thought I might share a few investment strategies that they recommended for 2009: - Make sure you're investing enough: Plan for retirement - based on inflation everything you buy today will likely cost twice as much in 24 years.
- Allocate your investments properly: This is one of the most important decisions you will make. The best mix of investments it the one that you can stick with in good times and in bad to help achiever your long-term goals.
- Diversify completely: Diversification cannot prevent a loss; in other words, it can't completely insulate you from the effects of the economy and other external factors. But if done properly, diversification can help you avoid complete disaster when the economy experiences downturns.
- Contribute the maximum to your IRA: $5,000 per year or $6,000 for those over age 50.
- Increase your 401(k) contributions: 401(k)'s are excellent savings vehicles because contributions are typically made before taxes and many employers offer matching dollars.
- Build an emergency fund: Protect yourself and your investments by putting away 6-12 months' worth of living expenses in a liquid account and use the money for emergencies only.
- Cut your debts: sounds easy, but can be hard to achieve. Yet every dollar that doesn't go toward a debt payment can be invested for your future. Look for ways to cut your costs and strive to live within your means.
- Contribute the maximum to your IRA: $5,000 per year or $6,000 for those over age 50.
- Increase your 401(k) contributions: 401(k)'s are excellent savings vehicles because contributions are typically made before taxes and many employers offer matching dollars.
- Build an emergency fund: Protect yourself and your investments by putting away 6-12 months' worth of living expenses in a liquid account and use the money for emergencies only.
- Cut your debts: sounds easy, but can be hard to achieve. Yet every dollar that doesn't go toward a debt payment can be invested for your future. Look for ways to cut your costs and strive to live within your means.
