Bank Accounts: What To Look and Ask For

Bank Accounts: What To Look and Ask For

What type of account should you keep your money in at a bank or savings and loan association? How can you find the account that will charge you the least amount of money for the services you need? This Financial Guide helps you choose the most cost-effective type of account. TABLE OF CONTENTS Comparing Types Of Accounts Choosing An Account Getting A Better Deal Protecting Your Account Using Electronic Fund Transfers Correcting Errors Common Questions About Pre-Authorized Plans Government and Non-Profit Agencies Bank accounts are a basic part of managing your money and nearly everyone has a bank account of some sort, whether it’s a checking, savings, or money market account. Features and costs of accounts can vary greatly among institutions, so it is important to shop around when looking for a new account. You should also ask questions and negotiate fees and services with your current account. You may discover that you do not need to pay many of the fees you are currently paying. This Financial Guide discusses the various types of bank accounts, and provides suggestions for finding the lowest-cost account that will provide you with the services you want. In addition, it tells you what you need to know about Electronic Funds Transfers – how to get the best use from ATM cards, pre-authorized transfers, and point-of-service payments. COMPARING TYPES OF ACCOUNTS The accounts offered by depository institutions generally fall within one of these types: 1. CHECKING ACCOUNTS With a checking account you write checks to withdraw your deposited funds from the account. Checking accounts provide you with quick, convenient and frequent access to your...

Investment Options: Frequently Asked Questions

TABLE OF CONTENTS What are the steps in the investment process? What types of risks are involved in investing? What steps can I take to avoid unnecessary risks? What questions should I ask before making any investment? What questions should I ask before making a mutual fund investment? What investment hazards should I look out for? What should I invest my IRA in? What are derivatives and options? How can I avoid the most-frequent money-losing mistakes? What is the difference between my cumulative return and annualized return? What is the rule of 72? What is “Total Return” and why is it important? How does “yield” differ from “total return”? Can I measure my return as the increase in the value of my portfolio over a given period? WHAT ARE THE STEPS IN THE INVESTMENT PROCESS? The investment process is comprised of several steps that enable you to select a portfolio appropriate to your risk tolerance and desired return. The primary steps in this process are: Determine your desired return and risk tolerance Develop an asset allocation plan Select diversified investments within each asset class Monitor your investments Q: How are risk and return related? A: Risk and return are positively correlated. The higher the risk of an investment, the higher a return it must offer in order to compensate for the risk. Risks comes in many forms such as the volatility of the market, inflation risk, interest rate risk, and business risk. You must determine the degree of risk that you are willing to tolerate. Your investment professional can assist you in this process. Select the level of risk that...

Developing a Financial Plan: Frequently Asked Questions

TABLE OF CONTENTS How do I determine my long-term financial goals? Is there any validity to financial planning “rules of thumb”–such as “saving 10% of your gross income”? What do women in particular need to keep in mind with regard to financial planning? What special problems do unmarried couples have to be concerned with in financial and estate planning? HOW DO I DETERMINE MY LONG-TERM FINANCIAL GOALS? The first step is to decide what you realistically want to achieve financially. Financial goals might include: early retirement, travel, a vacation home, securing your family’s financial comfort on the death of a bread-winner, planning for the care of elderly relatives or building a family business. IS THERE ANY VALIDITY TO FINANCIAL PLANNING “RULES OF THUMB” SUCH AS “SAVING 10% OF YOUR GROSS INCOME”? The following rules of thumb may work for some people, but they do not make financial sense for everyone. What is more important is to be able to know whether a particular rule of thumb suits your situation. Here are six of the more common rules along with some considerations that should not be overlooked. 1. Life insurance should equal five times your yearly salary This rule of thumb has been used to answer the question: How much life insurance should I have? The ideal amount of life insurance is the amount that will, when invested, generate enough income to allow your survivors to maintain the level of income they are used to. “Five times your salary” will accomplish this objective in some cases, but there is no substitute for making the calculations necessary to find out how much life...
Budgeting: How To Prepare a Workable Plan

Budgeting: How To Prepare a Workable Plan

A budget is an essential component of your financial plan. Not only does it force you to monitor your spending, it enables you to focus on which items (such as loans and credit card debt) you can pay off or pay down so that you can accumulate funds for retirement, education, or buying a home. Here is a guide to effectively organizing and keeping a check on your expenses. TABLE OF CONTENTS Step 1: Analyze Your Income And Expenses Step 2: Set Budgeting Goals Step 3: Create Your Budget Step 4: Review Your Adherence To The Budget Recommended Books While this Financial Guide offers you guidance on how to develop a budget that works for you and your family, don’t hesitate to contact your financial advisor if you need additional assistance. Note: The budget guidelines suggested here are intended for people who need to rein in their spending or have no idea what they spend their money on every month. If you have a good grasp of your cash inflows and outflows and have your spending under control, there may be no need to prepare a budget plan. Related Financial Guide: Please see the Financial Guide: YOUR FINANCIAL PLAN: Getting Started On A Secure Future. Note: Personal-finance computer software programs such as Quicken make it easy to set up a budget. If you have such a program, then simply follow the guidelines that the software gives you and use the information contained here as a guideline. STEP 1: ANALYZE YOUR INCOME AND EXPENSES The first thing you need to do is to review your income and spending for the past year. This “cash-flow...
Your Financial Plan: Getting Started On a Secure Future

Your Financial Plan: Getting Started On a Secure Future

This Financial Guide tells you how to begin the financial planning process. It provides worksheets to help you find out where you are financially and where you want to be in the future. It will help you identify your goals, determine your net worth and cash flow, plan to achieve your goals as well as begin to put your plan into action. TABLE OF CONTENTS Identify Your Goals Determine Your Net Worth Determine Your Cash Flow Plan To Achieve Your Goals Establish How Much You’ll Need Put The Plan Into Action Financial security derives not only from acquiring more money, but from planning. A solid financial plan can alleviate financial worries about the future and ensure that you will meet your financial goals-whether they relate to retirement, asset acquisition, education, or just vacations. Tip: Review your financial plan every year to keep it up to date. If you set it up properly initially, it is relatively easy to review and keep current. This Financial Guide allows you to take the first step towards a solid plan. By following the instructions and guidelines contained in it, you can find out where you are now and how you can put your plan into action. There are many ways to approach setting up a financial plan. The one outlined in this guide is just one of a number of approaches. Your financial advisor can assist you in setting up the financial plan that best meets your particular situation and needs. IDENTIFY YOUR GOALS Spend some time thinking and talking with family members about what you would like to achieve financially. What would make...