Cedarville Magazine Spring 2013 Volume 1 Issue 1

GET YOUR F INANCIAL HOUSE

The recent national news has been consumed with tax hikes, debt ceilings, and fiscal cliffs. It’s enough to make you wonder (perhaps aloud), “Does anyone in Washington know how to balance a checkbook?” We may feel powerless to fix the complex problems in our national economy, but we have direct responsibility over

our household economies. Cedarville Magazine asked six professional financial planners to share some tips to get your personal financial houses in order, no matter your stage in life. The opinions below are not meant to be comprehensive financial advice. For help with your specific questions, please consult a financial planner in your area.

Single Professional The trend in America seems to be that recent college graduates are delaying marriage and family in order to focus on building their careers. This provides them with

Single Parent/ One-Income Whether you’re a single parent or a family

Dual-Income It’s often assumed that dual-income families are more

financially secure than their single-earner counterparts, but additional earnings only provide long-termsecurity with strict saving goals and spending limits. Here’s how to make real financial progress: Today: ƒ ƒ Create a weekly spending limit. ƒ ƒ Develop an aggressive plan to become debt-free. ƒ ƒ Put aside $1,000 and then work up to six months of living expenses. ƒ ƒ Maintain term life insurance coverage on each adult. ƒ ƒ Take advantage of your company’s retirement match, then work up to contributing the maximum amount. Tomorrow: ƒ ƒ Aim to direct 20–40 percent of your total income to savings, including retirement. ƒ ƒ Open IRAs and work up to contributing the annual maximum. ƒ ƒ Open a 529 college savings account and begin monthly transfers for each child. ƒ ƒ Write your will, establish power of attorney, and determine plans for your dependents. Long-Term: ƒ ƒ Discuss the cost for permanent life insurance vs. new term policies. ƒ ƒ Calculate resources you will need to retire, and adjust savings accordingly.

living on a single income, it is important to get organized financially. Money may be tight, so you have to be smart with what you have.Managing yourmoneywell will protect your family now and in the future. Today: ƒ ƒ Find someone within your family or church who can help you create a monthly budget and a personal financial statement. Determine: What do I own? Whomdo I owe?What is my net worth? What debts do I need to attack first? Tomorrow: ƒ ƒ Establish an up-to-date will that addresses guardianship for your minor children. Long-Term: ƒ ƒ Build and maintain an emergency fund with three to six months of living expenses. ƒ ƒ Pray about your finances and seek God’s wisdom for this important path in your life. ƒ ƒ Make retirement saving a priority. Time is money’s best friend, and procrastination its worst enemy.

a great opportunity to secure themselves financially, if they make sound decisions. Paying off debt and beginning to save money—along with learning to go without luxuries in the short term— will pay off in the future. Today: ƒ ƒ Give 10 percent of your income to your church or other charitable organizations. Give more as your income increases. ƒ ƒ Put 10 percent of your income into long-term or retirement savings. ƒ ƒ Use 20 percent of your income to pay off your debt. Debt keeps you up at night. Get rid of it. ƒ ƒ Live on the remaining 60 percent. Tomorrow: ƒ ƒ Continue to pay off high-interest debt (credit cards or student loans). Long-Term: ƒ ƒ Obtain high-quality health insurance.

Nate Sowder ’08, WMS Pillar Advisory Group Raymond James & Associates Dayton, Ohio

Steve Houg ’97, CFP® VisionPoint Advisory Group West Des Moines, Iowa

Carrie (Bassett) Ward ’01, CFP® Harlan Miller & Associates Dayton, Ohio

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