Six simple steps to financial success
Posted on Mar 8, 2017
1. If your employer offers a 401(k) plan, use it. For a variety of reasons, it is often going to be your most attractive investment opportunity. Most employers will match a portion of your contributions, making your effective returns higher. If you contribute $1,000 to your plan, for example, and your employer matches that at 50 cents on the dollar, your contribution is actually worth $1,500. A 401(k) also offers tax advantages on contributions and investment gains. Finally, it puts your contributions on autopilot via systematic payroll deductions. That makes it less likely you’ll skip contributions, and also lets you take advantage of the powerful benefits of dollar-cost averaging. (Dollar cost averaging does not ensure a profit, nor does it protect against losses in a declining market. Because dollar cost averaging involves continuous investing, investors should consider their long-term ability to continue to make purchases through periods of low price levels.)
Simply put, your regular, fixed-dollar contributions buy more shares when prices are low, and fewer when they’re high.
2. Understand your investment horizon. Many people underestimate how long their retirement savings will need to last, which can lead to a host of mistakes. Some invest too conservatively, making it hard for their portfolios to keep pace with inflation. Others draw down their assets too quickly in retirement, boosting the odds that they’ll run out of money in old age. The average 65-year-old in good health can expect to live about 20 more years. Your investment strategy should reflect the possibility that you will not only meet, but perhaps exceed, the life expectancy averages.
3. Don’t underestimate the corrosive effects of inflation – even at low levels. At a rate of just 2 percent, inflation cuts the buying power of a dollar by a third in about 20 years. At 3 percent, it does the job in 14 years. Make sure your portfolio includes some assets, like stocks, that historically have outperformed inflation over long periods of time.
4. Diversify your investment portfolio, but understand that you will need to do more to mitigate longevity risk. Diversification is the simplest and most effective approach to managing investment risk, but is ineffective at managing many other threats to your financial security. Longevity risk, for example – the risk of outliving your savings – is best managed by pooling your risk with other investors. One way to do that is with an annuity contract issued by an insurance company. Certain annuity contracts work like old-fashioned pension plans, paying a fixed income for life. (Guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company.) Some include escalation clauses that increase your payout over time to keep pace with inflation. Knowing that you have provided for your basic living expenses with an annuity can provide the reassurance you need to take a long-term perspective on stocks and other growth-oriented investments – the ones your portfolio needs to keep pace with inflation.
5. When investing in stocks, don’t confuse where a company is headquartered with where it earns its money. Many people are looking to capitalize on investments in the fast-growing emerging economies of Asia, Latin America and Eastern Europe. Often, though, emerging-market companies are not fueled by growth in their own economies. Many are mining or other natural resources firms whose results are driven by global commodity prices. Rather than investing directly in emerging markets, a better alternative for many people is to invest in U.S. companies that do business globally. Many of these companies have brands that are household names in emerging markets, and some even earn more overseas than they do in the U.S. In fact, a large share of the profits of the companies in the Standard & Poor’s 500 Stock Index is generated outside the U.S. Bottom line, you already enjoy substantial global diversification with U.S. stocks.
6. Don’t be afraid to ask for help. The ever-expanding array of alternative investments can seem overwhelmingly complex, and may require frequent and ongoing attention. Rather than trying to do it yourself, consider working with a financial professional. Getting their advice on matters critical to your financial well-being will usually make good fiscal sense.
Editor’s Note:
Insurance products issued or offered by Thrivent Financial for Lutherans, Appleton, WI. Not all products are available in all states. Securities and investment advisory services are offered through Thrivent Investment Management Inc., 625 Fourth Ave. S., Minneapolis, MN 55415, 800-847-4836, a FINRA and SIPC member and a wholly owned subsidiary of Thrivent Financial for Lutherans. Thrivent Financial representatives are registered representatives of Thrivent Investment Management Inc. They are also licensed insurance agents/producers of Thrivent Financial for Lutherans.
Deposit and lending services are offered by Thrivent Federal Credit Union, a member-owned not-for-profit financial cooperative that is federally insured by the National Credit Union Administration and doing business in accordance with the Federal Fair Lending Laws. Insurance, securities, investment advisory and trust and investment management accounts and services offered by Thrivent Financial for Lutherans or its affiliates are not deposits or obligations of Thrivent Federal Credit Union, are not guaranteed by Thrivent Federal Credit Union or any bank, are not insured by the NCUA, FDIC or any other federal government agency, and involve investment risk, including possible loss of the principal amount invested.
For additional important disclosure information, please visit Thrivent.com/disclosures.
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With the right approach, former homeowners can get on the path to homeownership again
Posted on Mar 1, 2017
When the housing bubble burst, a staggering number of Americans were affected – 4.8 million borrowers lost a home to foreclosure while a further 2.2 million gave up their homes in short sales, according to national data by RealtyTrac. The recovery of the housing market has been slow, but the confidence of once-foreclosed-upon homeowners has grown along with it. Sixty-five percent of Americans in Fannie Mae’s national monthly housing survey for April said they would rather buy a home rather than rent if they were going to move. With a new perspective on saving and making wise investments, many of those affected are now eager to get back to being homeowners.
Many former homeowners have learned difficult lessons, and their road back to homeownership will be signposted with challenges. However, it may be possible for them to regain their dreams. These tips from Wells Fargo, the nation’s leading mortgage lender, may help set prospective buyers on the right path:
* Talk to a reputable lender about owning a home again. Having someone on your side to help you through the process is important, but it’s essential that that person has the experience and knowledge to help you make an informed, affordable lending choice. An experienced lender can explain the time limits that affect buyers who faced foreclosure or short sale; there is generally a set amount of time that needs to pass before you’re eligible to be considered again for mortgage approval. Wells Fargo has a mortgage presence in 2,358 locations including stand-alone mortgage stores and other business partner sites. Go to www.wellsfargo.com/mortgage to find a home mortgage consultant near you.
* Make an honest assessment of your credit situation. In the current mortgage approval environment, having a foreclosure or short sale on your financial record will affect what options you may have for loan approval. You can access your credit report from any of the three agencies by going to www.annualcreditreport.com; everyone is entitled to a free annual report. If you need help in making sense of your financial status and information on how to improve it, you can talk to a Wells Fargo Home Mortgage consultant about the My Home Roadmap(SM) service. Those enrolled in My Home Roadmap receive up to two hours of free, phone-based financial coaching from an accredited credit counseling agency, paid for by Wells Fargo. Enrollees also receive emails from Wells Fargo Home Mortgage consultants that provide useful tips and reminders on handling the financial responsibilities of homeownership.
* Prepare a down payment. Homebuyers re-entering the housing market after foreclosure or short sale typically need to have a down payment – in most cases 20 percent – ready before purchasing a home. In addition to those funds, think about additional expenses you might have to pay, such as closing costs. Showing the ability to handle the financial responsibilities of homeownership beyond the monthly mortgage payment like taxes, homeowner’s insurance, utilities and other household expenses will be extremely important in achieving loan approval.
* Get preapproved. It’s a good idea for prospective homebuyers, even those who are re-entering the market, to work with lenders who offer a pre-approval program. The preapproval process helps borrowers determine and understand their budget before diving into a home search, allowing them to shop more confidently.
Homeownership is still part of the American dream, even for those who’ve dealt with foreclosure. To ensure that your next home is your dream home, plan carefully, get help and take a proactive approach to answering the tough questions.
Five steps to impact community health positively through education
Posted on Mar 1, 2017
Health education is a rewarding career for many. You don’t have to be a doctor or a nurse to become involved. It takes professionals in accounting, research, law and administration – as well as individuals who enjoy working with people – all collaborating to improve the well-being of others. Why care about community health? Several reasons, according to the Association of Schools of Public Health’s website, What is Public Health?, are: the importance of improving access to health care, controlling infectious disease and reducing substance abuse.
Here, she outlines five steps to implement a successful health program.
Is kitchen remodeling cost-effective?
Posted on Feb 22, 2017
So, you have made the decision to remodel your home. Kitchen remodeling is one of the first rooms that homeowners explore with regard to renovations. The kitchen is the main gathering place in the home for families and friends. It is the area where socialization happens frequently, so it makes perfect sense to choose to remodel this room in your home first. The project can be extremely fun and should be looked upon as such. There are so many small changes that can be made to completely transform this room that it is mind boggling. Let us talk a bit about whether this remodeling project is a sound financial decision.
First, you should look at the long-term picture. Are you remodeling the kitchen for your own preferences, or will you be selling the home at any point in the future? In either case, renovations to the kitchen can help save money in the future, however, if you are planning to stay in the home, your choices can help save on your monthly utility bills. You can opt for new energy efficient windows that can save you on your monthly electric payments. You can also install low flow faucets to save on water consumption. Buying appliances that are more energy efficient is a great investment and you will also experience personal satisfaction that your new kitchen is more operational and updated.
If you are planning on selling your home in the future, you can expect a very significant return on your investment. If you ask any realtor, they will tell you that one of the first things a potential buyer is interested in is the kitchen. If your kitchen is fresh and updated with contemporary finishes (counters, cabinets, flooring) it will make your home stand out against homes that have a more dated kitchen. You can expect to get a return of at least 40% of your remodeling investment when you go to list your home.
A home kitchen makeover is a very prudent choice, especially if you can only remodel one room. The kitchen is central to the home and you spend a lot of time there cooking, eating and socializing. The benefits of new and updated appliances, and other elements far outweigh the costs you may incur. You will be surprised at how far you can get on your proposed budget, and you’ll be left with the feeling that it was money well spent.
by: Leonard Simmons
http://www.articlecity.com/articles/home_improvement/article_7310.shtml
Business loans – spruce up your business
Posted on Feb 15, 2017
With this kind of loan, you can buy raw materials, equipment or office furniture to stay ahead in this highly competitive business world, where various businesses of the same nature crop-up every other day. These loans are a sure-shot way to survive here and emerge as winners. In addition to this, you can hire more employees to offer quality customer service to all clients and promote your business like you always desired. Whether it is cash that a borrower need desperately or you simply wish to spruce up your current business, these loans can do it for you without delay.
More often than not, a young business entrepreneur approaches either money-lending firms or banks for a loan needed to start a business. However, in this day and age, you can apply for it from the comfort of your home. It is the online mode of application that has enabled a large number of people to fetch instant funds. The Internet is just the right tool to search for such loans. Ever mounting competition midst online money-lenders has proven beneficial for borrowers, for they have a range of options to choose from. You can choose the one that fits your existing business needs and is available at reasonable interest rates.
Even those who have a faltering credit background can finance their new business with these loans. Obtaining this financial assistance is not at all an easy job if you are living with tags like insolvency, county court judgments, arrears, foreclosures, non payments or late payments, individual voluntary arrangements or defaults. However, with these loans even they can grab funds without giving a second thought.
Business loans tend to carry a high rate of interest. It is, therefore, suggested that you only get this loan after conducting the proper research. Make sure that you spend the acquired amount carefully so that you have sufficient funds at the later stage. Compare online quotes before making any decision. Funds to start a new business are just a few clicks away.
by: James Addevsen
Eclectic design trends breathe new life into your room
Posted on Feb 14, 2017
Homeowners who want to express their own unique style can blend a mix of traditional and contemporary elements, says Erinn Valencich, L.A.-based designer and blogger for HGTV’s Design Happens. Whether it’s neutral colors with a bold chair or a formal fireplace with art deco accessories, homeowners can create a space that is both comfortable and dynamic.
“Attractive eclecticism can help make your home space a truly accurate reflection of your individuality,” says Valencich. “Combining shapes, styles and colors makes a very original statement.”
Set a good foundation
Eclectic style can include a variety of periods and styles and is connected through the use of color, texture, shape and finish. With such a bevy of decor options, an eclectic room can easily turn chaotic. That’s why Valencich recommends starting with a good foundation, the floors.
“I like to design a room from the ground up,” she says. “A new floor is a great place to start for a fresh look and feel; floors not only ground the room, but they provide the design foundation.”
“A good strategy when designing an eclectic room is to start with a neutral colored floor to help tie all the elements together,” says Valencich. “Grey toned floors are the latest design trend and they open up the possibilities for a wide range of decorating styles and color palettes.”
A neutral color floor isn’t “blah” or unattractive, adds Valencich. A floor like Quick-Step’s new Reclaime flooring in Heathered Oak serves as a pleasing canvas to create your eclectic room design, while also adding an attractive level of style and artistry to a room. This floor gives the same visuals and charm of a hardwood floor constructed from reclaimed, vintage wood which adds depth and personality to the room.
Another advantage to a neutral color floor is that as your room decor changes through the years, your floor will transition nicely.
“The great thing about spaces decorated in an eclectic style is they can easily be changed depending on mood, inspiration and budget,” she says. “That’s why it’s important to have flooring that is versatile enough to adapt to your changing style.
Design principles
An eclectic room doesn’t have to be a hodgepodge or random assortment of items. “Have a planned and deliberate design,” says Valencich. “Eclectic rooms benefit from the same principles of design seen with other styles.”
* Balance. “Edit your collection to create harmony and focal points,” she says. “Practice moderation with your pieces.”
* Harmony and unity. “Group objects that work well together,” she adds. “For example, use different chairs around your dining table, but paint them the same color to unify the look.”
* Scale and proportion. “A mix of small, medium and large pieces helps balance out a room and keeps it from looking cluttered,” she says.
Valencich says to keep the design principles in mind while mixing unexpected pieces to create a gorgeous effect.
* Create a tidy grid of art to balance out weathered pieces and graphic patterns.
* Use nature to help create your eclectic look. Airy flower arrangements atop a dark, antique table give a balance of dark and light colors.
* Play with textures in your room. From an old frame with the paint peeling to nubby rugs to silky pillows, textures keep the room interesting and inviting.
* Let your personality shine through with what you love. Do you have a collection of seashells or other trinkets? Use those pieces in an everyday nook.
“As you create your own eclectic look, remember to be adventurous and a little daring,” says Valencich. “The most unexpected pairings can make the most refreshing looks.”
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