Variable Annuity Comparison

The current economic crisis is making everyone think about how to protect their money and the financial security of their family. Here are 45 tips to protect your money during and after an economic crisis. These tips have been taken from Surviving the Debt Crisis.

1. If you wish to achieve real wealth, focus on acquiring assets that are valued by other people. Concentrate on allocating you money across different types of assets, including some whose value might rise where others that you have face a fall in their value.
2. Decide whether you might be better off making extra mortgage payments or putting that money into investments.
3. Be careful with investments; do not fall for flattery or let yourself be convinced by claims that their past performance is necessarily a true indicator of future prospects.
4. If you get plenty of money, it is advisable that you invest the entire amount at once and not with intervals between. Diversify your investments as suggested in Point 1.
5. Making big investments just to avoid taxes is a decision that requires careful consideration and access to premium, probably high-cost professional advice.
6. If you plan to studying in college, compare the college saving plans to find those which give you the best options.
7. Coins are “little savings”, so do not spend them. Try saving coins and use the paper currency; you will see that you have effortlessly saved more by the end of the month.
8. Buy a house only when you are willing to move into it immediately and live for at least a minimum of five years.
9. Instead of hiring young members of your own family or giving them a portion of your money when they are young, place your inheritance into a trust until your minors are sensible enough to handle the money.
10. Supermarket coupons can be a great help, provided you know the right way of using them.
11. Do not run after high returns without considering that ‘A great reward may have a greater risk’.
12. Have you noticed people who buy lottery tickets each day? Buying more tickets does not significantly increase your chance of a major prize but inflates your risky investment significantly.
13. Both parents working may seem to be necessary at the moment, but you may not think so if you calculate the extra expenses involved such as lunch, commuting, wardrobe, childcare, etc.
14. Be careful which pension plan you opt for. Check that the agent is not selling you insurance instead of a pension.
15. Check out your life insurance policy and whether it is a good investment. Remember, an insurance policy is to protect you and not just for the company and their agent to profit from you.
16. Maintaining your investments through all cycles is the key to being invested in the right time. This may make your success rate higher rather than investing and then withdrawing from time to time because of the fees and other costs at each change.
17. Avoid using a credit card as much as possible, because you end up spending extra with it. Instead, you can go for a charge card, which makes you pay what you spend each month.
18. When you plan to buy a home, go for a buyer-broker. Realtors are the ones who represent the seller, unless you are hiring a buyer-broker who is the one who represents you.
19. Investing the same amount regularly is said to be the best way of using dollar cost averaging.
20. Instead of a fifteen-year mortgage plan, go for a thirty-year mortgage if the longer mortgage means lower monthly payments and a higher tax deduction.
21. Consider applying for a systematic withdrawal plan rather than applying for bonds if this will provide a steady flow of income even after your retirement.
22. Check that your bank accounts are insured federally. The FDIC, or the Federal Deposit Insurance Corporation protects deposits up to around two hundred fifty thousand dollars per person. If you have, more than the secured amount, you may spread it through various banks.
23. If you want annuities, consider sticking to the variable and not the fixed type. A fixed annuity has a fixed return but a variable annuity gives you a chance to earn the full return.
24. Grandparents often plan college funds for their grandchildren but, I believe that this requires very careful thought beforehand.
25. Do not purchase a mutual fund just because it is highly rated. Different funds, even a mutual fund that has just a single star may do exceptionally well in certain periods.
26. The money that you may need in the next two years must be cash or fairly easy to convert to cash. The stock market is not a place to store the money that you might need immediately.
27. You can invest globally, not just in the U.S.A. exchanges.
28. Keep a careful eye on your family budget; try to reduce your expenses, curtail your restaurant meals and other un-necessary expenses that may cause a future burden.
29. When you want financial advice, only accept it from a registered investment advisor. A stockbroker is not the right person to advise you on your general finances.
30. Write a check for yourself and save it first. This is an efficient, almost painless, way of saving.
31. Do not include your child’s name is investments or bank accounts; this may mean that your other children might be disinherited and might cause tax problems.
32. When you sell a home, go to a qualified realtor and get referrals from people you trust.
33. Do not buy real estate investments with borrowed funds.
34. Stopping your PMI when you have around 20% of the equity on your home left might save many hundreds of dollars.
35. Buying mortgage life insurance should be considered carefully. Separate insurance might be a better option.
36. If you contribute to a nondeductible IRA account is not a great idea, maintain a proper record or you may suffer serious losses.
37. If you are 62 years of age now, you may be able to take a social security instead of waiting until you are 65.
38. Money handling processes have changed, so do not stick to how your parents handled their money.
39. While getting a pension, consider choosing a lump sum option where you can take control of your money and your future.
40. While leasing the car, consider not paying for the cap cost reduction and perhaps get gap insurance instead.
41. Saving money in your child’s name may not be a good idea. You will have to part with the money once your child turns 18 or 21.
42. Instead of saving for your children’s college costs, consider starting to save for your own retirement first.
43. Investing in a QTIP trust might be a good way of protecting your kids and spouse.
44. Consider taking a policy that provides five or six years benefits instead of investing in long-term care insurance.
45. Do not panic or worry; this will take you nowhere. It is not necessary that you take in all the gloom that the media throw at you.

Learn how to better protect you and your family in the current crisis, with this informative and easy to understand e-guide to Surviving the Debt Crisis.

The current economic crisis is making everyone think about how to protect their money and the financial security of their family. Here are 45 tips to protect your money during and after an economic crisis. These tips have been taken from Surviving the Debt Crisis.

1. If you wish to achieve real wealth, focus on acquiring assets that are valued by other people. Concentrate on allocating you money across different types of assets, including some whose value might rise where others that you have face a fall in their value.
2. Decide whether you might be better off making extra mortgage payments or putting that money into investments.
3. Be careful with investments; do not fall for flattery or let yourself be convinced by claims that their past performance is necessarily a true indicator of future prospects.
4. If you get plenty of money, it is advisable that you invest the entire amount at once and not with intervals between. Diversify your investments as suggested in Point 1.
5. Making big investments just to avoid taxes is a decision that requires careful consideration and access to premium, probably high-cost professional advice.
6. If you plan to studying in college, compare the college saving plans to find those which give you the best options.
7. Coins are “little savings”, so do not spend them. Try saving coins and use the paper currency; you will see that you have effortlessly saved more by the end of the month.
8. Buy a house only when you are willing to move into it immediately and live for at least a minimum of five years.
9. Instead of hiring young members of your own family or giving them a portion of your money when they are young, place your inheritance into a trust until your minors are sensible enough to handle the money.
10. Supermarket coupons can be a great help, provided you know the right way of using them.
11. Do not run after high returns without considering that ‘A great reward may have a greater risk’.
12. Have you noticed people who buy lottery tickets each day? Buying more tickets does not significantly increase your chance of a major prize but inflates your risky investment significantly.
13. Both parents working may seem to be necessary at the moment, but you may not think so if you calculate the extra expenses involved such as lunch, commuting, wardrobe, childcare, etc.
14. Be careful which pension plan you opt for. Check that the agent is not selling you insurance instead of a pension.
15. Check out your life insurance policy and whether it is a good investment. Remember, an insurance policy is to protect you and not just for the company and their agent to profit from you.
16. Maintaining your investments through all cycles is the key to being invested in the right time. This may make your success rate higher rather than investing and then withdrawing from time to time because of the fees and other costs at each change.
17. Avoid using a credit card as much as possible, because you end up spending extra with it. Instead, you can go for a charge card, which makes you pay what you spend each month.
18. When you plan to buy a home, go for a buyer-broker. Realtors are the ones who represent the seller, unless you are hiring a buyer-broker who is the one who represents you.
19. Investing the same amount regularly is said to be the best way of using dollar cost averaging.
20. Instead of a fifteen-year mortgage plan, go for a thirty-year mortgage if the longer mortgage means lower monthly payments and a higher tax deduction.
21. Consider applying for a systematic withdrawal plan rather than applying for bonds if this will provide a steady flow of income even after your retirement.
22. Check that your bank accounts are insured federally. The FDIC, or the Federal Deposit Insurance Corporation protects deposits up to around two hundred fifty thousand dollars per person. If you have, more than the secured amount, you may spread it through various banks.
23. If you want annuities, consider sticking to the variable and not the fixed type. A fixed annuity has a fixed return but a variable annuity gives you a chance to earn the full return.
24. Grandparents often plan college funds for their grandchildren but, I believe that this requires very careful thought beforehand.
25. Do not purchase a mutual fund just because it is highly rated. Different funds, even a mutual fund that has just a single star may do exceptionally well in certain periods.
26. The money that you may need in the next two years must be cash or fairly easy to convert to cash. The stock market is not a place to store the money that you might need immediately.
27. You can invest globally, not just in the U.S.A. exchanges.
28. Keep a careful eye on your family budget; try to reduce your expenses, curtail your restaurant meals and other un-necessary expenses that may cause a future burden.
29. When you want financial advice, only accept it from a registered investment advisor. A stockbroker is not the right person to advise you on your general finances.
30. Write a check for yourself and save it first. This is an efficient, almost painless, way of saving.
31. Do not include your child’s name is investments or bank accounts; this may mean that your other children might be disinherited and might cause tax problems.
32. When you sell a home, go to a qualified realtor and get referrals from people you trust.
33. Do not buy real estate investments with borrowed funds.
34. Stopping your PMI when you have around 20% of the equity on your home left might save many hundreds of dollars.
35. Buying mortgage life insurance should be considered carefully. Separate insurance might be a better option.
36. If you contribute to a nondeductible IRA account is not a great idea, maintain a proper record or you may suffer serious losses.
37. If you are 62 years of age now, you may be able to take a social security instead of waiting until you are 65.
38. Money handling processes have changed, so do not stick to how your parents handled their money.
39. While getting a pension, consider choosing a lump sum option where you can take control of your money and your future.
40. While leasing the car, consider not paying for the cap cost reduction and perhaps get gap insurance instead.
41. Saving money in your child’s name may not be a good idea. You will have to part with the money once your child turns 18 or 21.
42. Instead of saving for your children’s college costs, consider starting to save for your own retirement first.
43. Investing in a QTIP trust might be a good way of protecting your kids and spouse.
44. Consider taking a policy that provides five or six years benefits instead of investing in long-term care insurance.
45. Do not panic or worry; this will take you nowhere. It is not necessary that you take in all the gloom that the media throw at you.

Learn how to better protect you and your family in the current crisis, with this informative and easy to understand e-guide to Surviving the Debt Crisis.

Financial issues involved in a divorce – especially high net worth cases – can often become rather complicated.   Unreported income and hidden assets are often alleged in divorce proceedings, usually by the spouse who is either not running a business or has not been in charge of the family finances.

It is not uncommon for a spouse to hide assets, especially if the divorce has been planned for quite a while.  People hide assets for a variety of reasons, but essentially, they have property or money that they do not want to have discovered.

There are numerous ways to find hidden assets, but typically assets are either placed in the hands of third parties or behind false documents. The process of finding assets or proving unreported income is often one of the most difficult assignments during the divorce process. Being familiar with ways individuals move assets into the hands of third parties or behind false documents and techniques to find those hidden assets can result in the discovery of this property.

The cost of such discovery work must be weighed carefully against the potential benefits.  It is important for a budget to be planned for two levels of investigation. At the first level, formal discovery procedures such as interrogatories, depositions, subpoenas, requests to produce and motions to compel can provide information to review and analyze the marital and non-marital estates.

If an individual does not have a detailed list of assets and debts along with documents to prove the whereabouts of these assets, the discovery in identifying the “easy to find” estate can become costly.  At this point, a decision has to be made as to whether further money should be spent on the second level of discovery, which investigates and traces transfer of ownership of assets into  other individuals’ or entities’ names.

Is the cost of the investigation worth the potential value of the assets which are assumed, at this point, to be hidden? Through diligent and effective preparation, it is possible to discover assets not disclosed or acknowledged by the other party. It is important to create realistic expectations with the client as to the ability to discover assets which have been actively concealed, and the reality that – despite best efforts – it is sometimes impossible to locate willfully hidden assets.

In divorce situations, careful consideration must be given to answer any questions about about potential hidden assets.  What types of assets may be hidden? How are assets hidden? What techniques can be used to locate hidden assets?

WHAT ASSETS MAY BE HIDDEN?

The most common types of assets hidden are cash, bonds, mutual funds, cash value in insurance policies and variable annuities, stocks, travelers’ checks, Series EE savings bonds, and bearer municipal bonds.

Conversion of cash into personal property such as art, jewelry, collectibles, antiques, vehicles, boats and planes are also possibilities.  Hobby equipment, gun collections, original paintings, collector quality carpets and tools are examples of asset conversion that often are overlooked or undervalued.

HOW ARE ASSETS HIDDEN?

Methods of concealing assets are as varied as the personalities of the individuals involved. In their attempts to veil assets, spouses may often involve relatives or acquaintances who may or may not be aware of their complicity in the diversion of personal assets. It is not unusual to discover the placing of personal possessions or investment certificates into safety deposit boxes in the name of a family member or friend.

Paying down mortgages and credit card balances is yet another method of hiding funds in plain sight. Repayments of phony debts to friends or relatives can appear to be legitimate use of resources. Expenses for paramours such as gifts, travel, rent or tuition for college or classes may be disguised as valid outlays of funds.  Assets may be transferred into the name of another family member, friend or corporate entity.

Custodial accounts established under a child’s social security number as well as transfer of assets into pension, profit-sharing, 401(k), and Keogh plans are all strategies for cloaking liquid assets from the opposing party’s view. Employees can work in collusion with their employers to delay business contracts, raises or bonuses until after the divorce.

The transfer of large sums of money to trusts is one way individuals may attempt to disguise assets. Another is to gift money to individuals with the anticipation of having the money returned at a later date. These patently deceptive strategies may be fraudulent as well.

Spouses who own businesses may use the corporate entity to conceal assets. Skimming cash from the business, paying salary to nonexistent employees and then voiding the checks after the divorce, and paying salaries or fees to relatives or close friends for services that may never have actually been rendered then receiving the money back after the divorce is final are all strategies used by business owners to veil cash.

The value of a business prior to a divorce can be lowered artificially by delaying the signing of lucrative long-term business contracts until after a divorce settlement is reached. Unreported income on tax returns and financial statements can reduce the perceived value of a business to the detriment of the other party in the divorce.

WHAT TECHNIQUES CAN BE USED TO LOCATE HIDDEN ASSETS?

Prior to searching for hidden assets, the investigator must have accurate and timely personal identification information for the other spouse. This includes full legal name and variations (nicknames, abbreviations, common misspellings) as well as known aliases. Current and recent address information is essential. While some searches only need the name and not the address, it is always good to have both pieces of information.

Because assets may have been transferred to family members, the names and addresses of close relatives, their social security numbers and dates of birth will be valuable information in tracing movement of property or cash between the spouse and family.

Specific questions may reveal the likelihood of hidden assets evident through lifestyle.  Does the spouse travel?  If so, where?  In what type of hotels do they stay, and what are their activities as they travel?  Who makes up their group of friends and what type of people are they? Does the spouse get an automatic transfer of funds or an allowance? Does the spouse deposit a paycheck into a separate account?

1. Other telling information can be gleaned from answers to questions such as these. Is a credit card statement being mailed to the spouse’s work address?  Are large amounts of cash floating around?  Is cash used to pay for purchases?  Who are the spouse’s accountant and lawyer? Has the other party provided honest reports on prior tax returns? Is there ownership of a business?  If so, is it a cash business?  Is there a Subchapter S Corporation?

With this basic information in hand, the investigator can pursue specific information from many sources.  Here’s a quick list of information sources which should be reviewed.

1.  Income Tax returns: This should be the first place to look for possible clues as to the existence of hidden assets.  The return provides the roadmap to the discovery of income earning assets and asset sales.  The return should also describe the source of income, whether it be interest, dividends, rental income and gain or loss from the sale of a stock.  Each page of the tax return should be carefully examined for information.

2.  Public Records:  Public records are available in county courthouses, city halls and at state repositories.  These records contain valuable information that is public and available to anyone who inquires.  However, to be efficient with time and resources, one needs to be familiar with how to obtain the types of documents that will reveal asset holdings

Whether termed as obscuring, hiding, obfuscating, veiling or concealing assets, the many methods used by one spouse to prevent access by the other to cash, real, personal or business property can present a seemingly insurmountable wall for attorneys seeking parity or equitable division of marital assets for their client.  Due diligence demands exhaustive measures when unethical and/or fraudulent arrangements exist or are suspected. While it may be difficult to bring to light unreported income and hidden assets, clues can be found which are very meaningful to a trained eye, and can open the facts for fair final property settlements.

References:

Abrams Yu and Associates, P.C. “Problems of Hidden Assets in Divorce Litigation.” June 07, 2006. http://www.divorcenet.com/states/michigan/problems_of_hidden-assets (accessed April 30, 2009).

Elizabeth L. Bennett, Attorney at Law. “Hidden Assets in Divorce: Are They Discoverable?” Undated. http://www.divorcesource.com/PA/ARTICLES/bennett1.html (accessed April 29, 2009).

Hoover, Joe, and Anni Adkins and Dr. Lew Deitch. “How to Conduct an Assets Search – Part One.” HowToInvestigate.com. Undated. http://howtoinvestigate.com/articles/assets_search1.html (accessed April 29, 2009).

Hoover, Joe, Anni Adkins, and Dr. Lew Deitch. “How to Conduct an Assets Search – Part Two – Locating Hidden Assets.” HowToInvestigate.com. Undated.                                                                                 http://how to investigate.com/articles/assets_search2.html (accessed April 30, 2009).

Kohn, Mark: CPA, CVA. “Money Matters: Assets & Liabilities: Unreported Income and Hidden Assets.” California Divorce.Info. May 1, 2009. http://californiadivorce.info/money.assetsliabilities.unreportedincome-… (accessed May 1, 2009).

Meyer, Cathy. “How to Identify Hidden Assets.” About.Com Divorce Support. Undated. http://divorcesupport.about.com/od/propertydistribution/ht/hiddenassets.html (accessed May 30, 2009).

Pearlman, Alan. Chicago Family Law Blog: Divorce and Hidden Assets. December 13, 2005. http://www.chicagofamilylawblog_com/-news-and-updates-divorce-and… (accessed April 30, 2009).

Zerman & Mogerman, LLC. “Discovery and Treatment of Hidden Assets in Divorce Cases.” July 17, 2004. http://www.divorcenet.com/states/missouri/mo_art09 (accessed April 30, 2009).

The current economic crisis is making everyone think about how to protect their money and the financial security of their family. Here are 45 tips to protect your money during and after an economic crisis. These tips have been taken from Surviving the Debt Crisis.

1. If you wish to achieve real wealth, focus on acquiring assets that are valued by other people. Concentrate on allocating you money across different types of assets, including some whose value might rise where others that you have face a fall in their value.
2. Decide whether you might be better off making extra mortgage payments or putting that money into investments.
3. Be careful with investments; do not fall for flattery or let yourself be convinced by claims that their past performance is necessarily a true indicator of future prospects.
4. If you get plenty of money, it is advisable that you invest the entire amount at once and not with intervals between. Diversify your investments as suggested in Point 1.
5. Making big investments just to avoid taxes is a decision that requires careful consideration and access to premium, probably high-cost professional advice.
6. If you plan to studying in college, compare the college saving plans to find those which give you the best options.
7. Coins are “little savings”, so do not spend them. Try saving coins and use the paper currency; you will see that you have effortlessly saved more by the end of the month.
8. Buy a house only when you are willing to move into it immediately and live for at least a minimum of five years.
9. Instead of hiring young members of your own family or giving them a portion of your money when they are young, place your inheritance into a trust until your minors are sensible enough to handle the money.
10. Supermarket coupons can be a great help, provided you know the right way of using them.
11. Do not run after high returns without considering that ‘A great reward may have a greater risk’.
12. Have you noticed people who buy lottery tickets each day? Buying more tickets does not significantly increase your chance of a major prize but inflates your risky investment significantly.
13. Both parents working may seem to be necessary at the moment, but you may not think so if you calculate the extra expenses involved such as lunch, commuting, wardrobe, childcare, etc.
14. Be careful which pension plan you opt for. Check that the agent is not selling you insurance instead of a pension.
15. Check out your life insurance policy and whether it is a good investment. Remember, an insurance policy is to protect you and not just for the company and their agent to profit from you.
16. Maintaining your investments through all cycles is the key to being invested in the right time. This may make your success rate higher rather than investing and then withdrawing from time to time because of the fees and other costs at each change.
17. Avoid using a credit card as much as possible, because you end up spending extra with it. Instead, you can go for a charge card, which makes you pay what you spend each month.
18. When you plan to buy a home, go for a buyer-broker. Realtors are the ones who represent the seller, unless you are hiring a buyer-broker who is the one who represents you.
19. Investing the same amount regularly is said to be the best way of using dollar cost averaging.
20. Instead of a fifteen-year mortgage plan, go for a thirty-year mortgage if the longer mortgage means lower monthly payments and a higher tax deduction.
21. Consider applying for a systematic withdrawal plan rather than applying for bonds if this will provide a steady flow of income even after your retirement.
22. Check that your bank accounts are insured federally. The FDIC, or the Federal Deposit Insurance Corporation protects deposits up to around two hundred fifty thousand dollars per person. If you have, more than the secured amount, you may spread it through various banks.
23. If you want annuities, consider sticking to the variable and not the fixed type. A fixed annuity has a fixed return but a variable annuity gives you a chance to earn the full return.
24. Grandparents often plan college funds for their grandchildren but, I believe that this requires very careful thought beforehand.
25. Do not purchase a mutual fund just because it is highly rated. Different funds, even a mutual fund that has just a single star may do exceptionally well in certain periods.
26. The money that you may need in the next two years must be cash or fairly easy to convert to cash. The stock market is not a place to store the money that you might need immediately.
27. You can invest globally, not just in the U.S.A. exchanges.
28. Keep a careful eye on your family budget; try to reduce your expenses, curtail your restaurant meals and other un-necessary expenses that may cause a future burden.
29. When you want financial advice, only accept it from a registered investment advisor. A stockbroker is not the right person to advise you on your general finances.
30. Write a check for yourself and save it first. This is an efficient, almost painless, way of saving.
31. Do not include your child’s name is investments or bank accounts; this may mean that your other children might be disinherited and might cause tax problems.
32. When you sell a home, go to a qualified realtor and get referrals from people you trust.
33. Do not buy real estate investments with borrowed funds.
34. Stopping your PMI when you have around 20% of the equity on your home left might save many hundreds of dollars.
35. Buying mortgage life insurance should be considered carefully. Separate insurance might be a better option.
36. If you contribute to a nondeductible IRA account is not a great idea, maintain a proper record or you may suffer serious losses.
37. If you are 62 years of age now, you may be able to take a social security instead of waiting until you are 65.
38. Money handling processes have changed, so do not stick to how your parents handled their money.
39. While getting a pension, consider choosing a lump sum option where you can take control of your money and your future.
40. While leasing the car, consider not paying for the cap cost reduction and perhaps get gap insurance instead.
41. Saving money in your child’s name may not be a good idea. You will have to part with the money once your child turns 18 or 21.
42. Instead of saving for your children’s college costs, consider starting to save for your own retirement first.
43. Investing in a QTIP trust might be a good way of protecting your kids and spouse.
44. Consider taking a policy that provides five or six years benefits instead of investing in long-term care insurance.
45. Do not panic or worry; this will take you nowhere. It is not necessary that you take in all the gloom that the media throw at you.

Learn how to better protect you and your family in the current crisis, with this informative and easy to understand e-guide to Surviving the Debt Crisis.

The current economic crisis is making everyone think about how to protect their money and the financial security of their family. Here are 45 tips to protect your money during and after an economic crisis. These tips have been taken from Surviving the Debt Crisis.

1. If you wish to achieve real wealth, focus on acquiring assets that are valued by other people. Concentrate on allocating you money across different types of assets, including some whose value might rise where others that you have face a fall in their value.
2. Decide whether you might be better off making extra mortgage payments or putting that money into investments.
3. Be careful with investments; do not fall for flattery or let yourself be convinced by claims that their past performance is necessarily a true indicator of future prospects.
4. If you get plenty of money, it is advisable that you invest the entire amount at once and not with intervals between. Diversify your investments as suggested in Point 1.
5. Making big investments just to avoid taxes is a decision that requires careful consideration and access to premium, probably high-cost professional advice.
6. If you plan to studying in college, compare the college saving plans to find those which give you the best options.
7. Coins are “little savings”, so do not spend them. Try saving coins and use the paper currency; you will see that you have effortlessly saved more by the end of the month.
8. Buy a house only when you are willing to move into it immediately and live for at least a minimum of five years.
9. Instead of hiring young members of your own family or giving them a portion of your money when they are young, place your inheritance into a trust until your minors are sensible enough to handle the money.
10. Supermarket coupons can be a great help, provided you know the right way of using them.
11. Do not run after high returns without considering that ‘A great reward may have a greater risk’.
12. Have you noticed people who buy lottery tickets each day? Buying more tickets does not significantly increase your chance of a major prize but inflates your risky investment significantly.
13. Both parents working may seem to be necessary at the moment, but you may not think so if you calculate the extra expenses involved such as lunch, commuting, wardrobe, childcare, etc.
14. Be careful which pension plan you opt for. Check that the agent is not selling you insurance instead of a pension.
15. Check out your life insurance policy and whether it is a good investment. Remember, an insurance policy is to protect you and not just for the company and their agent to profit from you.
16. Maintaining your investments through all cycles is the key to being invested in the right time. This may make your success rate higher rather than investing and then withdrawing from time to time because of the fees and other costs at each change.
17. Avoid using a credit card as much as possible, because you end up spending extra with it. Instead, you can go for a charge card, which makes you pay what you spend each month.
18. When you plan to buy a home, go for a buyer-broker. Realtors are the ones who represent the seller, unless you are hiring a buyer-broker who is the one who represents you.
19. Investing the same amount regularly is said to be the best way of using dollar cost averaging.
20. Instead of a fifteen-year mortgage plan, go for a thirty-year mortgage if the longer mortgage means lower monthly payments and a higher tax deduction.
21. Consider applying for a systematic withdrawal plan rather than applying for bonds if this will provide a steady flow of income even after your retirement.
22. Check that your bank accounts are insured federally. The FDIC, or the Federal Deposit Insurance Corporation protects deposits up to around two hundred fifty thousand dollars per person. If you have, more than the secured amount, you may spread it through various banks.
23. If you want annuities, consider sticking to the variable and not the fixed type. A fixed annuity has a fixed return but a variable annuity gives you a chance to earn the full return.
24. Grandparents often plan college funds for their grandchildren but, I believe that this requires very careful thought beforehand.
25. Do not purchase a mutual fund just because it is highly rated. Different funds, even a mutual fund that has just a single star may do exceptionally well in certain periods.
26. The money that you may need in the next two years must be cash or fairly easy to convert to cash. The stock market is not a place to store the money that you might need immediately.
27. You can invest globally, not just in the U.S.A. exchanges.
28. Keep a careful eye on your family budget; try to reduce your expenses, curtail your restaurant meals and other un-necessary expenses that may cause a future burden.
29. When you want financial advice, only accept it from a registered investment advisor. A stockbroker is not the right person to advise you on your general finances.
30. Write a check for yourself and save it first. This is an efficient, almost painless, way of saving.
31. Do not include your child’s name is investments or bank accounts; this may mean that your other children might be disinherited and might cause tax problems.
32. When you sell a home, go to a qualified realtor and get referrals from people you trust.
33. Do not buy real estate investments with borrowed funds.
34. Stopping your PMI when you have around 20% of the equity on your home left might save many hundreds of dollars.
35. Buying mortgage life insurance should be considered carefully. Separate insurance might be a better option.
36. If you contribute to a nondeductible IRA account is not a great idea, maintain a proper record or you may suffer serious losses.
37. If you are 62 years of age now, you may be able to take a social security instead of waiting until you are 65.
38. Money handling processes have changed, so do not stick to how your parents handled their money.
39. While getting a pension, consider choosing a lump sum option where you can take control of your money and your future.
40. While leasing the car, consider not paying for the cap cost reduction and perhaps get gap insurance instead.
41. Saving money in your child’s name may not be a good idea. You will have to part with the money once your child turns 18 or 21.
42. Instead of saving for your children’s college costs, consider starting to save for your own retirement first.
43. Investing in a QTIP trust might be a good way of protecting your kids and spouse.
44. Consider taking a policy that provides five or six years benefits instead of investing in long-term care insurance.
45. Do not panic or worry; this will take you nowhere. It is not necessary that you take in all the gloom that the media throw at you.

Learn how to better protect you and your family in the current crisis, with this informative and easy to understand e-guide to Surviving the Debt Crisis.

The markets don’t always behave the way we’d like them to: Geopolitical turmoil, natural disasters, interest rates and world events can have a profound effect on market movements. If recent market volatility has you concerned about the economy, you are not alone; this is a confusing time for many investors. Some have decided to stay the course, while others are sitting on the sidelines waiting for the market to rebound. However, since no one can predict how the markets will perform, it’s important to develop an investment strategy that can help you stay on the right track to meeting your long-term financial goals. Here are some strategies that you can implement today, that may help to manage risk during these uncertain times.

Work with a Financial Advisor. There are a lot of do-it-yourself investment resources available to investors today. However, none of those resources can replace the experienced, personal service a Financial Advisor provides. A Financial Advisor can offer an understanding of your complete financial picture, not just your investments. Additionally, in periods of market volatility when you need the most support, a Financial Advisor can provide:
• Access to important decision-making research and information;
• Ongoing monitoring of your investment portfolio, while anticipating your changing needs; and
• A comprehensive market-volatility plan.

Have a plan. Developing a financial plan is one of the best ways to meet your long-term goals. Your plan should also include an action plan to address market volatility, which should be developed well in advance of a turbulent market. Having a market-volatility plan will help you to set realistic goals and appropriately manage your return expectations.

Invest regularly. It may not seem intuitive, but investing regularly—even during market downturns—can help to reduce your overall costs. Dollar cost averaging is one of the best ways to invest regularly, since you’re investing a fixed amount on a fixed schedule, regardless of how the markets perform. Investing regularly can also have intrinsic benefits: It encourages discipline and may also ease the anxiety of daily market fluctuations.

Diversify. If you’ve ever heard the saying, “Don’t put all your eggs in one basket,” then you already have a basic understanding of diversification. Diversifying your portfolio can reduce risk and volatility if the assets have little or no correlation to each other.

Investing in mutual funds is one way to achieve portfolio diversification, since mutual funds are typically a diversified investment. There are also several other ways to diversify and potentially reduce portfolio volatility:
• Within an asset category, such as purchasing different types of mutual funds;
• Among asset categories, such as purchasing stocks and bonds; and
• Outside of the United States, since some markets move opposite to the US stock market.

Put volatility to work for you. Do you think of the glass as half empty or half full? Your perspective can affect the investment decisions you make during market downturns. Investors who view market volatility negatively can make irrational decisions. A down market can be an opportunity for you to build your portfolio and take advantage of lower unit costs.

Stay invested. You are probably anxious during times when the value of your investments has decreased. As a result, you may be tempted to move out of the market, sit on the sidelines and wait for the market to rebound. However, since no one knows how the markets will move, how do you know you’re leaving at the right time? Also, how will you know when it is the right time to get off the sidelines and start investing again?

If you have worked with a Financial Advisor, your investment strategy was developed to help you meet your long-term goals. Timing the market could potentially jeopardize your financial plan—and your future goals.

Be patient. There will always be uncertainty in the markets; market volatility is a natural part of the investment cycle. Although it may take some time, markets do rebound.

In the meantime, call your Financial Advisor to help you develop an action plan for market volatility and continue to focus on your long-term investment goals rather than short-term market moves.

Graeme H. Patey is a Financial Advisor located in Cleveland, Ohio and may be reached at
216-523-3015 or http://fa.smithbarney.com/graemepatey.

Asset allocation and diversification strategies do not guarantee a profit or protect against loss.

A periodic investment plan such as dollar cost averaging does not assure a profit or protect against a loss.

International stocks are subject to certain risks of overseas investing including currency fluctuations and changes in political and economic conditions, which could result in significant market fluctuations. These risks are magnified in emerging markets.

Mutual fund investments are subject to market risk, including the possible loss of principal. They are sold by prospectus only. The prospectus contains the investment objectives, risks, fees, charges and expenses, and other information regarding the mutual fund and variable annuity contract and its underlying investments, which should be carefully considered before investing. Prospectuses are available through your Financial Advisor or at www.smithbarney.com. Read the prospectus carefully before you invest or send money.

Smith Barney does not provide tax or legal advice, and it is important to consult with a tax or legal advisor before investing.

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