Tips for Getting Your Retirement Plan Back on Track
Depending on the ideal asset allocation now may be a good time to sell some of those fixed income investments and buy stocks with the proceeds. Many people have seen the percentage of fixed income investments soar as the prices of stocks have come down. Purchasing additional equity positions can put the overall portfolio back in balance and set you up for the next run up in stock prices.
Of course this advice is best suited to those with a long time horizon and plenty of time before retirement. Workers who are closer to retirement may find that the stock market crash has done their asset allocation for them – as retirement nears most workers will want to move more assets into fixed income investments and less into the stock market. Workers who have took no action while stocks were falling may find that bonds and other fixed income investments already make up a much higher portion of the portfolio than they used to.
Get Into the Savings Habit
For all workers now is a great time to ramp up savings. With job losses still on the rise and not expected to peak for quite some time, now is not the time to become complacent about savings. Workers should have – at a minimum – six months worth of living expense put away in a savings account, bank money market account or similar rock solid investment. Having cash readily available can lessen the sting of a job loss and make it easier to focus on finding a great new job.
Read MoreFight Against Fees Your Bank Can Impose
If you think monthly checking account charges are bad, how would you like to pay an annual fee for the privilege of holding your bank’s credit card? Consumers have grown accustomed to credit cards with no annual fees, but those fees may be making a comeback. If you are unsure if your credit card carries a charge be sure to ask – before that charge comes along.
What You Can Do
The good news is that there are still plenty of credit cards out there that do not come with an annual fee attached. If your credit score is high and your credit profile looks good you should have no problems landing one.
Account Closing Fees
If you have finally had enough of the insidious fees banks are charging these days, your bank may have one final surprise in store for you. Some banks have quietly begun to impose account closing fees, charging their customers for the privilege of walking away and heading for the bank down the street.
What You Can Do
Consumers may not have as much leverage against this charge, but it never hurts to try. Sometimes the bank will relent on this charge, especially if you have been a long term customer or still hold other accounts with the same institution.
Read MoreThree Tips to Living with Less
The times demand change and thoughtful spending, but learning to live on less is as simple as cutting back, pooling together, and turning it off. In this economic climate buckling down and riding the storm with the brakes on will see you through to the other side. Get started with a few tips for keeping your world green, financially and environmentally.
Cut Back
Two small ways to cut back means doing without lattes and lunches at restaurants. Instead, allow yourself one latte and one lunch out with co-workers per week. The rest of the time, make it yourself. If you don’t believe how much money these two cutbacks will save, just add it up. Seeing it in the daylight of numbers puts it all into perspective. Besides saving money, you’re saving paper cups used for coffee. If you really want to think green, get out the old lunchbox or purchase a reusable one.
Carpool
If possible, carpool. Four people going to the same place from approximately the same location can save money and fuel. Extend carpooling to taking the kids to school. Take turns with neighbors and give everyone and the environment a breather.
Use less gas by running all your errands at the same time. Instead of getting groceries on Saturday morning and picking up dry-cleaning on Friday after work, do it all at once planning the logistics ahead so everything is as close as possible.
Unplug It
Unplug appliances and electronics and slice your energy use keeping money in your pocket. Don’t just shut down the computer at night…unplug it. Always turn off lights when no one is in that room.
Small changes make big differences over time. Cutting back, car-pooling, and unplugging are simple ideas that save money and keep the earth turning. It takes wise management and planning, but each tip is doable and in the end well worth the extra effort.
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