Question:

“Each January, I set personal goals for myself. With everything going on in the economy, what are some New Year’s financial resolutions that I should consider?”

 Answer:

Every year lists are created, promises are made, and we start out with the best intentions.  Week one is outstanding, week two is going great, week three needs a pep talk, and let’s face it…..at week four we have issues.   Sometimes it’s a matter of setting unrealistic objectives. When it comes to financial resolutions, some small goals can yield some amazing results.  Begin with this:

• Clarify Goals  Many women don’t begin to plan for retirement because they have not set any long-term personal goals.  You wouldn’t set out on a trip without first having a destination in mind, right?  Steps you take should be based on what you are trying to accomplish.  For instance, if you want to retire at 60 to travel, it is necessary to make sure your needs, such as health insurance and living expenses are covered by your retirement income.
• Determine Your “Time Horizon”  Having a clear idea of your goals is important because they will help determine your time horizon. For example, if you want to save for a child’s education, your time horizon will probably be shorter than if you are saving for your retirement.
• Learn One New Thing About Investing This Year  If you want to learn to cook, you read cookbooks. So what can you do when you have a question about finances?  Register for a class, join an investment club, pick up a book or do research from a credible source online.  Your local library or college can also be a great resource.

 Question:

“My colleagues tell me I should save more.  The only problem is I have personal loans that need to be paid off.  Which is more important?  How will I know when its time to change my approach?”

 Answer:

• Establish Your Starting Point  Once you’ve clarified your objectives and time horizon, you need to determine where you are today. In other words, is your financial house currently in order? For example, if you’re carrying a heavy debt burden, especially high-interest credit card debt, you’ll probably need to reduce it before you start investing. A financial advisor can help by evaluating your current financial situation and create a plan-of-action for you.
• Get a Yearly Financial Check-up  Everyone dreads check-ups, but we still go see the doctor every year for our “annual”.  It is very important to review your plan each year.  Over time, it is easy to get off course.  Make sure you evaluate your direction to see if changes are needed to keep on your financial course.

 Do you have a personal finance question for Jean? Click Here to submit a question via email for her to answer in the next posting.

Jean B. Muldowney, Financial Advisor, Wells Fargo Advisors, LLC, Member SIPC

As a Financial Advisor, I am dedicated to developing financial and investment strategies that are in line with your needs and goals. Making sure your wealth continues to work in support of the goals you have established takes careful planning. Such preparation is not a single event – it is a process. Backed by the vast resources of Wells Fargo Advisors, I focus on delivering personal service that surpasses client expectations. I hold all the requisite securities registrations and insurance licenses as well as a Bachelor of Arts degree in Communications from John Carroll University, Cleveland, Ohio. I take pride in working for a firm that puts you first.