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Welcome! Everyone is busy, no question! So this month we're giving you some ideas about how to go beyond just paying bills on time to get more in control of your money. We've also added two new sections - a Q&A and a Tip from my recent book, Protecting Your 401(k) and IRA. Hope you're having a great summer - and remember to stay On Course!  -Jennifer Lane, CFP  |
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Get Control of Your Money
Keeping up with bill payment can be enough work that it's easy to take your eye off the larger financial picture.
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 Cash Flow
Take some time now, as we've finished the first half of the year, to look back and see what your expenses have been. We've listed several account aggregators in the helpful website section that you can use to do this. You can also use Quicken or GNUCash if you want to keep your information on your own computer. Rather do it by hand? That's great, too - as long as you do it.
Your Paycheck
The government has made some changes here. Check out the IRS website to make sure your withholding is correct. You may be able to increase your take home pay.
Savings
If you know you are going to have large expenses, e.g., holidays, college, home repair, begin saving now so you'll be prepared when the time comes. It's amazing how steady saving builds cash over time. And, if you have college funds, make sure you have them in short-term savings and CDs so you will have ready access.
Retirement
Those nest eggs have taken a hit, no question. Even with a bit of recovery, it is still important to know what it will take to get back on track - whether that means saving more or changing your investments. The AARP calculator is a good tool for that.
Insurance
Make sure your beneficiaries are up-to-date - and correct. Research your insurer on A. M. Best or Moody's for their current rating.
The Big Picture
Last, remember to focus on your overall asset allocation...not just the
balances in each individual account. For tax or other reasons, one account may
be more risky and another more conservative. Use an account aggregator like
that on MINT.com, your brokerage web site, or account statement to take a look at a
pie chart of all of your investments together. Is your asset allocation on
track? This is a big key in your financial success.
Not sure what your asset
allocation should be? The calculator at KJE Computer Solutions is a great educational
tool to help see how timeframe and risk tolerance should affect your allocation
target.
Spending a bit of time over and above paying bills will yield a great financial future!
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Q&A
Q: From Cate in Medford: I finally bit the bullet and joined Mint.com
tonight--thanks for the suggestion! I feel like it's really going to
help me stay on track with spending and my goals. Any tips on how to
use it?
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A: I'm glad you like Mint.com. Link all your spending accounts and check the
"trends" tab once-a-week to watch expenses and make sure your money
is funding your goals instead of wasteful spending. Checking the transactions in
your account regularly is a good ID Theft tool, as well. You'll see a
problem in Mint (or by logging into your credit and bank accounts directly
online) long before your monthly statement comes.
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What's New
Welcome to Beth Bond, new Compass Planning Associate!
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Beth has
joined the firm as Operations Manager. She is the person who will set up financial
planning appointments, make sure all the required documents are in order, get
answers to questions, and help anyone who interacts with us. Some of you
may recognize her voice from our days in Wellesley and Waltham!
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| Compass Planning Associates helps families, individuals, and small-business clients achieve financial security, knowledge, and control over their money. Our fee-only, client-centered approach provides education and guidance for achieving financial goals and dreams. |
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