How you Can Save Money

Did you know that the financial experts at Time advise the average person to save at least 15% of his or her income every year that he or she is employed? That’s a pretty large chunk of your earnings, and saving that much can seem impossible, especially if you’re struggling just to make ends meet. The good news, however, is that there are Naperville financial planning services, such as Platinum Financial Associates, that can help you to make the most out of the money you do save. Through Naperville investment services and other smart choices, you can put your savings to work for you. Of course, before you can do that, you have to cut back on your spending and find ways to get money from your wallet and into your savings account!

One surprising thing that many Naperville financial planning experts will advise is to cut back on your energy costs. The average American wastes a lot of unnecessary funds on heating, cooling, and general electricity costs. Taking smart, simple steps, like turning off lights when they’re not being used or unplugging appliances when you leave, can be extremely beneficial. Bigger moves, like adding insulation to your home or switching to energy efficient appliances, can also make a huge impact, though they do require an initial investment upfront.

Other money-saving tips that can help you to build up that nest egg include laying off of cable or subscription television in favor of online programming, going for a less-fancy cell phone and a lower cell phone bill, couponing for groceries and other necessities, and more.

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Naperville Financial Planning Tips

In today’s troubled economy, it’s more important than ever before for you to make smart choices with your money and to plan for the future. You probably already know that it’s important to stay on top of changes happening in the financial world and to read relevant news regularly. What you might not know, however, is that not all information is created equally. While some stories or “breaking news” can provide you with useful information for your financial endeavors, others are unreliable or overblown. Knowing which news to trust and act upon and which news to ignore can be challenging, which is why you’re encouraged to work with a Naperville financial planning firm. Skilled financial planners have inside knowledge on which financial moves are smart and which aren’t, and that knowledge is based on years of study and experience, not just on heeding the latest “big story.” That’s the kind of expertise you need working for you.

Another big tip is to diversify your portfolio. Most people feel so good about investing in one area, particularly when their investments pay off, that they just stick to what they know. It’s important, for your financial security and in order for you to receive maximum pay-offs, that you have a rich, diverse portfolio with different kinds of investments, including equities and more. For help understanding where and how to invest and for an assessment of the current state of your portfolio, put your trust in Naperville financial planning services.

Are Consumers Holding the Keys to a Better Economy?

Overall consumer spending still accounts for about 70% of gross domestic product, but some government statistics suggest that consumers may have reduced spending drastically in recent years, especially on purchases that are not considered absolutely necessary.1

According to a report from the Federal Reserve Bank of New York, discretionary service spending (which excludes basic needs such as housing, food, and health care) dropped almost 7% since the beginning of the most recent downturn and has yet to recover significantly. Going back many decades, this category of spending had not fallen more than 3% per capita during past recessions.2

The employment situation, historically high household debt, and a general lack of confidence may be affecting the average consumer’s ability and willingness to spend — a trend that could continue to weigh down economic growth.

Lost Buying Power

High unemployment and several years of slow wage growth mean that many consumers simply have less money to spend. Midway through 2011 and one year into the economic recovery, national average wage levels were nearly the same as they were at the beginning of 2008.3

High gas prices in the first half of 2011 also ate into disposable incomes and forced many consumers to forego discretionary purchases such as furniture, vacations, and restaurant meals.4

A Thin Debt Cushion
In the past, consumers have often added debt, even during lean times, so they could continue to spend. But debt levels have risen to such a point that many American households may not be in a position to rely on borrowing.

The household debt-to-income ratio (after taxes) peaked at 135% in the third quarter of 2007 and fell to 119% by mid 2011. By comparison, it averaged only 89% in the 1990s. Highly leveraged consumers who must devote a larger portion of their incomes to paying off debt may have little choice but to limit spending on other goods and services.5

Shaken Confidence
Even consumers who have not faced job losses or other types of financial difficulties may have seen their net worth and/or confidence damaged by housing price declines, global financial crises, and general economic and market uncertainty. It’s possible that a lingering lack of consumer confidence is one of the reasons why many people have been slow to return to their old shopping habits.

Consumer spending usually falls during an economic downturn. Generally, this is followed by the emergence of pent-up demand and a rise in consumer spending, which is normally a significant driver of growth during recoveries.6 However, it’s unclear how long it will take for hard-hit consumers to regain the financial strength and confidence to resume spending — or how much more consumption may be needed to help propel the economy forward.

1, 4) The New York Times, June 27, 2011
2) The New York Times, July 16, 2011
3) CNNMoney, July 27, 2011
5) The Wall Street Journal, July 15, 2011
6) The New York Times, July 19, 2011

The information in this article is not intended as tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional Naperville Financial Planning advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Emerald. © 2012 Emerald Connect, Inc.

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What Does a Naperville CPA Do?

We live in an age that is overrun with acronyms – FBI, CIA, TCP/IP, CPA. There are so many to remember, that some people get confused over just what a certain acronym really means. One that is common is that of the CPA. Most people know that this acronym stands for Certified Public Accountant, but just what does a Naperville CPA do for a living? And does it make sense for people to hire just any financial firm or should they always hire a CPA?

Tax Preparation for the Often Dreaded Tax Day

Probably the most familiar thing that CPA's do is to help people and businesses prepare their tax returns. We all know that tax day rolls around every year, and that you have to put all your year's financial records in order to file successfully. But you also need to understand how the tax laws apply to your unique circumstances. A Naperville CPA understands the tax  laws and works hard to help their clients get the most favorable results from their tax returns.

Financial Planning for the Future

In regard to long term financial goals, nothing is more important than planning. But the tax laws apply to your investments too, so having an accountant to help you plan your investments in accordance with the most current tax laws, helps people to plan for their financial futures the smart way.

We regularly hear from people who need help with their taxes or financial planning in the Naperville area. And we always recommend that these folks contact us at Lewis CPA. This accounting firm has experienced CPA's on staff to provide the best financial and tax services to people in Naperville.

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Evaluating Life Insurance Needs

Because life insurance typically becomes more expensive as we age, many people may believe they can’t afford to purchase coverage later in life. However, considering that life insurance is significantly less expensive today than it was a decade ago, you might be able to purchase new coverage and pay premiums comparable to those that were available when you were 10 years younger.

It’s a good idea to review your life insurance situation on a regular basis. Here are some reasons why your coverage may need to evolve to keep pace with your life.
Life Changes

If your income and/or net worth have increased significantly since you purchased your policy, ask yourself whether your current coverage would enable your survivors to maintain their current standard of living. Major life events such as birth, marriage, death, and divorce may also affect the amount of coverage you need.
Inflation

Because of inflation, a policy purchased years ago may no longer offer the same level of protection. For example, a 3% inflation rate can cut the purchasing power of a death benefit in half in about 24 years, based on the Rule of 72 (72 ÷ 3 = 24 years).

Estate Conservation
One popular reason for owning life insurance is to provide liquid funds to help heirs pay estate taxes and any other debts. Considering that the estate tax has changed several times over the past decade, it’s a good idea to review your coverage in light of current estate tax laws and your net worth.

As with most financial decisions, there are expenses associated with the purchase of life insurance. Policies commonly have mortality and expense charges. In addition, if a policy is surrendered prematurely, there may be surrender charges and income tax implications.

The cost and availability of life insurance depend on factors such as age, health, and the type and amount of insurance purchased. Before implementing a strategy involving life insurance, it would be prudent to make sure that you are insurable.

1) USA Today, December 3, 2010

The information in this article is not intended as tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent Naperville Financial Planning  advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Emerald. © 2011 Emerald Connect, Inc.

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Current Economic Conditions and the Prospect of Inflation

The Consumer Price Index (CPI), a common measure of inflation, grew at a 3.2% annual rate in April, the fastest rate since October 2008.1 For more than two years, the U.S. economy has experienced relatively low inflation, and the current rate remains below the 50-year average.2 Yet anyone who has been to a gas station or a grocery store recently may feel that prices are going up faster than the CPI suggests.

The CPI measures price changes in a market basket of consumer goods and services. Because prices for food and energy are generally more volatile than other prices, a narrower index called the “core CPI” excludes them. Core inflation, which is used by policymakers as an indicator of long-term inflation trends, grew at an annual rate of just 1.3% in April.3 This suggests that the recent increase in general inflation is due mainly to rising food and oil prices, wh

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ich have yet to work their way fully into prices for other goods and services.

A Slow-Growth Economy

Inflation is typically a by-product of economic growth. When an economy is growing, more people are working, spending money, and competing for a limited supply of goods and services, which can cause upward pressure on prices.

But things are a little different right now. Prices are rising during a period of slow economic growth. Political unrest in oil-producing nations in the Middle East and Africa has contributed to rising oil prices. Because oil is needed to produce most goods and services, higher oil prices can drive up the cost of doing business, which can cause companies to cut spending and payroll, pass higher costs on to their customers, accept lower profits, or some combination thereof. By one estimate, a $10 increase in the price of a barrel of oil reduces gross domestic product growth by 0.2 percentage points.4

Prices for important food crops have surged over the past year — corn was up 88%, wheat was up 76%, and soybeans were up 37% — not only because of growing demand from economies that are recovering faster than the U.S. economy, but also because higher oil prices are spurring demand for ethanol made from corn. These three grains are used in a multitude of food products, which could be why the U.S. Department of Agriculture estimates that food prices will jump between 3% and 4% in 2011 — whereas food inflation in 2010 was at its lowest rate since 1962.5 Food may play an even more critical role in the economy than oil. There are ways to cut back on energy use, but everyone needs to eat.

And then there are the problems in Japan, the world’s third largest economy.6 While this wealthy and productive nation struggles to recover from an earthquake, a tsunami, and a nuclear crisis — estimated to be the costliest natural disaster on record — the world will struggle to get by without Japanese exports (including 25% of the world’s silicon chips) and cope with reduced consumer demand from Japan’s citizens until they get their lives back on track.7 Although there may be a construction boom in Japan, it will likely consume resources that supported other industries. One bright side is that Japan may use less oil in the near future, which could help bring down prices.

Limited Means

Unfortunately, when inflation is caused by something other than economic growth, policymakers may have limited means to combat it. The Federal Reserve’s typical response to inflation is to raise interest rates, in effect putting a brake on economic growth. But higher oil and food prices can also slow the economy, so raising interest rates might only make matters worse.

If you lived through the 1970s, you may recall the term stagflation, which was coined by economists to describe an unprecedented period in which the economy was experiencing a combination of slow growth, high inflation, and rising unemployment. The stagflation of the 1970s may have been caused by extreme oil price increases in the early 70s. It wasn’t until the Federal Reserve raised interest rates into the double digits that the cycle of stagflation was broken, but the Fed was blamed for causing a deep recession in the process.8

How Does Inflation Affect You?

It’s not clear whether the U.S. economy is entering a period of higher inflation. There are signs that the rise in energy and food prices may be slowing. The 3.3% rise in gas prices in April was the smallest increase since November 2010, and the 0.4% increase in food prices was half that of March.9 A drop in energy and food prices might free up more income for discretionary consumer purchases, which could help stimulate the economy.

But even a low inflation rate can pose risks to your finances over long periods. Consider that a 3% inflation rate could cut the spending power of a dollar in half in 24 years, according to the Rule of 72. Failing to account for inflation when projecting how much income you expect to need in retirement could cause you to set aside too little of your current income or invest too conservatively. By the time you reach retirement age, it could be too late to fix the problem.

The relatively low inflation rate the United States has enjoyed over the past few years may have lulled you into believing that inflation does not pose a long-term risk. If your long-term outlook doesn’t account for the risk of inflation, it may be time to consider adjustments that may help your portfolio keep pace with rising prices.

1, 3) Bureau of Labor Statistics, May 13, 2011
2) Thomson Reuters, 2011 (Consumer Price Index for the period 12/31/1960 to 12/31/2010)
4, 7) The Wall Street Journal, March 24, 2011
5) The Wall Street Journal, February 25, 2011
6) International Monetary Fund, 2011
8) Investopedia, 2011
9) msnbc.com, May 13, 2011

The information in this article is not intended as tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek Naperville Financial Planning an/or legal advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security.

How Interest Rates Can Influence Financial Decisions

Few Aspects of Economy Have as Much Effect on Spending, Saving

Throughout much of the past decade, the Federal Reserve has relied on its control of short-term interest rates to influence economic activity. Some would even say that it has made some fairly unconventional moves: Like cutting the federal funds rate 11 times in 2001. Or keeping rates under 2% for much of the decade. Or taking them almost to zero in response to the 2008 credit crisis, along with other monetary moves designed to push down long-term rates.1–2

On the surface, adjusting interest rates might seem to be an overly simple solution for steering the world’s most powerful economy: Growing slowly or not at all? Cut interest rates. Growing too fast? Raise interest rates. Economy seems fine? Leave rates alone.

The reality is that there are few mechanisms in any economy that can influence behavior more effectively than interest rates. Consider how low interest rates can affect important financial decisions.
Decisions About Spending and Saving

Image by RambergMediaImages via Flickr

Low interest rates create incentives for people and businesses to spend money, especially on purchases that may require financing. Interest rates directly affect borrowing costs, so lower rates may help increase the affordability of big-ticket items, such as automobiles and real estate. For example, home sales tend to be higher when mortgage rates are 5% than when they are 10%.3

The Fed’s primary motivation for cutting interest rates is usually to stimulate spending. Lowering rates may help encourage businesses to purchase capital goods and durable equipment; households may find that they are able to purchase items that were previously out of reach.

By contrast, higher interest rates reduce incentives to spend and increase the potential benefits of saving. In theory, higher interest rates dampen consumer demand. If the supply of goods and services remains the same, then the result should be less upward pressure on prices — in other words, less inflation.
Decisions About Debt Maturities

When short-term interest rates are low relative to long-term rates, it raises the risk that institutions and individuals seeking to own debt may overinvest in bonds with longer maturities in an attempt to increase yields. If interest rates rise, the value of existing bonds can be expected to fall. The longer the maturity, the greater the effect may be on the value of the bond. The principal value of bonds fluctuates with market conditions. Bonds redeemed prior to maturity may be worth more or less than their original cost.
Decisions About Risk

When rates are low, investors may turn to higher-risk investments in pursuit of greater return potential. Over longer periods, more investors may be lured to riskier positions until an unhealthy percentage of economic resources is exposed to too much risk. The more economic resources that are pursuing speculative investments, the greater the risk that a financial crisis could occur.

We’re likely to see low interest rates persist for the foreseeable future. When it comes to your portfolio, it’s important to strike a balance between making decisions based on your long-term interests and making decisions based on the current influence of interest rates.

1, 3) Federal Reserve, 2010
2) The Wall Street Journal, November 4, 2010

The information in this article is not intended as tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an accountant in Naperville or a Naperville Financial Planning advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Emerald. © 2011 Emerald Connect, Inc.

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Understanding the Sacrifices of Family Caregivers

About 44 million people, roughly 19% of the U.S. adult population, provide unpaid care to someone who is age 50 or older. The average age of caregivers is 50 and the average age of care recipients is 77. Most caregivers assist family members, usually their mothers.1

Although many caregivers help their family members out of love, there is overwhelming evidence that caregivers pay a dear price for their compassion. Nearly half reported increased financial worries and having to use sick time or vacation hours to provide care. 2

One especially telling statistic: More than four in 10 caregivers said they felt as though they had no choice about whether to assume the role of caregiver.3 This may indicate that little or no preparation took place before caregiving began. Yet when it comes to their own potential need for long-term care, 55% of Americans say that their greatest concern is becoming a burden to family members.4

Fortunately, you can start developing a strategy today that could help you provide for your own care and avoid becoming a burden to your loved ones.

Recalculate Retirement Needs

The obvious reason for having to turn to family members for care is money — or, more accurately, a lack of money. The national average cost for nursing-home care is $74,208 per year.5 How likely are you to need specialized care? Forty-three percent of people who reach age 65 will eventually spend time in a nursing home.6

If your retirement-needs calculations don’t take the potential need for long-term care into account, it may be time to evaluate your options for covering the potential costs. If you have a family member who may need care, the earlier you begin to prepare, the greater the possibility that you may be able to reduce the effect on your own finances and lifestyle.

Talk About It

Whether you are a caregiver or a care recipient, a financial professional can open a dialogue that helps preserve dignity and harmony while also coordinating decisions about common concerns, such as which care options are appropriate, whether the care recipient should move, how to manage property and possessions, and how to handle legacy issues.

Because it could be years before you find out whether you need living assistance, the most prudent approach could be to assume that you will and to begin preparing now. If it turns out that you don’t need care, there’s no penalty for being prepared.





Please feel free to contact me at 630-548-9600 to discuss your Naperville Financial Planning needs.

1, 3) National Alliance for Caregiving, 2009
2) Money, September 2010
4) Journal of Financial Planning, June 2010
5–6) 2010 Field Guide, National Underwriter (2009 costs, latest year for which data was available)

The information in this article is not intended as tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Emerald. © 2011 Emerald Connect, Inc.

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Four Steps to Get Your Finances Ready for the New Year

 About one year ago, 63% of Americans told pollsters they had resolved to improve their personal finances. In fact, saving money beat the usual self-improvements: exercising more, eating less, losing weight. The only resolution that rated higher than personal financial improvement was finding ways to relax and reduce stress.1

It’s not clear how well Americans fared with saving more money (the personal saving rate remained fairly level for the first half of the year).2 But these steps may help improve your financial situation and reduce stress.

Rebalance and Reallocate

It’s likely that some of your investments have performed at different rates over the past year, possibly leaving your portfolio overexposed to one asset class and underexposed to another. The process of rebalancing involves buying and selling securities to restore your portfolio to your target asset allocation. And if its been a while since you reviewed your asset allocation, now might be a good time to determine whether you need to shift your strategy. Asset allocation does not guarantee against loss; it is a method to help manage investment risk.

Revisit Your Beneficiaries

Are the people you have designated as the beneficiaries on your life insurance policies and retirement accounts still the ones you would like to see inherit these assets? Reviewing your beneficiary designations can help ensure that your intended heirs receive these assets. It’s especially important to revisit your beneficiary designations after a marriage, birth, divorce, or death in the family.

Check Your Credit Report

Because identity theft is a growth industry, it’s wise to check your credit report for evidence of fraud or any inaccuracies that may affect your creditworthiness. The three major credit reporting agencies are required by law to provide you with a free credit report once a year. Log on to www.annualcreditreport.com.

Consider Your Taxes

Reductions in tax rates on income, capital gains, dividends, and inherited assets (adopted by Congress in 2001 and 2003) had a December 31, 2010, expiration date. Because of the ever-changing tax landscape, this is a good time to reconsider some of your financial decisions, such as whether to realize capital gains, reevaluate the role of dividend-paying stocks in your portfolio, boost your contributions to tax-deferred accounts, and alter the timing of bonuses and tax payments.

You may not be able to perform these tasks on your own. We can help. Contact us at 630-548-9600 to learn all the options available to you regarding Naperville Financial Planning

1) U.S. News & World Report, December 24, 2009
2) Haver Analytics, 2010

The information in this article is not intended as tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an
independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Emerald. © 2010 Emerald.

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The Importance Of Naperville Estate Planning

Doing your own Naperville estate planning can be an overwhelming task. Many individuals don’t even know where to begin. This is why most people seek the assistance of a Naperville financial planning services team. Estate planning is not easy, but a good estate planner can make the task a breeze. When doing estate planning, here are a few important questions you should address:

Could my current assets/investments cause any difficulty for the survivors?

Do you have any complex investments you need to account for? Do you have investments that could incur a large expense for your heirs? By looking at your current portfolio and analyzing the transferability of each asset, you will make your families life a lot easier after you pass. It is important to look at these things now because an estate planner can help you plan in advance for any obstacle.

Do I have a clearly written will?

One area that is important in respect to Naperville financial planning is your will. If your will is not clear, concise and focused, you could be leaving your family with a headache. If you pass without a clearly written will, the people who you would like to receive your assets may never see a cent. If you pass without a will, common law will dictate the transfer of your wealth to the next of kin or to your spouse.

By having clear answers to these two questions, it will be easier to give perform Naperville Estate planning for yourself and your family.

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Naperville Financial Planning- Managing Your Finances for Sustainability

A lot of people don’t know anything at all about managing their finances. While it is true that managing your own finances is never easy, it is still essential to keep track of you cash flow, your monthly spending and your savings if you want to have anything left in the future for your children and for retiring. If you find it difficult to manage your personal finances, you can always opt to employ the aid of Naperville financial planning service provider. If you do so, you can get a financial planner to help you accomplish you financial goals and help you properly manage your personal finances to make it sustainable.

Through Naperville financial planning services, you can learn proper planning in the areas of cash flow management, retirement planning, investment planning, education planning, risk management, estate pla

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nning and tax planning. With the help of a financial planner, you will be carefully guided in the financial planning process to enable you to create a viable and sustainable financial plan that is tailor made to suit your current financial situation and as well as your financial goals.  You can even employ the aid of Naperville Brokerage services if you need the help of a stock broker to help manage your current investments and plan out your future investments for you.

The aim of every financial planner is to help you find meaning and direction to each financial decision you make and to allow you to understand the implications of each decision to other financial areas. If you want to keep all your investments secure, you can work with your financial planner to ensure with the highest probability that all your financial goals are achieved at the target date and make sure that all your plans are open to the possibilities of both positive and negative changes that may affect your finances in the future.

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Plan for your Future Today

The downturn in the economy has shown many people the benefits of having a solid financial plan. If financial planning is something you have been meaning to get around to, the time to start is now. Getting your finances under control is the only way that you can be prepared for the unexpected. A Naperville financial planning service can help you manage your finances so that the unexpected does not leave your world in shambles.


Too many people have been living above their means for far too long, and it has lead to many families having massive credit debts. One of the things a good financial plan will outline is how to get out from under those debts in the most effective manner possible. If you have been struggling to pay off your debts a financial planning team can help you set, and stick to, a budget that will allow you to finally pay of those outstanding debts and get your credit back under control. By helping you find items you can cut out of your budget, your financial planning team will help you free up resources so that you can stop making interest payments, and start having money to save.

Savings and investments are another area where a financial planning service can benefit everyone. If you have been making sure to set aside money for a savings account, congratulations you are already far ahead of many people. If you have not been, it is never too late to start. Saving money is great; unfortunately, the return on a savings account is not going to give you the security you need in the future. Financial planners will help you take a portion of your savings and invest them in diversified areas. Investing in anything is a bit scary to most people, especially in the current economic climate. With the help of a proven investment team, you can make sure that you are making the right investments, while minimizing your risks. Making sound investments should be a key to your overall financial plans.

Planning for your future has never been more important than it is today. Recent events have finally brought that to the forefront of most people’s minds. Take the time today to research, and find, a Naperville financial planning service that will help you reach your financial goals and ensure that your future is paid for.

Stretch the Dollar by Contacting a Professional

     Naperville financial planning is at its peak.  Virtually every decision you make has to do with the almighty dollar.  Your diet, fitness, education, career, clothing, family vacations and numerous others have a financial component.  Thus, planning financially is going to deem either a success or failure to your financial future.  Every aspect of your life is affected by money and you can choose to chase after the “green” or invest it and create security.

So many people in the world today plan to fail by not planning at all.  They do not understand the financial planning process, think it’s too expensive to get professional assistance or procrastinate on their future.  So many excuses exist for those who have not started the process.  Do not be one of the people who allow for obstacles to stand in front of you to get your financial future off to a roaring start.  Understand the process of investing and know how to get to the ultimate goal you wish by speaking to a financial expert.

A few simple facts exist to ensure success.  The first is goal setting.  In the planning process, you need to have a clear and written goal for your future.  Be specific and realistic.  The second is to allow you to take a level of risk.  The financial institution will keep your money well protected and ensure your assets and insurance are covered to the best of their ability.  Tax planning is the 3rd.  We all have to pay taxes and have to plan to pay our taxes.  No, Uncle Sam does not care if you are retired, poor or rich.  He wants his share of your money and you have to plan for it. 

Be smart and think ahead by contacting a local Naperville financial planning expert.

Learn to Journal Your Financial Goals

     A local Naperville financial planning office can assist you in looking towards the future.  Unsure of what you want your future to look like?  Don’t think that you have any income left to build and plan for your future?  Think again!

On the news, we have heard “plan for your future, check your investments, and put away a large percentage of your income.”  Others see that and think “How can I possibly save anything, I’m already 50.”

You can begin your financial planning at any age.  It is easier to build your retirement when you are young and not touch it until retirement, but this is not usually an option for a percentage of Americans.
Start a journal to document your financial planning activities.  It is a proven fact that a person is much more likely to act on and follow through with their goals when they are written down.  It is nice to see the progress you’ve made against the date you set the goal!  What is your budget for the goals you wish to accomplish?  Write a dollar amount down of the approximate you wish to spend on each.  In doing this, you have a basic list to plan upon.

Your financial journal should include what you spend on a monthly basis…basically, what you are required to spend, expenses!  So, to regroup, you need to have your goals, income and expenses included in your journal.  What funds you have left from that is savings.  Now that it is written down, take it to your Naperville financial planning office to achieve those goals!

The Importance of a Financial Education

While my 13-year-old daughter and I were watching the movie “Confessions of a Shopaholic,” I laughed, but it was pained, strained laughter. The lead character in the movie is a young woman who, although in debt up to her eyeballs, lands a job as a financial advice columnist. The painful laughter came during the shopping scenes, as the young woman frantically tried to get the remaining credit on her cards to add up to the cost of a scarf she simply had to have, or when her face lit up as she left a store laden with bags. I definitely recognized something familiar about her. I have seen the same acquisitive gleam in my daughter’s eyes.

In addition to the camaraderie found through soccer teams, swim teams, and youth groups, Naperville tweens and teens—particularly girls—have another popular group activity: shopping. If it were a competitive sport, local girls could probably put together a state championship team! Between the delightful charms of our downtown district and the proximity of Fox Valley Mall, shopping fanatics have plenty of lures. When one girl says to another, “Let’s hang out,” it usually translates to, “Let’s spend money.” In fact, hanging out at the mall ranks high on the list of favorite activities for many.

This hanging out can be a relatively harmless activity. The main concern I have is in teaching my daughter moderation and planning. It’s not always easy for a 13-year-old to differentiate between a want and a need. Even at her age, she can be practicing her own level of Naperville financial planning. Different families handle this different ways: maybe with a set clothing allowance or an agreement to split the cost of purchases. My daughter is very reluctant to part with her own money, for which I’m grateful. I’d hate to worry that she was one of those identified by psychologists as “recreational shoppers.” These are people for whom shopping has an inordinate value: it’s used to help achieve happiness. Recreational shoppers tend to be female, with a lack of confidence and self-worth. They frequently utilize shopping as fantasy, while they pretend to be someone else. The many attractive shopping venues around here make Naperville wealth management quite difficult for the recreational shopper.

Just like much of parenting, striving to teach my daughter some frugality will involve persistent effort. If I maintain my vigilance, hopefully her own teen years will not provide the script for “Confessions of a Shopaholic 2”!

Naperville Retirement Planning

After raising a family, working hard for many years, and developing bonds through clubs, church, work or volunteering, many seniors are loathe to leave an area they’ve come to know and love. They may have friends who retire to warmer climes, but a number of retirees find that their strongest ties to friends and family remain in and around Naperville.

Fortunately, the city offers a number of choices for retirement living. Even when the yard work, upkeep—and taxes—of a single-family home grow too cumbersome, Naperville offers a wide range of other living options. Retirees who have practiced careful Naperville retirement planning may continue to enjoy the lifestyle available here.

One option is to move into an apartment or townhouse. There are a wide variety of sizes, floor plans and locations available throughout the city, including some with walk-to-town convenience. Active retirees can enjoy independence yet be freed from the burden of home maintenance. If more assistance is required, Naperville offers a range of retirement communities, from senior apartments to assisted living to nursing home options. Many of these facilities offer welcome help by providing meals or transportation services while still allowing seniors to remain as independent as possible. An added advantage to these retirement communities is the opportunity to develop even more friendships, joining new neighbors in book clubs or bridge clubs or computer classes.

Of course, the key to getting to this point is careful planning. Many people think first of cost, and that’s an important aspect to an enjoyable retirement. Numerous Naperville financial planning services can assist with that. The best bet is to talk to an advisor when retirement still seems far in the future. Beyond financial considerations, though, lie other planning aspects which can be equally important in developing a happy retirement. Making plans, particularly for goals not yet achieved, can keep the days lively and interesting. Finally visiting Rome or learning to paint helps this stage of life offer new beginnings rather than long stretches of empty time. Developing new friendships, maybe while also developing a new hobby, can also add to the enjoyment of retirement.

So if you plan ahead, you can enjoy the post-working years in Naperville even more than the busy career-filled years.