Janet Langdon,-M. Div. l_VlCPsyA
Psychoanalysis I; Pastoral Counseling
Individuals &-Couples Jungian orientation
NOW IN NORTHAMPTON

9_ Center 'Court,l_413-584-2442

and still on-River Road, Putney, VT 05346
802-387-5547 j|iesl@sover.net

 

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A Full Service Salon
l50 Church Street‘ Burlington 0 across from City Hall

 864-2088 , V v

 

Because our team is dedicated
to providing the best possible service
to all people,’-we are proud all our ties '

, <./I0 the GLBT community.
Specializing in Addison County _
George Brewer www.rangteam.net Jen mfer Ponder

EALTOR, (302) 388-1 000 - - REAIJOR,

   

CRS, GR1. CR3, AER
langmladfiésovennet

M90! 8: OHM volunteer
jennponder@hut'mailzoom.

 

Susan McKenzie MS.

Jungian Psychoarialyst
Licensed Psychologist —‘Master

  

Specializing in issues of Gay," Lesbian,
Bi-sexual and Transgendered individuals and couples

Quechee — llvhite River Junction (802) 295-5533
Insurance Accepted

         

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was often a service to help
wealthy investors manage
large sums of money. However,
in today’s economy, financial
planning has become a necessary
tool for anyone working to pay
off debt, budget earnings, plan
for retirement, save for college,
buy a new home or invest in the
stock market. In fact, people who
need to make every dollar work
to meet their financial goals
require as much, or often more,
financial advice and assistance
than wealthy investors.
According to a joint

report by the Consumer
Federation of America, the
National Credit Union
Foundation and the Credit Union
National Association, one-fourth
of U.S. households have net
assets under $10,000 and there-
fore are “wealth-poor.” The
report also found that these
wealth-poor households are more
likely than other American fami-

In the past, financial plarming

' lies to plan for the next few

months (rather than years).
Although many people

believe that you need a bundle of
investment dollars before you
should see a financial planner,
most people actually start seeing

a financial advisor when they are ‘

addressing a lifestyle goal, such
as buying a home, getting mar-
ried or having a child. _.
Furthermore, many of those peo-
ple are concurrently dealing with
complex issues, such as debt
reduction, protection planning
and building an emergency cash
reserve.

Debt Management

There are many things to consid-
er when managing debt, includ-
ing consolidating your debt or
deciding which of debt to pay off
first. You must also determine
how you can change your behav-
ior to decrease debt accumula-
tion.

Budgets and Emergency
Planning

It may seem relatively straight-
forward to create and manage a
budget when you are living pay-
check to paycheck and don’t have

 

 

many alternatives and choices.
But how do you handle larger"
expected bills, such as a car pay-
ment, or unexpected items such
as major home repairs or even a
layoff‘? Creating a separate sav-
ings account for those larger
expenses and then making
monthly deposits -is one way to
get there. Building a cash
reserve for emergencies

that equals three to six ’
months of your income is

also recommended.

Protection Planning

With smaller cash

reserves and less of a ,_
cushion to fall back on, ‘
people typically have a

great need for the right
insurance. For example,

if you are living day-to-

day off your earnings, ‘

have you considered A /
what you would do if

you were disabled and
unable to work?

Disability insurance is an
important component of
comprehensive protec-

tion planning. Remember A
that when purchasing any type of
insurance, your deductible should
match your cash reserve. For
example, if you don’t have

$1,500 in your cash reserve avail-‘

able at all times, you should not
be buying insurance policies with
a $1,500 deductible.

Long-Term Planning 5
Especially in a down market, it is
important that you know your
level of risk tolerance, have a
long-terrn plan, and implement
and adjust it as necessary.
Typically, with little money avail-
able for long-terrn savings, the
investor should first access

 

employer-sponsored 401(k) plans,
allocating a relatively small por-
tion of salary, which can be
deducted automatically. 401(k)
programs are often matched by
the employer, which can signifi-
cantly increase and possibly even
double your return without any
associated risk. You should also
consider mutual funds that have a
relatively low minimum monthly
requirement, such as $50 or $100
per month, and allocate this
monthly payment as part of your
long-terrn planning.

Put Time on Your Side

You may not be able to solve
your debt or savings problems
overnight, but you can solve
them over time. Not only will a

How do you
handle larger’
expected bills,

such as a car
payment, or

unexpected items

such as major

home repairs or
even a layoff?

combined debt- reduction and sav-' "V
‘ings strategy begin to lighten the"

load now, it will help you feel ‘ A
better about your future. V

Irene is a financial advisor with
American Express Financial
Advisors. She maintains offices
on Church Street, Burlington, and
near Taft Corners, Williston. You
can contact her with questions 07
comments: 888-702-0010, xi. 5 0!‘
irene. m. boire@aexp. com.