About Magazines Conyers - January 2017 - Page 19

Consider Some New Year ’ s

( Financial ) Resolutions

This article was written by Edward Jones for use by Brian Callaway , Financial Advisor
We ’ re just about ready to open the door to 2017 , so you might be thinking about some New Year ’ s resolutions . What ’ s on your list this year ? More visits to the gym ? Learning a new language ? Mastering the perfect beef bourguignon ? All worthy ambitions , of course , but why not also include some financial resolutions ?
By reviewing your needs and goals , you can identify some resolutions that are particularly relevant to your own situation . But here are a few suggestions :
Build an emergency fund . If you needed a major car repair or a new furnace , or faced some other large , unanticipated expense , could you cope with it ? If you didn ’ t have the money readily available , you might have to dip into those investments intended for long-term goals , such as retirement . Instead , build an emergency fund containing three to six months ’ worth of living expenses , kept in a liquid , low-risk account .
Cut down on debts . It ’ s not easy to cut down on one ’ s debt load . But if you can find ways to reduce your debts , you ’ ll help improve your overall financial picture . Many debts are not “ useful ” – that is , they don ’ t carry any tax advantages – so every dollar you spend to pay down those debts is a dollar you could use to invest for your future .
Boost contributions to your retirement plan . If your employer offers a 401 ( k ) or similar retirement plan , take full advantage of it . Your earnings have the potential to grow tax deferred and your contributions may lower your taxable income . Plus , most plans offer a selection of investment options , so you can choose the investment mix that fits your
Call or stop by our office for more information or to schedule a complimentary portfolio review .
Making Sense of Investing . Brian Callaway
Financial Advsior 863 Flat Shoals Road , Suite 300 , Conyers , GA 30094
770-918-0725 • www . edwardjones . com
Member SIPC objectives and risk tolerance . Therefore , if your salary goes up this year , or if you think you can find other ways to free up some money , increase your contributions to your retirement plan .
Review your portfolio . Is your investment portfolio still on track toward helping you meet your longterm goals ? If not , you may need to make some changes . You ’ ll also want to study your investment mix to make sure it still accurately reflects your risk tolerance . Over time , and often without your taking any significant actions , your portfolio can “ drift ” to a place where you are taking on too much risk – or even too little risk – for your needs and long-term objectives . If this happens , you may need to “ rebalance ” your holdings .
Avoid mistakes . None of us can avoid all mistakes , in life and in our investment activities . But as an investor , you ’ ll clearly benefit from minimizing your errors . For example , it ’ s generally a mistake to jump out of the market in response to a period of volatility . If you wait for things to “ calm down ” before investing again , you might miss out on the opportunity to participate in the next market rally .
Think long term . Keep this in mind : You ’ re not investing for today or tomorrow , but for many years from now . Try to keep a long-term focus when making all your key investment decisions . By doing so , you can avoid overreacting to short-term developments , such as a sudden drop in the market or a “ momentous ” political event that actually decreases in importance as time goes by . Try to follow these financial resolutions as best as you can . You could make 2017 a year to remember .