BUSINESS AND FINANCE
Mitch
Sue
January 2018 Page 5
BUSINESS AND FINANCE
We’ ve reached the end of another year – which means it’ s just about time for some New Year’ s resolutions. Would
by Jason Witcher
you like to study a new language, take up a musical instrument or visit the gym more often? All these are worthy goals, of course, but why not also add some financial resolutions?
Here are some ideas to think about:
• Increase contributions to your employer-sponsored retirement plan. For 2018, you can contribute up to $ 18,500( or $ 24,500 if you’ re 50 or older) to your 401( k) or similar plan, such as a 403( b), for employees of public schools and some nonprofit groups, or a 457( b) plan, for employees of local governments. It’ s usually a good idea to contribute as much as you can afford to your employer’ s plan, as your contributions may lower your taxable income, while your earnings can grow tax-deferred. At a minimum, put in enough to earn your employer’ s matching contribution, if one is offered.
• Try to“ max out” on your IRA. Even if you have a 401( k) or similar plan, you can probably still invest in an IRA. For 2018, you can contribute
Dave Says
NEW YEAR’ S- TIME FOR NEW YEAR’ S FINANCIAL RESOLUTIONS
up to $ 5,500 to a traditional or Roth IRA, or $ 6,500 if you’ re 50 or older.( Income restrictions apply to Roth IRAs.) Contributions to a traditional IRA may be tax-deductible, depending on your income, and your earnings can grow tax-deferred. Roth IRA contributions are not deductible, but earnings can grow tax-free, provided you don’ t start taking withdrawals until you are 59-1 / 2 and you’ ve have had your account at least five years. You can put virtually any investment in an IRA, so it can expand your options beyond those offered in your 401( k) or similar plan.
• Build an emergency fund. Try to build an emergency fund containing three to six months’ worth of living expenses, with the money held in a low-risk, liquid account. This fund can help you avoid dipping into your long-term investments to pay for unexpected costs, such as a new furnace or a major car repair.
• Control your debts. It’ s never easy, but do what you can to keep your debts under control. The less you have to spend on debt payments, the more you can invest for your future.
• Don’ t overreact to changes in the financial markets. We’ ve had a long run of rising stock
Mitch
Dear Dave, I just accepted a new job that will pay me $ 30,000 a year more than my old position. I’ ve got about $ 55,000 in debt I’ ve been working hard to pay off, and I know now I need to adjust my budget. Do you have any advice? Mitch
Dear Mitch,
The first thing I’ d say is don’ t go crazy on any big-ticket items prices – but it won’ t last forever. If we experience a sharp market downturn in 2018, don’ t overreact by taking a“ time out” from investing. Market drops are a normal feature of the investment landscape, and you may ultimately gain an advantage by buying new shares when their prices are down.
• Review your goals and risk tolerance. At least once in 2018, take some time to review your short- and long-term financial goals and try to determine, possibly with the help of a financial professional, if your investment portfolio is still appropriate for these goals. At the same time, you’ ll want to re-evaluate your risk tolerance to ensure you’ re not taking too much risk – or possibly too little risk – with your investments.
Do your best to stick with these resolutions throughout the coming year. At a minimum, they can help you improve your investment habits – and they may improve your financial picture far beyond 2018.
This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.
while you’ re paying off debt. Keep it simple, and go out to celebrate with a nice dinner after you get your first paycheck. Remember, the more you put toward debt, the faster it goes away.
For the time being, I want you to remain passionate about getting out of debt. Your thought process needs to be,“ Wow, I got a new job making more money. I can get out of debt even quicker!”
Again, I’ m okay with you adjusting a bit that first month and having a little fun to celebrate your good fortune. But after that, I want you to turn around and attack that debt with even more intensity than before. Then, once you’ re out of debt, you can
CONYERS-ROCKDALE CHAMBER’ S ENTREPRENEURIAL ACADEMY
We show you how to turn your passion into a business!
Your COMMUNITY Chamber of Commerce( Conyers- Rockdale) is ready to help you learn the ins and outs of the business world and turn your passion into a business with the 2018 Entrepreneurial Academy. Starting Monday, February 12th, this seven-week program offers motivated individuals the essential information needed to start and run a successful business.
“ This entrepreneurial program is a course designed with the small business entrepreneur in mind. Whether you have an existing business or dreams of starting one in the future, the academy has something for you,” said Fred Boscarino, GCCE, President / CEO of the Chamber.“ Experienced business people who have been there, tried that, share their voices of experiences to help you avoid common pitfalls and be better prepared to establish your business for growth and prosperity.” Taught by business leaders in the community, the curriculum includes sessions on legal entities. accounting, loan options, marketing, social media, insurance, human resources and much more.
Through a series of workshops, seasoned entrepreneurs will share their lessons learned. Each week, a new topic will be introduced. The format ranges from panel discussions, lectures and hands-on training.“ Of more than 300 academy graduates who have come through the
celebrate that with something a lot nicer. Congratulations, Mitch!— Dave
Sue
Dear Dave,
You say to never give collectors access to your checking account. Does that include debit cards, too? Sue
Dear Sue,
Yes, it does! Collectors are looking to get as much as they can on a bad, late debt. I’ ve seen numerous situations where collectors have taken more than the agreed-upon amount from someone’ s account once they
program since it started in 2004, more than 40 % are now in business for themselves,” said Boscarino.“ In addition to gaining valuable information, you also have the opportunity to network with other likeminded individuals who hope to establish or expand a small business.” The academy draws participants from Stockbridge, College Park, Forest Park, Lithonia, Decatur and McDonough.
The cost for the program is $ 175. If you pre-register by February 1, 2018 you will receive a $ 50 off the registration fee. The registration fee includes snacks for every session and a graduation dinner. After completing the Entrepreneurial Academy, you will receive Continuing Education credits( CEU’ s) and a certificate of completion from Georgia Piedmont Technical College. Classes will be held from 6:30-9 p. m. in Conyers. Students are encouraged to arrive no later than 6:00 p. m. to network and to make sure they are fully prepared for each session which
gained access. To be fair, the collection business does have a few good people in it. But it also has those who will lie and make threats.
If you’ re doing something like scheduling utility payments to come through your debit card or out of your personal checking account, that’ s perfectly fine. But there are much safer ways to handle situations with debt collectors. You can send a money order overnight, or wire the cash to them. You can also send a cashier’ s check. Some folks have even used pre-paid debit cards that aren’ t attached to any of their accounts.
The pre-paid debit card starts promptly at 6:30 p. m.
Entrepreneurial experience is not necessary to attend. This is a COMMUNITY program open to the public, including those who are still pondering if they want to go out and start their own business. For more information or to register, call 770-483-7049.
isn’ t my favorite way to handle these things, but it’ s a lot better than giving a dishonest collector the opportunity to really mess you up!— Dave
* Dave Ramsey is CEO of Ramsey Solutions. He has authored seven best-selling books, including The Total Money Makeover. The Dave Ramsey Show is heard by more than 13 million listeners each week on 585 radio stations and multiple digital platforms. Follow Dave on the web at daveramsey. com and on Twitter at @ DaveRamsey. com and on Twitter at @ DaveRamsey.
When are you the‘ Right Age’ to buy life insurance?
Let’ s talk about the elephant in the room … life insurance! Everyone needs life insurance but nobody wants to talk about it. No one wants to consider that they could die prematurely or get diagnosed with an illness.
However, not having the proper life insurance policy in place is the last thing that you want to happen, should disaster strike. According to Investopedia,“ In 2015, individuals between 18 and 35 overestimated the cost of a policy by 213 %.” You have a
Insurance: Annuities: Retirement: IUL
J. ANDREW JERNIGAN
DR. ROUSSY
Licensed Field Underwriter
P: 205-767-0507
Group Plans: Benefits: College Funding powerful mind. You can make great decisions. You will live 2018 better, wiser and more effectively than you ever have before!
As a broker for many of the leading top-rated life insurance companies in the nation, I have the privilege of serving a wide range of people. They provide me with scenarios that bring joy and also great sorrow. Just this month I had a joy of providing the first life insurance policy for a 23-year-old husband and father of two small children. He was quickly approved for a $ 200,000 term policy( that even gives the premiums paid back if he doesn’ t die during the term), and sadly soon after his approval he was diagnosed with a stage 3 brain tumor. He is so glad he got life insurance! His faith
is strong and he is going to beat this cancer, but he has the assurance that his kids have an inheritance someday because he had a policy in place before his diagnosis.
On the other extreme, a 72-year-old retiree messaged me through Facebook. We sat down together to plan a policy for his wife to inherit. Yes, his premiums would be quite high and it would take 11 years of monthly payments before he even equaled the amount of death benefit that his wife would inherit. In addition to the death benefit, there was an anticipated cash value that would also be available to either pay the premium longer or she would receive it. He is going forward with the payment to provide for his wife.
These glimpses into my world as an educator on the subject bring us full circle to discovering what the‘ right age for purchasing life insurance’ would be. As life evolves and changes, it actually demands more and less coverage. At one point, when older, you may only want enough to cover funeral and final expenses, while another might want to have a policy that would give a charitable contribution to their church or favorite cause. We each want to live a life of generosity, and life insurance helps us leave a legacy.
Life insurance premiums go up as each year passes( policies are age-banded) so the ideal time to purchase is when you are born. So having a whole life policy on your kids that becomes theirs when they turn 18 and can be converted to another policy is the most intelligent choice.
Personally, I wished I had purchased more life insurance earlier in life when I unexpectedly had a heart attack at age 40. Now the prices and options are quite high to add more coverage to my strategy. Take a lesson from me and look into getting life insurance before its too late. The right age to consider reviewing and purchasing life insurance is now. Be filled with hope as you make smart life decisions in the coming years.
J. Andrew Jernigan Licensed Field Underwriter
Insurance: Annuities: Retirement: IUL: Group Plans: Benefits: College Funding