Most financial advisors recommend that you aim to save at least 10% of your gross salary before tax withholdings are taken out. It is important to remember that for every dollar you contribute pre-tax to your 401(k), you could potentially be saving approximately 33¢ (or 1/3) in taxes. Another way of looking at this is for every dollar you contribute to your 401(k), you will only potentially miss approximately 66¢ from your after-tax paycheck. Please consult your own tax professional on all tax matters. However, if you currently cannot afford a 10 % pre-tax contribution, try the “1% solution.” You start by saving an amount you can afford and raise it by one percentage point each year. For example, if you start by saving 2% of your income, the next year contribute 3%. In the third year contribute 4%, and so on. You'll soon be saving more than you thought possible!   [less]

There are many credit unions and banks that specialize in extending credit cards to applicants who are just establishing a credit history. When applying for your first credit card, don't apply for more than one at a time as credit applications show on your credit report and numerous rejections make you look desperate for credit. If you are declined for a credit card, try applying for a department store card or an oil company card. These cards are typically easier to obtain than other credit cards. A second approach is to apply for a secured credit card. With a secured card, you place a deposit with a credit union or bank and they provide you with a credit card. The credit limit is typically equal to the deposit. Be mindful of the secured card or credit card you choose, as some carry high fees and interest rates.   [less]

Financial planning is establishing a plan to help guide you toward your financial goals, such as saving for a house, paying for college, or having a secure retirement. It also analyzes one's insurance needs and makes appropriate recommendations for auto, homeowner’s, excess liability, life, health and other types of insurance in what is sometimes referred to as risk management. Additionally, an examination of your estate and how it should be managed or distributed when you pass away is a very important part of the plan. Financial planning will also look at tax issues and may incorporate tax strategies that minimize, defer or eliminate various taxes during your life and potentially even on the estate when you pass away. Financial planning is comprehensive and it is an ongoing process to create a plan that has flexibility as your needs and objectives change or as tax and other laws, rules and regulations change.   [less]

Whether you have very limited resources or a sizable estate, you could benefit from the services of a financial planner. Today, it is very challenging to keep up with the rapid changes that can impact financial products, tax laws, the economy and volatile stock and bond markets. Financial information and planning ideas are everywhere, with each one claiming to be the best. There is financial advice in printed articles, online, radio talk shows, advertisements, etc. This information is sometimes fragmented and may not be specifically related to your personal financial situation. Putting all this information together into a workable strategy can be a daunting project for individuals. Professionals strive to explain your options in easy to understand terms indicating how each option could potentially affect your financial goals. Today, advice from experienced professionals may make the difference in reaching your goals or not. Seek out a financial planner, investment or insurance professional in whom you feel confident.   [less]