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Show June 26, 1998 The Summit County Bee PAGE Cl Simple Simon met a lineman high up in the air. It's Never Too Early to Start Saving Over the past 40 years, our country's personal savings rate has declined steadily and in the past y e a rs i t has plummeted dramatically. In the 1950s, ours was a nation of savers the U.S. saving rate then averaged about 11.5 percent of household income. Today, we save only 4.8 percent of our disposable income, the lowest rale in the industrialized world, according to the Department of Commerce. Mortgage debt consumes 26 percent of the average American's income. Borrowing to cover college costs has jumped 50 percent since 1992 and as parents struggle to finance college, many find they are called on to support their aging parents. While recent studies have shown that Americans are beginning to save in greater numbers, those who do save tend to overestimate their actual saving rate. In Merrill Lynch's Eighth Annual Retirement and Financial Planning Survey, respondents estimated they are saving more than 13 percent of their income, more than three times the 4.8 percent found by the Department of Commerce. This gap between perception and reality can have disastrous consequences over the long term. Unless we work dramatically to increase our personal saving rate, we'll be passing along a burdensome legacy to the next generation a generation that includes your children. These five principles can help you learn how to save and how to invest your savings: Have a financial plan. A plan helps you know where Tips on Buying Start by looking over the ads so you know what's available and what it's likely to cost. Next decide just what you're willing to pay. Be fair and at least a little flexible. You can have an effective silent partner" on your side when it comes to negotiating price. Pick a progressive dealer and you'll find helpful window stickers on his or her used models. The equipment and accessories on the sticker, along with mileage, media reviews and other pertinent information, present an instant profile of the car. Included are a used "carinvolce'which can be faxed to your lender, often resulting in a better financing deal, and the fcderal- - a you are, where you want to go and how to get there. Identify your financial goals and prioritize them. Your financial consultant can then help you arrive at an overall plan and help you develop an investment program to put your savings to work. Invest regularly. This offers the benefit of dollar cost averaging; you automatically buy more shares when prices are down and fewer shares when prices are high. Diversify your investments. Allocating your assets among a variety of investment classes will provide protection against market fluctuation in any one asset class. Invest in tax deferred and tax advantaged ways. Some saving vehicles, such as individual retirement accounts (IRAs), annuities, and 401 (k) retirement plans, allow you to defer taxation. Start early. The earlier you start, the more likely it is that you'll reach your financial goals. Start Your Children Saving. Saving can be learned, no matter what a persons age. Get your children into the practice of saving early on. If s a habit they're likely 'to carry into their adult years. A copy of Merrill Lynch's guide Saving and the American Family that includes The Bank Street College of Education's list of recommended children's fiction and nonfiction books about money, is available free by calling 1800637-745Ext. 2282. Christine Cooke is a Vice President and Manager Education Services for Merrill Lynch's Group. Said the lineman to Simple Simon, when up near lines BEWARE. Never remove branches or debris tangled in lines 5, Used Car buyers guide. According to Jack Nenni, vice president of Dealer Specialties, a firm turning out computerized, custom-designeused car stickers for dealers, these window labels can help you find the right used model and indicate any left over manufacturers war- Mompreneurs"-Mo- ms Who Operate A Home Business More than of . of all U.S. households include a current, aspiring, or past business owner. Included in this group is a growing number of momprencurs. Momprencurs nearly 10 million of them are women with ranty. Have a mechanic inspect and children who for varied reasons have embraced the concept of the car. Ask your insurance agent about the theft rate for being their own boss. They are the particular model and whether it jumping into the small business has abnormally high repair costs. ring, some of them even setting But first select a dealer in the aside the demands of a full timd used car window sticker program. job so they can spend more time This silent partner can help save with their kids while setting up home-base- d businesses. you a bundle and a lot of grief. According to work-at-hoexperts Ellen H. Parlapiano and Cincinnati-base- d one-thir- d Rachelle, age 10 Nflvf install rofP d, SotheftiV . J'skjj. ne-c- r- - . Never install antennas or satellite dishes near power lines test-dri- Making Investments? Your Financial Risk Can Be Calculated Patricia Cobe, Momprencurs, Practical A authors of Mother's Guide to Success, this new breed of business owners is powerful and growing. Todays mompreneurs want more control of their time and more flexibility to be with their businesses help kids. Home-base- d many women achieve this, said Parlapiano. By leveraging their talents as mothers and converting their skills and passions into business tools, more women than ever are creating small businesses that give them the best of both worlds. Parlapiano and Cobe recommend the following tips for aspiring mompreneurs: Do Your Homework Gather as much information as you can Breanne, age 10 WHK Stcp-by-St- P&S Work-at-Ho- Most people understand that risk is a part of life, that everything we do involves risk. We learn at an early age that risk carries the possibility of loss or injury. We learn to live with risk and deal with it. But when it comes to our money and our financial future, many of us fear we don't understand the risks involved. The risk many investors fear the most is the risk of a fluctuating market. We fear buying the wrong investment, getting in at the top of the market and selling at the bottom of the market. According to a brochure, recently published by the Mutual Fund Forum, called Understanding and Managing Investment Risk, working with a financial advisor can help an investor understand risk and proceed from that knowledge to make strategic investment decisions. A financial advisor can help investors establish realistic goals and a plan to achieve them. Most of us don't even understand the various risks we need to consider in investing. For example, there is is the risk of a slowdown in the economy, the risk of a fluctuating market, the risk of investcompany, ing in a problem-riddle- d the risk of a bond issuer defaulting, the risk of fluctuating interest rates and the risk of inflation eating up our investment. To help us understand these risks and how to deal with them, a professional financial advisor can walk us through a five-ste- p risk management process in the booklet. The steps are: identify risks, understand risks, develop strategies to control risks, evaluate the riskreward tradeoff, and make your decision. While risk can be a frightening thing, the booklet suggests ways it can be managed. There are five broad and proven strategies for controlling investment risk: diversifying your investments (ie: don't put all your eggs in one basket); investing systematically; selecting a seasoned, full time investment manager to manage your money; and seeking the advice of a financial advisor. This booklet demonstrates how, in dealing with investment risk, you can use the same process that you have used successfully to understand and manage the wide range of risks in life. The risk brochure, along with brochures on how to select a financial advisor, are available free to consumers by calling full-servi- ce financial advisors. What s Happening in your Hometozon? find Out! - Subscribe to the Bee Today ! werline (rQl Ptofeshonai Don't trim trees near power lines Http. Otr Jake, age about your particular business. Research similar businesses in your area to find out about your marketplace, your competition, and appropriate prices for your service or products. Tap Big Businesses To Help Your Small Business Many large corporations have tailored products and programs to suit the needs Avoid power lines when cleaning out gutters of small business owners. For example, AT&T Resources For New Business provides business start-up- s a single source for information about financing and writing a business plan and offers consulting, free seminars hosted by busi- Mutual Fund Forum is a it Bethesda, Maryland association which educates the ness experts, discounts from public about the role and value of national vendors and a helpful non-prof- Treat all lines as energized lines website. Stay Technology Savvy Communications is at the heart of small business. Take advantage of the internet and consider setting up number and your own toll-fre- e website, and add your address and your 800888 number to your business card. Also, don't tie yourself to the desk. Investigate wireless services that will give you accessibility to your customers and flexibility to be away from your home office. For more information about the AT&T Resources For New Business program call or visit the website at www.att.commb. Sam, age 9 Outdoor electric safety is important to all of us this time of year when were outside more. the help of some of last years winners in Utah Powers Electric Safety Contest, we wanted to make you aware of some of the potentially hazardous situations you and your kids can get into while working or playing outdoors. . If i UTAH POWER A PacifCorp Company 12 |