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Dec 11

Written by: Coach Danielle
12/11/2009 9:24 PM

moneyI have several pages of notes from out call with Frank Grasso. Frank generously shared a ton of his knowledge and expertise when it comes to finances. Here are just a few pieces of the information he provided: 
 
Reduce your debt: Pay off your credits cards by making more than the minimum payments. Target the cards that are costing you the most money. If you can cost effectively do it, look to consolidate your debt. 
 
- Accumulate cash: Pay yourself first. Be sure to put something away for yourself each month. Put a systematic investment plan in place where you contribute a consistent amount of money per month. This will result in dollar-cost averaging, allowing you to grow your money. Also remember that is is a good time to buy when stocks are low.
 
- The Rule of 72: This rule will tell you how long it will take you to double your money. Take the interest rate you are being offered and divide it by 72. For example, if the interest rate is 10%, it will take 7.2 years for you to double your money (72/10 = 7.2). The Rule of 115 works similarly-- divide the interest rate by 115 and the resulting number tells you how long it will take you to triple your money. If the percentage is small and it will take you a long time to double or triple your money, look to diversify.
 
- What if you are really pinched for cash in the current economy? Work with a financial advisor to see where money can be saved, possibly decrease your tax exemptions (if below what you will claim on your taxes), and get creative.
 
- If you are not putting money into a company 401k (which you should always put in at least what the company match is), then you should seriously consider an IRA for tax reducation purposes. Avoid -- at all costs --  401k or pension loans!
 
- Protect your assets: Insurance can be vitally important. You want to not only consider health insurance but also life insurance, disability insurance, and even long-term care insurance
 
- Diversify! Start with a checking account. Keep one month's worth of expenses in there, then put 3 months worth into a money market account. Next, look into a short-term bond portfolio and finally stock portfolios. Remember that as the economy begins to improve, interest rates will increase.
 
- If you are looking to work with a financial advisor, be sure to ask questions about their experience and qualifications. Learn about who their clients are and ask about their fee structures. Financial advisors may charge only a commission or may charge acording to a fee schedule.
 
If you have more questions, please contact Frank at Fgrasso@northridgesecurities.com

Copyright ©2009 Danielle Zanzarov-Rodriguez

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 Health 4 Parents  *  Danielle Zanzarov  *  Health and Wellness Coach
P.O. Box 355  *  Bohemia, NY 11716  *  (631) 627-0703

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