Rushville Republican

Business

January 4, 2013

Make Some New Year’s (Financial) Resolutions for 2013

RUSHVILLE — Once again, it’s time to make some New Year’s resolutions. This year, in addition to promising yourself that you’ll hit the gym more often, learn a new language or take up a musical instrument - all worthy goals, of course - why not set some financial resolutions?

Consider these suggestions:

Boost your retirement account contributions. If your income will rise this year, consider putting more money into your employer-sponsored retirement plan, such as a 401(k), 403(b) and 457(b). You typically contribute pre-tax dollars to your plan, so, the more you put in, the lower your taxable income. Plus, your money can have tax-deferred growth potential.

Don’t over-react to the headlines. Lately, you’ve heard a lot about the fiscal cliff, political paralysis, the debt ceiling and other Really Scary Topics. These issues are not insignificant - but should they keep you from investing? After all, in any given year, you won’t have to look hard to find warnings and negative news events - and many people do use these ominous-sounding headlines as a reason to head to the investment “sidelines”for a while. But if you’re not investing, you’re unquestionably missing out on opportunities to make progress toward your financial goals. So, instead of focusing on the news of the day, make your investment decisions based on the fundamentals of those investments you may be considering, along with your goals, risk tolerance and time horizon.

Keep whittling away your debt. Over the past few years, Americans have done a good job of lowering their debt burdens. Of course, the economy is still tough, and it can be challenging to avoid taking on new debts. But the less debt you have, the more you can invest for your retirement and other important objectives.

Rebalance your portfolio to accommodate your risk tolerance. If you spend too much time worrying about the ups and downs of your investments, then your portfolio’s potential for volatility may be too great for your individual risk tolerance. On the other hand, if you continually see little growth in your holdings, even when the financial markets are going strong, you may be investing too conservatively - especially if you are willing to take on some calculated risk to potentially boost your returns. So review your portfolio at least once in 2013 to see if it needs to be “rebalanced”to fit your risk tolerance.

Get some help - Navigating the investment world by yourself is not easy. For one thing, there’s a lot to know - different types of investments, changing tax laws, the effects of inflation, interest rate movements, and much more. Furthermore, when you’re making investment decisions on your own, you may have a hard time being objective - so you might end up investing with your heart, and not your head. The need for knowledge and objectivity point to the advantages of working with an experienced financial professional - someone who understands both the financial markets and your individual needs and goals.

These aren’t the only financial resolutions you could make for 2013 - but if you follow through on them, you may well need to make fewer ones when 2014 rolls around.

Brian Humphrey is a financial consultant and investment advisor.

 

1
Text Only
Business
  • U.S. jobless aid applications fell WASHINGTON (AP) - Fewer people sought U.S. unemployment benefits last week, as jobless claims remain at relatively low levels that point toward stronger economic growth.Weekly applications for unemployment aid fell 14,000 to a seasonally adjusted 289

    August 8, 2014

  • Choose carefully when remodeling to boost home value With summer in full swing, home remodeling is top of mind for many homeowners. And by all the evidence, the return on home improvement investments has never been better. For most people, a home is their biggest investment. A home remodeling or replac

    August 8, 2014

  • bus-rv080114-citizens pic Citizens State Bank expands local team Citizens State Bank has announced Samantha Coon as a new teller who will serve the Rush County market. She will be working at our Rushville branch located at 1802 N. Main St., Rushville. She brings a tremendous amount of team building and customer se

    August 1, 2014 1 Photo

  • Edward Jones Moves Up on the FORTUNE 500 List RUSHVILLE - Financial services firm Edward Jones moves up on the annual FORTUNE 500 list, as published by FORTUNE magazine, in its second appearance in two years, according to the following Rushville area Edward Jones financial advisors: * Brian D Hu

    June 13, 2014

  • bus-rv061314-fussner release pic Fussner completes 2nd year at Institute for Organization Management WASHINGTON, D.C.-- Institute for Organization Management, the professional development program of the U.S. Chamber of Commerce Foundation, is pleased to announce that Sandy Fussner, Executive Director of the Rush County Chamber of Commerce, has recen

    June 13, 2014 1 Photo

  • U.S. businesses boost April stockpiles 0.6 percent WASHINGTON (AP) -- U.S. businesses increased their stockpiles in April by the largest amount in six months, signaling business optimism that future demand will keep rising. Business inventories rose 0.6 percent after a 0.4 percent March gain, the Com

    June 13, 2014

  • Farm Credit schedules ribbon cutting RUSHVILLE - Farm Credit Mid-America, an agriculture lending cooperative serving farmers, rural residents and agribusinesses throughout Indiana, Ohio, Kentucky and Tennessee, will hold a ribbon cutting ceremony on May 29 for their new office in Rushvi

    May 16, 2014

  • Purdue NExT online learning program launches global website, now open to individuals, businesses, industry WEST LAFAYETTE -- Purdue NExT, an online interactive learning program, has launched its global website, offering 25 new classes. Purdue NExT is an outgrowth of PurdueHUB-U, an online education initiative announced in 2012. It is based on HUBzero, a p

    April 25, 2014

  • Student business competition announces finalists, Demo Day presentations WEST LAFAYETTE - Three Purdue University student-based startups have advanced to the final round of the Boiler Mini-Accelerator Competition or "Boiler," where they will compete for nearly $10,000 in funding. The Boiler, a student-run business competi

    March 28, 2014

  • Congressman Messer honors training program Congressman Luke Messer has made it a matter of Congressional Record that he strongly supports the Manufacturing Matters fast track training program in Rush, Wayne, and Fayette counties. In the Congressional Record dated Feb. 25, 2014, he congratulat

    March 14, 2014