Charles Schwab Offers New Year's Resolutions to Help Give Personal Finances a Fresh Start.Business Editors SAN FRANCISCO--(BUSINESS WIRE)--Jan. 2, 2003 Getting ready to open those brokerage statements that you have been avoiding? A new guide for investors, issued today by Charles Schwab & Co., Inc., offers ten resolutions to help give personal finances a fresh start. "First and foremost, track your spending," said guide author Rande Spiegelman, CPA (Computer Press Association, Landing, NJ) An earlier membership organization founded in 1983 that promoted excellence in computer journalism. Its annual awards honored outstanding examples in print, broadcast and electronic media. The CPA disbanded in 2000. , CFP 1. CFP - Constraint Functional Programming. 2. CFP - Communicating Functional Processes. 3. CFP - Call For Papers (for a conference). (R), of the Schwab Center for Investment Research(R). "Try it for 30 days and you might be surprised at how easy it is to cut back. Be sure to set aside three to six months' living expenses to be tapped in case of emergency. And if you have money left over, invest it." Spiegelman also suggests: Pay off credit cards: Resolve to get rid of all consumer debt that is not tax deductible. Once debt is eliminated, get a copy of your credit report and check for errors. Determine your tax bracket Tax Bracket The rate at which an individual is taxed due to a particular income level. Notes: Each income class is taxed at a different level. Generally, the more you make the more you are taxed. : Knowing your marginal income tax bracket Noun 1. income tax bracket - a category of taxpayers based on the amount of their income income bracket, tax bracket bracket - a category falling within certain defined limits can help make all sorts of important financial decisions, including how much to withhold from your paycheck and whether the alternative minimum tax is an issue for you. Give your portfolio a checkup: Now is the time to get asset allocation Asset Allocation The process of dividing a portfolio among major asset categories such as bonds, stocks or cash. The purpose of asset allocation is to reduce risk by diversifying the portfolio. in line with goals, time horizon and risk tolerance Risk Tolerance The degree of uncertainty that an investor can handle in regards to a negative change in the value of their portfolio. Notes: An investor's risk tolerance varies according to age, income requirements, financial goals, etc. . Revisit your portfolio every six to 12 months, or when circumstances change. Max out on retirement savings: Contribute to retirement accounts as early in the year as possible. Even if you cannot contribute the maximum allowed, put in as much as possible, especially up to the point of any employer match. Save for children's or grandchildren's education: Open a 529 college savings plan and/or Coverdell Education Savings Account Coverdell Education Savings Account A special individual retirement account opened on behalf of a child under age 18. Contributions of up to $2,000 annually may be made by anyone who meets specified income limits. . Contributions usually are not tax-deductible, however when money is taken out to pay for qualified education expenses, it is currently tax-free. Review insurance coverage: Check homeowner and auto policies to see whether coverage and deductibles still make sense. Be sure you have adequate life and disability insurance and that you are not paying too much for the wrong kind of coverage. Take care of your estate: An up-to-date will needs to be in force to make sure final wishes are carried out. Also check the accuracy of beneficiary designations and titling on all bank, brokerage and retirement accounts. Update your personal financial plan: If you've previously had a financial plan created, sit down with your advisor to update your plan. If you've never gone through the planning process, now is a good time to seriously consider a professional, comprehensive review of your financial situation. All that glitters All That Glitters (shortened from "All that glitters is not gold", a famous misquotation from The Merchant of Venice, the original line being ) is the name of a number of different works:
The complete text of Spiegelman's guide, "Ten New Year's Resolutions to Get Your Finances in Shape," and information on how to give an investment portfolio a fresh start is available at www.schwab.com/SchwabNOW/navigation/mainFrameSet/0,4528,873,00.html About Charles Schwab The Charles Schwab Corporation (NYSE NYSE See: New York Stock Exchange :SCH SCH School SCH Schedule SCH Search SCH Semester Credit Hours SCH Santander Central Hispano (bank in Spain) SCH Socket Head SCH Synchronization Channel SCH Succinylcholine SCH Space Center Houston ), through Charles Schwab & Co., Inc. (member SIPC/NYSE), U.S. Trust Corporation, CyberTrader, Inc. (member SIPC/NASD) and its other operating subsidiaries, is one of the nation's largest financial services firms serving 8.0 million active accounts with $785.5 billion in client assets, as of December 12, 2002. The Charles Schwab, U.S. Trust and CyberTrader Web sites can be reached at www.schwab.com, www.ustrust.com and www.cybertrader.com, respectively. The Schwab Center for Investment Research is a division of Charles Schwab & Co., Inc. (0103-7180) |
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