Featured Columnist: Ronit Rogoszinski
Where to start?
We women entering our 40's and 50’s professionally speaking, should be reaching our peak earning years. However, at this stage of life we also start facing the reality of becoming the “sandwich” generation; an honorable distinction that comes from having aging parents and growing children. As we move through these years we should see our net worth steadily rise. Yet, for most of us the opposite has been true as the jobs market has shrunk, the recession proved to be deep and the general gloom and doom seems to have seeped into every crevasse of the global market.
So, what are we to do?
Well, if you’re like me, doing something versus sitting around paralyzed by fear is the only way to go. The following simple ideas will help you move into a positive, productive and proactive mind set.
First, take an inventory of your assets and liabilities. We’ve all been hearing on how we should spend less and save more but do you really know what you’re spending money on? Do you know for sure what income is actually earned? Do you have a realistic valuation of your assets? If you just answered “not sure” to any of these statements, you need to move. Start by tracking your spending over a period of 30 days (most of my clients never make it past the first week which is still better than not doing this at all). Track all income, whether it’s the direct deposit of your paycheck or the interest earned on savings. Everything gets tracked for one month!!
Then, subtract your expenses and spending from the income you totaled and see what number come up. One of two things will happen right here:
- Negative result means you’re spending more than you earn. You’ll need to go over every item on your expense and spending list to see what is necessary and what is not. Eliminating just a handful of the frivolous expenses can make a huge different in the outcome.
- Positive result means you are spending less than you make which is great. Still, reviewing your expenses as well can prove to be a good exercise in eliminating any frivolous spending. This house cleaning can free up cash for other more worthwhile endeavors.
Next, organize your portfolio. Asset allocation - the strategy of dividing your portfolio among the major asset classes of equities, fixed-income securities, and cash equivalents - is vital no matter what life stage you are in. Your asset allocation should be based on your goals, your tolerance for risk, and your time horizons. It probably will require modification or rebalancing over time. Generally speaking, the larger the equity portions of your portfolio, the greater the potential for growth and the greater amount of risk. On the other hand, the more fixed-income securities you include, the greater the potential for income and preservation of principle. There are risks associated with fixed-income investments, although they generally incur less risk than equities. I plan to address this issue very closely in future newsletters as well as tips on how to talk to your financial advisor if you have one working with you. During these times of turmoil having an open line of communication with the entire team of professionals who work for YOU, is so important. Finding those who will listen to your concerns and address them to your satisfaction, is key to organizing your portfolio.
Finally, for now protect what you've accomplished. As your wealth continues to increase, it's important to preserve what you've accumulated and safeguard your future. That's why estate planning and risk management are two of the cornerstones of a sound financial plan. A qualified financial professional can help you implement an estate plan that is best for your situation or review an existing plan to ensure it is still consistent with your goals. Also, be sure you have enough protection in place to help cover any liabilities -- such as your mortgage -- and protect your family's financial future.
Financially speaking, mid-life shouldn't be a time of crisis, but rather a time to take advantage of some of your most productive years. As members of Kalon Women we are all looking for opportunities to grow, reinvent ourselves and test out unchartered waters. Managing your finances need not be the one subject you keep pushing away but rather embrace it as another facet of who you are. Recession or not, gaining control over your finances will help ease your mind and free you up to pursue what Kalon Community is all about – find the beauty in side of you.
Ronit Rogoszinski is a Registered Representative with and securities are offered through LPL Financial, member FINRA/SIPC. Ronit may only discuss and /or transact securities business with residents of the following states: NY, NJ, CT, FL, CA. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individuals. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing.
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