VIP Planners Financial Articles

Have you ever daydreamed about receiving a sudden windfall?

At some point many of us will receive an insurance payout, a significant tax refund or a bonus for a job well-done.

Though it would be tempting to put the whole amount toward a luxurious vacation or a new car, it's important to think about your long-term financial goals, too.

You can still have a little fun, but if you really want to make the most of a windfall, here's what to keep in mind.

• Pay down high-interest debt first. Credit cards often carry up to a 20% interest rate. After knocking out any of these balances you may have, consider attacking your student or personal loans.
  
  
• Build your emergency fund. Sudden unemployment can hurt when you have fixed expenses like rent or a mortgage, groceries, children's tuition and medical bills. Saving at least three months of living expenses in an emergency fund helps to prepare for a rainy day.
  
  
• Up your employee contribution to your 401(k). If you're part of a 401(k), consider increasing your contribution (especially if you benefit from an employer match). In 2019, you can contribute $19,000 a year or $25,000 a year if you're 50 or above.
  
  
• Invest in a balanced portfolio. Reach out anytime to determine your risk tolerance and discuss your personal goals. From there we can work together and can create a smart investment plan.
  
  
• Contribute to your children's education. If you have a 529 plan for your kids, consider putting a portion of your windfall toward a one-off incremental contribution.
  
  
• Invest in yourself. This can be the perfect time to enrich your skills. For example, you might decide to enroll in a "learn to code" boot camp or take a management course. Consider this an investment in yourself and your future earnings.

Have questions? Get in touch to discuss your financial goals and plans.

If you keep up with the news, you've seen that several companies have had their databases hacked recently. So what can you do if you think your personal data may have been compromised?

Here are four key steps to take if you're notified of a data breach.

1. Change Your Passwords

First, you'll want to change your account password with the hacked company and with any other website where you've used the same one. A password manager can help you generate tough-to-crack passwords and store them securely.

2. Sign Up for Free Credit Monitoring

One of the biggest risks you face if your Social Security number is stolen is that someone could apply for credit in your name, borrow money and not pay it back. You could be left with a big headache and a damaged credit score if this happens.

The breached company usually gives its customers at least a year of free credit monitoring, so be sure to sign up. This is an easy way to keep an eye on any fraudulent accounts that may be opened or applied for under your name.

3. File a Police Report

If your identity is stolen, file a report with the local police department. While they may not be able to restore your identity, a police report can be crucial to getting bogus charges removed from your accounts. IdentityTheft.gov is a helpful resource outlining all the steps you need to take.

4. Stay Vigilant

While it may take some extra time and effort to protect against hackers and data breaches, it's well worth it if you can keep your sensitive details a little bit safer.

Are you worried about your financial information? Reach out anytime to discuss how you can take the right steps to protect yourself. 

​Did you know that money management and financial challenges are one of the biggest sources of stress for many Americans?

Regardless of your net worth, it seems like there's always something to worry about.

While some things can't be controlled, other stressful triggers can be kept in line with a little bit of thought and planning.

Here are six steps that can help you achieve greater financial peace of mind:

• Know your value.  Are you optimally employed?  Has it been a while since you received a raise?  Do some research and start negotiating if you find you're not being compensated fairly (or consider looking for a new job altogether).
• Keep track of your daily and monthly expenses.  Knowing where you spend (or waste) money helps you gain control of your finances.  Once your essential bills are paid, challenge yourself to earmark at least 5% of your monthly salary toward your retirement.
• Build your emergency fund.  Having a cash reserve of at least three months' salary helps with financial anxiety.
• List your debts and create a plan to address them.  Remember, you didn't accrue debt overnight, so paying it off will take time, too.
• Find a community that shares similar money stresses.  Whether you're anxious about debt, caring for an aging parent or planning for retirement, connecting with like-minded people can help.
• Don't forget the big picture.  Staying informed of broad trends can help you prepare for any potential challenges.  If a harsh winter is forecasted, then you hay have higher natural gas bills.  If a recession is looming, it's even more important to have plenty of savings and a budget that works for you.

Money mistakes can happen at any age - whether you're negotiating your first job offer or planning your retirement.  The good news?  With a few simple steps, you can gain control of your financial future starting today.

Ready to reach your goals?  Here's how to be financially savvy no matter where you are in life.

In Your 20's:

Start Saving.  Compound interest means the earlier you begin, the larger your nest egg will be.  Steady saving could add hundreds of thousands of dollars to your retirement.

Beware of credit cards.  If you decide to use a credit card, embrace timely monthly payments so you don't rack up too much debt.

In Your 30's:

Avoid overspending.  You may want a bigger home or car because it feels like you can afford it, but watch out for lifestyle inflation and try to stick to what you need.

Protect yourself.  Ensure you have life and health insurance policies to safeguard your family.  Manage your retirement savings with an investment plan and create an emergency fund.

In Your 40's:

Leave your savings alone.  It might be tempting to borrow money from your retirement plan, but remember that you'd likely be hit with a 10% early withdrawal penalty.

Don't assume your retirement is set.  Take a realistic look at what you'll receive from Social Security, Medicare and your retirement savings.  If the monthly amount isn't enough, consider ramping up your efforts.

In Your 50's and Beyond:

Don't put off estate planning.  Consider a health-care proxy, a power of attorney and a will.  By thinking ahead, you can save your loved ones time, stress and money.

Continue to save.  If you get a late start, don't give up.  Even if you put away just 5 to 7% of your paycheck from ages 50 to 66 (the legal retirement age) - you'll be doing your future self a huge favor.

Have questions about your financial future?  Reach out to discuss your long-term goals.