FREE Teleclass: Women & Investing-How To Overcome the Fear

FREE Teleclass: Women & Investing-How To Overcome the Fear

April is Financial Literacy Month

I found a website celebrating financial literacy month.  This is what they show as the first step...and I love it!!!!! Check out the rest of the website at www.financialliteracymonth.com.  I know I will.

Take the pledge

Willing, Ready, and Able to take financial responsibility

Are you ready to accept responsibility for changing your financial situation?
Do you believe that you can and will change the way you make financial decisions?
Can you identify at least one benefit you hope to gain by changing your money management behavior?
If you consistently answered yes, pledge to continue on the path to financial wellness:

1. I will make informed financial decisions, understanding the difference between wants and needs.
2. I will communicate with my family about money matters so that we are all working toward the same goals.
3. I will be aware of the effects of advertising on the financial decisions I make, and resolve not to be influenced by them.
4. I will take care of my finances today by tracking expenses and creating a budget that is flexible and realistic.
5. I will take care of my finances tomorrow by saving for my future.
6. I will meet the credit obligations I have made on time and as agreed.
7. I will continue my personal education about financial health, budgeting, credit, and personal debt.
8. I will plan for periodic expenses, including the next holiday season.
9. By good example, I will teach my children the importance of budgeting, saving, and the wise use of credit.
10. If I am over-obligated, I will take the necessary steps to seek assistance.

I pledge to take steps to improve my financial wellness.

March Returns

A solid first quarter for the markets! Stocks did better than bonds but bonds are holding their own.  High yield bonds in particular are still doing well.  International markets lagged due to a stronger dollar.

The Monthly Index Report for March 2010

Index	Mar-10	QTD	YTD	Description
S&P 500 Index*	5.9%	4.9%	4.9%	Large-cap stocks
DJIA*	5.2%	4.1%	4.1%	Large-cap stocks
Nasdaq Comp.*	7.1%	5.7%	5.7%	Large-cap tech stocks
Russell 1000 Growth	5.8%	4.7%	4.7%	Large-cap growth stocks
Russell 1000 Value	6.5%	6.8%	6.8%	Large-cap value stocks
Russell 2000 Growth	7.9%	7.6%	7.6%	Small-cap growth stocks
Russell 2000 Value	8.3%	10.0%	10.0%	Small-cap value stocks
EAFE	6.3%	0.9%	0.9%	Europe, Australasia & Far East Index
Lehman Aggregate	-0.1%	1.8%	1.8%	U.S. Government Bonds
Lehman High Yield	3.1%	4.6%	4.6%	High Yield Corporate Bonds
Calyon Financial Barclay Index**	2.2%	1.7%	1.7%	Managed Futures
3-mo. Treasury Bill	0.1%	0.2%	0.2%
All returns are estimates as of March 31, 2010. *Return numbers do not include dividends.** Returns are estimates as of March 30, 2010.

Documentary on Enron

If you have not seen this documentary, you need to watch it.  I have seen it three times and I still find it absolutely amazing.  Tonight at 9:00 p.m. on CNBC; ENRON: The Smartest Guys in the Room.

Recordkeeping guidelines from the IRS

This is an excerpt from the IRS website.  I would suggest checking out the entire article on their website:

Why Keep Records?

There are many reasons to keep records. In addition to tax purposes, you may need to keep records for insurance purposes or for getting a loan. Good records will help you:

• Identify sources of income. You may receive money or property from a variety of sources. Your records can identify the sources of your income. You need this information to separate business from nonbusiness income and taxable from nontaxable income.
  
• Keep track of expenses. You may forget an expense unless you record it when it occurs. You can use your records to identify expenses for which you can claim a deduction. This will help you determine if you can itemize deductions on your tax return.
  
• Keep track of the basis of property. You need to keep records that show the basis of your property. This includes the original cost or other basis of the property and any improvements you made.
  
• Prepare tax returns. You need records to prepare your tax return. Good records help you to file quickly and accurately.
  
• Support items reported on tax returns. You must keep records in case the IRS has a question about an item on your return. If the IRS examines your tax return, you may be asked to explain the items reported. Good records will help you explain any item and arrive at the correct tax with a minimum of effort. If you do not have records, you may have to spend time getting statements and receipts from various sources. If you cannot produce the correct documents, you may have to pay additional tax and be subject to penalties.
  
  
  The entire publication can be found at this link:
  http://www.irs.gov/publications/p552/ar02.html#en_US_publink10008576

Universal fiduciary standard shot down

The financial-reform package recently introduced by Senate Banking Committee Chairman Christopher Dodd, D-Conn., dropped an earlier provision that would have imposed a fiduciary duty on anyone offering advice on investments.  Th Financial Planning Coalition has lobbied for months to include a requirement of fiduciary duty to all those who hold themselves out as a financial planner.  Apparently Wall Street special interest groups, with their huge political contributions, got their way.  And the investing public remains at a disadvantage.  Rest assured that I have always been and will remain a fiduciary, which means in short, that my clients' interests come before the interests of my firm or me.  For any new readers, this is a good question to ask your current advisor.  You need to know if you can trust your advisor and whether he/she has your best interests at heart.

Fortune article: relationship between client & planner

I came across this article from Fortune magazine.  I encourage you to read it for yourself.  Here is the link:
fortune

The most important thing I read was the last two paragraphs, "Finally, the yes-man problem can't just be pinned on advisers. A 2007 survey from the Employee Benefit Research Institute found that two-thirds of the people interested in meeting with a financial planner were likely to implement advice only if it conformed to their own ideas.
So if you want to improve the input you get, perhaps the first step is to look for someone who challenges your ideas, rather than echoing them."

Something to think about.....