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Issue 28 of Ross Naylor's Ezine - New Year's Resolutions Revisited.

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  1. 1. Ross Naylor +48 (22) 389 65 70 (w) +48 512 275 706 (m) ul. Królewska 27 lok 411 Warszawa 00-060 PolandNew Years Resolutions Revisited Given that we are now at the end of June, I thought that it was a good time to revisit the list of financial resolutions that I published at the start of the year. They are all still valid and the good news is that there is still half a year left to take action.1. Make or update your will/testament. The number one reason people dont do this is thatthey believe they will never die. If you are, in fact, immortal, go ahead and skip this one.Otherwise, it is something that you should consider.2. Rebalance you r portfolio. Bank some of the gains on your winners from 2010 and reinvestthe proceeds in the areas that didnt fare so well and are thus available at more favourable prices.3. Diversify. There is a lot of uncertainty out there. Dont keep all of your money in one currency.Dont keep all of your money in one asset class e.g. stocks or property. Spread your risk.4. Look for "absolute return" investments. Most investments only make money in an "up"market. However, there are those that can also profit when markets go down. Look to reduce youroverall risk by adding these to your portfolio.5. If you dont already have an emergency fund, start one today! Your emergency fundshould have a minimum of 6 months worth of expenses in it.
  2. 2. Keep these funds in a money market account or other high interest, easily accessible account. Ifyou ever have the misfortune of an unexpected job loss or medical expense, you will be far moreprepared to weather the storm if you know you have a little breathing room on your finances.Doing so also allows you the comfort to invest your remaining capital with a longer time frameknowing that you wont need to dip into it in an emergency.6. Make a financial plan. Start writing out your financial goals and what it will take to achievethem. Getting help from an impartial financial planner can make this process more effective.7. Improve your financial record-keeping. Get your paperwork in order, and keep goodrecords all year round. This will save money in the long run and reduce your aggravati on(especially come tax return time).8. Make sure you have adequate insurance. Start by asking yourself how much money yourfamily would need if you were to die. Also ask what would happen if your spouse/partner were todie. They may not ear n an income but they still perform an invaluable role in your household.Finally, consider what would happen if the breadwinner in your household were unable to workdue to illness/long term incapacity and look at ways of insuring against this.9. Dont keep all of your money on deposit. Bank interest rates are historically low and higherinflation is in the air. The net result of this, is that cash will lose its purchasing power in real terms.By using some of the ideas above you should be able to put your money to work without takingundue risk.10. Set up an automatic savings plan. Did you ever hear of the theory of paying yourself first?Thats basically what this is. If you make it a habit to put aside 10% out of your pay check eachmonth for savings and investments, before you pay any other bills, you are actively workingtowards a better financial future for yourself.11. Review your employer benefits. Do they provide you with a pension scheme? If so,where/how is the money invested? Do they provide you with life insurance? If so, how much dothey provide? How long will they continue to pay you in the event that you are ill/incapacitatedand unable to work?Thanks and FeedbackIt has been 12 months since I launched this ezine and I wanted to thank you for the time that youhave taken to read my t houghts in these 28 issues.I am well aware of the enormous quantity of information that we are exposed to - Googles EricSchmidt said that we now create as much information in two days as we did from the dawn of
  3. 3. man through 2003 - so I am truly grateful that you spend even a small amount of your time withmy ezine.I would also like to ask you for your assistance. I am continually trying to improve the quality ofthis ezine and make its content more valuable for you.Therefore, if you have any feedback on how I could do so please drop me a line. It would begreatly appreciated.Wishing you a happy and prosperous second half of 2011.Ross. Call me: +48 (22) 389 65 70 (w) +48 512 275 706 (m) Click here to no longer receive email from this person with this service.