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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 Poland.11 Financial New Years Resolutions1. 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.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.
  2. 2. 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?Thats all..for this week. Ive kept it short as I know you are probably in the middle of catching up after theholidays.As always, thanks for reading. I hope that you and your family had a super Christmas and NewYear.If you have been forwarded this by a friend/colleague and wish to receive future issuesautomatically, just click here.Finally, if you know of anyone who may be interested in a few thoughts on how to make the mostof their finances in 2011, feel free to forward this missive on to them.Ross.
  3. 3. DisclaimerThe views expressed here are my own. They are not necessarily shared by AES International. They aresubject to change at any time based on market and other conditions. This is not an offer or solicitation for thepurchase or sale of any security and should not be construed as such. References to specific securities arefor illustrative or informational purposes only and are not intended to be, and should not be interpreted as,recommendations to purchase or sell such securities. Call me: +48 (22) 389 65 70 (w) +48 512 275 706 (m) To disallow Ross Naylor from sending you email with this service, click here.