Jane M. Young, CFP,EA

At least once a year we need to step back from our daily routine to look at our lives from a broader perspective. We get so bogged down with daily responsibilities we lose track of where we are, and where we want to go. Take the time to do some personal strategic planning. Start by looking at what you are actually spending and saving. How much do you spend in a typical month, how much is necessary spending and how much is discretionary? How do your expenses compare to your income? How do your expenses and your savings line up with your goals?

Maybe you haven’t thought about your long range goals for awhile. I challenge you to make a list of 30–50 goals that you would like to accomplish over the next five years. I know… that’s a lot! Think of this as a brainstorming exercise. Don’t evaluate the importance of a goal, just write down what comes to mind. If you are having difficulty thinking of 30–50 goals, try thinking of goals in the following categories: friends and family, health, career, social and entertainment, money and finance, spiritual, education, and community. Once you have created your list, prioritize your goals by importance and timeframe. Develop an action plan for your high priority goals.

Now go back and review your expenses. Are your spending and saving habits congruent with your long term goals? Use the information you have pulled together to develop a spending and savings plan that supports your personal strategic plan. Once you have a clear picture of where you are and where you want to go, you can take control of your life.

“The future belongs to those who believe in the beauty of their dreams.”
- Eleanor Roosevelt

Your Money Bus is coming to Colorado Springs.

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It’s never too late to secure your financial future.

Re: Free Non-profit Financial Education Event - Please share with friends, family and business associates.

All of us have family; friends and colleagues who are struggling to save money, eliminate debt and find jobs. Please share with them the opportunity to meet for a free one-on-one with local independent financial advisors when the national Your Money Bus Tour rolls into Colorado Springs on July 8th and 9th. Pinnacle Financial Concepts, Inc. is coordinating the Colorado Springs stop of this non-profit tour, visiting more that 25 cities. We will be volunteering at this event along with several other fee-only financial planning firms in town. The Your Money Bus Tour is sponsored by The National Association of Personal Financial Advisors (NAPFA) Consumer Education Foundation, TD AMERITRADE, Kiplinger’s Personal Finance magazine and FiLife.com.

The Your Money Bus Tour will stop in Colorado Springs at the Penrose Library (downtown) on July 8th from 12:00 - 7:00 and at UCCS, Lot 1 on July 9th from 12:00 - 5:00. At each stop, consumers can sit down with locally-based volunteer financial advisors to ask pressing financial questions. All Money Bus visitors will receive a free financial education kit, including a Kiplinger magazine and a budgetary workbook.

Forty percent of American families spend more than they earn and the average American with a credit file has more than $16,000 in debt, not including mortgages. We encourage people to stop byYour Money Bus to learn how to better save, eliminate debt and develop personal financial sustainability habits that will get them through and beyond these tough times.

The NAPFA Consumer Education Foundation is a 501c (3) organization committed to educating Americans on personal finance. Consumers need easy to understand information without any bias, sales, or conflicts of interest. All volunteer financial advisors are fee-only fiduciaries; nothing is being sold or promoted. This is strictly educational and free information for the public. The public is welcome to just stop by or make an appointment ahead of time.

For more information, visit www.YourMoneyBus.com and for up-to-date schedule information contact Krist Allnutt,krista.allnutt@perceptiononline.com.

Warmest Regards,

Jane M. Young, CFP, EA

Jane M. Young, CFP, EA

Forecasting the short-term movement of the stock market and trying to time the market is fruitless. As in all areas of our lives, we can’t control what life throws at us but we can establish a defensive position to best deal with a variety of outcomes. When it comes to our investments, we accomplish this through diversification, dollar cost averaging, maintaining an emergency fund and staying the course. We need to fight the natural inclination to make financial decisions based on emotions. Don’t forget that the stock market is counter-intuitive. Generally, the best time to buy is when things seem really bad and the best time to sell is when things seem the brightest. But then again, we just never know. It is easy to get caught up in the fear or euphoria of the moment. But, keep in mind that emotional reactions to the market can have a devastating impact on your portfolio. The stock market is a long- term investment and we need to avoid reacting to short-term events.

Proof of this can be seen in a Dalbar study conducted in March of 2010 for the time period of 1/1/90 – 12/31/09. During this time the average return in the equity market was 8.8% but the average return for the individual investor was only 3.2%. This discrepancy is a result of investors trying to time the market or reacting emotionally to financial news and events. Below are two quotes that sum this up very well.

“Far more money has been lost by investors in preparing for corrections, or anticipating corrections, than has been lost in the corrections themselves.”
-Peter Lynch, author and former mutual fund manager with Fidelity Investments

“The idea that a bell rings to signal when investors should get into or out of the stock market is simply not credible. After nearly fifty years in this business, I do not know of anybody who has done it (time the market) successfully and consistently. I don’t even know anybody who knows anybody who has done it successfully and consistently”
- John Bogle, founder of Vanguard Investments

Jane M. Young, CFP, EA

About once a week a client asks me about the latest prognostication from some famous so called “financial expert/alarmist.” They are either predicting the demise of the world as we know it or predicting a triple digit increase in the stock market. Maybe I am exaggerating, just a little, but we’ve all experienced those who think they can forecast the future and lead us to “Financial Paradise.” I remind my clients of two things with regard to these “miraculous forecasters.” The first is that most of the TV hosts, radio shows, magazines, and financial authors are in the business of making money by selling magazines, books, and ad space. They are not in the business of providing the consumer with the best possible advice. They want to entertain, tantalize, and terrorize you. This is what gets and keeps our attention. Let’s face it! Good solid investment advice is really boring. It doesn’t change much and doesn’t sell magazines! Secondly, they cannot predict what the market is going to do tomorrow much less six months from now. Historically, no one has ever been able to consistently predict the future of the financial markets. Sure, when you have thousands of people making forecasts a few are bound to get lucky. As a good friend often says, even a blind man eventually hits the bull’s eye.

Develop a solid plan to meet your unique situation and stick with it. Don’t let the financial hype throw you off course. Below are a few quotes that help emphasize the fallacy of placing too much faith in financial forecasts.

“We’ve long felt that the only value of stock forecasts is to make fortune tellers look good. Short-term market forecasts are poison and should be kept locked up in a safe place, away from children and also from grown-ups who behave in the market like children” (Warren Buffett).

“Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window” (Peter Drucker).

” We have two classes of forecasters: Those who don’t know - and those who don’t know they don’t know” (J.K. Galbraith, US Economist and diplomat).

Jane M. Young, CFP, EA

Valentine’s Day is a time for showing love and appreciation for someone special in your life. It’s also a good time to work on your relationship and work on issues that cause conflict. One of the biggest sources of conflict and disagreement in relationships is money. Money itself isn’t the cause of our disagreements; we fight over our divergent goals and priorities for money. Many fights arise out of the lack of communication about our wishes, hopes and dreams. If you and your partner are constantly squabbling about money and how you spend your household income, I have a fun Valentine’s Day solution for you.

I suggest you take a romantic, strategic planning retreat. Block off a full weekend for you and your partner – no children allowed! Select a romantic Inn or Bed and Breakfast somewhere within a reasonable driving distance. The only requirement is a private area with a writing surface. Spend Friday night and all day Saturday discussing your values, sharing dreams, setting goals, creating a budget and making specific plans for the future. Reward yourself with a nice dinner and a romantic evening Saturday night, then play all day Sunday! Make this your Valentine’s Day gift to each other, this year, and every year.

Jane M. Young, CFP, EA

I am a huge fan of short and long term goal setting and the use of to-do lists. We can be much more productive if we organize our objectives and our time. I wouldn’t set out on a major vacation without an itinerary nor would I try to cook a complicated dish without a recipe. Without goals or to-do lists we are too easily distracted. We waste a lot of time and end up going down the wrong path.

I encourage everyone to start with a list of about 20-30 long term goals. From this list identify about 10 things you would like to achieve this year. Then develop a to-do list of things you need to accomplish this week or month. You are way ahead of the game just by writing down some goals and priorities. This forces you to think about your values, desires and objectives for the year. This will serve as your personal strategic plan to make sure you are on the right track.

I know everyone comes up with a list of New Year’s resolutions and we seldom stick to them. So why bother? I think the process itself is good because you have given some thought to what you want to accomplish. You may not reach all of your goals but some of your effort will come to fruition.

I have a special challenge for you in 2010. Think about all the things you would like to accomplish or change in 2010. Select just ONE thing that you must accomplish or change this year and write it down. Make a vow to yourself to do whatever it takes to accomplish this one goal. Create an action plan to reach your objective. Share your goal with at least one other person who will hold you accountable. Be sure to monitor and reward your progress.

If you want to share, I would love to hear about your “One Goal” for 2010 and how you are progressing.

Jane M. Young, CFP, EA

1. Make a plan – who will receive a gift and how much do you plan to spend. Stick to your plan, keep track of your spending, and don’t spend on impulse.

2. Start early and give yourself plenty of time to select gifts and compare prices. We always over buy and spend too much when pressed for time.

3. Find creative ways to reduce the number of people for whom you plan to give gifts. Instead of buying gifts for friends make arrangements to make each other dinner or meet for an inexpensive happy hour. Remember that receiving a gift can be stressful and a nice a card or gesture may be more appropriate

4. Suggest that your family or group of friends draw names instead of buying gifts for everyone. It is difficult and expensive to buy gifts for a large number of people who already have everything.

5. Exchange white elephant gifts or favorite used books instead of expensive Christmas gifts. This is especially fun in conjunction with a Chinese gift exchange where everyone gets a chance to steal a gift from the other participants.

6. Gift a homemade present such as a homemade sauce, stew or soup, a painting, a knitted scarf, cookies, or a pie. You can capture a special moment by framing a photo or post card or you can create a calendar with some sentimental photographs.

7. If you have more time than money gift your services such as babysitting, home maintenance, faux painting, cooking a meal, house cleaning, shoveling snow, decorating advice, cooking lessons, a musical performance, or computer instruction.

8. Rather than providing all the food for your holiday party, ask your friends to bring a dish and a bottle of wine. Co-host a party with a few friends and share the cost. If you are planning a neighborhood party, consider a progressive party where each course is served at a different home.

9. Avoid purchasing expensive new holiday clothes. Make your existing wardrobe more festive through the use of inexpensive accessories and scarves. If you really need a new outfit check out your local consignment stores. Holiday and formal attire isn’t worn very often and is usually in good shape at consignment stores.

10. Lower the cost of Christmas cards and postage by using post cards, e-cards, e-mail or a simple phone call. It’s the thought that counts.

Jane M. Young, CFP, EA

As we approach the end of the year we look back on our achievements over the last twelve months and start thinking about goals for next year. I am a strong believer in personal strategic planning and goal setting. The first step in the goal setting process is to evaluate our values. Thanksgiving is the perfect time to reflect on those things for which we are thankful. By acknowledging what we are thankful for, we can easily identify the values that are of greatest importance to us. Once we have clearly identified our values we can set meaningful goals for 2010. When our goals are in integrity with our values we are more likely to monitor and achieve them. We will find that reaching our goals will be much more relevant and rewarding.

Take a few minutes to write down what you are thankful for this holiday season. Don’t forget to show gratitude to those around you who have helped you to achieve your goals or just put a smile on your face over the past year.

Happy Thanksgiving!!

When selecting a financial advisor you want someone who will act in your best interest. To ensure this is the case hire an advisor who works to a fiduciary standard. A fiduciary standard requires your advisor to put your interests first even if those interests are not in their best interest. According to the National Association of Personal Financial Advisors over 90% of all investment advisors are paid (fully or partially) on commission therefore they are compensated for selling products. Additionally, many of these advisors are employed by a broker/dealer or an insurance company, where they are held to a lower standard of diligence. They are required, as part of that employment, to act in the best interest of their employers.

How do you find an advisor who will put your interests first?

Here are two ways to be sure you are hiring someone who adheres to a fiduciary standard. All financial advisors who are members of the National Association of Personal Financial Advisors (NAPFA) are required to adhere to a “Fiduciary Oath” as a requirement of membership. Additionally, both Federal and State law require that anyone who is a Registered Investment Advisor be held to a fiduciary standard. You wouldn’t accept less from your doctor or lawyer why accept less from your financial advisor?

Here is a link with more information on the fiduciary standard of care:

Http://www.focusonfiduciary.com