This page contains a Flash digital edition of a book.
Finance & Banking


aul Mauro, CLU, CHFC of Legacy Financial Advisors, rec- ommends these 11 important financial steps to take in 2011 to protect your wealth:


1: Get Serious about Saving for “later”.


The new retirement is still a retirement which means work- ing less or even fully stopping work. Saving in 401k and IRA plans has increased in the last decade but not nearly enough to secure the longer life expectancies. Increase your pre tax con- tributions at work to the maximum allowed. Save as much as


Important Financial Steps for 2011 P


you do at work after tax if you can, and invest regularly every month until you are close to retirement. Then pay attention to number 2.


2: Protect what you have invested.


Exercise some type of risk management. You can study your asset allocation and add more and more protection against neg- ative market trends as you age.. Give up a bit of upside gain to protect the nest egg. Remember risk is free and protection costs money. If you cannot handle the time and effort necessary to do this proceed to number 3.


3: Educate or delegate.


You can manage very complex portfolios if you have the time and do the research. If you don’t want to do the work hire someone else. Only when you are ready to delegate should you pay an investment management firm to take over. There are no benchmarks of age or amount of money that make sense. Young professionals without much in cash investable assets and a great command of technology can probably manage their own affairs for years. Highly demanding careers, older investors and larger amounts of money generally are the indicators of a need to hire outside help. The only thing you can really do wrong is nothing. Don’t ignore your portfolio or it will go away. If you are realisti- cally too busy with work and home life great. Hire help.


4: Consider the sequential Roth Conversion opportunity.


Conversion of IRA assets to ROTH IRA assets has benefits


.You lose the required minimum distribution rules at age 70 1/2 and you create a true tax deferred opportunity that yields tax exempt income after 5 years. The problem of course is paying the lump sum tax on the converted assets. You can however, as of 2011 , regardless of income convert a portion of your IRA every year or every 2 years into a Roth. In this way you can build your own tax bracket in the future. If you can blend tax- able income and tax exempt income you can create your own future effective tax bracket.


5: Make a serious effort at saving high interest cost on your home .


An extra payment per year on your mortgage can dramati-


cally reduce your total interest cost. Run a mortgage calculator to assess your individual situation. If you have the opportunity to rewrite your mortgage to a low fixed rate, and accelerate the payments you can save even more.


78 www.blackeoejournal.com The Black E.O.E. Journal


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84  |  Page 85  |  Page 86  |  Page 87  |  Page 88  |  Page 89  |  Page 90  |  Page 91  |  Page 92  |  Page 93  |  Page 94  |  Page 95  |  Page 96  |  Page 97  |  Page 98  |  Page 99  |  Page 100