New Year, New Financial You

In Fiscal Hangover: Protect Your Money and Profit in the New Global Economy, author Keith Fitz-Gerald - one of the world's leading experts on global investing- clearly answers critical questions about the new global economy so investors will understand. keith also had tips for finding your way to a more solid financial future.

Financial Resolutions for 2010

1.  Pay off your credit cards
• Avoid fees
• Pay off every month
• Put them on ice – only for emergencies

2 – Make your life electronic.
• Set up everything you can for online banking.
• This helps reduce late fees, and you can be assured you’ll never miss another payment again.  This is especially important in an era characterized by greedy banks charging 20+%

3.   Maximize Your Retirement Plans
• Saving is tough so many of us need a little help. A study by James Choi and David Laibson in 2006 that covered four large companies with automatic 401k contributions, researchers showed that fewer employees resisted saving for retirement. For example, up to 96% of employees participated in 401k programs with automatic enrollment while only 43% participated in those that were elective. Other studies show similar numbers.
• If you don’t have a company plan, use a self-directed IRA or SEP IRA.
• Roth IRA’s are a great way to go if you have extra money

4.  Educate yourself about the stock market
• Use Financial Web Sites like Yahoo! Finance
• Understand that every day you don’t save is a day you don’t get back. It’s trite, but it’s true. If you start saving only $2000 a year at age 20 and keep it up for 10 years, at 10% you’ll have $34,000 when you’re 30. Even if you never save another dime, you’ll have $677,000 at 60. But if you wait until 30 to start, you’re have to put aside $3,600 (or 80% more) a year for 30 years to end up with the same amount.
• Go global - Read Fiscal Hangover. All bailouts are not equal and never before in history have we seen such a disparity between what’s happening overseas and our own stock markets. People are excited that the US may do 2.% this year. Let’s put that into perspective…China’s on track for a 700% expansion and is doing 9.32% per year for 40 years running. That’s nearly five times the growth rate of our own economy. And there’s plenty of US based choices doing business there.

For more on Keith's new book click here.




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