aaii making the most of your money may 16, 2009 jonathan pond aaii making the most of your money may...

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Making the Most of Your MoneyMaking the Most of Your Money

May 16, 2009May 16, 2009

Jonathan PondJonathan Pond

Safe Money in Tough TimesSafe Money in Tough Times

The Key to Financial SuccessThe Key to Financial Success

Never take financial responsibility for Never take financial responsibility for anything that eatsanything that eats


This time it’s differentThis time it’s different

Predicting the future is perilousPredicting the future is perilous

Some things are predictable:Some things are predictable:– We’ll get out of the doldrumsWe’ll get out of the doldrums– Some will emerge better off than othersSome will emerge better off than others


Anybody who says there’s safety in Anybody who says there’s safety in

numbers hasn’t looked at the stock market numbers hasn’t looked at the stock market pages.pages.

Irene PeterIrene Peter


Talking to politicians about the economy is Talking to politicians about the economy is

like talking with eight-year-olds about sex.like talking with eight-year-olds about sex.

They have heard all the words, but they They have heard all the words, but they

haven't a clue.haven't a clue.

Michael AronsteinMichael Aronstein


Concerned About the Health of Concerned About the Health of Your Credit Union or Bank?Your Credit Union or Bank?

Deposit accounts are protectedDeposit accounts are protected

If institution fails, you will usually have If institution fails, you will usually have access to your money within a dayaccess to your money within a day


Concerned About the Health of Concerned About the Health of Your Insurance Company?Your Insurance Company?

Healthy insurance companies usually take Healthy insurance companies usually take over the policiesover the policies

State insurance funds offer some State insurance funds offer some protectionprotection


Advice for HomeownersAdvice for Homeowners

Why did you buy a house, anyway?Why did you buy a house, anyway?

Your house will still turn out to be a Your house will still turn out to be a wonderful investment wonderful investment

If you’re having trouble keeping up with your If you’re having trouble keeping up with your mortgage…mortgage…

If you have to sell now…If you have to sell now…


Advice for Home BuyersAdvice for Home Buyers

Your timing is impeccableYour timing is impeccable

Don’t wait around for the perfect timeDon’t wait around for the perfect time

Spiff up your financesSpiff up your finances


When is it Worthwhile to Refinance When is it Worthwhile to Refinance a Mortgage?a Mortgage?

1% lower rate1% lower rate if you have a fixed rate if you have a fixed rate mortgagemortgage

If you have a variable rate, consider a If you have a variable rate, consider a fixed mortgage nowfixed mortgage now

Don’t refinance over a longer periodDon’t refinance over a longer period


If medical science continues to prolong If medical science continues to prolong human life, some of us may eventually pay human life, some of us may eventually pay off the mortgage.off the mortgage.

AnonymousAnonymous


It’s Time to Get Your Debt Under It’s Time to Get Your Debt Under ControlControl

Don’t follow the government’s example.Don’t follow the government’s example.

Never borrow to buy a depreciating assetNever borrow to buy a depreciating asset

Avoid adding to debtAvoid adding to debt


What to Do With Your InvestmentsWhat to Do With Your Investments

NowNow……

Avoid any big movesAvoid any big moves

Check your diversificationCheck your diversification


The Way You Should Invest The Way You Should Invest Depends on… Depends on…

When you’re going to start needing the When you’re going to start needing the moneymoney

How long the money is going to have to How long the money is going to have to lastlast


The Way You Should Invest…The Way You Should Invest…

Example 1:Example 1: You’re going to buy a house in You’re going to buy a house in four yearsfour years

Need money in four yearsNeed money in four years

All will be used in four yearsAll will be used in four years

Most of the money should be kept in safe Most of the money should be kept in safe investments like CDsinvestments like CDs



Example 2:Example 2: College savings needed in four College savings needed in four yearsyears

Need to tap into money in four yearsNeed to tap into money in four years

Money will be needed for four years Money will be needed for four years thereafterthereafter

Invest primarily in safe securities with Invest primarily in safe securities with some money in stocks some money in stocks



Example 3:Example 3: You’re going to retire in four You’re going to retire in four yearsyears

Need to tap into money in four yearsNeed to tap into money in four years

Money will be needed for 25 or more years Money will be needed for 25 or more years thereafterthereafter

Invest in both stocks and interest-earning Invest in both stocks and interest-earning securities - retirees need both income and securities - retirees need both income and growth to meet rising living costsgrowth to meet rising living costs


I’ve got all the money I’ll ever need if I die by I’ve got all the money I’ll ever need if I die by four o’clock.four o’clock.

Henny YoungmanHenny Youngman


The Problem with Throwing in The Problem with Throwing in the Towelthe Towel

When the stock market recovers, it does When the stock market recovers, it does so very quicklyso very quickly

Those who abandon or greatly reduce Those who abandon or greatly reduce stocks have trouble deciding when to get stocks have trouble deciding when to get back in.back in.


Investment AdvisoryInvestment Advisory

Many mutual funds have seen their values Many mutual funds have seen their values decline much more than the averages.decline much more than the averages.

So this is a good time to review the So this is a good time to review the performance of your mutual funds to weed performance of your mutual funds to weed out any weaklingsout any weaklings

One source for performance information is One source for performance information is www.reuters.comwww.reuters.com


401(k) and 403(b) Reminder401(k) and 403(b) Reminder

Most workplace retirement plans offer Most workplace retirement plans offer more stock fund choices than bond and more stock fund choices than bond and stable value choicesstable value choices

This can lead many plan participants to This can lead many plan participants to have a very high percentage in stockshave a very high percentage in stocks


The only sure way to accumulate what you The only sure way to accumulate what you

need to achieve financial security is to need to achieve financial security is to

save regularly and regularly increase the save regularly and regularly increase the

amount you’re savingamount you’re saving


There is a silver lining amidst the There is a silver lining amidst the stock market clouds:stock market clouds:

If you’re contributing to your investment If you’re contributing to your investment

accounts regularly, you’re benefiting from accounts regularly, you’re benefiting from

dollar cost averagingdollar cost averaging..

Dollar cost averagingDollar cost averaging is a winning is a winning

investment strategy.investment strategy.


My problem lies in reconciling my gross My problem lies in reconciling my gross

habits with my net income.habits with my net income.

Errol FlynnErrol Flynn


Safest Safest Places for Money You’re Places for Money You’re Going to Need in a Few YearsGoing to Need in a Few Years

CDs CDs

Savings accounts and money market Savings accounts and money market accountsaccounts

U.S. Treasury securities and money U.S. Treasury securities and money market funds that invest in U.S. Treasury market funds that invest in U.S. Treasury securitiessecurities

If you’re willing to take a little risk…If you’re willing to take a little risk…


Preparing for the Better Times Preparing for the Better Times AheadAhead

Stock market rebounds before clear signs Stock market rebounds before clear signs of economic improvementof economic improvement

Improvement in the housing market is keyImprovement in the housing market is key

Those who wait will be too lateThose who wait will be too late


What’s the Bullish Case for U.S. What’s the Bullish Case for U.S. Stocks?Stocks?

Long-term trend has always been upLong-term trend has always been up

Many smart investors are buying stocks now Many smart investors are buying stocks now


The time to buy is when blood is running in The time to buy is when blood is running in the streets.the streets.

Baron Nathan RothschildBaron Nathan Rothschild


What’s a Reliable Signal to Get What’s a Reliable Signal to Get Back in the Stock Market?Back in the Stock Market?

There is no reliable signalThere is no reliable signalStock prices rise before there are clear Stock prices rise before there are clear indications of improving conditionsindications of improving conditions

Best strategy is to Best strategy is to graduallygradually add to your add to your stock holdingsstock holdings


Where I’m Finding OpportunitiesWhere I’m Finding Opportunities

CashCash

Fixed IncomeFixed Income

EquitiesEquities


Your “To Do” ListYour “To Do” List

Find out where you stand, but…Find out where you stand, but…

Avoid taking Avoid taking anyany precipitous action precipitous action

Don’t look in the rearview mirrorDon’t look in the rearview mirror

A decade from now, A decade from now, 2008 2008 and and 20092009 will will be just an unpleasant memorybe just an unpleasant memory

aaii making the most of your money may 16, 2009 jonathan pond aaii making the most of your money may...

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safe money

years money

money youre

tough times advice

tough times whats

tough times ive

money market accounts

money market funds