October 2008 Newsletter

Living on Less

In response to the current market uncertainty, your financial advisor suggests cutting back on your spending and trying to save more money. This sounds dangerously close to "living on a budget," something you gave up years ago. How to start? Many of you have never lived through a recession or job layoff before and may not be experienced at frugality. We researched many different sources and offer the following suggestions, hopefully ideas that will make this process more pleasant for you. Please tell us your favorites and we'll add them to our list!

If cutting back is very challenging for you, see if you can figure out how to make it palatable. Talk to your friends and family for inspiration and encouragement. Remember, we can't control the stock markets but we can control our spending.

Investment Workshop

Clients may also find help coping with their emotions around investing by attending -- or re-attending -- our in-house workshop. Over the years, we have noticed that after clients come to "Investor Boot Camp," they are often better able to understand and cope with their portfolio volatility.

Our next sessions will be held Saturday November 1st, and Saturday December 6th, from 9:30 to 11:30 AM at our office. Please register online or contact Jessi to reserve a spot for you or a friend. As always, there is no charge.

Time for Insurance Review?

The maximum mortality charges used by insurance companies have been updated for our modern life expectancies, and the result is a lower cost of basic insurance protection. The following tables show how the charges have decreased from the 1958 and 1980 mortality tables, to the current one from 2001, for a 55 year old male and 45 year old female.

  Male Age 55
(cost per 1,000)
Female Age 45
(cost per 1,000)
1958 $13.00 $4.17
1980 $10.47 $3.56
2001 $6.17 $1.87

Even though the most current table is called "2001," the rates are just now going into effect. It may be worthwhile to review your insurance policies with your agent and see if you could purchase any needed replacement coverage at a lower cost—another cost savings idea to add to the list!

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