Money issues are not the cause of break ups in life partnerships; money issues are a symptom of other problems. Often the underlining problem is lack of skills. And, sometimes there are other types of problems that manifest through finances. I have witnessed many marriages become stronger in the process of addressing money issues and these are the common factors. They:

ü Identify priorities that honor (1) partnership and (2) individuals.

ü Create a plan focused on specific activities within their control.

ü Both participate, contribute, and commit to the plan.

ü Focus on life after the problems are resolved.

If financial issues are tearing at the seams of your life partnership consider the root of the problem. If it’s financial skills, contact Susan Hammitt for a financial counseling appointment.

Make a Plan That Strengthens Relationships

Time To Update Your Financial Plan

There are many looming questions about the economy and few concrete answers. It’s time to review your financial plan and make appropriate changes. This should be done at least once a year, more often if your financial situation is volatile. Here is a check list for staying on top of your financial plan:

ü Modify, if necessary, short-term, mid-term and long-term priorities.

ü Verify current cash flow, income and expenses, and make sure your allocation is consistent with your priorities.

ü Audit your credit report to verify accuracy and check for any evidence of identity theft.

ü Review all investment accounts. In the recently published book, The Snowball Warren Buffet and the Business of Life, there are two ideas I suggest everyone consider:

· When you lose money in an investment Mr. Buffet says, “You don’t have to make it back the way you lost it.” If you haven’t considered where best your savings and investments belong do it now and review it regularly. Assuming that your mutual funds, individual stocks, CD rollovers, or Money Market accounts are optimally placed for recovery may be flawed logic.

· Most of us do not have the time or knowledge to select individual stocks for investment. Warren Buffet provides an example of the automobile industry, “…of the two thousand companies (when the industry was emerging) as of a few years ago, only three car companies survived.” And, of those three, “at one time or another, all three were selling for less than book value…” which was not good for investors. If you believe a specific category of investment is well positioned consider a mutual fund focused on that class of investment. One of the most important lessons provided by our current economy is that even sophisticated market analysts have difficulty getting an accurate take on the book value of individual companies. Investing in mutual funds allows individual investors to evaluate appropriateness based on three pieces of information readily available:

· Management team, stability and performance.

· Expense ratio, built in costs.

· Performance for the period since last evaluated.

ü Wherever you choose to invest make sure you have interactive web services that allow access to your account and the essential information required to evaluate the three pieces of information above.

ü Set your own assumptions. Develop a sense of inflation, reasonable rate of return, retirement age, and mortality. Assumptions are critical components of financial planning. Whatever your assumptions make sure you understand that any projections made using those numbers will set your expectations.

ü If you work with an investment advisor or asset manager, ask questions. Think of your advisors as companions in your decision making process, remember it’s your money. The best advisors can explain their recommendations and provide keen insight regarding risks.

2008 Taxes

It’s time to file your 2008 Income Tax Returns.

The IRS recently published, Help for Financially Distressed Taxpayers, outlining some new policies based on current economic times. If you have issues involving your ability to make payments on current or delinquent taxes be sure and call the IRS or contact your tax professional to discuss options.

Review your return. Try to explain each line item and see if you understand how you are taxed. It’s an important part of being in charge of your financial plan.

Once your taxes are finalized consider your tax withholding for next year. Advise your payroll department or adjust your quarterly payments accordingly.