TIMES ARE TOUGH

Tough times, they are coming.  I am sure this does not come as a big surprise to you.  Drive down any street and see how many homes have “for sale” signs stuck in the lawn.  This is just one sign of what’s coming.   I don’t think we will see the bottom for another few years.  It is time to take a good long look at everything and make sure everything is working as best as it can.

I would start by reviewing all outstanding loans.  Do you have the best interest rate that you can get?  Not sure?  You need to be sure.  Get all your information together and start making some calls and see what you can do.  You may be pleasantly surprised.  It may be a good idea to consolidate some of them to improve your cash flow.  Everything is about cash flow. 

Do you have a mortgage?  Is it at a fixed rate?  If not, you should consider changing to a fixed rate mortgage so you will know what your payments are going to be for years to come.  If you don’t own a home, keep your eyes open because some real bargains will be on the market in the next year.  Values are dropping and the market is flooded so just be patience.

What about you’re insurance?  Do you have what you need?  When was the last time you did a comprehensive review of everything?  It’s time so get all those policies out and see what is going on.  Call your agents and tell them you need a one page summary of what you have including policy number, company name, what it covers, amount of deductibles, premium amount and mode of premium. Make sure you check out increasing the deductibles.  That can save you a bundle.

Do you have any money in the bank in savings?  If you do it is just rotting there since they pay you nothing in interest.  The same is true with any excess amounts in your checking accounts. Time to move them to a money market account, and not one at your bank. Every mutual fund has a money market so do some shopping before you move anything. While you are checking things at your bank, see what else they are charging you for and see if you can get a better deal elsewhere.  I am sure that you can.  You need to maximize all of your money and minimize all of your fees that you pay.

How are your investments doing?  The market is going to continue to move up and down and be very shaky. It might be a good idea to make sure you are in good solid investments with a great track record. If not, move your money before you lose it all.  Like I said, tough times are coming so be prepared.

I am not trying to scare you with all of this.  I am just trying to make sure you are prepared for what is coming.  If you do this you will be fine and come out of this much better than most.  Good luck!

Stanley B. Greenfield has been engaged in the fields of Financial Management and Insurance for over 45 years.  Mr. Greenfield is a Registered Financial Consultant, and was awarded the designation of RHU, Registered Professional Disability and Health Insurance Underwriter, in 1979, as one of its Charter Members.