What's Your Financial Wellness IQ?

 

 

 

 

 

 

It’s always important to gauge your financial wellness. Financial situations can change very quickly. Understanding how to make adjustments as needed is an important skill to learn. Take this quiz to see where you stand financially and help address any problems shown by the results. The first step toward a financially stable tomorrow is facing the situation today.

Ready to begin? Answer True or False to the following questions, and then tally your score. See scoring beneath the quiz to determine whether or not you are a good candidate for financial counseling.

  1. I normally pay only the minimum amount due on my credit card bills.
  2. My credit card balances increase each month.
  3. There are arguments in my home about money.
  4. I sometimes hide purchases from my spouse.
  5. I frequently charge items that I used to pay for with cash.
  6. I have thought about filing for bankruptcy.
  7. I have begun using cash advances to meet my obligations.
  8. My credit cards are near the limit, so I’ve begun applying for new lines of credit.
  9. I do not know the total amount that I owe.
  10. I skip paying my bills some months, or pay late.
  11. I have depleted my savings.
  12. I am consumed with worries about debt.
  13. My debt interferes with my job and/or home life.
  14. Collectors have begun contacting me.
  15. I have taken money from my retirement account to satisfy debt obligations.
  16. If I lost my job, it would mean an immediate financial crisis in my life.
  17. I use balance transfers.
  18. I have no emergency savings account.
  19. Next month’s bills arrive before I’ve paid this month’s.
  20. I do not open my bills when they arrive, or soon thereafter.
Most people answer “True” to two or three of the above questions. If True was answered more often than three times, you might consider financial counseling. BALANCE offers free and low cost assistance, whether the problem stems from needing more financial education, debt concerns, meeting your mortgage payment, or a host of other personal finance concerns. Discussing it with a certified counselor/3rd party will add insight to help you to resolve the situation.
Share Button

Rebalancing Your Portfolio

Everyone loves a winner. If an investment is successful, most people naturally want to stick with it. But is that the best approach?  It may sound counter intuitive, but it may be possible to have too much of a good thing. Over time, the performance of different investments can shift a portfolio’s intent – and its risk profile. It’s a phenomenon sometimes referred to as “risk creep,” and it happens when a portfolio has its risk profile shift over time.

When deciding how to allocate investments, many start by taking into account their time horizon, risk tolerance, and specific goals. Next, individual investments are selected that pursue the overall objective. If all the investments selected had the same return, that balance – that allocation – would remain steady for a period of time. But if the investments had varying returns, the portfolio over time may bear little resemblance to its original allocation.

 How Rebalancing Works

Rebalancing is the process of restoring a portfolio to its original risk profile.  There are two ways to rebalance a portfolio. The first is to use new money. When adding money to a portfolio, allocate these new funds to those assets or asset classes that have fallen. For example, if bonds have fallen from 40% of a portfolio to 30%, consider purchasing enough bonds to return them to their original 40% allocation. Diversification is an investment principle designed to manage risk.  However, diversification does not guarantee against     a loss.

The second is to sell enough of the “winners” to buy more under-performing assets. Ironically, this type of rebalancing actually forces you to buy low and sell high. Periodically rebalancing your portfolio to match your desired risk tolerance is a sound practice regardless of the market conditions. One approach is to set a specific time each year to schedule an appointment to review your portfolio and determine if adjustments                 are appropriate.

Learn more at: www.ucinvestmentservices.com/newsletters.cfm

 Or, contact Steve Lloyd at (801) 223-7502 to set an appointment with one of our    financial professionals.

Curtis Willardson, CFP, CLU, Daniel O Palmer, and Stephen Martin CFP, CLU, ChFC are registered representatives offering securities and and advisory services offered through Cetera Advisor Networks LLC, member FINRA/SIPC. David Palmer is a registered representative offering securities through Cetera Advisor Networks LLC, member FINRA/SIPC.  Cetera is under separate ownership from any other named entity.                                                               Registered address: 188 W River Park Drive, Provo, UT 84604.

 Not NCUA/NCUSIF Insured – No Credit Union Guarantee – Not A Deposit – May Lose Value Not Insured By Any Federal Government Agency.
 
Share Button

Be Money Smart Video

For kids, teens and in-betweens, UCCU’s BeMoneySmart banking program is an easy way to ensure kids and parents have a plan for financial success. Our BeMoneySmartRoadmap is an interactive tool that allows kids of all ages to learn the importance of financial responsibility. Each step in your child’s financial journey is different. That’s why our BeMoneySmart program adjusts as your child’s financial needs do.

Watch our newest BeMoneySmart video and learn more ways that you can help your children achieve financial success. Our goal is to give you the tools to successfully help you and your child plan for the future.

Visit bemoneysmart.org for more information about our money saving program especially designed for children ages 0-15 years.

 

Share Button