- Author: Patti C. Wooten Swanson
If you've been following the dramatic up's and down's of the stock market in recent weeks you may be worried (almost everyone I know is!)
What should you do now? Get out of the stock market altogether? Hang on? Or, buy more stock while it is "on sale" as a result of recent declines.
Since I'm not a qualified investment advisor, let me pass on 3 time-honored recommendations from someone who is: Jill Schlesinger, of CBS Money Watch.
1. Don't make any rash decisions.
When the market tanks, some investors hurry to unload their stock (including stock invested in their retirement plans) and their “paper losses” turn into actual losses. But, is that that a good idea?
Cooperative Extension financial specialists advise investors not to react to daily investment performance indicators. Instead, they emphasize the importance of keeping the long-term view on your investments and recommend not selling a stock (or in this case divesting the investment from your retirement account) unless it has underperformed the market for a least a year.
Financial advisor, Steve Vernon says the best approach is to "do nothing at all”. As evidence he cites a recent report from Fidelity Investments about the actions and investment outcomes of retirement plan participants since the 2008-2009 downturn:
Analysts discovered that retirement plan participants who maintained a balanced portfolio (that included stock) for the entire period (from the fourth quarter of 2008 through the second quarter of 2011) realized earning of 50% or more. But, participants who changed their stock allocations to zero percent between Oct. 1, 2008, and Mar. 31, 2009 and maintained this allocation through June 30, 2011, experienced an average of 2% growth in their accounts.
2. Maintain a diversified, balanced portfolio.
According to experts, asset allocation accounts for 90% of earnings on an investment portfolio. (Portfolio” refers to the collection of investments, including cash, CDs, stocks, and more that someone owns.)
When the market is volatile---values are going down (or up) rapidly---maintaining a diverse portfolio means you don't put all your eggs in one basket. Instead, continue investing in different classes of assets (stocks, bonds, cash or real estate) and choose different funds within classes (such as domestic stocks, international stocks, corporate bonds and municipal bonds, etc.) and different industries (such as high tech, health care, and agriculture).
If one asset class or fund loses value, you still have other others and don't lose your entire investment.
3. Stick to you "game plan"---it may be a good time to rebalance your asset allocation.
Your "game plan' refers to your asset allocation. If you have chosen a diversified, balanced portfolio based on your long-term goals and risk tolerance, then short-term changes in the stock market shouldn't affect your plan.
If the downturn makes you realize that your current asset allocation is too risky, one possible strategy is to leave the portfolio as it is and put any new saving retirement savings in less aggressive investments.
Over time major changes in the stock market can change the actual make-up of your portfolio. For example, if stocks go down in value, then they make up a smaller percentage of the total portfolio. If you believe your original allocation was appropriate, then major changes in the stock market could indicate it's time to rebalance your holdings.
Tip: Before selling or buying, consult a financial advisor since there may be fees or other factors to consider. Some investment companies will rebalance an account for you.
So what should an investor do at times like this?
Do as the British government exhorted its citizens at the beginning of World War II: Keep calm and carry on.”
- Author: Patti C. Wooten Swanson
Increase your ability to cope with and recover from a natural disaster.
Take a few hours now to organize your legal and financial records: Build a Financial First Aid Kit.
Benefits:
- Reduces fear and anxiety before and during a disaster.
- Allows you to keep your finances running smoothly after a disaster.
If the worst happens...
you will have the records needed to establish your identity, apply for aid, and start rebuilding your life.
1. Gather up all your important legal and financial documents in one place.
Not sure what to include? Use this list as a starting point*:
• IDs such as driver's licenses, passports, and
Social Security cards 
• a photo of each family member
• marriage and divorce papers
• birth, adoption and/or naturalization records
• Important phone and email addresses
• account numbers and passwords
• credit cards and loans
• tax returns
• medical information
• property records
• estate planning documents
2. Make copies of all documents. 
Scan and save the copies to a USB flash drive or other portable device. Or, photocopy the documents and put them in re-sealable plastic bags.
3. Create a “Financial Grab and Go Box”.
Store the copies in a portable, secure, waterproof and fireproof container. Put the container in an easy-to-reach place and make sure everyone in the household knows where it is.
4. Back-up your system.
As recent event have shown, a disaster might destroy the place where a person's financial records are stored. Protect yourself against this possibility. Give a copy of the records stored in your grab and go box to a trusted relative, friend or financial advisor outside the geographical area where you live.
5. Update documents and information once a year.
A good time to do this is just after you submit your income tax return. You'll already have most of the updated information and/or any new documents (such as your current tax return) readily available.
Note: It took me about 3 hours on a Saturday morning complete Steps 1- 4.
*For a detailed checklist of documents, see the Emergency Financial First Aid Kit developed by Operation HOPE (Available in English and Spanish).
- Author: Patti C. Wooten Swanson
Today I want to share some general rules from North Dakota State University Extension Service about using your income tax refund.
1. Think before you spend
While you're waiting for that check, do some planning. Talk with family members about your financial priorities.
- Are you behind on the mortgage or a student loan?
- Do you owe money on your credit cards?
- Does the family need a new refrigerator?
- Have you been postponing major dental work
due to lack of funds?
Planning ahead instead of just heading to the mall or electronics store will help you get the most important “bang for the buck” when you spend (or save) that refund check.
2. Use (at least) part of the money to build long-term financial security
Read any list of ways to get the most out of your tax refund and you will always find “saving for retirement” as an option.
You can't go wrong with retirement savings, but here are some other ways to use your refund that can lead to future financial security:
- save for your child's college education
- start or add to an emergency fund
- pay off high cost credit card debt
- spend money on professional development that can
lead to higher pay and greater employability-- learn another language, finish your college degree, enroll in a program to learn new skills, such as project management or how to use the newest computer software in your field.
3. Don't use the refund to go further in debt.
Buying that big-ticket item you've been wanting might be the right thing for you to do. But, if you spend the money as a down payment on a major purchase---such as a big screen TV, new bedroom furniture, or a car---you create more debt and will be taking on new monthly payments. Before making the purchase, think about whether or not your budget can support another bill.
4. Don't throw away your money on loan fees to get a quick refund.
Refund anticipation loans (RAL) charge you a fee to loan you part of your refund before the government sends your check.
Why should you pay for that?
Instead, file your tax return electronically and receive the refund payment in just 10 days. Enjoy ALL your hard-earned money. (That's what the tax refund is you know!)
- Author: Patti C. Wooten Swanson
If you still need additional "reasons" to eat more fruits and vegetables, check out this list from Produce for Better Health.
Top 10 Reasons to Eat MORE Fruits & Vegetables
1. Color & Texture. Fruits and veggies add color, texture…and appeal…to your plate.
2. Convenience. Fruits and veggies are nutritious in any form - fresh, frozen, canned, dried and 100% juice, so they’re ready when you are!
4. Low in Calories. Fruits and veggies are naturally low in calories.
5. May Reduce Disease Risk. Eating plenty of fruits and veggies may help reduce the risk of many diseases, including heart disease, high blood pressure, and some cancers.
7. Variety. Fruits and veggies are available in an almost infinite variety...there's always something new to try!
8. Quick, Natural Snack. Fruits an veggies are nature's treat and easy to grab for a snack.
9. Fun to Eat! Some crunch, some squirt, some you peel … some you don’t, and some grow right in your own backyard!
10. Fruits & Veggies are Nutritious AND Delicious!
Watch cooking demos for "Quick-to-Fix" fruit and veggie recipes.
- Author: Patti C. Wooten Swanson
Here's what I learned: Dehydration can negatively affect your mood.
So, if you're angry because the internet is down (again!), tired from too many long days at work, confused about how to fill out your income tax form, depressed about the outcome of an important meeting, or tense because of an approaching deadline...
Drink a glass of water!
In a study of student athletes, Tufts University researchers found that mild dehydration was associated with a negative mood, including fatigue and confusion.
Not an athlete? Read on...
Many people don't drink enough fluids
Researchers said that MANY people experience this same level of dehydration in their everyday, deadline-driven lives when they get too busy---or simply forget---to drink enough fluids.
In a bad mood? 
Even mild dehydration can affect your mood.
What to drink:
Water is the best, because it’s calorie free, inexpensive, and readily available.
However, there are some other liquids that count as “water” and contribute to adequate hydration:
- Low-fat or skim milk
- Fruit juice
- Vegetable juice
- Soup
- Gelatin
- Decaffeinated soft drinks, coffee, and tea.
Drinks that contains caffeine---soda, coffee and tea---or alcohol contribute to adequate hydration, but should not be a major part of your daily fluid intake.
Please excuse me now---I need a drink of water!
