Start planning and stop worrying!
A Gallup poll showed that 60% of those surveyed worried about their financial
There are a few simple steps you can take to help reduce your worries:
- Put aside a set amount regularly in savings or other investments. The
compounding of earnings can be substantial. The longer your investment period,
the greater the beneficial effect of compounding. Use our savings
calculate how fast your savings can grow.
- Invest in what you know. The better informed you are, the
better your investment decisions will be. If you don't want to learn about investments,
consider hiring a money manager and paying him or her to do your investing for
- Diversify your investments. Have some of your money in an
investment that is easily converted to cash in case of emergencies. The old adage "don't
put all your eggs in one basket" is excellent investment advice.
- Prepare an annual balance sheet (a list of all your assets
minus all your debts) to determine your net worth. A comparison of your annual
balance sheets will show you whether you're meeting your financial goals.
- Plan where you want to be financially by retirement age. Over
90% of Americans must rely on the government or others for assistance during
retirement. With proper planning and diligence, you can be among those who can
retire in comfort. Use our retirement
calculate how much you need to save for retirement.
- Update your plan regularly. Review your financial plan often
and adjust investment choices when necessary to keep your plan on track with
your financial goals.
- Don't use credit to purchase consumption items. Wait until
you can pay cash for things which decrease in value. Borrowing money to purchase
a home is usually a sound idea. Using credit to purchase household furnishings
- Pay off your credit card balance every month. Your credit
card should be used for convenience, not as a source of long-term financing.
Credit card interest rates are much too high.
- Monitor your investments to maximize your after-tax return. The
difference that a 2% greater return can make in the growth of your investments
is dramatic. Use our savings
yield calculator to
calculate the monthly yield required to reach your savings goal.
- Have your insurance agent do at least an annual review of your insurance
needs to determine that you are neither under- nor over-insured. Be
sure to contact your agent when you buy or sell any property.
For assistance in your financial planning, contact us.
Dean Miyamoto, CPA Inc.
1600 Kapiolani Blvd., Suite 1670
Honolulu, Hawaii 96814