Financial Planning Week, which is observed October 6-10, is the perfect time to take a deep breath and implement strategies that can help improve an individual's or family's financial situation. Created by the Financial Planning Association, Financial Planning Week serves as a reminder of the significant impact sound financial planning can have on achieving long-term financial goals, especially in these troubled times on Wall Street.
Given the current financial crisis and uncertainty, Stinnett has developed, "Ten Tips to Keep Safe and Sane in Troubled Times." He recommends following his tip list and checking with your financial advisor to immediately implement the best solutions for your situation.
Ten Tips to Keep Safe and Sane
* Don't Have a Knee-Jerk Reaction. Don't liquidate your portfolio. There's a reason you had that portfolio strategy in place. The time you forget your investing principles is the time you need them the most. Sometimes, the best reaction is no action, except to tighten your seat belt and turn down the television.
* Keep the Long-Term View. No one has a crystal ball, but these volatile times will eventually pass. Sticking to your financial plan will help ensure that you are positioned to reap the benefit of taking a long-term view.
* Keep Funding Your 401(k). It's tempting to reduce the amount you are putting in or stop contributing all together. Instead, think of how you are buying more shares at a cheaper price and getting an "instant return" from your employer's match.
* Retirement Accounts Are the Last Resort. Don't crack the egg. Keep it safe and try not to tap this money. By tapping these funds now you might pay penalties, and leave yourself short when it comes time for retirement.
* Review Your Money Market Funds. Are they clean and pristine? It pays to read the prospectus and the fine print. Check with your financial advisor.
* Review Your Municipal Bonds. Don't just check the ratings. Understand the financial health of each issuer and how it will fare in a slowing economy. Consult an expert in this area.
* Have a "Doomsday Fund." Or whatever you want to call it. Some kind of emergency cash fund. While you may not need it, this fund provides you with the flexibility to act quickly in helping friends and family.
* Rethink Your Expenses. We can all cut back. Make a list of five things you could do without or do less of. That could include: eating out less, a less costly winter vacation and cutting back your premium television channels, cell phones and other entertainment.
* Don't Forget to Give Back. Consider ways to reduce your tax liability while doing good for others who may be less fortunate. That could include making large charitable gifts by year-end.
* The Silver Lining. The current high volatility, low interest rates and depressed asset values have provided the perfect opportunity for making wealth transfers. Quick action now may save significant estate and gift taxes.
"Remain vigilant," said Stinnett, "and make an appointment now to revisit your financial plan and review your asset allocation with your advisor. Even with the events of late included - the single biggest risk to investors is NOT being in the market when it goes down, but being OUT of the market when it rises. History has proved this over and over again."
About City National
City National Corp.'s (NYSE:CYN) wholly owned subsidiary, City National Bank, is backed by $16.3 billion in total assets, and provides banking, investment and trust services through 62 offices, including 15 full-service regional centers, in Southern California, the San Francisco Bay Area, Nevada and New York City. The company and its eight majority-owned investment affiliates manage or administer $53.5 billion in client investment assets, including nearly $34 billion under direct management.
For more information about City National, visit the company's Website at cnb.com.
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Circular 230 Disclosure: To assure compliance with Treasury Department rules, we inform you that any advice was not written and is not intended to be used, and cannot be used, for the purpose of avoiding any federal tax penalty that may be imposed on the taxpayer, and (2) may not be used in connection with promoting, marketing or recommending to another person any transaction or matter addressed herein.
City National Bank, as a matter of policy, does not give tax, accounting, regulatory or legal advice. The effectiveness of any strategies contained here will depend on the unique characteristics of your situation and on a number of complex factors. Rules in the areas of law, tax, and accounting are subject to change and open to varying interpretations. Before implementation, you should consult with your other advisors on the tax, accounting and legal implications of the proposed strategies based on your particular circumstances.
This news release was distributed by GlobeNewswire, www.globenewswire.com
SOURCE: City National Bank
City National Bank