Written by Edward Jones and submitted by Jeffrey Stark, Financial Advisor

Within a marriage, a man and a woman’s financial circumstances are generally pretty much equal. But if a divorce occurs, the woman’s situation tends to be somewhat more challenging than that of her ex-spouse. And that’s why, during this major life transition, you may want to meet with a professional financial advisor to go over your spending needs and your cash flow, so that you know what you absolutely need today — and how you can plan for tomorrow.

But before we get into some possible steps you can take, let’s look at some of the reasons that women may fare worse than men, financially speaking, following a divorce:

• Lower income — The average woman’s family income drops by 37% after divorce, according to the U.S. Census Bureau. And in many cases, divorce exacerbates a situation in which women were already trailing men in earnings. In fact, women still only earn 77 cents for each dollar earned by men, according to the U.S. Bureau of Labor Statistics.
• Smaller retirement accounts — The average balance on women’s defined contribution plans (such as 401(k) plans) is only 60 percent of men’s average balances, according to LIMRA, a financial services research organization.

Of course, “averages” are just that — averages. But whether you recognize yourself in the above numbers or not, consider these suggestions:

Written by Edward Jones and Submitted by Jeffrey Stark, Financial Investor

Summer is here — which means a vacation most likely isn’t far away. Whether you’re hitting the road, jumping on a plane or even enjoying a “staycation” at home, you’re probably looking forward to some down time with your family. But not every aspect of your life should be relaxed. Specifically, you don’t want to take a vacation from investing — which means you need to become a diligent, year-round investor.
Here are a few suggestions that can help:
• Keep on investing. Don’t head to the investment “sidelines” when the financial markets experience volatility. You don’t want to be a nonparticipant when things turn around because, historically, the early stage of any market rally is generally when the biggest gains occur. (Keep in mind that past performance of the market is not a guarantee of future results.)
• Keep learning. In just about any classroom, the best students are the ones who get the most out of their education and put their learning to the best use. And the same is true of the investment world: The more you know about the forces that affect your investments’ performance, and about why you own the investments you do, the more likely you are to make the right moves — and the less likely you’ll be to make hasty and unwise decisions.

Written by Edward Jones and Submitted by Jeffrey Stark, Financial Advisor

Now that another school year is drawing to a close, your young children are a step closer to the day when they’ll be heading off to college. Of course, as you’re probably aware, higher education doesn’t come cheap — and the costs seem to continuously climb. You can help your children — or even your grandchildren — meet these expenses by investing in a 529 plan. And this college savings vehicle offers estate-planning benefits.

As a college funding vehicle, a 529 plan offers some significant benefits. When you contribute to a 529 plan, your earnings accumulate tax free, provided they are used for qualified higher education expenses. (Keep in mind, though, that 529 plan distributions not used for qualified expenses may be subject to federal and state income tax and a 10% IRS penalty.) Furthermore, your 529 plan contributions may be deductible from your state taxes. However, 529 plans vary, so be sure to check with your tax advisor. And the lifetime contribution limits for 529 plans are quite generous; while these limits vary by state, many plans allow contributions well in excess of $200,000. Plus, a 529 plan is flexible: If the child, grandchild or other beneficiary decides against college, you can transfer the unused funds to someone else, tax and penalty free.

Written by Edward Jones and Submitted by Jeffrey Stark, Financial Advisor

If you’re part of “Generation X” — the age cohort born between the mid-1960s and the early 1980s — you’re probably in one of the busiest phases of your life, as you’re well into your working years and, at the same time, busy raising a family. But just as you’re “multi-tasking” in your life, you’ll also need to address multiple financial goals.

In seeking to accomplish your key objectives, you may be asking yourself a variety of questions, including the following:

Written by Edward Jones and Submitted by Jeffrey Stark, Financial Advisor

In the past, many people stayed at one job, or at least one company, for almost their entire working lives. When they retired, they could typically count on a pension, the value of which was based on their years of service and earnings. But today, workers can expect to hold several different jobs in their lifetime, and to a great extent, pensions have been replaced by 401(k) plans, which place much of the funding responsibility on employees. So, assuming you will change jobs at some point, and you do have a 401(k), what should you do with it?

Here are your basic choices:

• Cash out your plan. If you cash out your plan, your company will likely pay you 80% of your account value, withholding the rest for federal taxes. And if you’re younger than age 59½, you may well be slapped with a 10% IRS tax penalty. Even worse, you’ll have lost a key source of your retirement income. Still, if you are leaving your employer involuntarily, and you need the money, cashing out your 401(k) is an option you may need to consider.

Written by Edward Jones and Submitted by Jeffrey Stark, Financial Advisor

Springtime is almost here. If you’re like many people, the arrival of spring means it’s time to spruce up your home. But why stop there? This year, consider applying some of those same spring-cleaning techniques to your investment portfolio.

Here are some ideas you may want to put to work:

Written by Edward Jones and Submitted by Jeffrey Stark, Financial Advisor

As an investor, you may sometimes feel frustrated. After all, your portfolio seems to be at the mercy of the financial markets, whose volatility is beyond anyone’s control. Yet you can control the quality of the investments you own and the diversification of those investments to improve your chances of attaining your long-term financial goals.  One way in which to do so is to put as much as you can afford, year after year, into tax-deferred investments.

When you contribute to a tax-deferred account, your money has the potential to grow faster than it would if you placed it in a fully taxable investment — that is, an investment on which you paid taxes every year. Over time, this accelerated growth can add up to a big difference in your accumulated savings. For example, if you put $200 each month into a taxable investment that earned a hypothetical 7 percent a year, you’d end up with about $325,000 after 40 years, assuming you were in the 25 percent federal tax bracket. If you put that same $200 per month into a tax-deferred investment that earned the same hypothetical 7 percent a year, you’d accumulate about $515,000 — or nearly $200,000 more than you’d have with the taxable investment.*

Of course, you will eventually have to pay taxes on the tax-deferred investment, but by the time you’re retired, you might be in a lower tax bracket. Furthermore, depending on how much you choose to withdraw each year from your tax-deferred account, you can have some control over the amount of taxes you’ll pay.

Written by Edward Jones and Submitted by Jeffrey Stark, Financial Advisor 

Once again, it’s time to make some New Year’s resolutions. This year, in addition to hitting the gym, learning that second language and getting better organized, why not also consider a few financial resolutions?

 
What types of resolutions might you consider? Here are a few suggestions:

• Contribute more to your retirement accounts. The new year means that you are one year closer to retirement. To help yourself build resources for the lifestyle you’ve envisioned as a retiree, try to boost your contributions to your 401(k) or other employer-sponsored retirement plan. You can do this if you get a salary increase and devote at least part of it to your 401(k). At the same time, try to “max out” on your Individual Retirement Account (IRA). For 2012, you can contribute up to $5,000 to an IRA, or $6,000 if you’re 50 or older.

Written by Edward Jones and Submitted by Jeffrey Stark, Financial Advisor 

As you know, the holiday season can be joyous, hectic, celebratory — and expensive. And while you certainly enjoy hosting family gatherings and giving presents to your loved ones, you’ll find these things even more pleasurable if they don’t add a lot more weight to your debt load. And that’s why you’ll want to follow some smart money-management techniques over the next few weeks.

To begin with, try to establish realistic budgets for both your entertaining and your gift giving. When you host family and friends, don’t go overboard on your expenditures. Your guests will still appreciate your efforts, which, with a little creativity, can create a welcoming and fun experience for everyone.

Written by Edward Jones and Submitted by Jeffrey Stark, Financial Advisor

These days, you can purchase just about anything you want on the Internet. However, you can still benefit from a human, face-to-face experience for some purchases — such as your investments. And that’s why you may want to work with a financial professional.

Unlike a computer interface, a financial professional will take the time to truly know your situation today — and then help you make adjustments tomorrow. 
  

Let’s first look at two key areas a financial professional will consider today:

• Your risk tolerance — By asking the right questions, a financial professional can help you determine if you’re a moderate, conservative or aggressive investor and then recommend those investments that are suitable for your risk tolerance.
• Your time horizon — If you’re saving for a down payment on a new home you expect to purchase within two or three years, you may want an investment that offers significant preservation of principal. But if you’re saving for retirement, and you’re three decades away from it, you’ll likely need investments that offer the potential for growth. Your financial advisor can help you choose the mix of short- and long-term investments that can help you make progress toward all your goals.

Now, let’s look at the types of milestones that a financial professional can help you with as your life progresses: