four elements define personal financial well-being · comes to thinking about your financial life....

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Welcome to the latest edition of our newsletter! As always, if you have questions or suggestions, please contact us. Measure your financial well-being by these standards, then review with Anita during your next meeting. Four elements define personal financial well-being By Janneke Ratcliffe You probably have a few goals in mind when it comes to thinking about your financial life. You might think about taking more control over bills, or getting to a specific point like paying off a credit card, or making an important purchase. We want to help people improve their financial lives, so we want to help them set goals that can make a real difference, and work toward them. That’s why we talked to consumers across the country, to hear what they had to say about financial well-being and what it means to them. You can see what we learned in our report on financial well-being. Savings and income are part of financial well-being, but we learned that they’re not always the most important part. Instead, when people talked about their own financial well-being, four main elements came to light. Feeling in control People who have high levels of financial well-being feel in control of their day-to-day and month-to- month finances. They cover their expenses and pay their bills on time, and generally they do not worry about having enough money to get by. This is not just about having money, they told us, it’s about managing it. Think of this as having financial security, in the present. Capacity to absorb a financial shock Whether they get in a car accident or are temporarily laid off from a job, these consumers have a safety net such as savings, insurance, or family to help stop a shock from turning into a longer-lasting setback. One way to describe this is feeling financial security, for the future. On track to meet goals Consumers with a higher sense of financial well- being tell us they are on track to meet their financial goals. Whether or not they have a formal financial plan, they are setting goals that are important to them, and working toward those goals. Think of this as moving toward financial freedom, for the future. Flexibility to make choices These consumers have the financial freedom to make the choices that allow them to enjoy life, whatever that means to them. Whether that is taking a family vacation, going out to eat, or working less to spend more time with family, these consumers have the financial flexibility to do what they value and what makes them happy. This can be described as having financial freedom, in the present. Applying this framework to your own financial life might help you feel more satisfied with the decisions you make too. When you face a financial choice or task, consider how your actions might affect financial security and financial freedom, today and in the future. To learn more about how consumers described financial well-being in their own words, check out the full report. http://www.consumerfinance.gov/about-us/blog/four- elements-define-personal-financial-well-being/ JulyAugust 2016 The advice and personal service I provide builds a long lasting, trusting, and confident relationship.” ~Anita Ritter

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Page 1: Four elements define personal financial well-being · comes to thinking about your financial life. You might think about taking more control over bills, or getting to a specific point

Welcome to the latest edition of our newsletter! As always, if you have questions or suggestions, please contact us.

Measure your financial well-being by these standards, then review with Anita during your next meeting.

Four elements define personal financial well-being

By Janneke Ratcliffe You probably have a few goals in mind when it comes to thinking about your financial life. You might think about taking more control over bills, or getting to a specific point like paying off a credit card, or making an important purchase. We want to help people improve their financial lives, so we want to help them set goals that can make a real difference, and work toward them. That’s why we talked to consumers across the country, to hear what they had to say about financial well-being and what it means to them. You can see what we learned in our report on financial well-being. Savings and income are part of financial well-being, but we learned that they’re not always the most important part. Instead, when people talked about their own financial well-being, four main elements came to light. Feeling in control People who have high levels of financial well-being feel in control of their day-to-day and month-to-month finances. They cover their expenses and pay their bills on time, and generally they do not worry about having enough money to get by. This is not just about having money, they told us, it’s about managing it. Think of this as having financial security, in the present.

Capacity to absorb a financial shock Whether they get in a car accident or are temporarily laid off from a job, these consumers have a safety net such as savings, insurance, or family to help stop a shock from turning into a longer-lasting setback. One way to describe this is feeling financial security, for the future. On track to meet goals Consumers with a higher sense of financial well-being tell us they are on track to meet their financial goals. Whether or not they have a formal financial plan, they are setting goals that are important to them, and working toward those goals. Think of this as moving toward financial freedom, for the future. Flexibility to make choices These consumers have the financial freedom to make the choices that allow them to enjoy life, whatever that means to them. Whether that is taking a family vacation, going out to eat, or working less to spend more time with family, these consumers have the financial flexibility to do what they value and what makes them happy. This can be described as having financial freedom, in the present. Applying this framework to your own financial life might help you feel more satisfied with the decisions you make too. When you face a financial choice or task, consider how your actions might affect financial security and financial freedom, today and in the future. To learn more about how consumers described financial well-being in their own words, check out the full report. http://www.consumerfinance.gov/about-us/blog/four-elements-define-personal-financial-well-being/

July—August 2016

“ The advice and personal service I provide builds a long lasting, trusting, and confident relationship.” ~Anita Ritter

Page 2: Four elements define personal financial well-being · comes to thinking about your financial life. You might think about taking more control over bills, or getting to a specific point

Anita’s Actions

It’s really summer! Winter became summer without much of a spring, or so it feels. My flowers are very happy, though! The rhododendrons, azaleas, lilacs, irises, sweet William, Meadow Sage, and, yes, even lilies, are blooming all over my yard! After moving into this home late last summer, I had no idea what to expect this spring. Wow! Talk about beauty!!!

I know many of you are asking if there really IS going to be an Anita Ritter Financial Sturgis office. The answer is yes and things are moving along. With any construction project there are challenges and delays, and this one has seen its share. The Moso Village building is moving along in its construction and we should be able to start our build-out in the next few weeks. Moso is a form of bamboo, so you can look forward to seeing lots of wood with a modern flare throughout the building. It won’t be long, now!

Money Smart Women Anyone who asks me about my business for the first time will hear how passionate I am about financially educating women. Ladies, I challenge you to be passionate about learning. Many have told me it is boring, too confusing, or too daunting. A recent article in Kiplinger Finance Magazine cited a study coauthored by Kristen Kucharski (Director of the Global Financial Literacy Excellence Center at the George Washington University School of Business). The article was titled “How Financially Literate are Women? Now, the first reaction is to take offense. However, the study had nothing to do with intelligence, age, income, education, or marital status, but there was a definite gender difference. “Women are less likely than men to answer the financial literacy questions correctly. And they are

disproportionately more likely to answer “do not know,” Kucharski says. “The reason for the gap is due to access. Financial literacy is not being taught at school. The most basic skills, such as balancing a checkbook and WHY are not being conveyed. Language (or terminology) can also be an issue. “I think we have made the language of finance foreign to women.” She states. This is also true of men, but it doesn’t seem to be to the same extent. In a follow-up study, “I don’t know” was not given as an option. When women were forced to choose an answer, they were often correct. This could be an implication that women lacked confidence in their answers.” This is one of the thoughts that drives me! In our Jan/Feb 2016 newsletter, we asked for individuals to step up who might be interested in attending an “Investing Basics” class and there were no responses. Several years ago, I advertised that I would be starting a women’s investment club and got 155 phone calls! The investment club provided education at every monthly meeting and small investments were made to practice the principles. This was not a gimmick and the women who participated grew in their knowledge and confidence over a number of years. I’m not saying an investment club is the answer for you. It was just the tool that got things started in this case for the members. Is it time for you to admit that you have been holding back because of a lack of confidence, abundance of confusion, or just plain disinterest? Take charge of your financial future and give me

a call today. Anita *****

Updates from NFS Anita is licensed through Cambridge Investment

Research, as her broker/dealer. National Financial

Services is the custodian, for trade execution,

clearing, custody, and other services for securities

and related transactions. We have some news for

individuals with accounts held at NFS.

1. If you use electronic statements and

confirmations, there is no charge to you. For those

Page 3: Four elements define personal financial well-being · comes to thinking about your financial life. You might think about taking more control over bills, or getting to a specific point

(continued from page 2)

who prefer paper, there has been a

$1/month/statement charge assessed. Please call

our office for information as to how you can get set

for electronic statements. Jessica is happy to help

you start the process and help you if needed.

2. Beginning this year, NFS will implement

changes to the invoicing and collection process of

IRA/Roth annual maintenance fees. You will now

be able to pay your annual fees directly from your

bank account through an electronic funds transfer

(EFT). With this option, invoicing will be

eliminated. A letter will be sent to NFS IRA/Roth

account owners to communicate the new fee

payment option. Included in the letter is a form

which should be returned to NFS to authorize the

annual payment. Additionally, in these account

statements for September, a fee notice will be

included. If you elect not to use an EFT to pay for

the fee, then your account will be debited the fee in

October. Jessica is happy to help you start the

process or help you complete it if you wish. *****

PESTO SPAGHETTI with SUMMER SQUASH

kosher salt 1/2 lb. spaghetti 2 medium yellow zucchini (about 1 lb.) 10 oz. pesto 1/4 c. freshly grated Parmesan 1 c. cherry tomatoes, halved extra-virgin olive oil Freshly ground black pepper

Bring an 8-quart stock pot of water to a boil and generously season with salt. Cook pasta according to al dente package instructions. Meanwhile, trim one end of each zucchini and insert flat end into a spiralizer. Zoodles will be extremely long; cut into approximately 7" lengths. Place in a colander and sprinkle with 1 tablespoon salt and mix, set aside. Add drained

zoodles to spaghetti for last minute of cooking time. Drain and transfer noodles back to the stock pot and mix in pesto sauce. Transfer to a large platter and top with Parmesan and tomatoes. Finish with freshly ground black pepper. http://www.delish.com/cooking/recipe-

ideas/recipes/a47847/pesto-spaghetti-with-summer-squash-

recipe/

*****

Home Improvement Projects That

Pay Off If you're like many people 50 or older, your biggest asset may not be your 401(k) or IRA. It's your house. And if you've been thinking of cashing out to downsize or move to a less costly region, you'll want to maximize your gain. That means laying out money to give the place the curb appeal it needs to sell quickly and at the highest possible price — which can be money very well spent. Simple replacements can give you a better return than major remodeling projects — about 4 percent more, on average. Manufactured stone-veneer siding and front door replacement, for example, have better returns on investment than kitchen and bath projects. Returns will vary by region. Where home prices are high and job growth is strong, you can count on a higher payback, says Craig Webb, editor of Remodeling. Nationally, the average return at resale for the 30 projects surveyed was 64 percent (up from 62 percent in 2015), or $64 for every $100 spent, assuming the home was sold within a year.

9 Improvements worth the Money

(Percent of the project you recoup, on average)

Insulate the attic: 117%

Replace the entry door: 91%

Refresh the kitchen: 83%

Get new siding: 75%

Build a wood deck: 75%

Replace the roof: 72%

Remodel the basement: 70%

Add a family room: 68%

Renovate the bathroom: 66% http://www.aarp.org/money/budgeting-saving/info-2016/home-

improvement-projects-that-pay-off.html?intcmp=AE-MON-LVBD-

SVMN-SPOT1-SAVINGSTM416#slide1

Page 4: Four elements define personal financial well-being · comes to thinking about your financial life. You might think about taking more control over bills, or getting to a specific point

What’s on your horizon??

It’s never too late to begin planning your financial future!

Face-to-Face Business

Financial Planning

Retirement Planning

College Funding

Securities offered through Registered Representatives of Cambridge Investment Research, Inc., a broker-dealer, member FINRA/SIPC. Advisory services offered through Cambridge Investment Research Advisors, Inc., a Registered Investment Adviser. Anita Ritter Financial and Cambridge are not affiliated.

ANITA RITTER FINANCIAL

Wealth Management With Commitment. Character, Compassion

2632 SOUTH 11TH STREET

KALAMAZOO, MICHIGAN 49009

PH: 269.492.9701 X 206

[email protected]

We can be found on Facebook, LinkedIn, and Twitter.

Be sure to check out our new website! www.anitaritterfinancial.com