Tips on Financial Planning

In order for individuals to gain financial control of their future, there are certain rules and guidelines that should be taken into consideration.

Your overall financial plan should include the following seven points as part of yourfinancial strategy:

1. Emergency funds should equal three months take home salary.

2. As a general rule, do not spend more than 30% of income on home mortgage or rent.

3. The "Home Mortgage 28% Rule": When applying for home mortgages, banks look for the amount of mortgage interest and principle, real estate taxes, and property & casualty insurance NOT to exceed 28% of total income.

4. Consumer loans should not exceed three year terms. Otherwise, interest payments can be excessively high, and may negatively affect cash flow.

5. Consumer loans should not exceed 20%of your take home pay. Your net take home pay includes: auto loans, student loans, unsecured personal loans, and revolving credit card debt.

6. Long term debt should be no more than 30% of a family's total assets. This means that you should owe no more than 30%of your total worth.

7. Retirement income needs should be 70%of your net pre-retirement income. For example, if your total annual net incomeis $75,000.00, your annual retirement cash flow needs will be $52,000.00.

While many people choose to leave their personal financial planning goals and advice up to a professional financial adviser, it is also a good idea to implement some of these simple tips toward controlling your own financial future.

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Andrew S. Bluestone, CFP® is President and CEOof Selective Benefits Group which provides 401(k) plan management, education,and support services for business owners, professionals, andindividual plan participants. He can be reached at This email address is being protected from spambots. You need JavaScript enabled to view it. or 973-417-6880.

Securities andinvestment advisory services are offered solely through Ameritas InvestmentCorp. (AIC). Member FINRA/SIPC. AIC and Selective Benefits Group are notaffiliated. Additional products and services may be available through Andrew S.Bluestone, CFP® or Selective Benefits Group thatare not offered through AIC.

Selective Benefits Group 17 Wilrich Glen, Morristown, NJ07960 973-417-6880 This email address is being protected from spambots. You need JavaScript enabled to view it. www.sbgroup.com