Financial Planning: Everything You Need to Know About Your Money (Almost)

The guide to managing your finances, in good economies and bad.
(In a word, be patient.)



(page 2 of 5)

Photograph by Pat Crowe II

 

 

Jon D. Walton, CFP, CLU
Financial Planner, Independence Wealth Services


Walton, who entered the financial planning industry in 1980, specializes in wealth management, which includes retirement, estate and business-succession planning. He is an adjunct faculty member at the University of Delaware, where he teaches financial planning classes to students going for their Certified Financial Planner certificates.
In these economic times: “Money is just a tool. Your risk should be in line with your goals. Invest with a purpose. Now that we’re in this, it’s especially important to remember what your purpose is.”

 

 

PLANNING THROUGH THE DECADES

You’re never too young or old to start implementing a financial plan. Here is a guide for working adults.

In Your 20s Now is the time to reduce any credit card debt. “Credit card interest will eat you alive,” says Frederick J. Dawson.

Put whatever money you can into a retirement fund. Peni G. Warren wishes that fact was taught in school.

Carol E. Arnott recommends making monthly contributions to an IRA rather than making a lump sum contribution at year’s end. That way you buy into the market at high and low prices, which average out. If you only contribute once a year, you might hit a low market.

In Your 30s If you haven’t already, you’re probably looking for a house to buy. In the old days, buyers bought the biggest, most expensive house they could afford and “strapped it on,” Dawson says. That philosophy is changing. “I don’t know that going forward personal residences will be the investments they used to be,” he says.

People are getting back to the ABCs of financial planning, Warren says. “Look at what you can afford and look at the worst-case scenario if something happened to you.”

Plan for your children’s education and keep putting money into your retirement accounts. “Tell grandparents to stop buying stuff for the kids and start contributing to their 529 college savings plan,” Warren says.

The rule of thumb is to keep three to six months’ worth of expenses in some kind of liquid interest-bearing account in case of emergency. But you may need more or less money depending on your lifestyle.

In Your 40s Increase contributions to your retirement account. Why? People are living longer, healthcare expenses are going up and “pensions are dinosaurs,” Arnott says.

If you’re considering an early retirement, remember that if you retire at 50 and you live past 80, your money has to last more than 30 years.

Learn from the past. Speculators in the 1990s created a soaring stock market that crashed when the tech bubble burst. Speculators in the real estate market, low-interest rates and loose lending practices drove the price of housing up until that market crashed. In the summer, commodities took a leap.

All this is a case for diversifying your portfolio, which once meant stock and cash. If you opt for investments in commodities, look for an expert. “It’s not for the faint of heart,” says Sherman L. Townsend. “It’s highly speculative and quite volatile.”

Bonds create some stability to smooth out the volatility, Townsend says. There are different types of bonds, however, so you will again need an expert’s advice. Warren recommends bonds that are well diversified.

Real estate, meanwhile, might include private residences, rental properties or an investment in a real estate investment trust.

In Your 50s It’s time to get really serious about retirement. “Sock away as much as you can and put a clamp on your wallet,” Dawson says.

By now you should have pictured your retirement so you know how much you’ll need. But if you haven’t, ask yourself:

• Do I plan to travel mostly the first year or for many years after retirement?

• Do I plan to downsize to a smaller home?

• Can I make sacrifices, such as selling one of our two cars?

• Is it important for me to leave money to my children?

• Do I plan to work part time? Am I willing to in order to maintain my lifestyle?

Too many 50-somethings start to bank on safe investments, such as savings accounts and CDs. “The big mistake people make is getting too conservative,” Arnott says. “The risk is not that you’ll lose your money. The risk is losing purchasing power.” Low-interest accounts are barely keeping pace with inflation.

Though people in high tax brackets may benefit from maintaining a mortgage, most planners prefer that clients have no mortgage going into retirement.

Many 50-somethings’ parents are in their 70s. Look into long-term health insurance, both for your parents and for yourselves. “It can be a tremendous expense if you have to go into a facility,” Warren says.

 Finally, make sure your children are starting down the right financial path. “By the time a person is 25, you can see a life pattern as to how they’ll manage money,” Townsend says. “Unfortunately, most are spending more than they’re earning.”
 

Page 3: Managing a Windfall

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January 2017

January 3 - 28  “Winter Group Show” Rotating Group Show features a variety of art in different styles and media. Custom Framing & Gift Certificates are always available. Gallery Hours:...

Cost: free

Where:
The Station Gallery
3922 Kennett Pike
Greenville, DE  19807
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Telephone: 302-654-8638
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Sports Card & Collectible Show at Aetna Fire Hall on Jan. 22—sign up now! -Sports Cards McFarlane Figures Comic Books Non-Sports cards Wrestling Items Vintage Starting...

Cost: $2

Where:
Aetna Fire Hall
400 Ogletown Road
Newark, DE  19711
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Sponsor: A2Z Promotions
Telephone: 302-983-2636
Contact Name: Bob Harper
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The Rehoboth Beach Film Society announces the next play in the exciting series of National Theatre Live screenings. National Theatre Live is a groundbreaking project that presents the best of...

Cost: $18-$20

Where:
Cinema Art Theater
17701 Dartmouth Drive, #2
Lewes, DE  19958
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Sponsor: Rehoboth Beach Film Society
Telephone: 302-645-9095
Contact Name: Jeri Kaplan
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Belly Dance Classes with Zahra Beginner & intermediate classes open to teens and adults Sundays in January starting Jan 8th Beginner: 2:30-3:30 p.m. Intermediate: 1 - 2 p.m (must get...

Cost: $15-$42

Where:
Take the Lead Studio
320 Lantana Drive
Hockessin , DE  19711
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Sponsor: Take the Lead
Contact Name: Zahra
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The Resident Ensemble Players, Delaware’s professional acting company performing at the University of Delaware, presents The Bells by Theresa Rebeck. During the great Yukon gold rush of the...

Cost: $15 - $30

Where:
Thompson Theatre, Roselle Center for the Arts
110 Orchard Rd.
Newark, DE  19716
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Sponsor: Resident Ensemble Players
Telephone: (302) 831-2204
Website »

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Ah, typecasting—the baritone is always the bad guy! In Devils, Drunks & Dastardly Dudes, we’ll go on an operatic journey of men behaving badly. We’ll add a tenor to the mix, too… but we...

Cost: $29-$59

Where:
OperaDelaware Studio
4 South Poplar St.
Wilmington, DE  19801
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Sponsor: OperaDelaware
Telephone: 302-442-7809
Contact Name: Mary Wilcosky
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Come give curling a try! At this 2-hour intro-to-curling event we'll provide a basic lesson then coach you through a mini-game.  Whether you just want to cross #curling off your bucket list or...

Cost: $35

Where:
The Pond Ice Arena
101 John Campbell Rd
Newark, DE  19711
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Sponsor: Diamond State Curling Club
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January 3 - 28  “Winter Group Show” Rotating Group Show features a variety of art in different styles and media. Custom Framing & Gift Certificates are always available. Gallery Hours:...

Cost: free

Where:
The Station Gallery
3922 Kennett Pike
Greenville, DE  19807
View map »


Telephone: 302-654-8638
Website »

More information

The Rehoboth Beach Film Society announces the next play in the exciting series of National Theatre Live screenings. National Theatre Live is a groundbreaking project that presents the best of...

Cost: $18-$20

Where:
Cinema Art Theater
17701 Dartmouth Drive, #2
Lewes, DE  19958
View map »


Sponsor: Rehoboth Beach Film Society
Telephone: 302-645-9095
Contact Name: Jeri Kaplan
Website »

More information

Notbybreadalone Ministries presents Feeding the Hungry Outreach. All are welcome to come and partake of food, fun and fellowship. Those who desire a better way of life through Jesus Christ are...

Cost: Free

Where:
2nd and 3rd Streets
Wilmington, DE  19801


Sponsor: Notbybreadalone Outreach Ministries
Telephone: 442-0440
Contact Name: Ministers Wayne and Stephanie Dumpson
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Guest speakers Patty Dailey-Lewis, executive director of the Beau Biden Foundation, and Delaware Family Court commissioner Loretta Young will discuss how participation in social media can too...

Cost: Free

Where:
Wilmington University - Dover
Building A Auditorium
3282 N DuPont Highway
Dover, DE  19901
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Sponsor: Wilmington University College of Social & Behavioral Sciences
Telephone: 302-295-1164
Contact Name: Dr. Johanna Bishop
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January 3 - 28  “Winter Group Show” Rotating Group Show features a variety of art in different styles and media. Custom Framing & Gift Certificates are always available. Gallery Hours:...

Cost: free

Where:
The Station Gallery
3922 Kennett Pike
Greenville, DE  19807
View map »


Telephone: 302-654-8638
Website »

More information

Tuesdays and Thursdays from 9:30AM-12:00PM Fall session: Thursday, Dec 1st thru Thursday, December 15th Winter session: Tuesday, January 17th thru Thursday, March 30th   Drop in on Nature is...

Cost: see description

Where:
The Annex
501 Chandler Mill Rd
Kennett Square, PA  19348
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Sponsor: The Land Conservancy
Telephone: 610-347-0347 ext.104
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East Coast Garden Center Indoor Farmers Market Nov 8, 2016 - April 11, 2017  11 am- 2 pm 25 vendors Location:  East Coast Garden Center 30366 Cordrey Rd Millsboro, DE 19966 302-945-3489

Cost: frr

Where:
East Coast Garden Center
30366 Cordrey Rd
Millsboro, DE  19966
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Sponsor: East Coast Garden Center
Telephone: 302-945-3489
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East Coast Garden Center Indoor Farmer's Marke 25 vendors

Cost: Free

Where:
East Coast Garden Center
30366 Cordrey Rd
Millsboro, DE  19966
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Telephone: 302-945-3489
Website »

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The Rehoboth Beach Film Society announces the next play in the exciting series of National Theatre Live screenings. National Theatre Live is a groundbreaking project that presents the best of...

Cost: $18-$20

Where:
Cinema Art Theater
17701 Dartmouth Drive, #2
Lewes, DE  19958
View map »


Sponsor: Rehoboth Beach Film Society
Telephone: 302-645-9095
Contact Name: Jeri Kaplan
Website »

More information

A four-week series of ballroom dancing classes taught by teachers from the BlueBallroom. Tuesdays starting Jan. 10. Classes are $30 a lesson for Non-Members. Non-Member slots are limited. For...

Cost: $30

Where:
University and Whist Club
805 N Broom St
Wilmington, DE  19806
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January 3 - 28  “Winter Group Show” Rotating Group Show features a variety of art in different styles and media. Custom Framing & Gift Certificates are always available. Gallery Hours:...

Cost: free

Where:
The Station Gallery
3922 Kennett Pike
Greenville, DE  19807
View map »


Telephone: 302-654-8638
Website »

More information

The Rehoboth Beach Film Society announces the next play in the exciting series of National Theatre Live screenings. National Theatre Live is a groundbreaking project that presents the best of...

Cost: $18-$20

Where:
Cinema Art Theater
17701 Dartmouth Drive, #2
Lewes, DE  19958
View map »


Sponsor: Rehoboth Beach Film Society
Telephone: 302-645-9095
Contact Name: Jeri Kaplan
Website »

More information

Show More...
Show Less...

January 3 - 28  “Winter Group Show” Rotating Group Show features a variety of art in different styles and media. Custom Framing & Gift Certificates are always available. Gallery Hours:...

Cost: free

Where:
The Station Gallery
3922 Kennett Pike
Greenville, DE  19807
View map »


Telephone: 302-654-8638
Website »

More information

Tuesdays and Thursdays from 9:30AM-12:00PM Fall session: Thursday, Dec 1st thru Thursday, December 15th Winter session: Tuesday, January 17th thru Thursday, March 30th   Drop in on Nature is...

Cost: see description

Where:
The Annex
501 Chandler Mill Rd
Kennett Square, PA  19348
View map »


Sponsor: The Land Conservancy
Telephone: 610-347-0347 ext.104
Website »

More information

Thursdays from 4:00PM-5:30PM Fall session: December 1st, 8th and 15th Winter session: Starts January 19th, every other Thursday until March 30th This program is based entirely outdoors and is...

Cost: Cost: $30 for TLC members / $40 for non-members

Where:
Bucktoe Creek Preserve
432 Sharp Rd
Avondale, PA  19311
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Sponsor: The Land Conservancy
Telephone: 610-347-0347 ext.104
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MARC BROUSSARD In 2004, Marc Broussard, then a precocious 22-year-old singer/songwriter, released his major-label debut; he called it Carencro, after the Louisiana town where he was born and...

Cost: $22 SRO- $32 SEATED

Where:
World Cafe Live Wilmington
500 N Market St
Wilmington, DE  19801
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Telephone: 215-222-1400
Contact Name: MP Intern
Website »

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The Resident Ensemble Players, Delaware’s professional acting company performing at the University of Delaware, presents The Bells by Theresa Rebeck. During the great Yukon gold rush of the...

Cost: $15 - $30

Where:
Thompson Theatre, Roselle Center for the Arts
110 Orchard Rd.
Newark, DE  19716
View map »


Sponsor: Resident Ensemble Players
Telephone: (302) 831-2204
Website »

More information

Show More...
Show Less...

January 3 - 28  “Winter Group Show” Rotating Group Show features a variety of art in different styles and media. Custom Framing & Gift Certificates are always available. Gallery Hours:...

Cost: free

Where:
The Station Gallery
3922 Kennett Pike
Greenville, DE  19807
View map »


Telephone: 302-654-8638
Website »

More information

Tutto Fresco has live entertainment every Friday night from 6:30–9:30 p.m. Call for details. http://tuttofrescode.com/

Where:
Tutto Fresco
514 Philadelphia Pike
Wilmington, DE  19809
View map »

More information

The Resident Ensemble Players, Delaware’s professional acting company performing at the University of Delaware, presents The Bells by Theresa Rebeck. During the great Yukon gold rush of the...

Cost: $15 - $30

Where:
Thompson Theatre, Roselle Center for the Arts
110 Orchard Rd.
Newark, DE  19716
View map »


Sponsor: Resident Ensemble Players
Telephone: (302) 831-2204
Website »

More information

Meeting every Friday, Bayhealth Kent General Hospital, 640 s. State Street, Dover, 7:30 pm., Private Dining Room #3 in the basement. For those who have, or think they may have a gambling problem....

Cost: 0.00

Where:
Bayhealth Kent General Hospital
640 S. State Street
Private Dining Room #3
Dover, DE  19901
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Telephone: 800-855-2CALLGA
Website »

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Cost: $12-$20

Where:
Wilmington Drama League
10 West Lea Blvd.
Wilmington, DE  19802
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Sponsor: Wilmington Drama League
Telephone: 302-764-3396
Contact Name: Kathy Buterbaugh
Website »

More information

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January 3 - 28  “Winter Group Show” Rotating Group Show features a variety of art in different styles and media. Custom Framing & Gift Certificates are always available. Gallery Hours:...

Cost: free

Where:
The Station Gallery
3922 Kennett Pike
Greenville, DE  19807
View map »


Telephone: 302-654-8638
Website »

More information

January 28 – Saturday – 1 to 4 p.m. Science Saturday – Truss Me, You Won’t Fall! Become an engineer for the day. Design a bridge to hold as much weight as possible....

Cost: Activities are included in regular admission and free for members.

Where:
Hagley Museum
201 Hagley Creek Road
Wilmington, DE  19807
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Sponsor: Hagley Museum
Telephone: (302) 65802400 x 238
Contact Name: Jessica Eisenbrey
Website »

More information

The Resident Ensemble Players, Delaware’s professional acting company performing at the University of Delaware, presents The Bells by Theresa Rebeck. During the great Yukon gold rush of the...

Cost: $15 - $30

Where:
Thompson Theatre, Roselle Center for the Arts
110 Orchard Rd.
Newark, DE  19716
View map »


Sponsor: Resident Ensemble Players
Telephone: (302) 831-2204
Website »

More information

GRILLED CHEESE AND CRAFT BEER TASTING We have taken two of the best things on earth and paired them together – Grilled Cheese and Craft Beer – and paired them together in unexpected and...

Cost: $40

Where:
World Cafe Live Wilmington
500 N Market St
Wilmington, DE  19801
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Telephone: 215-222-1400
Contact Name: MP Intern
Website »

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Saturday, January 28, 2017 at  7:30 pm at St. David’s Episcopal Church, 763 Valley Forge Rd, Wayne, PA 19087 Sunday, January 29, 2017 at 3 pm at Church of the Holy Trinity, Rittenhouse Square...

Cost: Tickets are $25 online, and $30 at the door. Student tickets $10 at the door.

Where:
Church of the Holy Trinity
1904 Walnut St.
Philadelphia, PA  19103
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Sponsor: Lyric Fest
Telephone: 215-438-1702
Contact Name: Jessica Nelson
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Fan favorite, Dick Smith, returns to the Dickinson Theatre Organ Society concert stage on Saturday, Jan. 28, 2017 for a show that is sure to bring the house down! Dick Smith has been a...

Cost: $15 Adults; $10 Students

Where:
John Dickinson High School Auditorium
1801 Milltown Road
Wilmington, DE  19808
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Sponsor: Dickinson Theatre Organ Society
Telephone: 302-995-2603
Contact Name: Bob Dilworth
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The Dickinson Theatre Organ Society presents Dick Smith. For tickets, click here: http://www.dtoskimball.org/events-tickets/ticket-information/ For further information, please call us at...

Where:
, DE

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The Resident Ensemble Players, Delaware’s professional acting company performing at the University of Delaware, presents The Bells by Theresa Rebeck. During the great Yukon gold rush of the...

Cost: $15 - $30

Where:
Thompson Theatre, Roselle Center for the Arts
110 Orchard Rd.
Newark, DE  19716
View map »


Sponsor: Resident Ensemble Players
Telephone: (302) 831-2204
Website »

More information

Cost: $12-$20

Where:
Wilmington Drama League
10 West Lea Blvd.
Wilmington, DE  19802
View map »


Sponsor: Wilmington Drama League
Telephone: 302-764-3396
Contact Name: Kathy Buterbaugh
Website »

More information

MOTHERSHIP Mothership is the area's premier Led Zeppelin Tribute show. Composed of seasoned, professional musicians Mario Padovani - vocals, keyboards, Frank Ginocchio - drums, Chris Julian -...

Cost: 15

Where:
World Cafe Live Wilmington
500 N Market St
Wilmington, DE  19801
View map »


Telephone: 215-222-1400
Website »

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