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Set some goals and guidelines for yourself and your money before striking out to find a professional financial planner. First of all, determine what your overall goal is. It can be to reduce debt, to save for retirement, or to purchase a car or home. Next, set some term goals. Short-term goals should be achieved within one year, while medium-term goals can be reached in one to three years, and long-term goals can be met in five or more years.
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A Roth IRA is a retirement savings account that allows you to make an annual contribution of up to $2000. The contributions are not tax deductible, but the earnings are tax-deferred, and qualified withdrawals are tax-free. The Roth IRA can also be used to purchase a home or for education. You are eligible to contribute to a Roth IRA account if you are either single with a modified adjusted gross income of less than $95,000, or married with a modified adjusted gross income of less than $150,000. A traditional IRA account gives you a current year tax deduction, but taxes you when withdrawals are made. A Roth IRA taxes the contributions up front, but does not tax the qualified withdrawals.
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If you are experiencing debt, or just can't seem to make ends meet each month, it's time to follow where your money goes and get back into control. The first step is to identify your debt, whether it is with credit cards, a home, a car, or other loans. You can set up your own payoff plan, or use the help of a Credit Counseling Service. The next step is to track your spending for an entire month by keeping a log. Write down every thing you spend money for, from groceries to a snack from the vending machine. Compile all your information at the end of the month and see what areas could use some improvement. Using a home finance computer program such as Quicken can also be a valuable asset to you.
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