- Do you have one person to call when you need help?

- Is the insurer available 24 hours a day, 7 days a week?

- Does the insurer make it easy to file a claim?

- Is the insurer available to discuss your needs and help
customize a package of services that is best for you and
your family?

• Do you feel confident in the insurer’s financial stability
and ability to pay if your family suffers a loss?

Be sure you’re getting the most value for your time and money. Call your agent or insurance company today and ask if you can get more value by having all your insurance needs taken care of in one place.

Written by Andrea Walton, a State Farm agent based in Red Oak.

Written by Adam Rope, a State Farm agent based in Waxahachie

The Best Laid Plans

Before you can start planning, you need a clear picture of where you stand today. Tracking
your income and expenses on a regular basis and assessing your net worth — total assets minus
total debts — helps you see how much money you can commit to individual financial goals.

Your First Home

Home ownership is at the heart of the American dream. The biggest obstacle facing home buyers is
funding a down payment — typically 10 percent to 20 percent of a home’s purchase price. The good
news is there are many down-payment options for first-time buyers. Check with banks or mortgage
companies in your area to see what special programs may be available to you.

If you intend to buy a house within five years, a good way to save for a down payment may be through
short-term investments, such as bond or money market funds. In addition, you can now
use money from an IRA to help pay for your first home. Up to $10,000 can be withdrawn penalty
free, although you’ll have to pay taxes on amounts withdrawn from a traditional IRA.

Your Child’s Education

Ideally, you should start saving for your child’s education as soon as — or even before — he or
she is born. Tuition and fees at four-year colleges continue to rise between 4 percent and 6 percent
annually — more than twice the current rate of inflation.* Depending on your child’s age, you may
want to consider investing your education dollars in stocks or stock mutual funds. While stocks can
be riskier than other investments over short time periods, over the long-term they have historically
produced the highest returns. There are many other education savings options, and some, such as
state-sponsored 529 college savings plans and the Coverdell Education Savings Account, offer tax
advantages as well.

Your Retirement

Planning for a secure retirement is probably your most important long-term financial goal. Experts
estimate that, in many cases, you will need at least 70 percent to 80 percent of your final working
year’s salary for each year you spend in retirement. That’s why it’s important to start saving for
retirement early in life and keep saving as much as you can throughout your working years. By making
regular contributions to your retirement account at work, and by choosing the investment options
best suited for your years until retirement, you are taking advantage of one of the easiest — and most
effective — ways to save for this important goal.

Get the Help You Need

Knowing the right financial moves to make and when to make them is a complicated job that
most of us don’t have the resources to handle alone. Consider consulting a qualified financial
professional who can help you keep your financial plan on track with your ever-changing needs.

Submitted by Scott Stanley, a Woodmen of the World agent based in Corsicana.

Amanda’s story illustrates how
being without life insurance can leave
families vulnerable to financial hardship.
However, the need for life insurance is
not limited to families.

When you’re single with no dependents,
you may not need much life insurance.
But you should at least have enough to
cover final expenses, so your parents or
siblings aren’t burdened with these costs.
Once you’re married, you share a life and
a home with someone else. Now if the
worst happens, your spouse may be left
with a rent or mortgage payment they
can’t afford. At this point, it’s time for
both spouses to get individual life policies.
When you have children, you have
their future to think about. Life insurance
can help your spouse keep up with
child care and other expenses, as well
as save for education and retirement.
In retirement, life insurance becomes
an important part of your estate plan
allowing you to pass wealth to future
generations or a charity.

There are two basic categories of life
insurance — term and permanent. Term
insurance can be purchased in large
amounts for a small initial premium. It is
well suited for short-term goals. Coverage
lasts for a specified term. After this term
has ended, it expires unless renewed by
paying higher premiums.

Permanent life insurance provides a
death benefit while the policy is in force.
The premiums are initially higher than
those of term insurance, but in many
cases they can be cheaper over the life
of the insured. Permanent life insurance
usually builds up a tax deferred cash value
and is well suited for long-term goals.
Whichever option you choose, make
sure your policy coverage keeps pace
with your life stage — now and in the
future.

Written by Lynda Housley, a State Farm agent based in Corsicana.

When you receive your statement, take some time and go over
its contents. Are the reported earnings correct? If not, report any
errors to the SSA. It’s much easier to do now than after you retire.
How do the projected benefits fit within your retirement
needs? Will you have enough from other sources to fill any gaps?
These are important questions a financial professional can help
you answer. A financial professional can also help you find ways
to plan for a retirement that relies less on Social Security and more
on options that are suitable to your needs and comfort level.
There are a number of products and services available to help
you attain the retirement your desire. An early start at developing
your personal plan will make your goals more attainable.

Written by Lynda Housley, a State Farm agent based in Corsicana.

Credit reports are used by the majority of potential lenders to assess your credit worthiness and help determine whether or not to approve your loan. A credit report documents your financial history for the previous seven years and contains personal information such as your name, address and social security number, as well as information about your credit card use and payment history, mortgage payment history and installment loan payment history. The report also contains your employment information to give reviewers a sense of your ability to make future payments. There is one exception to the seven-year rule; if you declare bankruptcy, this will remain on your report for 10 years.

Your credit report may also contain your credit score — a number between 300 and 850 — that is used to predict whether you will repay a loan. Your credit score is based on your payment history, the total amount you owe, the length of your credit history, any newly acquired credit and the type of credit you are using. Many lenders use this number to determine whether or not to approve your loan.

Oftentimes, this number also correlates with the interest rate on your loan; a higher credit score will often be granted a lower interest rate on the loan. A lot of valuable information is contained on your credit report, and lenders rely heavily on this tool. As a customer, you, too, should give your credit report the attention it deserves — after all, it can affect your ability to build the life you desire.

Effective September 1, 2005, all consumers in the United States are entitled to one free credit report every year from
each of the three major credit reporting companies — Equifax, Experian and TransUnion. For more information on ordering your free credit reports, visit www.annualcreditreport.com.

Written by Andrea Walton, a State Farm agent based in Red Oak.

On top of that, you don’t want to get something that won’t last 10 minutes out of the package. One gift that will last for many years is a life insurance policy. There are many reasons why it can be an excellent gift for your grandchild.

Affordability
The younger the child’s age, the lower the premiums.

Protection
Illness or injury may affect a child’s ability to purchase life insurance coverage later in life. Coverage purchased now will continue to provide protection, even if a child’s health changes,
provided premiums are paid as required by the policy.

Financial Security
Life insurance can be the foundation for a strong financial plan. The child may be able to borrow against the accumulated cash value (with interest charged) to pay for future expenses. While loans decrease death benefits and cash surrender values, the proceeds can be used for important expenses such as a college education or the purchase
of a home.

Giving a gift of life insurance to your grandchild can be one of the most significant things you do
during your lifetime. He or she may not understand at the time how important the gift is, but should grow to appreciate it in the future.

Take the guesswork out of your gift shopping. Life insurance is a gift that will last a lifetime.

Adam Rope is a State Farm agent based in Waxahachie.

Step 2: Aim to be debt free.
Now that you’ve spotted where you can create savings,
determine the best way to use them to your advantage. One
tool that may help you is Debt in Focus, an online, anonymous
tool that can analyze your financial data and help you understand
your debt. By reviewing and understanding all of your debt,
you’ll be able to see where your extra savings will be able to
make the most impact.
Step 3: Build your budget.
Build a realistic budget that covers your expenses and allows
for a little “rainy day” savings. Most importantly, be honest
with yourself as you budget. If you know you’ll go to the
movies a couple of times a month, plan it
in. If you’ve never built a budget before,
and you’d like a little more direction, look
at some of the free online resources.
Step 4: Reassess…reassess…reassess.
Once your budget is built, keep revisiting
it and finding new ways to save. A few
good questions to ask yourself are:
• Have your credit card rates changed?
• Could you get a lower rate with a debt
consolidation or home equity loan?
• Could you refinance your vehicles to a
lower rate to save?
• Have you “shopped around” for insurance
lately to ensure you’re getting the best rates?
With a simple plan and a little saving,
you’ll be better prepared if the unexpected
happens to you.

Written by Debi Choate,
Community Relations Officer Texas Trust Credit Union

Determine your risk tolerance
First you need to determine your risk tolerance level. Risk is the amount of volatility and uncertainty you’re willing to accept from an investment in seeking your financial goals, like planning for retirement or a college education.

Some investments carry a higher level of risk than others. Generally, the higher the risk of an
investment, the greater its potential returns. However, there is also a greater potential to lose your initial investment. The lower the risk, the less likely it is for
that investment to generate a higher rate of return. When you invest your assets in financial products that assume little or no risk, your money may not have the opportunity to grow as fast as you would like. To help determine your risk level, ask yourself, “How comfortable will I be watching my investment go up and down in value?” The more comfortable you are with price volatility, the greater the risk you are probably willing to assume.

Consider time
The next step in the process of determining your profile as an investor is to identify your time horizon, the amount of time between now and when you hope to reach your stated goal.

Generally, the more time you have, the more risk you can afford to assume. The reasoning is: the longer your time horizon, the more time you have to ride out the market’s ups and downs in pursuit of your financial goals. Knowing what level of risk you are comfortable with can help you determine whether you are a conservative investor, an aggressive investor or somewhere in between. This is an important first step because then you can focus on investments that provide you with the levels of risks and potential returns with which you are comfortable.

To find out more about the type of investor you are or the different types of investments that are available, contact a financial services professional. There is no assurance that any investment will achieve its investment objectives. Investment return and principal value will fluctuate and the investment, when redeemed, may be worth more or less than its original cost.

— Written by Adam Rope, a State Farm agent based in Waxahachie.

Let’s run through some of the most common milestones in life and see what sort of moves you might make in response:

Marriage – It sounds obvious, but once you’re married,
you have to stop thinking in terms of “one” and start thinking
of “two” in most aspects of your life — including your
finances. For example, if you are an aggressive investor but
your spouse is more conservative, you both may need to
compromise and choose an investment strategy that’s
“down the middle.” At the same time, you’ll want to set
some common goals, such as saving enough for a down
payment on a home.

Children – When you have children, you have to protect
them today — and invest for their future. Your first step,
then, might be to purchase life insurance. You can typically
buy a term life policy at very reasonable rates. The exact
amount of coverage you need depends on your individual
situation, but you’ll probably want at least enough to pay
off your mortgage and send your children to college should
anything happen to you. And to protect your income, you
might want to consider disability insurance. Finally, it’s
never too soon to start saving for college. You might want to
consider opening a tax-advantaged account, such as a Section
529 college savings plan.

Job changes – When you leave a job, you may well
have an important decision to make about your 401(k) or
other employer-sponsored retirement plan. If you don’t need
the money right away, you might want to avoid cashing out
your plan, because you’ll likely face an immediate tax bill —
and you’ll have fewer resources for retirement. Consequently,
you may want to roll your 401(k) to an IRA or your new
employer’s plan, if it allows such transfers. Before taking
action, consult with your tax advisor.

Remarriage – If you ever remarry; you may need to
change the beneficiary designations on your 401(k), IRA
and other investment accounts. You also may need to work
with your attorney to revise your will, living trust and other
documents related to your estate plans.

Retirement – For many decades, you saved and invested
for your retirement. Once you retire, however, you should
move away somewhat from the “accumulation” phase and
start thinking instead of how best to manage the money you
have accumulated. That means you’ll need to decide when
to start taking Social Security and how much to withdraw
each year from your various retirement accounts, such as
your 401(k) and IRA. A professional financial advisor can
help you develop a withdrawal rate that’s suitable for your
individual situation.

You’ll encounter many important events on the road of life. By making the right financial moves along the way, you can help make the journey more pleasant.

— Written by Bob Irish, an Edward Jones representative based in Ennis.