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When it Comes to Marriage and Relationships, Money Talk Matters
You’ve heard it so many times that it sounds like a tired old cliché: financial conflicts are among the most frequent causes of divorce and failed relationships. Yet the problem doesn’t go away.
 Let’s face it: “money speak” is not very romantic. When you’re dating, it’s hard to imagine talking about credit card debt, spending habits, or retirement plans. Yet whether you’re dating, engaged, newly married, or a long-married couple, it’s important to understand that financial fit is just another component of personality compatibility.
Independent of personality and behavior, money is really meaningless. It’s a tool for measuring value, but how we use it also reflects our personal values—what we care about, what’s important to us, our sense of responsibility to others, and so on. Read on for tips and ideas to help couples move toward a thriving financial life—regardless of where you are in the relationship spectrum.
1. For unmarried couples, think twice about intertwining finances until it’s clear the commitment is long-term.
Even when both parties understand things aren’t going to work out, parting usually creates difficulties. Joint accounts, intertwined credit, or co-owned assets can make it harder to move on.
Or maybe you’ve been together for years and are comfortable that it’s a life commitment, but for personal reasons agree you don’t want to walk down the aisle. If so, it would be wise to get advice from a financial professional or attorney on taxes, estate planning, insurance, retirement, and other issues that could pose complexities.
2. Decide on the joint or separate approach.
Especially when both are working, many couples struggle with the question of joint or separate accounts. No answer is right for everyone. But it’s helpful to boil it down to three basic options:
- Completely shared finances, with one joint checking account for depositing pay and paying bills, as well as joint savings and investment accounts
- A mixed approach, with shared accounts for major living expenses and long-term goals, and separate accounts allowing each spouse to individually manage remaining disposable income
- Completely separate accounts for each spouse and a plan for managing shared expenses and financial goals
The first approach works well if you feel confident that your financial styles are highly compatible, are on the same page on most money matters, and communicate frequently about expenses.
If you’ve agreed on big priorities—basic living expenses and shared goals like retirement savings or college for the kids—but still want some independent money, consider the mixed approach often used by couples who have separate professional lives and are active debit card users.
Or maybe you’re extremely compatible in nearly every respect except finances. Let’s face it: often, the men in our lives have very different ideas about money. For many couples of this profile, the completely separate approach works well. In every other area you might be like two peas in a pod, but when it comes to money you pass like ships in the night. And that’s fine, as long as there is open discussion and agreement about how to cover basic expenses and progress toward major goals.
As your relationship evolves, you may also find that your best-fit approach changes.
3. Set goals and make detailed plans.
In a healthy relationship, you may have goals as individuals, shared goals as a couple, and goals for your family. In all three areas, you’re unlikely to get from Point A to Point B without plans, financial and otherwise, for the steps in between.
Across the individual, shared, and family spheres, goals could include retirement, college for children, continuing education for yourself or your spouse, starting a business, a career change, a dream vacation. The earlier you start planning, the more likely you’ll be happy with the results.
List your goals. Brainstorm about the necessary steps—daily, weekly, monthly, annually, etc.—to achieve them. Planning proactively, you’re much more likely to make things happen, instead of passively allowing things to happen to you.
4. Turn differences into strengths.
One of you might be great with numbers, the other more of an idealistic dreamer. One may favor “going by the book” with the budget, while the other might enjoy an occasional splurge. Personality differences can create tension. But if dealt with constructively, they can also be complementary, and even fun.
Let’s imagine a couple named Mary and Jim. Mary’s a pragmatic number cruncher, while Jim’s more of a free-spirited, visionary type with big dreams. Without regular, constructive communication, Mary and Jim could be headed for a lot of financial conflict.
But if they understand and own their differences, talk about them regularly—preferably with a healthy dose of humor—and put them to work in fun and imaginative ways, the potential for synergy is tremendous, creating vital checks and balances.
Mary’s practicality and common sense could enable her, in a role as the family’s “Controller” or “Chief Operating Officer,” to help keep Jim’s approach to finances reasonably down to earth. Jim’s creativity could help Mary see more possibilities for what they could accomplish, or more solutions to challenging situations. Mary’s knack for the nuts and bolts could help her formulate a plan to turn some “crazy dream” of Jim’s into a viable entrepreneurial venture.
5. Focus discussions on facts—and know when money isn’t “the real issue.”
If you find money talks turning into arguments, issues other than money could be at work below the surface. When emotions enter financial life, it’s really about what our “money thoughts” reveal about larger issues—values, priorities, or whether you feel in control of circumstances.
If either of you allow underlying tensions to drive a money discussion toward a money meltdown, the true concerns could stay bottled up inside, and that makes things worse. If it’s time to have a practical, objective conversation about working toward an important goal, try to keep emotional concerns out. However, if an uneasy feeling about something financial could be pointing to something bigger, set the “money talk” aside and try to deal constructively and openly with what’s really on your mind.
6. Consider expert help.
One way to help keep money matters from getting the best of you as a couple is to seek objective advice from “the best.” When an informed, emotionally detached third party guides you through your process, it’s a lot easier to focus on facts, keep other issues out of the way, and refrain from second guessing each other.
You wouldn’t try to be your own doctor or lawyer. So consider the idea that trying to be your own accountant or financial planner might also be too stressful. Ask friends for recommendations. Interview several prospects before choosing an advisor.
Be informed about how potential advisors are compensated. Is there a fee? If so, do they work for a straight fee and focus strictly on finding solutions that best fit your situation? Or do they earn commissions on specific products or services? Either model could be a good fit, but be sure you know the facts.
A local bank with which you already have a strong relationship could be a great resource. Ask about what services are available from staff specialized in personal financial planning.
Think of it as a different kind of “courtship.” Personality and compatibility were crucial to bringing you together as a couple. Make sure, too, that you’re both compatible with the advisor you’ll be trusting with such an important aspect of your lives—your finances.
7. The bottom line: communication is the key.
By now, you’ve probably spotted a common thread in these tips. It’s communication—open, constructive and, ideally, always approached with a touch of playfulness and imagination. Sound familiar? It works as well for money matters as for any other aspect of a relationship.
There’s no way to anticipate every financial challenge life could throw your way. But investing effort into developing good communication habits—and an understanding of when you might need outside help—will make it easier to keep those challenges from sabotaging your relationship.
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Understanding Investment Risk
 Do you consider yourself a risk taker?
In reality, we’re all risk takers. Every action—whether something small like trying a new shade of lipstick or something major like choosing a spouse or deciding where to live—involves risk.
At the moment, the idea of financial risk might give you the jitters. With the beating many people took in the financial crisis, that’s understandable.
But as life returns to something closer to normal, many of us—especially those who recently shifted to more conservative investments—will need to think about making sure there’s enough risk in our strategy.
Why? Because higher risk, as long as it’s balanced appropriately with more conservative investments, usually also means more growth potential. This, in turn, can mean a better chance of achieving goals and dreams for yourself and for your family.
Coming out of 2008 and 2009, it’s easy to say, “I don’t want to risk any of my money. If there’s a chance of losing anything, I’m not interested.”
But being too conservative can lead to disappointment. Unless you’re content with growth only modestly above the inflation rate, some risk is essential. The key is to determine how much to invest in higher-risk categories. Lower-risk investments tend to produce returns that, for most people, won’t meet financial goals.
For example, if you had money in stocks before the crisis of 2008, cashed all of it out after the market tanked, and made no new stock investments in 2009, you missed out on one of the strongest annual percentage gains of the past 10 years.
Why is risk important? Because when you’re aiming for above-average performance, above-average risk almost always goes with the territory. It’s as true in business as it is in other areas of life. If an Olympic skier or a concert violinist never takes chances, is she likely to achieve a world-class performance? Probably not.
In business, high growth investments usually reflect companies that are taking the chances necessary to innovate and outperform competitors. They need to approach risk intelligently—recklessness in business doesn’t pay. But calculated, balanced risk often does.
The path of business risk takers is seldom free of twists and turns. The normal sequence includes setbacks as well as triumphs as businesses develop good ideas, run into obstacles, and find ways to overcome them. That’s why business risk-takers can experience painful periods of loss as well as outstanding gains. And it’s also why higher-risk investments can fluctuate so much.
To understand what this means to your investments, let’s look at some big-picture data. When you examine the entire U.S. economy, you see the full range of what’s happening in business—companies that are doing splendidly, companies that are achieving just “middling” performance, and companies performing poorly or failing.
That’s why Real Gross Domestic Product, a measure of all goods and services produced in the U.S. each year, tends to grow at a rate that looks rather modest—an average of 2.6 percent annually over the 20 years from 1990 through 2009. This is almost certainly less than the growth you want for your investments. In effect, GDP averages together the different levels of risk and performance—low, average, and high—of businesses throughout the country, resulting in a big picture of overall growth that looks … well, … average.
But let’s look at another measure. The S&P 500 indexes stock prices of the 500 most widely held public companies traded on the New York Stock Exchange. The average annual growth rate of the S&P 500 from 1990 through 2009 was 7.6 percent—nearly three times faster than the entire U.S. economy as measured by Real GDP. Why? The growth reflects the risk many of these companies are taking to perform exceptionally. In any given year, some of these companies succeed in achieving outstanding performance, and some fail. But on average, companies taking the risks necessary to innovate grow at an above-average long-term rate.
However, in some years most of these companies miss the mark. That’s why the growth rate of the S&P 500 has varied so much during the 20-year period, ranging from a high of over 34 percent in 1995 to a 34 percent decline in 2008. The volatility illustrates that higher average growth comes with a higher risk of decline in any given year.
To generalize, returns on higher-risk investments, such as stock mutual funds, tend to look more like the S&P 500—more variable, but with stronger long-term growth. Lower-risk investments like bond and money market funds tend to grow more like GDP—slow, steady, and average.
Risk can be intimidating. But without it, it’s difficult to succeed. If you retreat from risk entirely and invest all of your money conservatively, you may not earn enough to achieve your goals.
The solution is managed risk. When it comes to finance, whether or not you’re a “risk taker” shouldn’t be a matter of personality. Instead, it should be a question of how much risk your portfolio should include. The answer should be based on an objective evaluation of your overall goals, resources, and life situation.
An experienced financial advisor can help considerably. Factors to consider include your:
- Age
- Family status—married or single, with or without dependents
- Income and its expected rate of increase
- Goals—retirement, college, home purchase, etc.—and when you want to reach them
- Total financial situation, including the value of all assets, such as cash savings and home equity, and of other investments like retirement portfolios
Generally speaking, the longer your investment timeline, the more risk you can afford. But there are other considerations. For instance, if you already have a well-funded retirement portfolio with balanced risk, you may be able to afford more risk in supplemental investments.
After determining an appropriate risk level, managing your portfolio strategically can help you make the most of your plan. When you buy in by investing a specific amount at regular intervals (dollar cost averaging), you smooth the effect of price fluctuations. And by regularly doing what investment professionals call rebalancing your portfolio you can build into your strategy the old principle of “buy low, sell high.”
For instance, your advisor might suggest 60 percent in an S&P 500 mutual fund and 40 percent in a low-risk bond fund. After a landmark quarter for the market, you find that your stock fund’s value has grown to 65 percent of your portfolio. By selling enough shares to bring your stock investment back to 60 percent, and investing the cash back into bonds, you have captured some profit, while returning to the recommended risk level.
The reverse also holds true. If a bear-market year lowers your stock investment to 55 percent, you would cash out some of your bond funds and buy more stocks. The instinctive reaction might be to do the opposite—pull out of stocks entirely, fearing that they have become too risky. But look at the chart again. Many years of negative S&P 500 growth were followed by significant growth. When you buy stock in a down market, you’re purchasing it at a reduced price (buying low), setting the stage for more profit once the market rises again (selling high).
These are simple examples. Real-world situations can be complex. Few of us have time to learn everything necessary to manage the process well. Every investor’s situation is different. But good financial advisors, such as the Investment and Trust Management partners available to York Traditions Bank customers, will have the knowledge, skill, and experience to help you manage investment risk in a way that matches your unique circumstances.
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Smart Retirement Ideas for Women of All Ages
 What’s the best time to start retirement planning? If you take the question at face value, the answer would probably be “the day before you were born—if not earlier.”
That, of course, isn’t realistic, but it illustrates a key concept: the most important asset isn’t money—it’s time. But even if you’re a lot closer to retirement than someone fresh out of college, it’s never too late to start. Some simple principles can move you toward your goals at any age.
Fight the “I Can’t Save Syndrome”
Perhaps the biggest financial trap is the frustrating feeling that you can’t save. But it’s misleading. You might not be able to save what feels like a lot now, but you can save something.
If you keep waiting until you feel like you’re “making enough,” you might wait a long time. Earnings may increase with time, but so do expenses. If you get discouraged, give up, and save nothing, month after month, year after year, you’ll remain discouraged—and broke.
Instead, choose an amount, no matter how small, that you can contribute regularly to a company retirement plan, personal investments or a savings account. Do what works for you, now, and be consistent. Don’t get caught up comparing yourself to others. If you feel you can’t afford the proverbial 10 percent of take-home, try 5 percent. Still a stretch? Try 1 or 2 percent. It’s a start.
By doing so, you’ll learn that you can save consistently and start to feel more confident. Slow and steady saving will grow before you know it into something not so small.
Tips for the 20s
If you’re currently in your 20s and just beginning your work life, do everything you can to start saving now for retirement. Maybe you’re in an entry-level job and paying off student loans. Perhaps you feel like you’re not making a lot of money and can’t afford to save much.
But remember: time is on your side. With the opportunity to accumulate returns over 30, 40, or more years, contributions that start small can grow into a substantial nest egg.
Tips for the 30s
In the 30s, women’s career and life paths can vary widely. Maybe you’ve focused steadily on your career and have moved into middle management. Or maybe you’ve left the workforce for a period of time to focus on children. Or perhaps your kids are at an age when you’re thinking about returning to work.
The most important thing to realize is that, in any situation, you can remain proactive.
- If you’re working full time, be sure to participate as fully as possible in your employer retirement plan. Know how your money is invested, your options, and the expenses. If you feel the plan isn’t meeting your needs, tell your employer, who may be open to a change.
If you are unaware of the retirement options offered by your employer, ask questions and investigate. If a retirement plan is offered, remember to participate as fully as possible.
- If you’re not working, keep an eye on retirement accounts you started when you were. For instance, as stock, bond, and real estate markets rise and fall, you may need to rebalance your portfolio. A financial advisor can help with this.
- If you plan to re-enter the workforce, stay in touch with colleagues. Keep your knowledge and skills sharp through volunteer or freelance work. Follow professional publications. This can smooth your path when you’re ready to go back.
- If you’re working part-time or casually, you may be able to contribute to retirement accounts from past employers. Also consider non-employer options like Roth IRAs.
Tips for the 40s
Whether you’ve been working steadily since you were a twentysomething, or are in the midst of re-starting your career, realize that as you enter your 40s you’re also probably entering your peak earning and career development years.
Now, especially, is the time to make sure you’re working to the best of your abilities and desires to maximize earning power and investment opportunities. Are your 401K contributions already maxing out the employer match? Find out if you can make additional contributions and, if so, what limits and tax impacts apply.
Also consider talking to a professional financial advisor. In addition to evaluating an employer-based plan, she should also be able to assess your entire personal or family financial picture from a retirement perspective.
As you go through your 40s and into your 50s, you may also need to start gradually reducing risk. For example, some experts recommend a simple formula of “100 minus your age” for the percentage to keep in riskier investments like stocks. But a financial advisor may be able to help you develop a strategy tailored more specifically to your needs.
What if I Got a Late Start?
Maybe you’re past your 40s now and your saving habits have been less than ideal. Or maybe you’ve had setbacks beyond your control. If so, understand first that you have plenty of company.
Focus on the bright side. Now, you may have the benefit of more work experience. And you definitely have more life experience, and better skill in disciplined, focused effort. All that can go a long way toward regaining lost ground.
Even if you’re fairly close to retirement age and don’t have a solid portfolio, it’s never too late to start. Make a plan, and follow it with discipline for the rest of your working years. You might need to work a few years longer, or make some lifestyle sacrifices to save more aggressively. But with a plan, you’re likely to land in a much better place.
In this situation, a financial advisor could be crucial. Do you have enough growth investments to meet your goals, balanced with conservative elements to protect capital? Do you have assets that will continue to appreciate even after you retire? Professional insights could be a big help.
So the basic message is the same at any age. Make a plan, stick with it and, most of all, don’t delay—start now. Whether you’re a latte-loving twentysomething or qualified for a senior coffee discount, your result should be much better with a plan than without one.
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Wondering What to Expect in “The New Normal?”
Here’s a Hint: Change is the Rule, Not the Exception
 Few women have been entirely unaffected by the economic meltdown of 2008–2009. For those who haven’t personally experienced a crisis like a job loss, someone in our circle of family, friends, and neighbors probably has.
In those late-evening moments with the bills spread across the kitchen table, are you feeling the stress? Can you see it affecting your family, relationships, emotions, or even health?
As we’ve weathered the recession and entered what now, hopefully, is the beginning of recovery, there’s been much talk about “The New Normal.” You may now be asking yourself, “What will it look like, and how can I plan for it?”
Blips on the Radar
Clues to the answer may already be visible. “What normal looks like” has already changed in countless households across the country, maybe yours. Sure—if things are different at home, you know it, because you’re living it. But have you stepped back for a big-picture view?
Has your daughter moved back home after graduating from college instead of moving right along to a career and independent life? Or maybe you’ve lost a job or become underemployed, and begun to feel like that “crazy” idea about pursuing a passion, like launching a business or freelance career, might not be so crazy.
When change happens, it can sneak up so subtly that we hardly notice. But “the way things look right now” can also mislead us into thinking it’s the way they’ll look always. It probably isn’t.
Perspective is the Key
In 2006, how many really thought home prices wouldn’t keep rising? How many really knew it was a bubble that would burst? Few saw the crisis coming—even though we had recently experienced a similar cycle, with the Internet, technology, and telecommunications boom and bust.
Just as we’re now talking about The New Normal, there was plenty of talk of “New Austerity” and “New Frugality” during the recession of the early 90s. But it was quickly forgotten. By the late 90s the economy was booming. Most people would have found talk of frugality to be quaint.
What’s the lesson? It’s easy to say, but challenging to do: don’t forget the past, and don’t let present circumstances, which may be extreme, overly influence your sense of the future. That may sound abstract, but here are some thoughts to bring it down to earth.
Learn from your experience of the crisis. Before the crisis, did you overuse debt to finance your lifestyle? Did you assume a particular job would always be there, and that you didn’t need a Plan B? In business life, did you start taking key customers for granted and let the prospect pipeline slack? Did you base the family budget on an expectation of always having two fat paychecks, only to suddenly find yourself with, at best, one skinny one?
These are just a few of many examples. But a basic takeaway cuts across most of them: always include, in your plans for both business and personal finance, contingencies for best case, worst case, and “middling” scenarios.
If you’re afraid that, once things get better, you might quickly forget what you’ve learned, write down your basic insights now. Frame that piece of paper and hang it on the wall, so it will always be there as a reminder of what you learned during this important era.
Carry what you may have learned recently about what matters most to you into The New Normal. Example: not to downplay the importance of hard work, loyalty to an employer, and dedication, but perhaps you spent a number of years giving heart and soul to one particular job or company, to an extreme extent of sacrificing family life too much.
Sure—you did it with an expectation of a secure, long-term future in exchange. But if that promise turned out to be not so set in stone, feed that lesson into future decisions on how you’ll balance work and personal life.
Expect the future to look more like the past than you might conclude based on current circumstances. While each generation brings its own new twists, history tends to repeat itself—not in terms of specifics, but of broad patterns.
Example: some of us remember reading in textbooks that a collapse we would speak of in the same breath as “The Great Depression” was virtually impossible, due to government safeguards. It now appears that the current crisis will prove not to have reached those depths, but it’s been deep enough that “The Great Depression” has indeed been uttered in the same breath.
Nevertheless, history shows a pattern of up, down, and middling cycles. We can’t predict the future with certainty, but a preponderance of evidence suggests we’ll see similar patterns. The New Normal, in other words, might look much different from, say, the peak of the housing boom. But it’s also likely to look a lot different from 2009.
What Does All This Mean for Me?
It’s a double-edge sword. The stumbling block for so many people as they go through the cycles is that they base decisions on “the now” rather than on the now plus possible changes, in either direction. It’s a mistake to base decisions on an assumption that a boom will last forever. But it’s also an error to plan your life on an expectation of an indefinite bust.
The takeaway is to always plan for contingencies. When times are good, you should of course take thought-out advantage of such benefits as career and investment growth opportunities. But don’t get caught up in euphoria and position yourself to be holding the hot potato at the end of the party. Instead, have a Plan B to get yourself and your family through the next lean or middling cycle, so you’ll land where you can enjoy yourself when happy days are here again.
And if you have children who are now too young to truly understand the crisis of 2008–2009, be sure to teach them about it when they’re older so that they, too, will be equipped to make wiser life decisions.
If we take these lessons to heart, stick with sensible practices, and try to have longer memories, The New Normal could be a future that finds us stronger, wiser, more adaptable, and better prepared for a variety.
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Gendernomics
The Recession is Impacting Women and Men Differently — And That Difference Could Alter Family Lifestyles
 Reporting has exploded on how the recession has affected women and men differently, focusing on such topics as women who have suddenly become family breadwinners, the rise of stay-at-home dads, and stay-at-home moms re-entering the workforce, increasing work hours, or looking into entrepreneurship.
Gender differences in unemployment are striking. Author and labor force expert Ira Wolfe, quoted by the Public News Service, expresses it clearly: male workforce participation is decreasing, while female participation continues to rise. Over 80 percent of laid-off employees are men, resulting from the heavy toll on industries like manufacturing and construction.
The implications are complex. The New York Times reported on a YMCA changing the name of a daytime class from “Mommy and Baby” to “Parent and Baby” to reflect more fathers participating. And the Globe and Mail ran a story on a “daddy blogging” trend, with U.S. men sharing online the experience of transitioning to a stay-at-home role.
Change inevitably creates stress. Women re-entering the workforce or launching businesses may face increased work–life balance stress. Men may experience depression and self-esteem issues after job loss. Families may find themselves entering uncharted territory, rearranging household logistics while dealing with a strained budget.
But with thought, planning and, most importantly, constant communication, the stress can be managed. Successfully managing the transition could, in turn, reap unexpected dividends.
Steps to Reduce Stress from Economy-Driven Lifestyle Changes
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Recognize that the Change could be Temporary.
Disruption of a lifestyle that had been reasonably balanced may call for a temporary shift in responsibilities and priorities. But with time, the change could present unexpected, positive outcomes. A layoff may motivate new ideas for self-employment options or a family business. Opportunities for retraining, continuing education, or a favorable career change may also emerge.
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Communicate -- Early and Often.
Don’t keep emotional issues bottled-up, such as a woman feeling the stress of increased work-life balance challenges or a man feeling awkward staying at home. By talking early and often, you’ll be more likely to tackle issues constructively.
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Approach Businesslike Matters in a Businesslike Manner.
Instead of waiting until there’s a problem to discuss things like financial strains or divvying up family workloads, schedule a weekly “meeting” to focus on them as issues to be managed, not emotional hot buttons. Keeping discussions as specific as possible will encourage positive outcomes.
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Recognize that Adjustments Take Time.
If Mom is suddenly working more, it may take time for Dad and kids to adapt. This can be especially intense in families with preschool children, who are very routine-focused and sensitive to changes. Similarly, if Dad is suddenly home after years of 60 hour weeks at the office or shift work at the plant, he may go through a period of acclimation to the very different — yet equally demanding — run and rhythm of the weekday family regimen.
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Focus on the Positive.
If Dad’s home with the kids, it’s an opportunity to be more involved in their lives, which is almost certain to have a positive impact that will continue after the economy shifts. Similarly, Mom’s reentering the workforce or exploring new professional applications of her talents could result in many long-term rewards.
In the long run, unexpected benefits at the cultural level could also emerge. As an example from the past, numerous women entered the workforce during World War II. While many returned to traditional roles, others continued working, trailblazing vast new choices for their daughters, granddaughters, and beyond. Current changes, driven by immediate need, could also lead to far-reaching family and cultural enrichment.
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You Are Not Alone
Getting Help Navigating the Complexities of Business Ownership
 From recent graduates dealing with a tough job market to seasoned professionals facing layoffs, women are increasingly interested in “creating their own jobs.”
In an article for Bizjournals, Startup Nation cofounder Rich Sloan cites findings from the Center for Women’s Business Research that women are launching new enterprises twice as often as men. York County, with nearly 1,200 women business owners, is no exception.
But the startup process can seem overwhelming, posing seemingly difficult questions:
• Is my idea viable?
• What regulations apply?
• Should I form a sole proprietorship, corporation, or LLC?
• How can I find customers?
• Can I obtain startup financing?
Get Help from Those Who’ve Been There
There’s no need to struggle in isolation. As business author Seth Godin observes in The Bootstrapper’s Bible, “Nowhere does it say you’ve got to do this all alone. Find someone who’s come before you and ask for help. Odds are, you’ll get what you ask for.”
Locally, the Women’s Business Center at the J.D. Brown Center for Entrepreneurship (York College) can connect you with such services as:
- The Starting a Business Program, covering basics – generating concepts, writing business plans, funding sources, legal structures, etc.
- The Women’s Business Center Organization for information on topics from marketing to work-life balance
- “Idea Validation” through the J.D. Brown Center Pitch Program, which provides constructive feedback on business concepts
- Networking and Referral Opportunities connecting entrepreneurs with organizations, information, and resources related to financing, government programs, and more
For women with businesses established for at least one year, the Center also offers a mentor program.
“Having a mentor is crucial to the success of entrepreneurs,” said Lynda Randall, Program Director for the J.D. Brown Center. “Our network will match women business owners with experienced mentors to provide knowledge, coaching, best practices, and networking opportunities.”
Your Local Bank: A Resource for Financing … and More
One might initially think of a bank simply as a resource for basic services like credit lines, checking, and payroll accounts.
However, a community bank focused on local business can be a valuable strategic partner. For example, the Business Services team at York Traditions Bank often provides clients with information about financing options that fit specific types of businesses.
Relationship-driven banks may also offer insights on such issues as managing cashflow, receivables, and collections. And with deep knowledge of the community, your bank may also be a resource on potential clients, vendors, specialized financial services, and more.
It’s All About Community and Relationships
The themes of community and relationships run through these resources. Your connections -- whether with your mentor, an organization like the Women’s Business Center, or your bank -- will ease the feeling of being alone in uncharted territory.
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 Saving for Your Child’s Education
Many parents dream of putting their children through college. But for parents with young children, four years of college could total nearly half a million dollars! The good news is that there are ways to help your children realize their educational goals, no matter their age.
Planning for Younger Children
The more time you have to save for college, the more options are available. For instance, your home is a great asset to pay for college. Refinance your home to a shorter term or lower interest rate to earn more equity to borrow later. If you refinance to a 15-year mortgage, your home could be paid off by the time your child is ready for college. Instead of paying the mortgage you can pay for college, or borrow against your equity to possibly get a tax advantage.
 A variable life insurance policy can be a great way to protect your family and pay for college. Your contributions to these policies are invested, without the risk of losing your initial investment. And you can take money out of these policies tax free.
Mutual funds designed specifically for educational costs are called 529 College Savings Plans. When your child is ready for college, withdrawals from these funds are tax free as long as they are used for specific educational purposes.
Planning for Children Entering College in the Next Five Years
If you have five or less years before your child enters college, a high-interest Certificate of Deposit, or CD, may be a good option. FDIC-insured CDs are a safe bet because they will accumulate interest without the risk of losing your initial investment.
Series EE Savings Bonds and Series I Savings Bonds are other safe investments that offer special tax benefits when used for qualified education expenses and are exempt from Pennsylvania State Taxes.
Planning for Children Entering College Now
Most parents are aware of the State and Federal Loan Programs that you can apply for through a college financial aid office. But a home equity line of credit or loan is another option that could also give you tax breaks. Depending on the term you choose, you could have up to 30 years to repay the loans.
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Securing Your Financial Future
Financial security may seem like an oxymoron given today’s economic outlook. Yet there are simple steps you can take to ensure you get the most out of your money.
 Paint Your Financial Portrait
Your financial portrait may have changed over time without you even realizing it. Tally up all of your monthly expenses, including mortgage and credit card debt. Next, look at your bank and investment statements to determine your assets. Don’t forget to include any balance you may have in an employer sponsored 401K plan. This helpful exercise will give you a good picture of exactly where you stand financially, where you want to be and if you are on track to get there.
Where Do You Want to Be?
Setting financial goals is essential. We often focus on long-term savings for retirement but forget the short- and mid-range goals like saving for a new car or your child’s education. You should have four to six months of expenses saved in an easily accessible account, like a money market savings account. And you can start saving for those mid-range goals by selecting other investments like Certificates of Deposit, Mutual Funds, or even Savings Bonds.
 Pay Yourself First
Paying yourself first is the most important step you can take to meet your financial goals. No matter your income level, this simple rule helps cut out wasteful spending and helps you meet your financial goals sooner. Payroll deductions that deposit money for you automatically are the easiest and most convenient way to save systematically. Using this approach increases your chances of staying on track.
Get Out of Debt
Continuing to increase debt can devastate your financial goals. Our financial circumstances can change drastically, and even a small amount of debt can become a huge burden. Pay off your credit card debt as soon as possible. For bigger debt items like car loans and mortgages, look at refinancing. Interest rates may fluctuate, but there may be a better rate that could save you thousands of dollars each year.
Selecting Investments That Work for You
Select investments based on your comfort level and when you need the money. You can be more aggressive if you don’t need the money right away. However, if you will soon need the money and don’t like to see your balances fluctuate, you may be better suited to make more conservative investments. Diversification is the key to a successful portfolio.
Talk With Someone You Trust
No matter how large or small your investments, it’s always best to seek advice from your banker or financial advisor who will help you sort through your personal situation and set the wheels in motion to accomplish your goals.
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