Smart Moves for Investors of all Ages

provided by John Gannon, Financial Consultant, Hilliard Lyons

No matter how markets perform from one day to the next, you should always be looking for savvy strategies that can help build your wealth and protect your assets. That said, here are several strategies to consider, regardless of where you are in the investment lifecycle:

Strategies for Young Investors

Create a disciplined savings and investment program. Before you pay your monthly bills, sock money away in a high-yielding money market fund and start evaluating investment opportunities for those assets. Save time and energy by having that money automatically deducted from your salary every pay period.

The sooner you begin a savings and investment program, the more money you will likely accumulate over time.

Cut costs wherever possible. Make a list of every expense, no matter how small. Next, identify costs that can be slashed. Sure you love that morning latte, but you could probably save $400 or more a year by having one every other morning instead of one every morning – and think of all those calories you'd lose.

Contribute the maximum to your 401(k) plan. You'll reduce your income taxes. Your earnings will grow tax-deferred, and, if your employer is like most, he or she will make matching contributions to sweeten the plan. Invest mainly in stock portfolios because they have the potential to generate the best returns long-term.

Strategies for Investors 35 to 50

Get serious about financial planning. If you're like many people in this age group, your earnings will rise significantly during these years. The best way to make your money grow, reduce your taxes and meet your goals is to create -- and maintain -- a comprehensive financial plan with a savvy Financial Consultant.

Expand your investment reach. There's a world of investment opportunity beyond traditional stocks and bonds to help boost your portfolio's return. And that's important, because every percentage point that you earn above the norm can literally translate to thousands of dollars more in your pocket, over time.

Turn market slumps to your advantage. When the stock market turns volatile, many investors instinctively want to sell. But they often sell when prices are low. When investing long-term, you should think counter-intuitively. Don't think "sell.' View market downturns as opportunities to buy strong companies "on sale."

Strategies for Aging Baby Boomers

Take advantage of catch-up provisions. If you'd like to boost the amount of money in your IRA, use catch-up provisions when making contributions. In 2007, the maximum contribution limit for an IRA (Roth or traditional) is $4,000 for the general population, and $5,000 for those age 50 and older by year-end.

Avoid playing catch-up with your portfolio. With retirement nearing, you may be tempted to make risky investments to build-up your nest egg. Be careful. High risk means the potential for big losses as well as big gains. At this stage, you don't have much time to recoup a substantial loss in your portfolio.

Consider long-term care insurance. Long-term care expenses are soaring. The average cost of a private room is now $6,266 per month nationally,1 and expected to keep rising. Buying long-term insurance in your 50s, particularly your early 50s, is much cheaper than waiting until normal retirement age to do so.

Strategies for Retirees

Maintain an appropriate allocation in equities. Reducing your exposure to equities too much may lower volatility in your portfolio, but you may not earn enough to keep pace with inflation over time, which could eventually affect your purchasing power and standard of living.

Make estate planning a priority. Estate taxes can devour a substantial portion of your net worth, but with the guidance of an experienced estate planning professional, you can ensure that your beneficiaries won’t have to pay a penny more than they have to.

Prudently use assets to live your dreams. Thanks to advances in technology and Americans generally living healthier lives, life expectancies are rising, and that trend is expected to continue. So spend wisely to avoid the one risk retirees often overlook: the risk of outliving their assets.

A Strategy for All

Perhaps the most important strategy at any age is securing sound advice from an experienced Financial Consultant. At Hilliard Lyons, each of our Financial Consultants is highly sensitive to the needs of all types of investors and the opportunities to help them achieve their goals.

So whether you're just starting out in the working world or getting set to travel the world, call Hilliard Lyons today and make an appointment to meet with one of our experienced Financial Consultants to discuss your individual needs. You will be happy that you did.

1 Source: AARP Public Policy Institute calculation using data from Metlife Mature Market Institute, "The Metlife Market Survey of Nursing Home & Home Care Costs" September 2006.

(ARA) - Owning a small business is always a challenge, but especially when the economy is in a well documented downturn.

The Federal Reserve recently noted more banks are raising lending standards for small businesses, blaming tightening credit conditions on a less favorable economic outlook. The current credit crunch's effect on small businesses across the country leaves many unsure where to turn for financing to expand, renovate or manage seasonal fluctuations. Where can small business owners go when the bank isn’t an option?

This was the situation New York restaurateur Arlene Weston found herself in when she decided it was time to build on her Jamaican heritage and open her own restaurant. Weston applied for several small business loans, but after facing a denial she emptied her savings account and borrowed money from her grandmother. She scraped together as much cash as possible and opened a small, two-room restaurant in New York’s trendy Chelsea neighborhood.

It didn't take long for Weston's restaurant to become a critically acclaimed talk of the town. The original restaurant only seated 40 people and Weston saw the opportunity to expand by adding a third room. Unfortunately, she'd already tapped out her personal financial resources and appeared too large a credit risk for a traditional small business bank loan.

Then Weston got creative. Her restaurant had always accepted credit cards from customers as a form of payment so she took advantage of something called a Merchant Cash Advance through a company called AdvanceMe.

A Merchant Cash Advance (MCA) is not a loan, it requires no collateral, has no interest rate, fees or penalties. With an MCA, a company will purchase a certain amount of a business's future credit card receivables at a discount in exchange for providing immediate working capital to the business. The MCA provider works directly with the credit card processor to take a small fixed percentage of daily credit card receipts until the obligation is fulfilled. Unlike a traditional loan with fixed payments, an MCA stays in line with a business's receivables - the MCA provider gets paid only when the business gets paid. The result is a cash-flow-friendly way to obtain business capital.  

MCAs, such as the one Weston obtained through AdvanceMe, are an innovative funding stream for small businesses with 50 or fewer employees and less than $10 million in revenue. The primary requirement is that a business accepts credit cards as payment. Most providers, like AdvanceMe offer very high acceptance rates as they are able to evaluate risk differently than other financial providers.  Common criteria most providers review are the time in business, current status with a landlord, the average credit card activity for four to 12 months and the status of other current financial obligations. These variables, in large part, determine the specifics of each deal.

As lenders tighten their standards to minimize risk businesses are turning, in larger numbers, to alternative funding streams when their primary bank is not an option. These may include credit unions, Web-based social lenders and merchant cash advance companies.

A recent survey by Capital Access Network of more than 250 small business owners revealed a growing need for alternatives.  An overwhelming majority, 81 percent, feel it is important to have access to a line of credit that is readily available and predictable in today's economic environment.

Once an alternative solution is identified, business owners should be sure to perform due diligence and make sure their chosen provider has a long track record of success helping businesses like theirs. Entrepreneurs should also do homework to identify the funding company’s history and make sure they adopt industry best practices. Careful consideration of creative funding outlets will help ensure their small business can maintain operations during tough financial times.

Today, Arlene Weston's restaurant is three times its original size and seats 100 guests and she's working on a second location in Harlem. "Before approaching AdvanceMe, the idea of developing a second restaurant was nearly at a standstill. They were truly part of my overall financial strategy, continue to provide me with funds needed and deliver them in record time," says Weston.

For more information on small business MCAs, visit www.MerchantCashAdvanceInfo.com.

Courtesy of ARAcontent

(ARA) - How much will you spend on new clothes this fall? According to the U.S. Census, Americans spent $7.5 billion on back-to-school shopping in 2007, or roughly $140 per child. With prices everywhere on the rise in today's economy, Americans are looking for ways to get more for their money from brand names they know and trust.  

Shopping for back-to-school clothes is a proverbial tug-of-war between parents and their kids. Parents want great value from outfits that will last throughout the school year, while kids mostly just want to look "cool."

From adjustable waistbands to shoes that are two sizes too big, parents are constantly looking for ways to stretch their back to school purchases so boys, especially, won’t outgrow their clothes too quickly.

In Spring 2008, Signature by Levi Strauss & Co. conducted focus groups involving 11 and 12 year old boys and their parents to find the driving factors in buying new jeans for fall. They have to be in style, fit well, and come in a variety of colors with functional details like zippers and cell phone pockets. More than anything else, parents just want to buy what boys like and will actually wear.

"If parents buy jeans their kids will 'grow in to,' chances are the jeans will sit in the back of their closet and be forgotten," says Christine Chun, manager of consumer insights at Levi Strauss & Co. "Boys want to be accepted by their friends and classmates, and this means finding jeans that are stylish and fit well."

Taking the results of the focus groups to heart, Signature by Levi Strauss & Co. designed boys' jeans for fall with the durability parents are looking for, and the styles boys want too. Carpenter and loose fit jeans with sturdy construction, a comfortable baggy cut, and secure pockets for carrying anything from rocks to mp3 players are now available at Walmart, Kmart and Target stores. Parents will like the price too; all jeans retail for $15 to $18 each.

Girls on the other hand, tend to care more about what's in fashion right now, not what will last throughout the year. This can pose an even greater challenge for parents to keep their daughters in style without buying a whole new wardrobe every season. In conjunction with purchasing back to school supplies, which according to the U.S. Census Americans spent over $2.3 billion in fall 2007 at stationary stores, new clothes in the fall are often the only option that fits the family budget.

"A parents' best bet for girls is to buy a classic five-pocket style jean you can dress up," says Claire Raiklen, licensing manager at Signature by Levi Strauss & Co. "With cute, feminine details like back pocket stitching, bootcut or flare leg openings, and other unique embellishments - girls will love them and they won’t go out of style."

Girls jeans are available for under $20 at Kmart and Target stores. Parents can also purchase jeans for themselves for under $20, in traditional straight and relaxed fits for men and fashionable wide-leg trouser styles for women. For more information on Signature by Levi Strauss & Co., visit http://www.signaturebylevistrauss.com/.

Courtesy of ARAcontent