Family and Consumer Sciences
Maryland Cooperative Extension Service

The Consumer's Almanac
Consumer Credit Education Foundation
Washington, DC

"Can anybody remember when the times were not hard and money not scarce?" Ralph Waldo Emerson (1803-1882)

This is the ideal time of the year to put together a family financial plan. The new year has just begun and new goals should be established. With the wide variety of financial services now available to the consumer, it is a necessity to review your financial arrangements. It should be a family plan and all members should contribute and adhere to it. If you haven't already done it, now is a good time to think about retirement. Living "the Good Life" after retirement is everyone's dream, but too often the dream fades because of poor planning. Keep in mind that a man of 65 today is expected to live an additional 14 years, and a woman an additional 18 years. A little planning can help insure those retirement years will be enjoyable.

For example, decide where you want to live and what you want to do after you retire. Do you want to stay right where you are, near friends and family, or move to the country to get away from it all, or settle in a retirement community in the sunshine?

Do you want to find full or part-time employment; pursue sports, a hobby or other interests; or dedicate yourself to volunteer activities?

Having made these decisions, you can estimate your "after-retirement" living expenses. If your retirement income calculations fall short of your expenses, make the necessary adjustments. Plan now to earn more or live less grandly or postpone retirement.

Your sources of income might include such items as:

• Social security benefits;
• Pensions;
• Individual Retirement Accounts or keogh Plan;
• Full- or, more probably, part-time earnings; Interest derived from certificates of deposit, money market instruments, or savings accounts;
• Income from rental property;
• Life insurance benefits; and
• Other assets, such as credit union savings, etc.

Shopping Bag

Take advantage of post-holiday sales:

For the family...

• Coats
• Men's Shirts
• Shoes
• Purses
• Sports clothes
• Costume jewelry
• Toiletries
• Lingerie

For the house...

• Dishes and Glasses
• Home Furnishings
• Household Appliances
• Housewares
• Blankets, sheets, towels, tablecloths
• Storm Windows
• Carpets and Rugs

For the good life...

• Stereo Receivers, Speakers, Turntables
• Radios
• Toys
• Books
• Bicycles
• Art materials
• Fur Coats
• Home Computers

Grab Bag

Inventory

No better time to organize personal and household papers than on these long winter nights. Make certain you know where you can find valuable papers, including car title, insurance policies, mortgages, birth certificates, loan tables, savings books, etc. For insurance purposes, prepare household inventory list. Include everything, room by room, including each item's cost and place of purchase.

Save all receipts and checks. They'll help you set up realistic budgets protect you in warranty disputes; ease store returns; and constitute good evidence in any court. If necessary for proof of a tax deduction, save for at least five years.

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