A well-thought-out investment plan is based on an "asset allocation" model-that is, the percentages of your money devoted to stocks, bonds, or cash. In fact, some financial advisors believe asset allocation may be more important than the actual stocks or bonds in a portfolio.
If you are "thirtysomething," one of the factors to consider in selecting the right asset mix is the common needs and concerns for your age group. Once you determine the right asset allocation for your age, your optimal mix can then be adjusted for your special needs and circumstances.
Take the case of "George and Sandra Brown," both in their mid-thirties. George and Sandra, each with a full-time job, have two small children. Bills for their growing family, how to afford daycare, and the eventual need to move to a bigger house are all primary among their budget concerns. In addition, they are aware that sometime soon they will need to start saving for their children"s college education. For the time being, they"ve put off thinking about retirement, but they know that someday they will have to start saving for that too.
Needs and Concerns of "Thirtysomethings"
* Bills for young children are growing rapidly
* A new or expanded home may be needed for a growing family
* A new, larger automobile may be required
* Day care for young children may have to be funded
* Saving for children"s college tuition should begin
* Early planning for retirement should be considered if possible.
Typically, as a "thirtysomething," you will see only one thing grow faster than your children and that"s your bills. The unique needs of thirtysomethings, who have longer-term perspectives and generally more aggressive risk profiles, warrant more exposure to equities than that of the average investor. Of course, individuals may have special needs or circumstances that should also be considered.
Suggested Mix of Assets
"Thirtysomethings" may wish to consider putting most of their cash holdings into a laddered portfolio of Treasury bills, which provide safety and regular state-tax-exempt income to help meet shorter-term obligations. Investors can use intermediate-term bonds to save for big-ticket items that will be needed if and when their family grows.
However, in order to meet future obligations, a good degree of growth is required. Thus, the equity portion of your portfolio should be comprised of very high-quality growth stocks.
Typical Asset Allocation for "Thirtysomethings"
* 70% stocks
* 25% bonds
* 5% cash
Achieving Your Goals
If you are in your thirties now, your optimum asset allocation mix will change over time, depending on your needs, objectives and tolerance for risk. The best way to achieve your goals is to have a well-thought-out plan that is developed and reviewed by you and your financial advisor. Whatever your age, if you need assistance in determining whether your current asset allocation plan will meet your investment objectives, please write to Ethan S. Tweedie care of Small Business Hawaii, 6600 Kalanianaole Hwy., Suite 212, Honolulu, HI 96825.
Information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed a solicitation on Dean Witter"s part with respect to the purchase or sale of securities or commodities.
I own a small facial salon called Helen's Haven and I have been busy since the day I opened my doors, 14 months ago. While I work hard at building a clientele, I have no big secrets; I simply treat each client the way I would want to be treated. It sounds simple enough but many businesses fall short of that goal.
I spend what would seem like too much of my budget on advertising to bring in new clients. So, after bringing them in, I need to keep them coming back. I have developed a few helpful marketing strategies:
* After the initial facial, I send a preprinted thank you postcard with a couple of handwritten lines. I thank God, each client, and anyone who will listen, for every penny spent in my salon.
* If the client returns at least once a month for 11 months, the 12th month is free.
* For every new client referred by a regular client, the regular client receives a thank you postcard offering a percentage off his/her next service.
* After spending a certain dollar amount in home care products, the client receives a percentage off the next purchase.
* I recently sent out surveys to all my clients to see how they feel about the service, as well as to inquire about other services they would like to have offered to them. When the survey is returned, the client will receive a dollar amount off their next service or purchase.
I use postcards as much as possible because they are inexpensive to print and are only 20 cents to mail.
I have received three complaints since I opened. Each time, I wrote a short note apologizing and offering them a free facial for their next visit. The cost of this was far outweighed by the increase in revenues, not only from having these clients return, but also from their referrals. We all know the best, and least expensive, form of advertising is word of mouth.
I strive to give the best service of any salon. I have heard that you can never please everyone. If this is what you believe, then this is what will happen in your business. I have also heard "leave them wanting more." I know that I have done my job well when the client leaves, eagerly awaiting the next visit. If any of these ideas will work in your business, please feel free to copy them.
The Sunday Honolulu Advertiser had an article headlined, "Out of State recruits perform roughest jobs" (March 10) that may have inadvertently provided proof of exactly how bankrupted our welfare system is. It seems that the pineapple industry on Maui is importing 105 Pineapple workers from out of State and paying them up to $10.00+ an hour. In the meantime the State of Hawaii is paying many able-bodied citizens welfare checks not to work. Every time there is an honest effort to stop the abuse of the system, liberals drag out poor legitimate welfare recipients, the handicapped and infirmed to protect the states poverty industry. Why not "import" capable State welfare recipients to work on Maui and everywhere else in Hawaii for that matter?
Lets institute real reform by implementing Workfare, a program that would give work vouchers to the able-bodied rather than government checks to do nothing. The work vouchers would be cashed in by a participating employer. In return the employer would have to match the voucher amount dollar for dollar in the workers salary. Everyone wins, the former welfare recipient gets the dignity of a job and becomes a taxpayer, the employer gets labor costs offset by the voucher and the taxpayers gets a return on their compelled generosity. The program would terminate after a certain amount of time thus weaning former able-bodied welfare recipients from the system.
The situation on Maui is evidence that there are jobs for those who can and should work. We don't need to fly in out of State labor. There are common sense solutions to the problems that torment our economy.
Heroin is a dangerous substance. Everyone recognizes that, even frequent users. It is also often addictive and causes many of those hooked to behave in irresponsible, self-centered, self-destructive ways. This a person "dependent" on heroin is a potential danger to society in many if not most cases. Such persons often tend to "use" the society they live within.
Likewise, a man who is not held accountable for his fatherhood and is able to collect government food-stamps and welfare to live on even as he refuses to work, is not a contributor to society. Nor is the mother of his children who can apply for and obtain a living from the government as long as her "man" does not live with her.
Similarly, a person who is out of work and who decides to "cool it" until unemployment checks stop is not being helpful or productive to our community.
Our government provides money and benefits to such people for not working and not contributing even in those cases where they make no effort to correct the problems which got them in there in the first place.
Is giving such money without expectation of character development a dangerous act? Yes, it is, unless there is some sort of personal filter system for each individual to assure that each fully experience and feel the consequences of their own potentially anti-social behavior. This is particularly true if the recipient exhibits no intent to change.
So here's my point, if we give away welfare with no strings attached, why don't we similarly give away heroin? We already give away clean needles to addicts.
Welfare is the government's heroin for the poor and helpless. It makes them dependent on those in potential power. And it gives those in government special, strong, heady power over those rendered more "helpless" by the very acts of government itself.
Indeed, why not give away heroin to those who say they "need" it? That would allow those who "govern" us to enjoy more power, would it not? Soon we would have a large group of people who believe they are "entitled" to heroin, as well as money, shelter and medical care. Most of them would be voters and they could cast their votes with the purpose of making sure such benefits continued or even expanded.
Some readers may think me as hardhearted and unforgiving as life itself...but please think about a state and county political system which encourages those in power to trade tax money for votes.
Is such a system helpful or harmful?
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