The FINRA (Financial Industry Regulatory Authority) Foundation has some financial advice for all of us as we move along in a new decade. FINRA’s news release this week was entitled “FINRA Foundation Issues Seeking Solid Financial Footing for the Next Decade: 10 Tips for 2010.” This advice released by FINRA’s Investor Education Foundation is meant to help people regain financial footing. The Foundation’s recent ‘Financial Capability Survey’ highlighted the financial mistakes that many Americans are making. From engaging in behaviors that carry excessive fees to being unprepared for financial emergencies, the FINRA Foundation realizes that many Americans need sound financial advice. They hope that this new decade will bring better financial decisions to keep us all out of another financial meltdown.
Some of the highlights are as follows. Research financial products by shopping around. Whether looking for the best fixed annuity rates or credit card offer, take your time and compare products. Determine how much money you need to save for retirement well in advance of needing that money. Make every attempt not to overdraw your bank account because overdraft fees are high and are a waste of your money. Use 529 plans and other tax-advantaged accounts to save for college education. Take advantage of the plans the government has in place to help you save more. Perhaps the most important is to have an emergency fund for at least three months worth of expenses. Any layoff, emergency, or illness can put you in a bad financial spot without some money saved up to get you through. FINRA hopes that Americans will follow their financial tips towards a secure decade starting this year.