What is Your Net Worth, and Why Should You Care? Steve Knudson Quoted

One of Intermountain Financial Group’s financial advisors , Steve Knudson, was quoted in the article, “What is Your Net Worth, and Why Should You Care?”

You probably know how much you make each year, and maybe even what you spend each month, but do you know your net worth? And more importantly, how to use the information in a way that matters?

Knowing your net worth can have a significant impact on your budgeting, spending, and retirement plans.

What is net worth?

Simply put, net worth is everything you own minus what you owe. While online calculators can be used to run the actual numbers, it’s important that you determine assets from debts accurately, to arrive at the most accurate breakdown.

Create a personal balance sheet with two categories: What you own (assets), and what you owe (liabilities). The “owned” category should include checking, savings, certificates of deposit, investment and brokerage accounts, retirement and college savings plans, and the value of vehicles you own outright (which can be found using Kelley Blue Book).

If you own furniture, electronics, art, technology, or jewelry worth significant value, those items are assets, as is the equity (what you own) in your home or investment property. (It is not the market value of your home — unless you own it outright).

Conversely, the “owed” category should include the balance you owe on your mortgage loan, student loan debt, auto loans, credit card bills, taxes owed, alimony or child support, and lease obligations you may be bound to for a car or rented dwelling.

Though actual calculation of net worth is simply subtracting what is owned from owed, it’s imperative that your balance sheet “inputs” are accurate.

Financial expert Steve Knudson of Intermountain Financial Group says that relying too heavily on net worth becomes problematic when based on unrealistic projections of unpredictable forces.
 
For example, if you’re invested in stock markets and the economy is booming, so is your net worth. Market values plunge one day — your net worth goes with it. An overstated net worth analysis can lead to borrowing things you can’t actually afford, and underestimating what you need to put aside for retirement.
 
“I have seen far too many portfolios trashed due to over aggressive valuations on real estate and private company stock valuations that have never materialized,” Knudson says.

Here are three simple ways to put your net worth balance sheet into action:

See where you stand with retirement

Forbes contributor and financial adviser David John Marotta, president of Marotta Wealth Management, says that saving 15% of your take home pay each year throughout your working life should theoretically provide sufficient savings for retirement, even with the ebb and flow of the market. Obviously, the exact number that percentage amounts to will change with your salary throughout the years.
Using your net worth balance sheet, you can easily arrive at a very basic spot check of how well you’ve planned for retirement so far.

Let’s suppose you started contributing to retirement five years ago, and your annual take home pay has been $40,000 for that time. Sticking to basic math, you should have about $30,000 earmarked in a retirement account. Of course, you may have more, or less, based on the investments you’ve made and employer matches, but the 15% rule is a simple way to see where you currently stand. If you’ve fallen short, you’ve got some catching up to do, either by spending less, saving more — or a combination of both.

Start a debt elimination strategy

Retirement planning is about strategizing a way to live in an essentially income-less scenario, aside from what you’ve saved. Ideally the “owed” section in your net worth balance sheet will be blank when you retire — even if that’s far from your reality today.

The steps you take now to eliminate debt can be just as important as what you contribute into retirement savings, particularly if the debts you carry have you paying far higher interest rates than your investments earn.

Using your “owed” column, formulate an action plan for long-term debt elimination that will allow you to eventually enter into retirement debt-free. Start with the highest interest rate loans first, and work your way down. As you whittle loans away, you’ll free up more funds to build liquid assets, and invest for retirement.

Focus on long-term planning

Knudson suggests a triangle-style approach to net worth analysis that focuses on three critical aspects of long-term financial management: income, access and growth.
 
To determine income needs, calculate your monthly fixed expenses compared to your monthly cash flow. If monthly income sufficiently covers those costs, Knudson says “there is no need to “burden an investment portfolio with bonds or low performing investments.”

To evaluate access, add up the total of your “owned” assets that are completely liquid, meaning that if a financial emergency happened tomorrow, you could withdraw your money without paying fees or penalties, or selling assets that may or not be worth peak value.

If most of your “owned” column consists of property, stocks, bonds or mutual funds, consider shifting some assets into more liquid savings tools to protect your long-term financial affairs. Once you’ve determined income and access, Knudson suggests investing the balance of cash in a long term growth portfolio to hedge against inflation, provide for appreciation, and invest for opportunities.

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“How to Financially Prepare for Maternity Leave” Quote by Intermountain Financial Group Professional

Intermountain Financial Group professional, Dennis Walker, quoted in article about, “How to Financially Prepare for Maternity Leave.”

by Stephanie Christensen on October 26, 2012

Most expectant parents soon realize that their financial plans will shift significantly with the news that a little one is on the way, but there are financial steps you need to take beyond your budget to ensure a financially stress-free maternity leave.

Clarify your maternity policy

According to the the 1993 Family and Medical Leave Act, new moms who have worked at their current employer for at least one year, and at a company with at least 50 employees, are legally entitled to 12 weeks of time off after having a baby. However, your employer isn’t required to pay you a dime for that time. Check with your human resources department to understand if you’ll receive any payments over maternity leave, and to determine how short-term disability, family leave, and vacation days can supplement your income while you’re out.

Clarify the policy around time out of the office for medical appointments, or medically mandated bed rest or work limitations early in the game, too. When you near your due date, you’ll see the doctor at least once a week. If you’re employer requires you to take a half day for that time, for example, you’ll quickly whittle into the paid time off you’ve planned to apply to your leave.

Save six months’ worth of expenses

It’s far more exciting to focus on funding new baby gear and nursery décor, but stick to budget basics: Save! Financial advisor John J. Fiorito of RMR Wealth Management, LLC says expectant moms should have a minimum of six months (ideally, 12 months), worth of their salary in a savings account (not investments), before baby arrives.

Not only will this “float you” through unpaid bouts of maternity leave, it ultimately means you’ll have a cushion for unforeseen medical emergencies, childcare–and, even, job loss. Determine the exact figure that you’ll need to cover at least six months worth of your paycheck, and establish an interest bearing savings account that you can’t dip into easily.

Online savings provider Smarty Pig pays 1% APY on deposits, requires no minimum balance fees, and allows you to name your savings goal and target goal amount, so you can monitor your progress. It also allows others to contribute to your savings in the form of gift cards—which are ultimately far more valuable than receiving everything off of that baby registry!

Know your medical coverage

Understanding where your medical insurance is accepted, what is covered and what it limits, and whether you must satisfy a deductible before coverage begins is a top priority the moment you hear you’re expecting. Dennis Walker of Intermountain Financial Group says that a basic, healthy birth usually costs about $10,000 in medical expenses, without insurance coverage.

Aim to save at least $250 a month to cover medical bills for your prenatal treatment leading up to the birth, as well as for delivery and your hospital stay. Understand exactly how long your insurance provider will allow you to stay in the hospital (some limit it to less than 48 hours), and clarify whether the “clock” starts ticking at the time you’re admitted (the labor process can span an entire day or more), or when baby is actually born. Additionally, the services of a lactation consultant and/or medical supplies used to support baby’s feeding (such as breast shields and breast pumps), may not be covered by your insurance at all. Before you accept any such device from the nurse, ask!

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Intermountain Financial Group Recognized for Workplace Excellence in 2012

Chamber Recognizes Utah Employers for Workplace Flexibility

Thirteen local companies have received the national Alfred P. Sloan Award for Business Excellence in Workplace Flexibility. They will be recognized for their use of flexibility as an effective workplace strategy to increase business and employee success. The prestigious Sloan award, presented locally by the Salt Lake Chamber Women’s Business Center, is a part of the national When Work Works project, which recognizes employers of all sizes and types in Utah and across the country.

Local recipients of the 2012 Alfred P. Sloan Award for Business Excellence in Workplace Flexibility are:

Employer Solutions Group
Aribex, Inc.
Jakob Marketing Partners
DigiCert, Inc.
Intermountain Financial Group
McKinnon-Mulherin, Inc.
1-800-CONTACTS, Inc.
Christopherson Business Travel
AAA Fair Credit Foundation
Stoel Rives, Salt Lake City
KPMG, Salt Lake City
Deloitte, Salt Lake City
Software Technology Group

The Sloan Awards are unique for their rigorous, two-step selection process, which involves an evaluation of employers’ flexibility programs and practices, as well as a confidential employee survey. All applicants are measured against national norms from the National Study of Employers.

“One of the most remarkable benefits of all our innovative technology is our ability to work more efficiently – even from home – avoiding wasted time in traffic while commuting to and from work, allowing flexibility for workers to balance home with work and accommodate all the different schedules now commonplace in our society,” says Lane Beattie, Salt Lake Chamber CEO and president. “Companies that accommodate their workforce with flexible work arrangements find themselves on the receiving end of dedicated and loyal employees. Our Sloan Award recipients for 2012 have demonstrated with their own actions and for our benefit just what it means to be a top-rated organization by creating that wonderful balance between employees’ needs and productivity.”
This year’s local Alfred P. Sloan Award ceremony, presented by the Salt Lake Chamber Women’s Business Center, will be held at the Salt Lake Marriott City Center at 220 South State Street in Salt Lake City. The ceremony is scheduled to begin at 11:00 on Thursday, Nov. 8, 2012.

The Alfred P. Sloan Award for Business Excellence in Workplace Flexibility is part of the When Work Works project,an ongoing initiative of When Work Works, which is a joint partnership between Families and Work Institute and The Society for Human Resource Management. These partner organizations provide research, resources and recognition to employers nationwide. The project shares the results of research on creating effective and flexible workplaces that meet the needs of the 21st century.

Each of the 2012 Sloan Award winners will also be recognized nationally and featured in next year’s edition of the Guide to Bold New Ideas for Making Work Work, published by Families and Work Institute.

Read more: Utah Policy – Chamber Recognizes Utah Employers for Workplace Flexibility

Amber Dixon recognized as 1 of 3 national nominees for Woman of the Year award

Salt Lake City, UT – The national office of the Women in Insurance and Financial Services (WIFS) organization asked its more than 1,000 national members to nominate one of their peers for its highest level of recognition, the Woman of the Year award. Amber Dixon, the Marketing Director for Intermountain Financial Group, LLC, and current Utah WIFS Chapter President, is one of only three nominees.

To qualify for this award, the nominee must demonstrate strong leadership within the industry, including services to WIFS and other organizations, on both national and local levels; have made a significant contribution to supporting, encouraging, and advancing other women in the insurance and financial services industry; and be a current member of WIFS for a minimum of three years.

After recognizing the strong need for a local organization built to motivate, inspire, encourage, share ideas, and mentor other women in the industry; Dixon co-founded the Utah chapter of WIFS in early 2009, with the financial support of the President/CEO of Intermountain Financial Group, the Utah agency of Massachusetts Mutual Life Insurance Company (MassMutual), Todd Reid, JD, CLF.

“I am delighted and honored that I was nominated for this prestigious award by my peers,” stated Dixon. “I have loved building relationships with these women, while celebrating our many successes, and working through our few disappointments. Utah WIFS has been a tremendous group to be a part of.”

Dixon has worked in the financial services industry the past 11 years with Intermountain Financial Group, under the leadership of Todd Reid, JD, CLF. “Amber has been instrumental in our company’s community involvement, recognition, and marketing efforts on a local and national level,” Reid said. “We are proud of her for being recognized as a person who is making a difference in our company and the financial services community.”

Dixon currently serves as President of the Utah WIFS board, VP of Trustees of the National Association of Women Business Owners (NAWBO) Utah Chapter, Chair of the Workforce Development Committee (WDC) as part of the Salt Lake Chamber, and on the marketing and communications committee for the Utah Women and Education Initiative (UWEI). Dixon also served as an event judge at the International DECA Career Development Conference in 2012.

A celebration gala will be held at the WIFS National Conference in Atlanta, GA in October where Dixon will be recognized as a nominee.

To learn more about the Utah Chapter of WIFS, contact Sheila Leeds, VP of Membership, at 801-698-5110, msskyview2@msn.com, or find them on FaceBook and LinkedIn under Utah WIFS. For national information, visit http://www.wifsnational.org.