Your Financial Action Plan: 12 Simple Steps to Achieve Money Success

225 Pages·2004·0.85 MB·English

by  G. Cotter Cunningham

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Your Financial Action
PLAN
12 Simple Steps to
Achieve Money Success
G. Cotter Cunningham
John Wiley & Sons, Inc.
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Your Financial Action
PLAN
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Your Financial Action
PLAN
12 Simple Steps to
Achieve Money Success
G. Cotter Cunningham
John Wiley & Sons, Inc.
TLFeBOOK
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Copyright ©2004 by G. Cotter Cunningham. All rights reserved.
Published by John Wiley & Sons, Inc., Hoboken, New Jersey.
Published simultaneously in Canada.
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ISBN 0-471-65030-7
Printed in the United States of America
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CONTENTS
Acknowledgments vii
Foreword ix
Introduction xi
Chapter 1: Rainy Day Funds and Sunny Day Savings 1
Prepare for an Emergency
Understand Asset Allocation
Build a Financial Plan
Chapter 2: Bills and Chills 11
Gain Control of Your Expenditures
Chapter 3: Budget Bingo 15
Create a Comfortable Budget
Recognize Shopping Pitfalls
Chapter 4: Hanging It Up 25
Build Your Retirement Savings
Understanding 401(k)s, Defined Benefit Plans,
Social Security, IRAs, and Other Pension Plans
Chapter 5: Bank On It 41
Check Up on Your Bank
Know What Records to Keep and Where to Keep Them
Chapter 6: Willing It 45
Decide Who Gets What
How to Give It to Them
A Look at the Deadly Business of Funerals
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vi Contents
Chapter 7: Got Insurance? 51
Disability Insurance: The Gory Details
Life Insurance: How Much Do You Need?
Other Insurance You Need—or Not
Chapter 8: Driving Mr. Washington 63
Lease or Buy?
Showroom Errors
Insure Your Wheels
Chapter 9: Take Credit—Carefully 73
Borrow Responsibly
Understand Your Credit Report
Chapter 10: Dealing with Debt 85
Borrowing Responsibly
Credit Card Bill of Rights
Chapter 11: April 15 Blues 93
Manage Your Withholding Better
Use Tax Deductions and Credits
Chapter 12: This Old House 109
Should You Buy?
Create a Realistic Budget for Homeownership
Make the Most of Your Mortgage
Afterword: 12 Steps to Money Success 125
Appendix: Bankrate Form Letters 127
Glossary 173
About the Author 193
Index 195
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ACKNOWLEDGMENTS
This book is the culmination of the work of many people, and I am
grateful to all of them. Special thanks go to:
° Literary agent Arthur Klebanoff, who truly guided this project to
completion.
° To Elisabeth DeMarse and Bernice Kanner, who were the driving
forces behind this effort.
° Publisher Joan O’Neil and the rest of the team at Wiley—Elke
Villa, Felicia Reid, Michael Onorato and Peter Knapp—who saw
the need for this type of book.
° Editors David Pugh and Debbie Englander, who were complete
professionals and a pleasure to work with.
° All of my terrific colleagues at Bankrate, especially our editor in
chief Dan Ray, our amazing financial analyst Greg McBride, CFA,
and the always terrific Julie Bandy. Also assisting through out the
process were Kay Bell, Dr. Don Taylor, CFA, Paula Sirois, Bob
DeFranco, Karen Christie, and Pookie Skoran.
° Special thanks to Carol Holding, Janine Gordon, and Annie Weber,
our Financial Literacy “dream team.”
° Tom Evans and Peter Morse for giving me this opportunity.
° And finally, my family—I am the luckiest guy I know.
Cotter Cunningham
September, 2004
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