MONEYSOLUTIONSA SPECIAL SUPPLEMENT TO

The Valley News &The Herald-Journal

MAY 2012

Go Onlineto view this

section!

Copyright 2012 The Valley News & The Herald-Journal

SIMPLE STEPSTO MANAGE YOUR PERSONAL DEBT

WWW.VALLEYNEWSTODAY.COMWWW.CLARINDAHERALD.COM

TRADITIONALor ROTH?

CONSERVATIVEapproach withINVESTMENTS

By JASON GLENNStaff Writer

In deciding between aTraditional or Roth IRA, thesingle most important thingto know is what the tax ratewill be when you retire.However, unless you have acrystal ball or the singlegreatest nugget of insiderinformation ever, havingthat knowledge is highlyunlikely.

The primary differencebetween the Traditional andRoth IRAs is when taxes arepaid. In a Traditional IRA,the contributions are gener-ally deductible and the taxescome due upon withdrawalafter retirement. In a Roth,it’s just the opposite, taxesare paid up front on the con-tribution and then themoney, whatever you earnfrom your investments overthe lifetime of the IRA, istax-free at the back end.

Dan Miller, a CertifiedFinancial Planner andExecutive Vice Presidentwith Parker NorrisFinancial in Red Oak, usesa farm analogy he admitted-ly borrowed from a col-league to illustrate the dif-ference.

“You can either tax theseed or tax the harvest,” hesaid.

It would seem a giventhat the former would bebest but, as all farmersknow, even with a good har-vest you might not alwaysget a great price. Likewise,deferring tax payments untilafter retirement on theassumption that tax rateswill be lower due to lowerincome might not hold if taxrates increase between nowand then, a real concern for

investors in times of astro-nomical national debt anddeficit.

Instead of guessing at thefuture tax code, though,Miller suggests the best wayto determine what kind ofIRA is best is to considerthe basics of how yourincome now relates to whatyou expect to earn in thefuture.

“If someone is veryyoung and their income islower and they don’t haveas big a tax situation to dealwith now, the Roth probablyis a better option for thembecause they can have yearsand years of tax-free growthas opposed to tax-deferredgrowth,” Miller said.

If the opposite is true –your income is higher nowand you anticipate being ina lower tax bracket towardretirement age – then theTraditional is probably yourbest bet, Miller added.

But there are other factorsto consider. While the annu-al contribution limit of$5,000 is the same for botha Traditional and Roth IRA(including an additional$1,000 “catch up” contribu-

tion if you’re 50 or over bythe end of the year), theTraditional IRA is open toanyone, regardless ofincome level, while theRoth is restricted to thoseearning less than $125,000individually or $183,000 asmarried couples filing joint-ly.

If you are eligible for theRoth, some of the addedbenefits of that plan are that,because the taxes havealready been taken out,there are no restrictions orpenalties for withdrawal onthe original contributionamount prior to retirementage and there are norequired minimum distribu-tions after age 70 ½, as in aTraditional IRA. If, forinstance, someone with aRoth IRA finds that theyneed money for a child’seducation, they can with-draw some or all of theircontribution without penal-ty or tax. Similarly, RothIRAs can be easier forestate planning purposesbecause they need not betouched after retirement andcan be transferred morereadily in the event of death.

Though he said the Rothhas grown in popularity inrecent years owing largelyto increased awareness andbecause it has becomeavailable as a 401k and403b retirement planoption, Miller cautionedagainst anyone thinking thata book, magazine article or,especially, TV financialguru would have theabsolute right answer forthem. In many cases, thebest solution for someoneisn’t an either/or but a com-bination of the two thatdiversifies retirementincome and, in effect,hedges any bets on whattaxes may or may not be.

“It’s going to be an indi-vidual situation, it’s goingto be an individual decisionbased on each individual’sfinancial picture,” he said.“There is no boilerplate,cookie cutter answer foreverybody. Part of being aplanner is you have to lookat each individual’s situa-tion differently. It alldepends on where you areand what your goals are,which one is best for you.”

Money Solutions2 May 2012 The Valley News/Herald-Journal

Business Directory:

114 W, Main Suite B, Clarinda712-542-2181

617 W. Sheridan Ave., Shenandoah712-246-3097

Bank Iowa (Shenandoah, Red Oak, Essex) 7

Bank Iowa (Clarinda, Villisca) . . . . . . . . 4

City National Bank . . . . . . . . . . . . . . 3

Farm Bureau Financial Services . . . 6

Farm Bureau Financial Services . . . 3

Great Western Bank . . . . . . . . . . . . . 2

Page County Federal Savings Assoc. 3

Raymond James . . . . . . . . . . . . . . . . 7

Rosemary Els, Financial Services . . 6

Thurman’s Bike and Sport . . . . . . . . 4

United Farmers Mercantile . . . . . . . 5

Weitz Funds . . . . . . . . . . . . . . . . . . . 8

Traditional or Roth?The great IRA debate

Affordable, flexible Home Equity Lines of Credit.MAKING DREAMS COME TRUE!

1205

24-4

5150

GreatWesternBank.com

Variable% APR*

RATES AS LOW AS

3.75. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

*Annual Percentage Rate as of 3/1/2012 assumes a discount for an automat-ic payment from aGreatWestern Bank checking account and qualifying cred-it approval. Rate is indexed to the Prime Rate published in The Wall StreetJournal and may change over the life of the loan, but will not exceed 19%. Ifappraisal requested fee of $350 to $450.

Money Solutions May 2012 3 The Valley News/Herald-Journal

I can help you make the best use of your 401(k) rollover, severance or other lump-sum payment. Review your options and call me today.

Annuities l IRAs l Mutual Funds

Mutual funds are subject to market risk and possible loss of principal. This and other important information is contained in the prospectus, which can be obtained from a registeredrepresentative and should be read carefully before you invest or pay money. Investors shouldconsider the investment objectives, risks, charges and expenses carefully before investing.Securities & services offered through FBL Marketing Services, LLC+, 5400 University Ave., West Des Moines, IA 50266,

877/860-2904, Member SIPC. Farm Bureau Property & Casualty Insurance Company+*, Western Agricultural Insurance

Company+*, Farm Bureau Life Insurance Company+*/West Des Moines, IA. +Affiliates *Company providers of Farm Bureau

Financial Services MFA001-ML-1 (2-12)120524-46413

301 Maple StreetShenandoah, IA 712-246-3406

Brenda J. Loewe, LUTCF610 Clay Street

Sidney, IA 712-374-2620

See Linda for all of your home loan needs!

123 E. Main � Clarinda712-542-2103

www.pcfsa.com���������� � � � � � �

Whether it’s purchasing, refinancing or home improvement, we’ve got your covered.

1205

24-4

3627

By TESS GRUBER NELSONStaff Writer

When it comes to managing personaldebt, it’s more often easier said than done.

However, with a few easy, simple tipsfrom Gregg Ritchey, president of CityNational Bank and Megan Brown, assistantvice president of Bank Iowa, both inShenandoah, it is at least a possibility.

First, Ritchey said to keep debt manage-able.

“Debt should only be used for major pur-poses, such as homes, automobiles, and stu-dent loans,” Ritchey said. “Avoid usingcredit cards or debt for vacations, meals, or"splurge" type purchases.

Next, Ritchey said to make a detailedbudget of monthly expenses.

“Look for ways to cut expenses thataren't needed, as well as budget for unex-pected costs that will undoubtedly pop up,”Ritchey said. “Make sure that large pur-chases, such as a home or a car, have plen-ty of room in the budget to meet unexpect-ed needs.”

Controlling expenses and getting rid of

unnecessary services is the fastest way tocut debt he added.

“Build up a cash cushion in the way of asavings account, so that job changes orunexpected bills can be absorbed withoutborrowing.”

Another step, said Ritchey, is to managethe debt you have.

Ritchey recommended that if you do havemultiple sources of debt, be smart aboutpaying debt down or re-finance when it isadvantageous.

“Higher rate debt should be paid downfirst. A good lender can help you analyzewhen re-financing makes sense - under-standing the up front costs and how long itwill take to realize savings.”

Finally, Ritchey said don’t be afraid toask for help.

“If you start feeling over your head, askfor help. A good lender, again, will helplook at your situation to determine if thereare ways that you can reduce rates on debt,better position payments around yourincome stream, re-organize etc…to helpreduce debt more quickly.”

Brown said the way to manage personal

debt is summed up in one word – budget.“A budget is a great tool to assist in many

financial situations,” explained Brown. “Abudget is commonly done on a monthlybasis, but can be done on a weekly basisdepending on what best fits your situationand what you're comfortable with.Working with a budget can help distinguishyour needs versus wants, as well as helpyou control spending and build your sav-

ings.”Brown added creating a budget is simple

and there are even several free forms avail-able for download on the Internet. “Simplysearch for "personal budget forms" andselect one that fits your situation,” Brownsaid.

For more information on how to managepersonal debt, contact your local bank.

Simple steps to manage your personal debt

116 South Blossom StreetShenandoah • 712-246-2205

www.cnbshen.com

Drive-Through: M-F: 7:30am-5:30pm, Sat: 7:30am-12pmLobby: M-F: 8am-4pm, Sat: 8am-12pm24 hour phone banking: 888-559-9274

Stop in today and speak to one of our loan representativesabout making your future dreams a reality and startingthose projects you’ve been putting off!

Real estate loans, cash-out refinance, refinance, home equityloans, auto loans and more.

120524-45943

Money Solutions4 May 2012 The Valley News/Herald-Journal

Specialized & Trek Authorized Dealer• Comfort • Mountain

• Road Bikes

We repair allmakes of bicycles

FREEESTIMATES

• Full line of bicycle accessories

120524-4

6424

Full line of Trek & Specialized BicyclesSkateboards • Sporting Goods

Bicycle & Fitness Repair

300 South 11th, Nebraska City, NE • 402-873-7509

Check out our new & improved website!www.thurmansbikeandsport.com

SAVEE YOURR GASS MONEY!SAVEE YOURR GASS MONEY!USEE PEDALL POWER!USEE PEDALL POWER!

���������� � � � � � �

Clarinda � Villisca542-2121 826-2562

Member FDIC

..."Bill Pay”...it'sconvenient and

it's FREE.

To sign up, contact us atwww.bankiowabanks.com

or call 542-2121.

Always There

1205

24-4

3584

By KENT DINNEBIERStaff Writer

With the volatility of United States econ-omy over the last decade, the fear of finan-cial loss has caused many area residents totake a more conservative approach with

their investments.“The current eco-

nomic volatility hascaused many investorsto stay on the side-lines,” Duane Sturm,branch manager of theRaymond JamesFinancial ServicesInc. offices inClarinda and Red

Oak, said. “However, atsome point in time, the need for increasingtheir income becomes a higher priority thancapital preservation.”

Sturm has served with Raymond James

Financial Services Inc. since 1999 andworked in the investment business since1992. Prior to that he worked in banking for12 years.

A key reason people are being promptedto take a closer look at their savings andinvestment options is because people areliving longer.

Currently, a 65-year-old person in theUnited States is expected to live another19.2 years, according to WHO, CreditSuisse. Then, if a person reaches the age of80, that individual has a life expectancy ofanother 9.3 years.

As a result, Sturm said many babyboomers are finding that they have to worklonger to achieve the comfortable retire-ment they desire. In addition, they will alsobe relying more heavily on Social Securityand other government programs than theyinitially intended.

“The longer life expectancies haveincreased the need for people to think more

long-term with their investments,” Sturmsaid. “It has also caused people to ask them-selves if they are more or less conservativeinvestors.”

More conservative investors often con-sider fixed income options like CDs, gov-ernment bonds, corporate bonds, tax-advantaged bonds and fixed annuities.Meanwhile, less conservative investors usu-ally consider stocks, commodities andincome producing real estate.

The younger a person is, Sturm said, themore they need to look at investing instocks. People wishing to take a more con-servative approach should consider cashalternatives and fixed income options.

However, Sturm said given the currenteconomic conditions, the problem with themore conservative approach is that CDs andfixed income investments are not keepingup with the rate of inflation. “With interestrates as low as they are, people are lookingfor other sources of income besides CDs,”

he said.Finally, with the uncertainty in the tax

rates and the fact that 2012 is an electionyear, Sturm said tax-advantaged bonds forupper tax bracket investors have also seen arecent resurgence. “This is an excellentoption to consider based on individual cir-cumstances,” he said.

Raymond James Financial Services, Inc.is a member of FINRA/SIPC. The informa-tion contained in this report does not pur-port to be a complete description of thesecurities, markets, or developmentsreferred to in this material. Any informationis not a complete summary or statement ofall available data necessary for making aninvestment decision and does not constitutea recommendation. Any opinions are thoseof Sturm and not necessarily those of RFJSor Raymond James. Investments mentionedmay not be suitable for all investors. Pastperformance may not be indicative of futureresults.

A more conservative approach with investments

Duane Sturm

Money Solutions May 2012 5The Valley News/Herald-Journal

$599$999

$599 $7999

$199 $3149

$3399 $599

$6599 $1499

$5499 $1399

1-Qt. Fast ‘N FinalLightweight SpacklingFor repairing walls, ceilings, and woodwork in one fill. Nosanding required. Dries quickly. Interior/exterior use.(6243877) (12142)

120524-46492

203 West Oak, Red Oak, IA 51566 • 712-623-2575

Great Life ExteriorLatex House Paint100% Acrylic. 1-Gal. Flat5-Gal. Flat. 149.99 1-Gal. Eggshell. 32.995-Gal. Eggshell. 159.99 1-Gal. Semi-Gloss. 33.99

6-Cu. Ft. SteelContractor WheelbarrowHeavy gauge seamless steel tray w/ front tray braces.“H” brace and 16-In. wheel assembly with pneumatic,tubed 2-ply tire with oilube bearing. (2625150) (C6)

Aerosol Spray Polyurethane Dries fast, long lasting beauty on finished andunfinished wood surfaces.Gloss. (6242259) (33050)Semi-Gloss. (6170807) (33055)Satin. (6242242) (33060)

Eagle Hand ToolsFull-size chrome-plated steel head,poly handle, convenient hang-up hole.Trowel. (2622298) (1986500)Cultivator. (2622314) (1986700)Weeder. (2622330) (1986800)

1-Gal. Great OutdoorsExterior Deck Stain100% Acrylic solid color. Sun seal UVprotection. White.Deep Tone Base. Neutral Bse.

Poly Cotton Flag2-1/2-Ft. x 4-Ft. poly cotton flagand pole set. Sturdy 2-positionbracket with mounting screws.Also includes flag etiquettebrochure. (5354501) (031800R)

Smartlock ProGFCI ReceptacleIvory. (5739412) (B01-7599-RI)White. (5739420) (B02-7599-RW)

13-Oz. Minwax Helmsman SparUrethane AerosolSpecially formulated protective clear finish for exterior orinterior wood exposed to sunlight, water, or temperaturechanges. Gloss. (6242259) (33050)Semi-Gloss. (6170807) (33055) Satin. (6242242) (33060)

8-Ft. Medium DutyAluminum StepladderSpill-Proof pail shelf with rag rail and toolholders. Slip resistant tread.(6266167) (368)

4-1/2-In. Heavy-DutySmall Angle Grinder7.0-Amp AC/DC, 11,000 rpm motordesigned for faster material removaland higher overload protection.(4271201) (D28110)

True American Garden ToolsAmerican-made, durable tools.Round Point Shovel. (2842755) (1564100)Square Point SHovel. (2842763) (1564200)Bow Rake. (2843092) (1849400)Garden Hoe. (2843043) (1853200)

Your ChoiceEach

1-Gal. Flat

Your ChoiceEach

5-Qt. SilverPromotional PailSolvent resistant. (6301295) (01605)

10-Qt. Ringfree Pail. (6301303) (20320) 3.99

$129UNBEAUNBEATTABLEABLE

DEAL!DEAL!

Made inMade inUSAUSA

Your ChoiceEach

1-Gal. SprayerFunnel top opening for no mess filling. Traslucentbottle for ease in checking fluid level. Spray shieldprotects siding and locks on board. 1/4, 1/2, and1/3 gpm fan nozzles. (2835817) (25012)

$699

As the economy has struggled over thelast several years, many employees have felthappy to have a job, no matter what it pays.However, for those who feel they have beendoing an exemplary job at work, theyshouldn't let the economy prevent themfrom asking for a raise they deserve.

Chances are employers are not going towalk up to employees and offer them payraises. After all, bosses are in the businessof having the company operate at the leastpossible cost. Men and women who want araise should recognize that it is their respon-sibility to approach higher-ups about a payincrease.

Asking for a raise can put employees onedge and raise a couple of questions. Whatis the best way to approach the topic? Whatif the boss decides against a pay increase?What is a reasonable salary? Preparing for ameeting with a supervisor is essential formen and women about to request a raise.

• Research what others in your positionare being paid. There are a number ofsalary calculators available online that willprovide a good indication of the regionalpay rate for a particular job description.Compare a few of them and take the aver-age. Print out these salary rates and bringthem with you to the meeting.

• Calculate how long you have beenworking at the company. It generally costsmore money for an employer to replace anemployee -- even if the new one will be paidless than you -- rather than just giving you araise. That's because there is the potential oflost business and productivity should youchoose to leave the company. Hiring andtraining takes time. If you have been withthe organization for quite some time, thatshould work in your favor, as it shows loy-alty and the boss can review your lengthywork history. Be prepared to say how muchyou enjoy working for the company andindicate your long-standing record for get-ting the job done.

• Determine the financial position ofthe company first. You can probably get agood indication of how well the business isdoing based on happenings around the

office. If the employer has eliminated jobs,merged jobs, taken away incentives or othermorale boosters like office parties, or doneanything else that might be indicative offinancial struggles, you may want to waituntil things level out before asking for araise.

• Practice your sales pitch. Sit down andgo over all of the reasons why you deservea raise. Think about what proof you can useto support your request. If yours is a sales-based job, offer a spreadsheet that showshow many sales you have made. Forrecruiters, show how much new businessyou have brought in. If you have any cus-tomer testimonials, present them as well. Toget a raise you have to sell yourself. Don'tthink of it as making threats or ultimatums.An employer is smart enough to realizethat, if you are asking for a raise, you couldbe unhappy with your current situation.

• Think about how you will react if theraise is turned down. Perhaps asking for araise is the last step before looking for anew job. You might stay if you get moremoney, but leave if your request is denied.Maybe you have a comfortable enough rela-tionship with your boss that you can askwhen might be the right time for a raise, orwhen you can broach the subject again.Also, there is the opportunity to negotiate:If I cannot get a pay increase, are there anyother benefits I can receive, such as betterhealth insurance, gym membership, coveredchild care expenses, or some other benefitthat isn't financial?

• Choose a good time for an appoint-ment with your boss. Wait until deadlinesare over or after your supervisor hasreturned from a vacation. You want an unin-terrupted time to sit down and present yourcase when there will be no distractions.After all, you want him or her relaxed andin a good mood, which will only improveyour chances of getting what you want.

Asking for a raise can sometimes beuncomfortable. However, for employeeswho think they are going above and beyondat work, they should state their cases for araise.

How to ask for a raise

Money Solutions6 May 2012 The Valley News/Herald-Journal

Rosemary Els

Has a new office and Broker-Dealer.

Rosemary has been

serving her client’s

financial needs for

15 years. She

offers a complete

range of financial

products & services:

Mutual FundsVariable AnnuitiesFixed & Indexed

AnnuitiesStocksBonds

College SavingsAccounts

IRAs & ROTH IRAsIRA Rollovers

Retirement PlansLife Insurance

Long Term CareInsurance

Medicare SupplementInsurance

ComprehensiveFinancial Planning

Townn && Countryy Financiall Services

122 W. Washington Street

Clarinda, IA 51632

712-542-1180

712-542-1181 Fax

712-370-0642 Cell

rels@sagepointadvisor.com

Securities and advisory servicesoffered through SagePoint Financial,Inc., member FINRA/SIPC. InsuranceServices offered through Town &Country Financial Services, who is notaffiliated with SagePoint Financial, Inc.

120524-45212 1205

24-4

3990

The cost of travel continues to increase,especially for those travelers who prefer totravel by air.

According to the Bureau ofTransportation Statistics, the averageround-trip flight in 2011 cost consumers$362, a 7.8 percent increase from the previ-ous year. What's more, that figure does notinclude taxes or additional costs paid at theairport, which can include potentiallyexpensive baggage fees.

It's no surprise then that many would-betravelers are somewhat reticent to fly, espe-cially if those travelers have kids in tow.However, there are ways to save on flights;it just takes a little flexibility and a willing-ness to shop around.

• Don't insist on nonstop flights. No onelikes layovers, but they might just save youa substantial amount of money. Comparethe cost of a nonstop flight to your desireddestination to one that has one or even mul-tiple stops. Chances are the cost of a non-stop flight will be considerably more than aflight that includes at least one layover.Though connecting flights are not ideal,

many international airports now offer a hostof stores and restaurants that can help makethose layovers more bearable.

• Don't necessarily choose a round-tripticket. Though it's almost second nature fortravelers to purchase a round-trip ticket, itmight be more affordable to buy two one-way tickets instead. This allows consumersto compare prices of tickets from differentairlines, which can make the overall costlower.

• Be flexible with airports. Many onlinetravel sites, including Orbitz and Expedia,allow consumers to search for flightsdeparting from and arriving to multiple air-ports. This is done to give travelers moreflexibility and ultimately to help them findthe most affordable flight. Take advantageof this option. However, before booking theflight, consider the costs associated withgetting to and from an airport that's fartheraway from home or your desired destinationthan the airport that's closest to both. Thecost of transportation to and from an airportthat's off the beaten path might offset thesavings on the cost of the flight.

How to save on your next flight

Money Solutions May 2012 7The Valley News/Herald-Journal

The Future Starts Here.We’ll help build, grow and manage your investment portfolio,

based on your specific savings goals. And as life changes, we’ll

change too. Your success is our business.

Invest Well

For a consultation, contact:

We’ll help build, grow and manage your investment portfoliobased on your specific savings goals. And as life changes, your portfolio can shift with it. Your success is our business.

Securities offered through IBA Securities, a division of Broker Dealer Financial Services Corp., member FINRA/SIPC.Securities and insurance products are not FDIC insured, nor are they deposits or obligations of, or guaranteed by thebank, Broker Dealer Financial Services Corp. or any other federal government agency. The purchase of such productsinvolves risk including the possible loss of principal. Securities may not be suitable for all investors.

120524-46414

For a consultation, contact:Brian JohnsonFinancial Advisor

www.bankiowabanks.com

701 West SheridanShenandoah, IA712-246-7792

101 N. 15th StreetClarinda, IA712-542-6650

Turn to us for:• Client Portfolio Management• Retirement Planning• Education Planning• Portfolio Review and Analysis

Start planning, today.Investment Center

� IRA � Certificates of Deposit* � Stocks� Annuities � Money Market Account* � Mutual Funds

� Bonds � Tax-Advantaged Bonds � 401(k)’s � Long Term Care

BUSINESSOR PERSONALINVEST FOR SUCCESS

Take your business and your personal life to the next level of success with totalinvestment and retirement plans. As a Raymond James Financial Advisor, I will listenclosely to your needs and provide personalized answers for which you’re looking –for both your business and your personal life. For more information about invest-

ment strategies and how I can serve your financial needs, call me today.

LIFE WELL PLANNEDSecurities offered through Raymond James Financial Services Inc., Member FINRA/SIPC

*These products are not offered through Raymond James Financial Services

Building Your Financial FutureDuane Sturm, Branch Manager

114 W Main Street, Clarinda, IA 51632712-542-6334 or 888-554-9601

www.raymondjames.com/duanesturm

1205

21-4

3606

Young families want to start out on theright foot, and for many that meansaddressing finances and developing a planso their finances help instead of hinderthem in the years to come. Addressingfinances often means tackling debts, anderadicating or significantly reducing debt isessential for young families.

But being beholden to debt isn't the onlymistake young families make. The follow-ing are a few common mistakes that youngfamilies focused on their future shouldavoid.

• Getting by without a budget. It's pos-sible to live without a budget, but that does-n't mean it's prudent. Living without abudget makes it hard to corral spending orto know just how much you're spendingeach month.

When sitting down to establish a month-ly budget, the task can seem daunting, espe-cially if you have never before lived on abudget. The first step toward establishing abudget is to determine the monthly costs of

necessities (i.e., mortgage payments, carpayments, groceries, etc.) and then make alist of those things you spend money oneach month that aren't entirely necessary(i.e., cable television bills, dining out, andso on). This can help you trim some ofthose extra costs that can make it difficult tosave for your future. The first couple ofmonth living on a budget might be rocky,and you might need to make a few adjust-ments along the way. But establishing abudget will make it much easier for you tomeet your long-term financial goals.

• Failing to save money. Some youngfamilies feel their savings account is theirhome, the value of which they expect toappreciate considerably by the time they'refinished paying off their mortgage.Unfortunately, the housing market of thelast several years suggests that homes mightnot be as great an investment as they oncewere. In fact, many homeowners are cur-rently underwater with their mortgages,meaning they have more debt on the prop-

erty than the property is worth.Though the prevalence of underwater

mortgages doesn't mean families shouldavoid buying a home, it does shed light onthe importance families must place on sav-ing money and avoiding the assumptionthat their home will finance their retirementdown the road. There's no telling if thevalue of your home will keep pace withinflation over the next several decades, soit's important to save money and keep sav-ing as the years go by.

• Saving for college as opposed toretirement. Parents, of course, want theirchildren to go to college, and many wouldprefer that their kids won't end up buried indebt to afford tuition. However, it's not agood idea to make the kids' college tuition ahigher priority than your own retirement.Kids can earn scholarships to college, butno such scholarships exist to finance yourretirement. If your child's college savingsplan is getting more of your money thanyour own retirement savings, reverse this

plan immediately. You can still contribute toyour child's college fund, but don't do so atthe expense of your own retirement.

• Living above their means. Young fam-ilies in which Mom and Dad both havestrong credit scores and histories will findthey're attractive to prospective lenders. Asa result, it can be easy for young families tofall into the trap of living above theirmeans, whether it be buying a home thatstretches their budget or a car that might beflashy but is ultimately unaffordable. Thisis a potentially dangerous situation to findyourself in, as the first unforeseen expensecan have a devastating domino effect onyour finances. Though it might be tempting,don't live above your means.

Today's families face a financial futurethat's as uncertain as any in recent memory.That reality only emphasizes the impor-tance families must place on making soundfinancial decisions that don't put theirfutures in jeopardy.

Financial mistakes young families should avoid

Money Solutions8 May 2012 The Valley News/Herald-Journal

The warm weather can be aboon to the restaurant business, orit can be a disadvantage depend-ing on how restaurant ownersapproach the situation. Patronsdining out can make the most ofsummer dining by employingstrategies to eat on the cheapevery time.

Although some restaurants haveno problem keeping customerscoming back for more, the sheervolume of restaurants in mostcities and towns can make compe-tition feisty throughout the year.However, during the summer,when many individuals spendtheir time at home, on vacationand on weekend getaways, restau-rants may have to work even hard-er to attract business. As a result,diners can expect new specialsand incentives to get them in thedoor.

When selecting a restaurant,there are certain things that can

help you cut some of the fat offthe final bill.

* Avoid the hot spots. Look forless trendy, though established,restaurants and neighborhoods tosave money. At trendy establish-ments, you could find long waittimes for tables and inflated pricesto cover the cost of decor and spe-cialty ingredients. With a longwaiting list wrapping outside ofthe door, chances are this restau-rant is not going to cater to cus-tomers looking for a bargain.

Cost-conscious diners shouldalso avoid trendy neighborhoods.Many people find the lure is toopowerful to ignore in warmweather. In turn, restaurants thatoverlook the water or are locatedalong the beach may be more pop-ulated and pricey than others justa short distance away. There's agood chance that if you do a littleexploring you can find a compara-ble restaurant nearby that may

offer a better deal.• Dine out during the week.

Leave the end of the week andweekends for cooking meals athome. When you want to eat out,Monday, Tuesday and Wednesdaymay be the best days for finding acoupon or special discount deal.That's because restaurants knowpatrons tend to dine out later inthe week. To drum up business onslower days, restaurants may offerspecial menus or steep discounts.This is an advantage if the entirefamily is dining out.

• Turn to chain restaurants ina pinch. Although there's nothingquite like the unexpected flavorsand variety that independentrestaurants can offer, chain restau-rants offer consistency, familiarityand often hard-to-beat deals.Many of the popular franchiserestaurants offer kids' meals start-ing at $4 and prix fixe mealswhere two adults can enjoy dishes

for a total of $20.• Order appetizers only. The

warmer weather tends to mutehunger pangs, and smaller por-tions can leave you feeling full. Ifyou want to try a higher-pricedrestaurant, consider only orderingappetizers and salads, which willcertainly cut down the cost of thebill.

• Clip coupons. At-homecoupon mailers and special din-ing-around-town supplements areoften included in the newspaper ormailed directly to your home.Browse through and take advan-tage of the coupons within.Discounts might be as high as 30percent off your bill.

• Choose from BYOB restau-rants. Many restaurants keepoverhead costs down by choosingto make their establishmentsBYOB, or bring your own bottle.The meal may be slightly lower inprice than other restaurants, and

you will save money on the finaltab by bringing your own wine orbeverage.

Dining out inexpensively issomething anyone can do duringthe often competitive summer sea-son.

Get deals on dining out during the summer