The next important task would be to sort out the broad mix of investments that is required to meet various family needs, he said. Next, decide how much money might be needed for college or other similar costs in the next five years. Allocate this to short-term bonds or bank deposits. The rest, money earmarked for long-term purposes, should be put into a diversified mix of growth investments. Also, start looking for places where money could more effectively achieve these new, more specific goals, suggested Ann Case, a certified financial planner with Edward Jones in Excelsior Springs.
Employers often match part of an employee's contribution.
Investment managers don't. Kara Bennett, a financial consultant with Cornerstone Financial Programs Inc. in Overland Park, said she would recommend dealing even more aggressively with the debt. Tapping the equity in their home would ease their borrowing costs and, because the interest would be deductible, provide some tax savings, too, she said. But she said she would caution them, too. This GE Capital Corp. financial education Web site offers a user-friendly way to learn more about the principles of basic financial planning, plus help for users trying to map out plans of their own.