Financial planners offer tips for a prosperous 2012

By Eric Czarnik
C & G Staff Writer

» Click on image to view full size « Photo by David Schreiber Sterling Heights Public Library Director Tammy Turgeon looks at financial publications that the library provides for its patrons. The library is hosting three money management classes from the Investor Education in Your Community series during the first quarter of 2012. Photo by David Schreiber Sterling Heights Public Library Director Tammy Turgeon looks at financial publications that the library provides for its patrons. The library is hosting three money management classes from the Investor Education in Your Community series during the first quarter of 2012.

The parties are over; the holiday bills have arrived; and the prospect of mounting debt looms large for many local families. But for people who have resolved to get on the right financial footing, local financial advisers say it takes planning, dedication and a little help.

Ron Thompson, a financial adviser at LPL Financial in Macomb Township, said one of the biggest mistakes he sees investors make is not seeking professional help. A do-it-yourself approach that ignores current economic trends can be dangerous, he said.

“They try to do it themselves,” he said, “whether it’s through E-Trade or through their own 401(k)s, and they end up with a strategy that ends up hurting them in years like 2008.”

These days, many investors — particularly in Michigan — are still risk-averse. Some of the reasons are the sluggish job market, the European debt crisis and the uncertainty that comes with economic policies in an upcoming presidential election year, Thompson said.

He added that more people have been looking at conservative investments, like bonds or even precious metals such as gold.

“Right now, the biggest thing I see people looking for is safe haven places to put money, whether it’s retirement money or just savings, to avoid risk,” he said.

While Thompson called a buy-and-hold strategy “definitely in the rearview mirror” in the current economy, he said professional financial planners help their clients fine-tune financial strategies, chart out investments, set up trusts and establish long-term goals.

“If someone is 50 years old, they might have a long-term goal of waiting to retire at 62,” he said. “You attach that goal to a dollar amount. As the planner, we kind of back into what investment vehicle will be the most doable to get us to that dollar amount.”

Some local libraries are also teaching tips to help patrons manage their money. The Sterling Heights Public Library is continuing a free series of classes in 2012 called Investor Education in Your Community.

A Jan. 12 class is expected to offer a limited number of brief, free counseling sessions while teaching the investing fundamentals of stocks, bonds and mutual funds. Other classes on retirement and portfolio management will occur in February and March, respectively.

Kathryn Ribant Payne, library programming specialist at Sterling Heights, said her library has hosted these financial classes for several years. Many patrons appreciate the events and try to attend them all, she said.

“We’re hoping they can better their financial position and educate themselves through these,” she said. “(The classes) have really touched on things that people really need at this time in a market that may be more uncertain or volatile.”

Ribant Payne credited organizers at the Michigan Office of Financial and Insurance Regulation for keeping the classes fresh and up-to-date. She added that the classes are not commercial and involve no sales pitches.

“It’s completely educational, which is really important to us as a library, to provide that to our patrons,” she said.

To learn more about LPL Financial in Macomb, call (586) 781-7170. To register or learn more about the investing classes at Sterling Heights Public Library, 40255 Dodge Park Road, visit www.shpl.net or call (586) 446-2640.

Find out more about the Michigan Office of Financial and Insurance Regulation at www.michigan.gov/ofir.

You can reach C & G Staff Writer Eric Czarnik at eczarnik@candgnews.com or at (586)498-1058.