• Put aside a certain amount each month in savings or investments. The compounding of earnings can be substantial. The longer the investment period the greater the beneficial effect of compounding.

• Invest in what you know or hire someone who knows investments. The better informed you are, the better your investment decisions will be.

• Diversify your investments. In other words, don't put all of your eggs in one basket. Put aside a certain amount into an investment that is easily converted to cash in case of an emergency.

• Prepare an annual balance sheet to determine your net worth. Annual balance sheets list all your assets minus all your debts. This is important in determining your success at building your retirement fund.

• Plan where you want to be financially by retirement age. The calculators below will help you determine your savings requirements. Once you know how much you should save, put your plan into action. Over 90% of Americans must rely on the government or others for assistance during retirement. With proper planning and diligence you can be one of those who retires in comfort and security.

• Don't use credit to purchase consumption items. Wait until you can pay cash for things that decrease in value. Borrowing money to purchase a home is usually a sound idea. Using credit to purchase household furnishings is not.

• Pay off credit card balances each month. Credit cards should be for the convenience of purchasing, not a source of permanent finance. The interest rates are much too high.

• Monitor your investments to maximize your after-tax return. Use the calculator below to compare the long-term results of different interest rates. Just a 2% greater return difference can make a huge impact in the growth of your investments.

If you could have one of the following as your pay for 30 days of work, which would you choose?

A. $10,000
B. A penny the first day, two cents the second day, four cents the third day, etc., with each day doubling the day before.

The $10,000 sounds very attractive, but the penny doubled each day for thirty days adds up to over 5 million dollars. Of course that's 100% interest compounded daily, a rate not available to most of us. Nevertheless, this example shows the power of compounding on your investment earnings.

Ask yourself these questions...
Then answer them with an estimate.

? How much must you save each month for your retirement?

? What will be the value of your Individual Retirement Account (IRA) when you need it?

? How much is needed to fund your child's college education?

Don't ignore the impact of taxes on investments.

Taxes should not drive your investment strategy, but understanding how taxes affect your earnings will help you minimize taxes and maximize returns.

Scott K. Perkins works with you to understand the intricate structure of investment opportunities. He will help you design and build your financial nest egg by evaluating your current status and suggesting ways to make the most of your hard earned dollar. You worked for it. Now make it work for you.