FOR IMMEDIATE RELEASE Contact: Tricia Jaworski Morningstar Communications Company 913-851-8700 ext. 59 tricia@morningstarcomm.com Achieve Financial Independence Week™ October 16 – 22, 2005 Tips on how to rely on yourself (KANSAS CITY, Mo.) – With the future of Social Security in question, President Bush is formulating a plan to reduce benefits for future middle- and higher-income workers. Yet many Americans are left asking "who can I count on for future financial security?" Based on the philosophies and strategies of James E. Stowers, founder of American Century Investments, Achieve Financial Independence Week™ is designed to equip Americans with the tools and knowledge to answer that question. By applying basic principles for avoiding debt and managing spending, people of all ages can learn how to rely on themselves for future security and realize their financial goals. Stowers offers the following top ten tips on how to celebrate Achieve Financial Independence Week. The tips are based on the strategies and philosophies found in the Stowers Innovations’ book Yes You Can… Achieve Financial Independence. Pay Yourself First – Avoid the temptation to spend by automatically putting a percentage of each month’s earnings in a savings account. Check into your bank’s automatic deposit options so you won’t forget. Adopt a Cash Only Policy – Credit cards often trap consumers into living outside of their means. If you don’t have the cash, don’t buy it. By avoiding high credit card interest rates, you could save 18 percent or more on your money. Brown Bag It – Look at what you spend on lunches out. Rediscovering good ‘ol PB&J could save you as much as $1,200 per year. Realize Time is Money – The earlier you start saving for retirement, the better. A difference in 10 years on the start date of your retirement savings makes a big difference in results. One thousand dollars put into an investment account with a return of 6 percent at age 23 will grow to more than twice the value than if it was deposited at age 33. Take an Interest in Interest – Money market accounts and CDs can grow your money more quickly than a standard savings account. Shop around to find the best combination of interest rates and minimum balances. Know When to Get Help – Seek advice from a Certified Financial Planner (CFP) who can steer you in the right direction. Your portfolio should have a mix of investments that seek the highest rate of return. Mutual funds provide a way to invest in a mix of stocks and bonds managed by a fund manager at the day-to-day level. Establish an Emergency Reserve – By saving for at least six months of typical living expenses, you’ll have a cushion should you fall into tough financial times. Analyze Your Current Situation – Knowing where you stand now financially will help you set realistic goals for the future and plan for successful retirement. Have Adequate Insurance – Life’s unexpected twists and turns can drain your savings and affect your retirement. Make sure you are protected should your house become damaged or your health jeopardized, leaving you unable to work. Track Expenses – Do you really know where your money goes? Tracking your expenses can give you a better picture of your financial situation so you can better control your wants and provide for your current and future needs. About Achieve Financial Independence Week Created by Stowers Innovations, Inc., Achieve Financial Independence Week™ helps raise Americans’ awareness of their own spending and saving habits, and provide people of all ages with the strategies and information they need to achieve financial independence. The week is supported by American Century Investments, Nationwide Insurance and JPMorgan Retirement Plan Services. Achieve Financial Independence Week features a variety of educational activities designed to make individuals aware of the resources and people who can help them dramatically improve their financial position. They focus on: Monday: Reviewing and Reflecting on Financial Goals Tuesday: Protecting Your Assets with Insurance – sponsored by Nationwide Insurance Wednesday: Investing Wisely – sponsored by American Century Investments Thursday: Planning for Retirement – sponsored by JPMorgan Retirement Plan Services Friday: Increasing Your Financial Literacy – sponsored by Stowers Innovations, Inc. Get a PDF version of this page here.