Financial Adviser Predicts a 'Neutral' 2011

Typically, financial markets are described as either a Bear or a Bull Market. However, with so many economic variables in limbo these days, banks and investors are playing it conservative.  Their actions influence the decisions made by Tim Ward, financial consultant and partner of in Wildwood. 

Ward recently has been working to prepare his clients for another slow economic year, thus a "neutral" 2011.

Using an online software package, Wealth Vision powered by eMoney, Ward said he is "using technology to manage his client's expectations."  Ward said he likes to educate his clients, explain details so they are prepared to make financial decisions, and help them build a road map to financial success.

With slower economic times, it is even more important to keep a close eye on investment portfolios and family budgets. Ward suggests starting a family budget if there is not a working budget in place.  By tracking expenditures, he said people are often surprised when a few small adjustments result in a budget in the black instead of in the red. 

Ward also holds to the long-standing financial advice of "pay yourself first."  Basically, this principal suggests the average investor should plan to first set aside a percentage each month for their investment or savings accounts before continuing to budget for the remaining monthly bills.  He said it could take up to six months to actually get used to this budget tactic.  However, by the end of the six months,  he has seen the redirected monies "will provide the incentive to continue this habit."

Ward's first of three most important pieces of financial advice for the new year and this economy:  Be prepared.  He recommends that everyone take a realistic look at their financial situation and gauge how many months they could continue to meet their budget demands in the event of a job loss. 

Ward suggests the following guidelines for his clients.  If a person or family has a single source of income, a dollar amount that would cover budge expenses for six months would be an adequate amount of savings.  If the household has two incomes, and one income is lost, Ward suggests that money be set aside to cover at least three months of expenses.

Along with setting aside an adequate amount of funding, he said planning ahead by establishing a line of credit through a home equity loan is also a good idea.  "Getting this line of credit established now is important since it would not be available in the event of a job loss."

Ward's second piece of financial advice:  Get rid of those high-interest credit cards. 

"With credit cards charging at least 20 percent or more in interest, it just doesn't make sense to carry balances on those cards.  That high interest rate cannot be matched, nor money recouped in such a neutral market," he said.

His third piece of financial advice involves insurance.  "Now is a very good time to evaluate your amount of coverage and your premiums.  Currently, the competition is fierce in this sector.  There should be a substantial amount of savings for the person willing to research the companies and make changes to their life, home and auto insurance policies," he said.

Ward, along with Nabil Hamid, president of Legends Financial, are the distinguished recipients of the FIVE STAR Wealth Manager award in both 2009 and 2010.  This award is the result of a score from a formula using information from clients, peers, regulatory compliance reviews, and a Blue Ribbon Panel review.  This scoring procedure creates a list of wealth managers who scored highest in overall satisfaction. 

Ward is a member of the .