Pitzl's pointers

By Kara McGuire, Star Tribune

Last update: September 7, 2007 - 11:57 AM

Here are the five steps Lindsay should take to get her financial future on track, courtesy of Twin Cities financial adviser Joe Pitzl.

• Enroll in the company 401(k) and begin saving at least 6 percent of salary. With the company's 3 percent match, she'll be saving 9 percent.

• Contact human resources and request to pay for group disability insurance with after-tax dollars. This will result in a much better benefit in the event Lindsay becomes disabled. The little she'd pay in taxes is peanuts compared to that enhanced benefit. With good health and disability through work, she doesn't need outside disability insurance. Lindsay also can skip life insurance for now.

•Keep tithing. "Those who give tend to have a better relationship with money and seem to be more appreciative of what they have, rather than what they don't have," Pitzl said.

• Figure out the cost of an MBA, including financial aid, tuition reimbursement and any scholarships, grants, and loans. The amount left over comes out of her pocket and she should start saving that amount today.

• Establish an "expense account" for her back-to-school plan. "The idea is simply to get you used to the cost of going back to school," said Pitzl. "Automatically deposit what you think the monthly cost will be." That way, Lindsay will be prepared to pay tuition and accustomed to her new, pared-down lifestyle.

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