$=$=$=$=$=$=$=$=$=$=$=$=$=$=$=$=$=$=$=$=$=$ Wealth Healthy Women Newsletter Healthy Attitudes ==> Wealthy Women [TM] Volume 2, Number 6 December, 2001 $=$=$=$=$=$=$=$=$=$=$=$=$=$=$=$=$=$=$=$=$=$ WELCOME to Wealth Healthy Women [TM], a free e-mail newsletter for women seeking greater financial freedom and well-being. To subscribe to this free e-mail newsletter please send an e-mail to Lynne@WealthHealthy.com. In the subject line put "Subscribe Newsletter". $=$=$=$=$=$=$=$=$=$=$=$=$=$=$=$=$=$=$=$=$=$ IN THIS ISSUE: 1. Note From Your Editor, Lynne 2. Article: Intentional Investing 3. Spotlight: Expanded Savings Options in New Tax Law 4. WealthHealthy Announcements ^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^ -=- Note From Lynne -=- Happy Holidays! During this typically hectic season, I hope that you have had the joy of warm connections with family and friends, time for favorite holiday activities, and maybe even a few moments of quiet for yourself. While waiting in check-out lines and sitting in airports over the past few weeks, I thought a lot about how I want my life to be in 2002. Inspiration finally came: I WANT A SIMPLER, SLOWER, INTENTIONAL LIFESTYLE (emphasis on INTENTIONAL). That is my personal "mantra" for 2002. My focus on intentionality has been so beneficial already that I've decided to make INTENTIONAL INVESTING the theme for Wealth Healthy Women [TM] in 2002. Articles will focus on living your money life with INTENTION, which ultimately is INVESTING in your self. Wealth Healthy Women will also initiate some terrific teleclasses in the new year that will help you to live your money life more intentionally and prosperously. Give yourself or someone you love a special New Year's gift -- an upcoming WealthHealthy teleclass! Transform those New Years' resolutions into effective solutions. See the WealthHealthy Announcements section. ^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^ -=- Feature Article: Intentional Investing - Three Key Steps -=- What is Intentional Investing all about? Intentional Investing is about taking your needs, values and goals seriously, and taking deliberate action toward fulfilling them (in other words, obtaining a particular return). I like the phrase particularly because of its double meaning - one can invest money thoughtfully and deliberately for a financial return, as well as deliberately invest in one's self. That investment may be time, energy and\or money. When I began observing my day-to-day actions with intention, I was struck by all of the ways that I live "automatically." I walk halfway to the gym before noticing my surroundings. I often finish off lunch as I work, without paying attention to the flavors (or lack of them.) I catch myself reordering magazines without considering whether I actually read them anymore. (I'm delighted to report that my "intentional" check-in resulted in eliminating several subscriptions, at a savings of over $60!) Of course, one can argue that doing things automatically is efficient. You don't "waste" a lot of thought time. That may be true, but how many times do you get to the end of the day, and feel that it's been one big blur? And that in that blur you forgot to pay bills that now have a hefty late fee. Or, you realize that you let circumstances dictate your actions, like renewing a slew of magazine subscriptions simply because you received the renewal notice. Or something more costly, such as letting a salesperson talk you into a much more expensive television or computer than you planned to buy. In some cases, fears and unconstructive attitudes are behind our blurriness. It may be the fear of looking selfish, of taking responsibility then making a big mistake, of feeling deprived and limited by making choices. Each fear has its accompanying attitudes -- "Others' needs are more important than mine" is a common attitude associated with the fear of being selfish. I suspect that the economic prosperity of the 1990s also contributed to more lax attitudes about spending and investing. Unemployment was low, work was plentiful and many people were making decent salaries. It was relatively easy to invest your money in stocks and get a great rate of return, without reading pages of information about a company's fundamentals. Credit was readily available, and credit card debt became viewed as "just part of living fully." And many of us got away from sound principles of investing and spending. Whether it is unexamined habits, fear or being seduced by the golden 90s that has resulted in our lack of intentional investing, the positive news is that there are steps that anyone can take to develop the mindset of intentional investing. Here are the three key steps: 1. Claim your "cores." You can take a trip by jumping in the car and heading toward the sunset. Or you can figure out a destination that will delight you, buy a good map, and set out with plenty of gas and great traveling music. To invest intentionally, you have to claim what is "core" to you -- values, needs, goals. The more specifically you define them, the more deliberately you can set forth. 2. Learn the art of self-observation. Try on the following self-talk: "Gee, what happened right there? Do I really like that? Is that important to ME right now?" Now try on: "What a stupid thing to do. I don't even like the color green. Why did I let her talk me into buying that suit?" It's the difference between self-observation and self-judgment, being curious versus reacting. Practice observing throughout the day -- stay with little happenings and work your way up. You are investing in listening to yourself, being more aware, clarifying what is truly essential. 3. Practice the two-step. The basic two-step is "observe then choose intentionally." Choosing intentionally means deliberately taking the action that moves you closer to your core values or goal. The other version is "observe and correct." It's what pilots do after setting the course to their flight's destination. Pilots then observe their instruments, and correct the direction of the plane when it gets pushed a bit off- course by the winds. Similarly, we may take a certain step that we believe will head us toward our goal, then find we are somewhat off-course. Observing allows us to take corrective action before getting too far afield. Remember, our choices -- conscious or not, proactive or reactive -- affect us emotionally and financially. Wouldn't you rather feel in control of your own destiny? ^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^ -=- Resource Spotlight: Expanded Savings Options in New Tax Law -=- Starting January 1, 2002, keep your eye on the expanded opportunities for retirement and education savings. Examples of contribution limit increases: Retirement plans: Currently, you can contribute a maximum of $10,500 to a 401(k) plan. Beginning in 2002, that maximum increases to $11,000, and increases by a $1000 each year through 2006 (maximum of $!5,000). If you are self-employed, starting in 2002, you can contribute up to $40,000 each year to a qualified retirement plan account. The maximum contribution to your traditional or Roth IRA rises from $2000 to $3000 in 2002. Educational Savings Plans: Now you can contribute $2000 per year, up from $500 to a Coverdell Education Savings Account (formerly known as an Education IRA). The income level above which contributions are not allowed rises from $160,000 to $220,000 of modified adjusted gross income on a joint return. 529 college savings plans will be free of Federal tax in 2002, rather than tax-deferred with the amount taxed at the student's tax rate when withdrawn for educational expenses. In addition there are no income caps on participation, and you can fund both an Education Savings Account and a 529 plan in the same year without a tax penalty. Sources: Wall Street Journal, "Mutual-Fund Savings Opportunities to Grow" by Karen Damato, December 28, 2001 Bottom Line\Personal, "Retirement Catch-Up: Last-Minute Saving Strategies" by Ray Martin, CFP, December 1, 2001. ^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^ $$ WealthHealthy Announcements $$ -=- Teleclass: -=- "Committing Yourself to Intentional Investing" How many times have you resolved to "get a handle on your money" at the New Year -- and forgot about your resolution by the end of the month? Find out the 3 secrets for making powerful commitments. Learn these 3 secrets and how to apply them to your money goals. When: Tuesday, January 8, 2002 6:30-7:30 PM Eastern Time Cost: FREE Registration limited to 12 participants To Register: Send an e-mail to Lynne@WealthHealthy.com. Put "Committing" in the subject line and include your name, phone number and e-mail address in the body of your e-mail note. You will receive a confirmation of the teleclass, and further instructions for accessing the special phone line for the call. ^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^ -=- Wealth Healthy Teleclass: Overcome Overspending Now! -=- I am putting together several Overcome Overspending Now! telegroups for the new year. Each 3-session telegroup will run for three consecutive weeks. Groups will be small - no more than 7 participants - to allow for a lot of interaction and personal attention. Groups will most likely be conducted in the early morning, or late afternoon. The cost will be $75.00 for the three-session class. If you are interested and would like more information, contact me at Lynne@WealthHealthy.com. Put Overspending Class" in the subject box. Include your name, phone number and e-mail address in the body of your e-mail note. Also, indicate your preference for Morning or Afternoon times. ^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^ Watch for announcements of other WealthHealthy teleclasses in future issues. If there is a topic that particularly interests you, please let me know. Send an e-mail to Lynne@WealthHealthy.com. ^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^ To hear a 10-minute description of the WealthHealthy approach, as well as a bit about me, you can call 1-212-461-2660. If you are interested in coaching, simply e-mail me at Lynne@WealthHealthy.com or call me at (202) 387-5923. Please include your name, e-mail address, phone number and brief description of your interest in being coached. ^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^ Pass this newsletter along to friends, family, and colleagues who also may be interested in moving toward greater financial freedom and well-being. They can get their own free subscription by going to http://wealthhealthy.com and signing up - it's as simple as typing in their e-mail address. Or, send an e-mail to whw-request@WealthHealthy.com with the word "subscribe newsletter" in the body of the letter. ^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^ PLEASE NOTE: Wealth Healthy Women [TM] is intended for informational and educational purposes only. It is not a substitute for financial, legal, accounting, psychotherapeutic, or other professional advice and consultation. ^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^ Copyright 2001 Lynne Hornyak. All rights reserved. The above material is copyrighted but you may retransmit or distribute it to whomever you wish as long as not a single word is changed, added or deleted, including the contact information. However, you may not copy it to a website without my permission. Reprint permission will be freely granted upon request. Advance written permission must be obtained for any reprinting of this material in modified or altered form. ^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^`^ $$ CONTACT INFORMATION $$ Lynne Hornyak, Ph.D. WealthHealthy.com Phone: (202) 387-5923 Fax: (202) 986-8980 e-mail: Lynne@WealthHealthy.com Web: http://WealthHealthy.com