Climbing the Ladder

Is your current job and the responsibilities and challenges that go along with it satisfying your needs, both financially and professionally?

Are you ready to accept more responsibilities at work?

If you feel that through your hard work and track record on completed projects that you should be considered for a promotion (and an offer has not been made), you may want to approach your boss and ask about one.

Be careful here – if you know about an area of concern regarding your work performance (ie. missing deadlines or calling off sick too often), it may not be a great time to approach your boss for a promotion. Give yourself enough time to make corrections to the areas identified as concerns and then make your move.

We’ve compiled some tips to help you get the promotion you're looking for:

Be proactive! In other words – take charge of the things that you have control of!

Do more than what is expected; get involved and show initiative. Doing more will increase your visibility within the organization and will allow you to face more challenges.

Keep track of your accomplishments including completed projects and positive or complimentary emails or notes you receive about your work.

Expand your knowledge. Keep up with industry news, topics and trends. Hone your skills with night or weekend classes. . .your employer may even help you pay for these classes.

Act like you fit the part of the position you want - dress, speak and act professionally.

Develop good relationships. That old saying “It’s not what you know, it’s who you know,” is true. Developing good relationships will go a long way in winning future promotions.

If you find that advancement opportunities don’t exist with your current employer, you’ll have to weigh your options and consider making your move out the door in order to advance up the ladder!

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Planning for Retirement

It's never too early to begin planning for retirement. Many people would like to retire early (say age 50 or 55), but many aren't able to. If you'd like to retire early, now is the time to plan!

Many experts say that you'll need 60% to 85% of your gross household income to maintain your current lifestyle. It's a personal decision; only you can decide how much money you'll need to live the way you want. And, don't forget to take inflation into consideration!

Many employers offer 401(k) retirement plans. If your employer offers a 401(k) plan, try to contribute the maximum allowed by the plan. Most employers will match your contribution up to 6% of your pay. Your contributions to a 401(k) plan accumulate on a tax-deferred basis. . . you don't pay taxes on your contributions until you retire and withdraw the money from the plan.

Other employers offer a "company pension" or "defined benefit plan" to their employees. In these types of plans, employers do all the funding with no contributions by employees. The retirement benefit is determined by a formula often based on years of service, average wage, and rate of pay.

If your employer doesn't offer some type of retirement plan, you can still save money for retirement in an IRA (Individual Retirement Account). The earnings in an IRA accumulate tax free until you're ready to retire.

It doesn't really matter what type of plan you use to save for retirement, the most important thing is that you save.

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Should You Buy or Lease Your Car?

If you're in the market for a new car, you have a choice to make beyond what make and color of vehicle is right for you. The choice of whether to buy or lease the vehicle is worth taking time to consider.

Leasing is like renting a car. You can get more car for less money and put yourself behind the wheel of a new vehicle every couple of years. You only pay for the amount of the car's value that you use. The basic concept is that you're paying for the depreciation of the car. Usually there are time limits (24, 36, 48 or 60 months) and mileage limits (typically 10,000 to 15,000 per year) attached to the lease agreement. There are added costs like taxes (only on the amount you finance), license fees and interest charges that could potentially cost you a hefty chunk of change if you decide to lease your vehicle.

Advantages of Leasing:
Leasing typically offers lower monthly payments. You can drive a better car for less money with lower repair costs (with a three-year lease, the factory warranty covers most repairs), but watch out for those minor (but costly) dents and dings.

Disadvantages of Leasing:
You don't own the car. Your mileage is limited. Lease contracts can be confusing. If you choose to lease, try to keep the car in top-notch condition; fixing minor damage can end up costing you big bucks in wear- and-tear costs. It's hard to terminate a lease early if your driving habits change.

Advantages of Buying:
Pride of ownership (you can do what you want to the vehicle). It's more economical in the long-run to buy. There are no mileage limits. You can sell the car whenever you want.

Disadvantages of Buying:
Higher down payment and higher monthly payments. You're responsible for maintenance costs once the warranty expires. There is always the potential for trade-in and selling hassles. Your money is tied up in a car that depreciates, rather than an investment that appreciates.

Typically, the decision to lease or buy isn't just about dollars and cents; it's also about personal tastes and priorities. Your lifestyle may determine which option is best for you. If you entertain business clients, leasing allows you to drive a luxury car for less money. If you want to keep your car for a long time, leasing is not the way to go.

Lease payments are based on the capitalized cost of the vehicle, which is the selling price of the car. The price of the car is negotiable, so when leasing, negotiate the price as if you were buying it.

If you decide on leasing a car, make sure your policy includes "gap insurance." In the case of an accident or if the car is stolen, the “gap insurance” covers the cost of what you owe the bank.

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Explore any or all of our websites. You'll be glad you did!

Manage your AES account online at aesSuccess.org/AccountAccess.

YouCanDealWithIt.com gives you the real story on money, student
loans and life.

EducationPlanner.org is our award-winning career and college
planning site.

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