As we are all getting a little older, we are also getting a little wiser, and it’s time we re-evaluate our financial picture and ask ourselves what we can do to become more financially responsible.

There is nothing wrong with having a good time now, but life is about balance. If you spend it all now, you won’t have anything saved for a rainy day or for your retirement.

Let’s face it: Who couldn’t stand to plan a little better with their money and how they spend it?

What are the benefits of becoming more financially responsible?

1. You have peace of mind.

2. You can give back more to your favorite charity or cause.

3. You won’t be dependent on family or friends if you have an emergency.

4. You can retire and live the good life.

5. You can enjoy life today.

We have put together this feature with several easy steps to help you become more financially secure in 2006.

No doubt taxes are on your mind right now, and you’re looking for some last-minute tips before you have to write Uncle Sam that check.

1. Get organized. It might sound simple, but this will take a lot of stress off of you if you can pull together your W-2s, 1099s, and bank and investment interest statements. Be sure to have records of charitable deductions and mileage records if you can deduct mileage for your business. Many people lose out on a lot of deductions because they don’t keep good records.

2. Contribute to an IRA. One easy way to reduce the check you have to send to the IRS, or a way to get a bigger refund, is to contribute to an IRA. You can make an IRA contribution up until April 15. The limit is $4,000 if you are under age 50 or $4,500 if over age 50. There is an income limit for single filers with an adjusted gross income of $50,000 or less – you can contribute the full amount, but you are phased out of the full deduction as your income goes up.

3. Business owners. Small-business owners, you can still open and contribute to an SEP-IRA up until April 15, and you can contribute up to 20 percent of your schedule C earnings. This could help you save some big bucks at the last minute, and contribute to your retirement account.

4. 401(k) increased limits. In 2006, you can contribute up to $15,000 a year, and if you are age 50 or older you can contribute up to $20,000. Be sure to contact your human resources department to adjust your monthly contribution.

5. Students. If you are single and made less than $65,000, or if you have a dependent child, you can get an above-the-line college tuition deduction of as much as $4,000 in 2005. If you meet the 2005 income qualifications, you can take the Hope or Lifetime Learning tax credits, which may be a more valuable tax break than the deduction.

6. Bunch your medical expenses. Only medical expenses that are in excess of 7.5 percent of your adjusted gross income are allowed as deductions. So be sure to try and lump them together in the same tax year, or defer some elective medical expense to the next year.

7. Tax-deferred investing. If you are in a high tax bracket now and expect to be in a lower bracket at retirement, look into strategies that will help you defer some of the taxes you would be paying now.

8. Find a professional. If your tax return is really simple, you may be able to get away with one of these software programs. But if you are not comfortable with that or you have a partner and need to do some family tax planning then you should seek out a professional. You can find a CPA or an enrolled agent in the Gay & Lesbian Times or the GSDBA directory, or get a referral from a trusted friend or financial advisor.

The one place that cripples most people financially is living beyond their means and financing their lifestyle with credit cards. Following are some simple tips for you.

Eight strategies for reducing debt

Credit cards – it seems like they’ve become part of the American way. But for many, credit card debt can be crippling, both financially and psychologically. The first step to achieving financial freedom is to reduce your debt in order to concentrate on savings and investments. Here are some steps you can take to start reducing your debt while taking control.

1. Cut up all but two of your credit cards. This may be a difficult first step, but it is a necessary one. Which two do you keep? The two with the lowest interest rates. And be sure to cut up your store credit cards. These are typically the most dangerous, as they usually have the highest interest rates of all.

2. Negotiate for a lower rate. Yes, you can do this. Credit card companies want your business, and there is definite competition between companies. They want to keep you as their customer. Call your credit card companies and ask for lower rates. It doesn’t hurt to ask, and in many cases just asking actually works.

3. Make the largest payments to the card with the highest interest rate and debt. Interest payments can add up fast – especially on large dollar amounts. That being said, go after the highest interest rate debt first. Pay the minimum amount on your lowest rate cards until you’ve paid off the balance on your more expensive cards.

4. Consolidate your debt into a regular bank note. Most bank loans offer lower rates than credit cards, and there’s only one payment every month.

5. Take out a home equity loan. If you’re a homeowner, you may be able to take out a home equity loan in order to pay off debt. Again, the interest rate may be substantially lower than that of your credit cards. As an added bonus, the interest from a home equity loan is generally tax deductible. Consult your tax advisor before proceeding.

6. Use your savings to pay off debt. Suppose that your credit card debt is at an 18-percent interest rate. Now suppose that your savings are earning 3 percent in a savings account. Your debt is canceling out your savings because the rate is so much higher. In this case, even if your savings are earning 10 percent, you’re still losing more money on that high-interest credit card debt. Of course, keep an emergency fund, but do weigh what you’re gaining with what you’re losing. You’ll find that, although painful, applying savings to debt will save you money in the long run.

7. Create a budget – and stick to it. Living beyond one’s means is an easy trap to fall into. And policing yourself – saying “no” to a purchase – is not easy. But in order to get out of debt and stay out, you must create a reasonable budget that you will be able to stick to.

8. A habit to help you take control. Every time you use a credit card, enter the purchase into your checkbook. This way, when the bill comes, you’ve already accounted for the purchase.

Financial freedom is achievable. And once you get yourself out of debt – and you can do it – make a routine out of taking the money that would have gone to pay those bills and putting it into some type of savings plan. You’ll be surprised at how fast your money can grow.

Today’s fast-paced world of electronic convenience has made identity theft an ever-increasing problem. You probably know someone who this has happened to – it may have happened to you. It can be a nightmare, and an expensive and time consuming one at that. There are simple actions you can take that can help to protect your identity and your credit rating.

1. When you order checks, don’t use your full first or middle names; use your initials with your full last name instead. Who’s going to guess that “B” stands for Barbara or “Bertram” when attempting to forge your signature?

2. Instead of using your home phone number on your checks, put your work number. In addition, if you have a P.O. box, use it for your address. And never, ever publish your social security number on your checks.

3. Make photocopies of every piece of identification that you carry with you daily, and be sure to copy both sides. Keep the copies in a safe and handy place. If your wallet is ever stolen, all the information you will need – drivers license and registration, credit card account numbers and customer service hotlines, will be available to you in one place.

4. If your credit cards are stolen, immediately file a police report in the jurisdiction where they were stolen. You will want as much backup proof as possible for your credit card insurers to prove that you were diligent.

5. If your credit cards are stolen, call all national credit-reporting organizations immediately to place a fraud alert on your name and social security number. The alert lets any company that checks your credit to know that your information was stolen, and that they are to contact you by phone to authorize any new credit. Their numbers are: Equifax, (800) 685-1111; Experian, (888) 397-3742; and Trans Union, (800) 888-4213. In case your social security card is stolen, it may be best for you to notify the Social Security Administration at (800) 269-0271.

A key to portfolio success

For many investors, investing typically begins with one stock or mutual fund. Over time, other selections are added because many people understand that it may not be prudent to invest everything in a single security, even if it has a “blue chip” reputation. However, just “spreading money around” in a haphazard way may only create the illusion of diversification.

If you have assembled a hodgepodge portfolio, you may not know the extent to which your investments are (or are not) consistent with your objectives. How do you go about setting up a framework that tailors your investments to your particular circumstances?

A sound portfolio-management strategy begins with asset allocation – that is, dividing your investments among the major asset categories of equities, bonds and cash. Since each type of investment category has unique characteristics, they rarely rise or fall at the same time. Then you can make finer distinctions within each asset category (i.e., diversification). Combining different asset classes could help reduce risk, although it doesn’t eliminate market risk altogether. Still, two nagging questions remain: What factors guide the asset allocation process? And how much of a portfolio should go into each category?

To answer the first question, the main objective of asset allocation is to match the investment characteristics of the various investment categories to the most important aspects of your personal investment profile – that is, your tolerance for risk, your return and liquidity needs and your time horizon.

Investing according to your risk tolerance will help keep you from abandoning your investment program during times of market turbulence. One way to measure your risk comfort zone is to ask yourself how much of a loss in a one-year period you can withstand and still stay the course.

Finding an appropriate match for you means balancing your tolerance for risk with the different volatility levels of various asset classes. For example, if you have a low tolerance for risk, that fact may dictate a portfolio that emphasizes conservative investments while sacrificing the potentially higher returns that usually involve a greater degree of risk.

“Return need” refers to the income and/or growth you expect a portfolio to generate in order to meet your objectives. For example, retirees may prefer a portfolio that emphasizes current income, while younger investors may wish to concentrate on potential growth.

Your personal time horizon extends from when you implement an investment strategy until you need to begin withdrawing money from a portfolio. For example, a very short time horizon (less than five years) is probably best served by a conservative portfolio emphasizing safety of principal. On the other hand, the more time you have to invest, the greater risk you may be able to withstand because you have time to recover from market downturns.

The short answer to how much of a portfolio should go into each category is that asset allocation is more a personal process than a strategy based on a set formula. There are guidelines to help establish the general framework of a well-diversified profile. For example, you may decide on the need for growth in order to offset the erosion of purchasing power caused by inflation.

However, building an investment portfolio that is right for you involves matching the risk-return tradeoffs of various asset classes to your unique investment profile.

One final point that is worthy of emphasis: When you put together your own asset allocation strategy, you should combine all your assets (i.e., your investments and retirement savings). This will ensure that all your assets are working together to help meet your goals and objectives. Keep in mind that investment return and principal value will fluctuate with changes in market conditions, so that shares may be more or less than original cost. Diversification cannot eliminate the risk of investment losses.

If you are like most people, you have the desire to change and become more financially responsible, but you lack either the knowledge or the discipline to get the job done.

If this sounds like you – you may want to hire a professional financial planner to assist you in this process.

Why you should consider a financial plan

We face difficulties in managing our finances every day. Inflation, taxes, changing interest rates and stock market swings – their effect can unsettle one of our most precious possessions: peace of mind. One thing we can be certain about is that the future will come, whether we are financially ready or not.

You have a far greater chance of achieving your goals if you lay out a financial plan than if you don’t. The right financial plan will help you to:

Reduce taxes

Save for retirement

Decide how to invest

Provide proper insurance coverage

Custom-design programs to try to achieve your special goals (i.e., buying a home or condo, retiring early, financing your child’s education, etc.)

Financial planning: The key to getting what you want

There’s no mystery to financial planning. What it simply requires is taking a personal, in-depth look at your goals and deciding how you intend to achieve them. Once you decide what you want, you can make plans to get from where you are today to where you want to be tomorrow and in the years to come.

How to make your life simpler and your money work harder for you

Financial planning can help relieve the uncomfortable feelings that frequently arise about money. The right plan can give you the direction and confidence you need to take charge of your assets, and how you mange them. You’ll also discover the security and knowledge of having a financial blueprint in hand.

Take advantage of today’s investment opportunities

Work toward financial security for your estate, pension and employee benefit plans

Give you a thorough analysis of your financial options

Develop strategies to help make your money work harder than you do, and get the professional direction you need to help increase your net worth

And much more!

A comprehensive financial plan contains, where appropriate: investment, net worth and insurance analysis, cash management, tax, education, business, retirement and estate planning sections.

Working with a financial planner

As a client, you and your planner will develop a confidential relationship based on mutual trust and respect. Above all else, when you become a financial planning client, your planner is obligated to act in your best interests. Your financial planner’s goal will be to provide you with the peace of mind that comes from knowing that your objectives have been incorporated into your plan, and that you are working with a planner you can trust.

Planning isn’t impossible

The beauty of your plan will be your ability to change it. This kind of flexibility works to your advantage because your goals will change as time goes by. There’s no need to put off planning. The time is now. Creating a plan with a professional financial planner will help you know where you want to be and how you’re going to get there.

Marci Bair, CFP®, is a senior financial planner, financial services representative and founder of Bair Financial Planning, an office of MetLife. Marci is a member of the GSDBA, the LGBT Community Leadership Council and is the executive director of Family Matters, San Diego’s GLBT parenting group. Marci and her team at Bair Financial Planning prepare financial plans for individuals, couples and business owners. For a complimentary, no pressure consultation, contact Marci at (619) 497-2279.