Financial planning: More than investing in the stock market By James W. Ritchay News-Chronicle The financial planning process reaches far beyond the buying and selling of stocks and mutual funds. Investment management represents only one of the many steps required to reach short- and long-term financial goals. While there are no simple answers that will magically rebound depreciated securities, there are strategies to help you offset the pain of lower portfolio values. For starters, consider the following five planning strategies. 1. Take advantage of your retirement plan. Are you eligible to contribute to a 401(k) or 403(b) through your employer? If so, try to contribute as much as you can. Contributions to these plans are made on a pretax basis. This translates to an immediate tax savings. Further, many of these plans offer matching employer contributions. The combination of tax savings and employer matching results is an immediate return on your money, regardless of market conditions. 2. Refinance your mortgage. Given today's low interest rates, refinancing your mortgage may be a smart move. In particular, if you have a variable mortgage, now may be a prime time to lock in a low fixed fare. Lower interest rates can reduce your monthly payments and, thus, increase your disposable income. This extra income can be used to meet day-to-day living expenses, especially if you are dependent on investment income or saving toward additional short- or long-term goals. 3. Get properly insured. If you recently married, had a child or incurred sizable personal debt, consider revisiting your insurance coverage. The premature death or disability of a breadwinner can crumble even the most thorough financial plan. In addition to a death benefit, whole life policies offer a savings element called a cash value. Interest credited to your account grows tax-deferred each year. While many employers offer group life and disability insurance for reasonable premiums, individual policies can be designed to fit most budgets. 4. Save for your children's college education. There are many tax-advantaged vehicles available today to help you save for your children's college education. A Section 529 college savings plan is one of them. Section 529 plans offer tax-deferred growth and special estate-planning benefits. Regardless of whether your underlying investments are conservative or aggressive, the tax benefits of these plans make your money work harder than would comparable savings or investment accounts. 5. Prepare a will. A will is a legal document that specifies how your possessions will be distributed and who will manage your estate upon your death. If you die without a will, state laws determine how your estate will be divided between your surviving spouse, children, grandchildren and/or others. Rarely, if ever, will state law match what you would have wished. In addition, if both parents die without a will designating who will be the guardian of a minor, the courts will make that decision for you. In light of these issues, even if you do not anticipate owing estate taxes, you should consider preparing a will. Financial planning is more than investing in the stock market, it's investing in your and your family's future. With a little effort and the help of your tax and legal advisors and financial consultant, you can be well on your way to developing a total financial plan. Jim Ritchay is Second Vice-President Investments for Smith Barney, 520. S Washington St., Green Bay. He can be reached at 437-3276. Smith Barney does not provide tax or legal advice. Please consult your tax and/or legal advisor for such guidance. Neither the information nor any opinion expressed constitutes a solicitation for the purchase or sale of any security.