THE OUTLOOK
The
MAY 2012
VOLUME IV ISSUE V
OUTLOOK News for the Residents of The Dominion
GET IN THE ZONE By Erin Conant
We attempt to save water in many ways, such as collecting rain water or installing water-efficient fixtures in our homes. But putting extra thought into your landscape’s design can save water, too. Hydrozoning is a technique that groups plants according to the amount of water they require. It generally includes three zones: Principle – This area likely contains turf grass and gets the most use as the home’s main outdoor activity area. Plants in this hydrozone typically require more water than any other plants on the property. Secondary – This zone receives less human contact and often contains beds used exclusively for visual appeal. These plants use moderate to small amounts of water. Minimal – Involving the rarely accessed reaches of a property, this zone includes plants that have a knack for surviving without much care and should receive little or no supplemental watering. While this all might seem a bit complicated, the idea of organizing the landscape by water needs is not only water-wise, but it also reduces your neverending maintenance load! Erin Conant is conservation consultant for San Antonio Water System.
Copyright © 2012 Peel, Inc.
FINANCIAL PLANNING BASICS
THERE ARE FIVE PRELIMINARY STEPS THAT ARE IMPERATIVE BEFORE A SOUND INVESTMENT DECISION CAN BE REACHED. Submitted by Kenneth C. Meissner
First – Establish a current Financial Statement by listing Assets into Investable and Non-Investable Categories. Non- Investable assets are your home, automobiles, furniture, personal, etc., the remaining are available for Investments. Investable assets are grouped into four categories: Liquid, Hard, Debt and Equity. Liquid Assets are checking and money market deposits (normally equal to three to six months’ spending) and which are used to pay living expenses and to help prevent forced liquidations to meet financial emergencies. Hard Assets are gold, silver, and other precious metals and should range between 3 to 10% of investable assets, depending on age, economic conditions, and personal apprehensions about paper currency. Remaining assets are divided into two categories: “Debt” and “Equity”. Debt Assets are assets that have a fixed rate of return and offer a specific maturity. These might include municipal and corporate bonds, treasuries, CD’s, fixed annuities and whole life insurance. Equity Assets are investments in which there is ownership, such as real estate, preferred and common stock, and variable annuities. The primary objective is capital appreciation and keeping up with inflation, as opposed to providing current income. Second – The Financial Statement identifies the Asset Allocation between the debt based and equity based assets and determines your Debt/Equity Ratio. As a general guideline, the percentage of Debt Assets should correspond to your age. For example, age 75 should have 75% in Debt Based and 25% in Equities, of course depending on your risk tolerance. Third – A current cash flow estimate, which includes a current Income Statement and Monthly/Annual Budget for expenses. If your expenses are greater than income then the investment decision is to increase current income with higher investment returns, in addition, reducing taxes and reducing debt. If income is greater than expenses then the investment decision is to defer income with tax-free and tax-deferred investments. Fourth – Establish a current year estimate tax simulation to determine possible tax strategies to keep taxes under control. Fifth – Legal Documents – Wills – Trusts – General Power of Attorney – Health Power of Attorney – Directive to Physician are current and conform to the laws of the state you reside. The Outlook - May 2012
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