Your Money Ratios: 8 Simple Tools for Financial Security at Every Stage of Life

A troubled economy calls for answers. Forget fancy philosophy-people need sound financial advice that's easy to follow and can be implemented immediately. For the first time, a leading financial adviser has developed a remarkable set of guidelines to give individuals the same kind of objective insight into their personal finances that successful corporate executives have for their businesses. Using what The Wall Street Journal has called "some of the best tools we have seen for gauging where you stand," Your Money Ratios will help readers understand how to develop a realistic and effective savings plan, manage their debt, invest prudently, and obtain the insurance necessary to protect their income and assets, all with the goal of helping readers make progress toward a secure retirement.

Readers need only plug their income and age into Charles Farrell's ratios in order to get an instant picture of their savings status and overall financial health, as well as a road map for the important choices they must make in the future. Some of the ratios included are:

How much capital (savings) you should have at your age if you plan to retire at sixty-five

The maximum mortgage debt you can carry while saving sufficient capital to retire comfortably

The amount of education-related debt you can safely incur, based on anticipated average earnings after obtaining your degree

Charles Farrell is a principal with Northstar Investment Advisors in Denver. He writes the "Retirement Roadmap" column for CBS Moneywatch.com, contributes a monthly retirement column to Investment News, and is the developer of the Farrell-Northstar retirement Income Index. His research is frequently cited in The Wall Street Journal, SmartMoney, the Chicago Tribune, and numerous other industry publications.