David and Lisa Smith, 45, Cincinnati

The situation:
David and Lisa’s son, Matt, is going to college next year. The couple saved money for his education but due to the rocky economy, their savings have taken a hit. Now they’re wondering if they should use their retirement funds to help make up their losses.

Income:
David: $85,000
Lisa: $65,000

This year, why not focus your New Year’s resolutions on improving your finances? “New Year’s resolutions shouldn’t be limited to diet and exercise,” says Michelle Meyer, Financial Center Manager with Fifth Third Bank. “Now is a great time to reflect on your finances and make goals for the upcoming year.”

It's one of life's many ironies: the best time to start saving for retirement is when you're young. But most young adults believe they lack the necessary funds for investing. After all, they're already juggling student loans, credit cards and saving for a house. Retirement is one concern they'd rather put off.

What's important financial advice for those who are newly retired? According to Jane Welch, an Investment Executive at Fifth Third Securities, asset allocation is a priority. However, how assets are allocated depends on a retiree's - or couple's - unique situation and personal objectives. Please note that asset allocation does not assure or guarantee better performance and cannot eliminate the risk of investment loss.

Imagine retirement is a decade away. While that may be an exciting thought, not everyone is financially ready when the time arrives. After all, pensions and social security aren't what they once were, and many of us lack the knowledge and discipline to plan adequately on our own.

"Retirement may seem a lifetime away for many new college graduates. Still, the best time to start a retirement account is with that first job," says Joel Stone, a trust associate with Fifth Third Private Bank. "The longer money is invested, the more interest it is likely to earn."

Leaving a job and starting another can be a stressful experience. But when people are forced to leave a job without having another lined up, the stresses seem to multiply - affecting relationships, moods and even decisions.

"Today, we see many people who lose their jobs and then impulsively cash out their 401(k)," says Tommy Grace, a financial center manager at Fifth Third Bank. "Unfortunately, they often do this without considering the financial ramifications or seeking advice on other options."