Welcome to the New Year! Start the year 2018 with a complete understanding of where you stand financially, and begin to set goals for yourself. We have compiled a checklist to help you through this process.
List all assets, including accounts, real estate, savings, valuables, etc.
List all debts including mortgage, student loans, credit cards, and any other loans.
Identify and monitor your credit score.
Determine whether a Roth or Traditional IRA is best for you.
Rollover old 401(k) accounts from previous employers.
Analyze your anticipated expenses in retirement and adjust your annual contributions accordingly.
Analyze your level of risk aversion and make sure that your portfolio matches that level of risk.
Make corrections to portfolio where market shifts occurred to realign diversification with investment strategy.
Create or revise an estate plan based upon current assets.
Contribute to 529 College Savings Plan for family members. Investigate and decide upon a strategy for capital gains taxes, such as reinvestment.
Consider establishing a trust or making charitable donations.
Build and maintain an emergency fund of three to six months’ worth of expenses.
Consider investing in temporary disability insurance.
Ensure that a proper agent is granted power of attorney.
Set Financial Goals
Set realistic savings goals. o Cut out expenses that you don’t need.
o Channel paychecks directly into multiple accounts with direct deposit.
o Analyze your insurance coverage.
Be Prepared. o What are the chances of needing to make a large purchase such as a car or college tuition this year? o Am I prepared to manage such costs? o Will I need to take on any debt?
o Stay up to date on your financial situation through frequent monitoring and review.
o Conduct beneficiary reviews as major life events occur (marriage, children, etc.)