Investment Strategies

Good financial planning is mostly a matter of covering the basics consistently. Use this checklist to see where you stand, and review it at least once a year or after any major life change.

Know where you are

• Total your assets and debts to calculate your net worth.
• Track income and spending for a few months to see where money actually goes.
• Check your credit reports, which you can request from the three national bureaus, and correct any errors.

Build a safety net

• Set aside an emergency fund covering several months of essential expenses.
• Review health, disability, auto, homeowners or renters, and umbrella liability coverage.
• Consider life insurance if others depend on your income.

Manage debt

• Pay down high-interest balances first.
• Avoid carrying credit card balances from month to month.
• Look at whether refinancing makes sense for large loans.

Save for the future

• Contribute enough to your employer retirement plan to receive any match.
• Use IRAs, health savings accounts and other tax-advantaged accounts where you are eligible. Contribution limits change, so check irs.gov each year.
• Set separate goals and savings plans for education, a home or other large expenses.
• Review your investment mix and rebalance if it has drifted.

Plan your taxes

• Estimate your tax for the year, especially if you have self-employment, investment or rental income.
• Adjust your withholding or estimated payments to avoid surprises and penalties.
• Keep organized records and receipts for deductions.
• Consider the timing of income, deductions and charitable gifts.

Protect your family

• Have a current will, and consider powers of attorney and health care directives.
• Review beneficiary designations on retirement accounts and insurance, since they override a will.
• Name guardians for minor children.
• Keep a list of accounts, advisers and document locations where your family can find it.

Plan for retirement

• Estimate the income you will need and the age you want to retire.
• Check your Social Security earnings record at ssa.gov.
• Think about health care costs, including Medicare enrollment timing.

Make it a habit

Pick one date each year, for example early in January, to review everything. Revisit sooner after a marriage, birth, job change, home purchase, inheritance or retirement. Simple plans you follow beat complicated ones you abandon.

If you would like a second set of eyes on your plan, contact us and we can help with the tax and cash-flow side.