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Date
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Item
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Actions
Needed
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Taking
Action
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Articles
From
Library
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Develop a
financial reserve.
Being prepared (with 3 to 6 month's living expenses) can help relieve
some of the financial anxiety we often feel.
Consider an
automatic savings plan with some amount being deposited into a savings
account from each paycheck. The fund will grow and you may end up
not even missing what is saved each month.
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2.
3.
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Enroll for direct
deposit of your payroll or government checks.
Enroll for an
automatic savings plan to transfer $____ to your savings account
each month.
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Developing
a Financial Cushion |
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Get
rid of high interest rate credit card debt.
Interest rates on some credit cards are high. If you are carrying
over balances and paying interest, cut down on your card use, pay
more than the required monthly minimum and eliminate this expense.
Also, you may want to consider a different credit card that offers
a lower rate. |
1.
2.
3.
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Review
credit card terms to find the one that is right for you. |
Evaluating
Credit Cards |
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Develop
a household budget.
This is often one of the most dreaded parts to being financially responsible.
To make the process less dreaded, call it a "household spending
analysis." Determining how you spend your money will probably
lead to identifying how to reduce some expenses. |
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2.
3.
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Download
a household spending analysis worksheet. |
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Save for
retirement.
Start with your employer's retirement plan. Review the details to
ensure you get as much of the "company match" as possible.
After considering
your employer's plan, consider contributions to an IRA or Roth IRA.
The tax deferred compounding aspects of these plans enable your
funds to grow faster.
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1.
2.
3.
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Meet with a
financial advisor to determine how the investments within your employer
plan fit within your overall investment strategy.
Contribute to
an IRA for yourself and your spouse.
|
Rethinking
Retirement
Take
Full Advantage of Your Employers 401(k) Plan
An
IRA Refresher
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Be sensitive
to taxes.
No one likes to pay more income taxes than absolutely necessary.
Be aware of
the opportunity of deducting certain items like mortgage interest,
state and local taxes, charitable contributions and certain medical
expenses. Also, consider the preferential tax treatment from capital
gains on your investments.
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2.
3.
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Meet with a
financial advisor to review your investment portfolio at least annually.
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Tax
Implications of Financial Decisions
Developing
an Effective Income Tax Strategy
Year
Round Tax Savings Strategies
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Have a sensible
investment strategy.
Start with an asset allocation goal that divides your investments
into equity, fixed income and cash investment categories.
Your initial
asset allocation should be based on your time horizon (age) and
how you feel about taking risks. The younger you are and the more
comfortable you feel with risk, allocating a larger portion of your
funds to equities may help you earn the higher returns of stocks
that have historically been available.
Remember that
all investments involve risk and that past performance is no guarantee
of future results.
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1.
2.
3.
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Meet with a
financial advisor to help you create an asset allocation and investment
strategy that is suited for your needs.
|
Asset
Allocation
Financial
Market Indicators
Investment
Portfolio Diversification
Building
a Stock Portfolio
Investing
in Mutual Funds
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Be adequately
protected.
Insurance provides protection against the unknown.
Make sure your
possessions, life and health are adequately insured.
Examine the
level of deductibles and the coverage amounts to get the protection
you need at the lowest cost.
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1.
2.
3.
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Meet with an
insurance professional to review all your homeowners, auto and life
insurance needs.
|
Have
an Insurance Strategy |
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Take care
of estate planning.
Having a well thought out will can ensure that your assets are distributed
as you desire on your death and can help reduce any estate taxes
that may be due. But estate planning is more than reducing taxes.
Your estate
plan should include documents that designate someone to make financial
decisions if you are incapable of making them (durable power of
attorney for finances) and that designate someone to make medical
decisions if you are incapacitated (durable power of attorney for
health care).
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2.
3.
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A trust professional
can review your current estate plan, suggest changes and establish
any trusts or other arrangements you may need.
|
Basics
of Estate Planning
Estate
Planning is More Than Minimizing Taxes
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Finally,
organize your records.
Having a system for handling monthly expenses can reduce the stress
and time needed to handle your everyday finances.
Using a system
to keep track of investment and tax records will make every tax
season less "taxing."
Keep other important
information organized. Having to hunt for the name of your insurance
agent, an account number, a frequent flyer number or any other bit
of information can be a waste of time.
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2.
3.
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A
wide selection of worksheets and other forms are available to help
you organize your finances. See the worksheet section of this Resource
Center. |
Tips
for Organizing Important Papers |
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