FINANCIAL PLANNING CHECKLIST
The goal of financial planning is to achieve a level of wealth that provides you with peace of mind from knowing that your personal welfare is secure. This goal is followed closely by your desire to provide for those persons who mean the most to you. Regardless of your circumstances, you need to be pro-active in your planning.
Proper financial planning should: (a) be realistic in seeking to work with your current cash flow and assets, (b) take into consideration your tolerance for risk, (c) be open-ended as to the amount of wealth that can be achieved, (d) protect your assets or your ability to create assets from unforeseen losses, and (e) provide for the management of your assets should you become incapacitated during life and for the orderly distribution of your assets at your death. Above all, proper financial planning should begin at the earliest possible date. Hopefully, the following list will be a good start when contacting your financial advisor for assistance in meeting all of your financial planning goals.
It is very important to remember that, when we do estate planning for our clients, we only deal in the one area that is checked, "Estate Planning" -- our law firm does not become involved in the other areas indicated -- you should contact your financial advisor for assistance in meeting the other financial planning goals and needs listed.
Planning for Specific Needs or Goals -- Have you considered the following?
_____ Emergency fund (usually recommended to be 3 to 6 times your monthly take-home income)
_____ College fund (access to higher education is still the best way to "insure" your child's or grandchild's success)
_____ Funding for a first home and/or business (for many, owning a home or having their own business "is" the "American dream")
_____ Debt consolidation and/or refinancing loan (may provide the best opportunity to pay off high interest mortgage, credit card, etc. debt and generate the cash flow to meet your other planning needs)
X Estate Planning (Wills, Trusts, Powers of Attorney, Living Wills, etc.). Regardless of the amount of your assets/property, your planning for your potential incapacity or eventual death should strive to avoid the long delays and publicity of Probate Court. An affordable, comprehensive and personalized Estate Plan could also save your heirs thousands of dollars of unnecessary legal fees, court costs and death taxes.
_____ Funeral expenses (advance planning eliminates the necessity of making decisions at an emotional time)
Asset and/or Current Income Protection Planning -- Are you protected?
_____ Automobile and Homeowner's or Renter's insurance (protects your car, home and contents of the home)
_____ Umbrella policy (relatively inexpensive protection against extraordinary liabilities)
_____ Health insurance and/or Medicare Supplement insurance (access to good medical care is often the most important factor in protecting your quality of life)
_____ Life insurance (critical to maintaining the standard of living of your loved ones)
_____ Disability Income insurance (the risk of a disabling injury or illness is many times greater than dying)
_____ Long-term Care insurance (although the average 65 year old has a better than 40% chance of residing in a nursing home at some time during his or her life, more than 80% of the cost of long-term care is incurred in the home) -- planning alternatives may be available to those who do not qualify for long-term care insurance
Retirement Planning -- Will your income last as long as your retirement?
_____ Commit to regularly set aside a portion of your assets for retirement investment purposes (relying on Social Security or an employer-sponsored retirement plan is shortsighted at best)
_____ Have a written plan with specific dollar goals to be reached at designated dates (and use reasonable assumptions as to income requirements, rates of return, inflation, taxes and life expectancy)
_____ Maximize the use of tax-advantaged investments (IRA's, 401k's, SEP's, 403b's, tax-deferred annuities, etc.)
_____ Understand the trade off between risk and reward (proper allocation of your assets may allow you to accept greater levels of risk to produce enhanced returns over an extended period of time)
_____ Continue your planning even after you retire (the life expectancy for an average 65 year old is approaching 20 years)
The goal of financial planning is to achieve a level of wealth that provides you with peace of mind from knowing that your personal welfare is secure. This goal is followed closely by your desire to provide for those persons who mean the most to you. Regardless of your circumstances, you need to be pro-active in your planning.
Proper financial planning should: (a) be realistic in seeking to work with your current cash flow and assets, (b) take into consideration your tolerance for risk, (c) be open-ended as to the amount of wealth that can be achieved, (d) protect your assets or your ability to create assets from unforeseen losses, and (e) provide for the management of your assets should you become incapacitated during life and for the orderly distribution of your assets at your death. Above all, proper financial planning should begin at the earliest possible date. Hopefully, the following list will be a good start when contacting your financial advisor for assistance in meeting all of your financial planning goals.
It is very important to remember that, when we do estate planning for our clients, we only deal in the one area that is checked, "Estate Planning" -- our law firm does not become involved in the other areas indicated -- you should contact your financial advisor for assistance in meeting the other financial planning goals and needs listed.
Planning for Specific Needs or Goals -- Have you considered the following?
_____ Emergency fund (usually recommended to be 3 to 6 times your monthly take-home income)
_____ College fund (access to higher education is still the best way to "insure" your child's or grandchild's success)
_____ Funding for a first home and/or business (for many, owning a home or having their own business "is" the "American dream")
_____ Debt consolidation and/or refinancing loan (may provide the best opportunity to pay off high interest mortgage, credit card, etc. debt and generate the cash flow to meet your other planning needs)
X Estate Planning (Wills, Trusts, Powers of Attorney, Living Wills, etc.). Regardless of the amount of your assets/property, your planning for your potential incapacity or eventual death should strive to avoid the long delays and publicity of Probate Court. An affordable, comprehensive and personalized Estate Plan could also save your heirs thousands of dollars of unnecessary legal fees, court costs and death taxes.
_____ Funeral expenses (advance planning eliminates the necessity of making decisions at an emotional time)
Asset and/or Current Income Protection Planning -- Are you protected?
_____ Automobile and Homeowner's or Renter's insurance (protects your car, home and contents of the home)
_____ Umbrella policy (relatively inexpensive protection against extraordinary liabilities)
_____ Health insurance and/or Medicare Supplement insurance (access to good medical care is often the most important factor in protecting your quality of life)
_____ Life insurance (critical to maintaining the standard of living of your loved ones)
_____ Disability Income insurance (the risk of a disabling injury or illness is many times greater than dying)
_____ Long-term Care insurance (although the average 65 year old has a better than 40% chance of residing in a nursing home at some time during his or her life, more than 80% of the cost of long-term care is incurred in the home) -- planning alternatives may be available to those who do not qualify for long-term care insurance
Retirement Planning -- Will your income last as long as your retirement?
_____ Commit to regularly set aside a portion of your assets for retirement investment purposes (relying on Social Security or an employer-sponsored retirement plan is shortsighted at best)
_____ Have a written plan with specific dollar goals to be reached at designated dates (and use reasonable assumptions as to income requirements, rates of return, inflation, taxes and life expectancy)
_____ Maximize the use of tax-advantaged investments (IRA's, 401k's, SEP's, 403b's, tax-deferred annuities, etc.)
_____ Understand the trade off between risk and reward (proper allocation of your assets may allow you to accept greater levels of risk to produce enhanced returns over an extended period of time)
_____ Continue your planning even after you retire (the life expectancy for an average 65 year old is approaching 20 years)