Good financial health isn’t built in one day. It takes careful planning and budgeting to maintain habits that will grow your wealth and make sure you are prepared for any unexpected events life may throw at you. The thing is, this isn’t something you have to tackle alone. Our checklist can help you stay on top of your goals so that you can focus more on the things that really matter to you.
Best Practices for General Planning
☐ Set up an emergency fund
☐ Review your credit report for any discrepancies
☐ Track all your sources of income
☐ Review your expected monthly and annual expenses, including entertainment subscriptions, insurance payments, etc.
☐ Consider refinancing your mortgages or other debt to reduce interest expense and improve your cash flow
Estate Planning
☐ Review/draft wills, trusts, and other legal documents to provide for the desired disposition of property and protect against incapacity
☐ Determine the most appropriate property for lifetime gifts, donations, and spending
☐ Arrange for the orderly disposition of closely-held business or other property to maintain value and liquidity for heirs
☐ Review beneficiaries of all accounts/policies to ensure they are in line with goals
Investment Planning
☐ Identify your investing objectives
☐ Evaluate whether your portfolio is aligned with your objectives, risk tolerance, and risk capacity
☐ Determine if your investments maintain low costs and are positioned to achieve the highest return possible for their level of risk
☐ Reallocate or rebalance if necessary, limiting taxes where possible
Insurance Planning
☐ Ensure that you have adequate insurance to cover high-severity exposures such as casualty/theft, death, disability, illness, or long-term care
☐ Review current and prospective policies to identify if coverages are appropriate for your particular circumstances
☐ Determine if premiums are in line with similar policies offered by other insurers
☐ If change is warranted, consider the costs and risks associated with modifying or eliminating existing coverage
Retirement Planning
☐ Plan your next year’s savings via a brokerage account, qualified plan (e.g. 401(k)), HSA, Roth IRA, or traditional IRA, depending on your individual circumstances
☐ Review whether you are taking full advantage of any company match that may be available to you through your employer’s retirement plan offering
☐ Research how to efficiently navigate the tax and penalty provisions concerning retirement account distributions and rollovers
☐ Engage in a Social Security claiming strategy which creates the most value for you and your family
☐ Enroll in Medicare if necessary and select the most appropriate Medigap or Medicare Advantage plan
☐ Take your required minimum distributions (RMDs) if you are 73 years old or older (though you may be allowed to take them later depending on several factors).
☐ Identify opportunities to delay or minimize RMDs where possible
Tax Planning
☐ Determine the suitability of Roth conversions in years of low taxable income
☐ Manage your capital gains and overall taxable income to remain eligible for various tax deductions, credits, and other tax-related subsidies if possible
☐ For those who are charitably inclined, decide between tax-deductible charitable contributions and Qualified Charitable Contributions
If you’re ever unsure of where to start or what would be best for your unique situation, we can help. At Condor Capital Wealth Management, our advisors are here to help if you have questions about a specific issue, need guidance on reaching your goals, or require anything else. Give us a call at 732-356-7323, or drop by at our Contact Us page to get started.
