FINANCIALLY
Speaking
Financial Fitness In 2014
by
Daniel T. Newquist, CFP ®, AIF ®
Daniel T. Newquist, CFP ®, AIF ® is a Principal Wealth Advisor with RNP Advisory Services, Inc., with over 17 years experience advising clients on their personal wealth, retirement planning, insurance, and business planning needs. Born and raised in Morgan Hill, Dan is available for private consultations and speaking engagements. Investment advisory services offered through RNP Advisory Services, Inc. a registered investment advisor. Securities offered through Foothill Securities, Inc., member FINRA / SIPC, an unaffiliated company. Visit his website at www. RNPadvisory. com or call 408-779-0699.
If your New Year’ s resolution falls along these lines:“ Stick to a budget, save more money, get out of debt,” what’ s needed is a complete shift in how you view your financial matters. Like losing weight, financial fitness doesn’ t happen overnight, in a week, or a month. It takes a plan, time, hard diligent work, and often guidance from a professional or two.
Breaking down your“ Financial Fitness” goal into twelve monthly steps will help you accomplish this year’ s resolution
JANUARY Get Organized Establish your current financial picture by organizing all of your financial information including income, household expenses, health care, investments, retirement savings, debts, mortgages, taxes, etc. Develop a monthly budget for the entire year. This will give you a clear picture of your current situation and provide a framework moving forward.
FEBRUARY Start Tax Season Right Gather necessary year-end account statements, receipts, tax related documents, and forms 5498 and 1099s. Organize your documents for an efficient meeting. Schedule your tax and financial review appointments.
MARCH Finalize Tax Return Meet with your tax professional to review retirement savings and maximize your IRA tax contribution for this tax filing. Make adjustments, if necessary, to periodic current year IRA / 401( k)/ 403( b) / 457 plan contributions based on guidance from your tax professional.
APRIL Be Prepared For Emergencies Financial emergency preparation includes knowing account information for bank accounts, investment accounts, mortgages, loans and credit cards. This also includes knowing how to access the accounts and the professionals to call for the situation at hand ~ financial advisor, insurance agent, lawyer, CPA, etc. Keep the information in a safe, accessible place and up to date.
MAY Lessons For Life The foundation of financial success is to spend less than you earn. Do it and success is just a matter of time as you steadily build wealth. If you don’ t, financial success will elude you no matter how much you earn. Review your budget and make any necessary adjustments.
JUNE Seek Expert Advice Schedule a mid-year review meeting with your financial advisor. If you don’ t have an advisor, seek referrals from a friend, colleague or family member. Interview several potential advisors and look for one who you connect with, who educates and places your interest ahead of their own.
JULY Plan Your Future What have you promised yourself in retirement? It’ s the rest of your life, how are you going to spend it? Travel? Focus on family? Volunteer? Plan it out now and make it a reality.
AUGUST Develop A Financial Plan This can be done on your own, or with your financial advisor. It is a roadmap to your future goals and objectives and includes near term goals as well as a retirement savings plan, will and estate plan.
SEPTEMBER Back to School September signals back to school. College savings is top of mind for parents and grandparents. Consider 529 plan contributions in lieu of gifts for the kids.
OCTOBER Asset Allocation 101 Asset allocation is the process of dividing assets among different types of investments such as stocks, bonds, or cash. Your personal time horizon and risk tolerance are key to proper asset allocation. Review your retirement and investment accounts with your financial advisor to make sure your asset allocation is in line with your time horizon and risk tolerance.
NOVEMBER Insure For the Unexpected Request that your financial or insurance professional review your current coverage and run a full needs analysis across all spectrums of insurance: life, long term care, disability, home, auto, medical, umbrella liability.
DECEMBER Consider Gifting Ideas Give comfort. Give security. Give knowledge. Give opportunity. Give back. There are many ways to give of your time, talent and treasure through charitable giving.
BOTTOM LINE Develop a foundation for your financial future, put your goals in writing, solidify key advisor relationships, stay committed to your plan, and update and adjust as needed.
This article is intended for educational purposes only. It is not intended as investment advice. Always consult your financial or tax-planning professional for guidance with respect to your specific situation.
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