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FINANCIAL LIFE EVENTSGetting started Lay the ground workExpenses and budget-Know how much you make and where it goes.Control your debt-control your credit purchases.Establish emergency fund-Principle 5 stuff happens, keep liquid cash.Control your credit score-a high score has many benefits Keep current on personal finance- Principle1 knowledge is power.Identify your goalsIdentify and prioritize financial goals-Principle 2 nothing happens without a plan.Set a time frame-when would you like to reach your goal?Identify the cost of your goal-How much will it take to reach itBegin saving for your goalSave more money than you think you can-Don’t let your expenses decide how much you can save.Make saving automatic-Directly from your paycheck and put into savingsAvoid expenses whenever you can-Be careful of fees on loans.Don’t procrastinate- Don’t put off savingsCatch your matches-Take advantage of any matching contributions that your employer offers.ROTH-Tax differedHow much risk can you tolerate? - Understand your risk tolerance.Asset Allocation- Diversification.Put together a strategy- Your investment strategy reflect your risk tolerance.Control your spending- Control your expanses and any excess spending.Manage your portfolioMonitor your portfolio-Review your investment performance annually and adjust.Stay current-Stay up to date on changes taxes and investment strategies.Adjust to changes-Life evolves and changes when necessary change your goals.MarriageGet organizedWork together-Discuss how money will be handled, Have a written budget.Update all financial records- All these accounts should reflect address, name changes, social security identification, bills, bank accounts, and any finance accounts.Gain control of your debt and credit score- With your new budget work toward paying off debt and building your credit score.Consolidate your credit cards- Have a reasonable amount of credit cardsMerge your finances- This give you the big picture and helps you reach your financial goals sooner.Create a work space- Creating a work space helps keep your finances organized.Revisit your financial goals Reexamine your financial goals- New goals need a new plan.Savings for your new goals- Make your savings automated deduct from your payroll.Have an emergency fund- Principle 5 stuff happens be prepared.Start savings for retirement- Plan together for your retirement.Examine your insurance benefitsReview your benefactors- to whom will assets be dispersed.Revise your insurance- Revise and update your life, health, auto, and disability insurance coverage- Make sure your insurance is antiquate for your new circumstances. Reexamine your taxesUpdate your 401kReview your income and plan any tax breaks available to your new circumstances.Make a willMake a will and revise your beneficiaries.Buying a homeThe purchase fits your financial plan- Keep in within your budgetTrack your credit scores-Your scores might affect your purchase, and interest rate. Consider tax implicationsTake advantage of tax benefits- Your home is a great area for tax benefits. Consider this in your budget.Reexamine your investments- If your moving to another state consider moving your investment.Know your state- Each state varies when it comes to taxes understand them for best tax benefits. Update your address- Update your address with all of your credit companies, banks, credit unions. Update your insurance policies- Update your insurance to reflect the value in your new home and its contents. Having a Child Survey your financesAsses your financial situation- Look at where you are now.Reexamine your financial goal- Consider what your future will hold.Revise your Budget- Set new goalsPlan for collage- Principle three time value of moneyEstimate the cost- Open a 529 plan and contribute.Automate your savings- Have savings withdrawn directly from your payroll. Reconsider your insurance needsRevise and update your life, health, and disability insurance coverage- Make sure your insurance is antiquate for your new circumstances. Update your will and trustUpdate or make a will- Make a will designate guardian and how your child will be provide for.Update your retirement account beneficiary designations- Update your benefactors. Take advantage of tax savingsSocial Security number- Get a social security number for your child take the tax advantage. Update your W-4 form- This will reflect your new exemption.Update your flexible spending accounts- For your new extra medical expenses.Inheritance, bonuses, or unexpected money Examine the priority of your goals- This changes your financial plan and can help you reach your financial goals quickly. Reexamine your goals- Consider your goals determine what your priorities are.Consider estate planningTransfer of your estate-Plan for how you will pass this on to your children.Examine the tax implicationsPlan for tax implications- Make sure taxes are put in your budget.Consider estate taxes- Take steps to minimize your tax. Major IllnessReexamine your financesAsses your current financial situation- Look at where you are at now.Emergency fund adequate liquidity- This is what an emergency fund is for make sure it is enough.Reexamine financial goals- Consider your new challenges and how they affect your goals.Reexamine your investment strategy- Your working years may change. This also changes how and when you retire. Revise your budget- Change your budget to include your new expenses redefine your financial goals.Take advantage of tax brakesUnderstand the tax implications- Some expenses are tax deductions.Explore flexible spending accounts- Estimate you’re out of pocket expenses utilize your flexible spending account.Alternatives to finance your illnessReverse mortgage- This may help you with needed income while you maintain ownership of your home.Determine how much you can get with a reverse mortgage- Use the AARP reverse mortgage calculator.Caring for an elderly parent Health care and estate planning concernsInitiate a dialogue with your parents- This helps parents voice their needs, concerns, and their final wishes.Oversee your parent’s financial affairsA. Organize the paper work- Know where they are kept.Gain understanding of their goals and budgets- Make sure they are maximizing their benefits.Develop a budget- Help with budget.Durable power of attorney- Help them make their wishes know in a health care proxy.Discuss long term care optionsLong term healthcare insurance- Based on assets long term health care is needed.VIII. Retire1. Estate planningDiscuss estate planning- Review all estate planning options look for ways to eliminate any estate taxes. Allocate all assets and personal property2. Develop a retirement income planMental preparation- Everything changes be prepared financially as well as emotionally.Financial preparation- Make sure you have an adequate amount saved carefully manage it.Plan how you will use your retirement savings- Know the rules regarding distribution and taxes on use your retirement savings. Manage your income in retirementWithdrawal strategy- Plan a strategy that has your money last your life time.Monitoring your investments- Monitor your investments stay on course for your retirement. Revise your insurance coverage and your willEmployer retiree health care- Find out what If any retiree health care options are available.Medicare- Learn about your Medicare coverage and requirements.Medicare supplemental insurance- Check out what is available and what it costs.Long term health care- Learn the cost and benefits make a decision early.Home owners insurance- Have enough coverage.Revise your will- Plan for how things will be dispersed upon your death.Keep track of important retirement planning dates.Apply for social security benefits your best return- Plan for your best return based on when you retire.Apply for Medicare benefits- Apply for Medicare right away even if you don’t apply for social security benefits. Receive retirement discernments from your retirement accounts- Before age 60 with drawls should be considered.Take mandatory retirement distributions- Before your 71 you must start taking distributions.Become eligible for reverse mortgage- At age 62 you are eligible for a reverse mortgage.IX. Death of a spouseOrganize financial materialAssemble the papers- Gather all necessary papers, file for benefits, finalize estate, death certificate, insurance policies, social security, military papers, marriage certificate, birth certificate of dependants, the will and a list of assets.Contact sources of survivor benefitsInsurers- Contact your insurance.Social security-Contact social security find out about death benefits and survivors benefits.Past employers- Find out what your benefits are.If you’re the executor- Carrie out your responsibilitiesDistribution of assets- Make sure all expenses and taxes are paid.Chang ownership or title to assetsInsurance Policies, automobiles, bank accounts, stocks, bonds, safe deposit box, mutual funds, credit cards. Review your financial and retirement needsDetermined if your benefits changed- Review benefactors.Contact their employer- check out if any benefits due.Review your insurance- Your insurance needs may have decreased.Review your medical insurance- review your medical coverage finds out about coverage if your insurance was with your spouse.X.Divorce1. Preparing for divorcePay down debtKeep costs down- keep things civil.2. Avoid Credit damageA. Joint accounts- Pay off change accounts to own name, and monitor them. This can adversely affect your credit score.B. Late payments- Add a note on your credit report explaining this. Make a request from your creditors to re-age your accounts.3. Revisit your financial goalA. Reevaluate your goals- Put a new plan in placeB. Social Security and your ex spouses earning history- Make sure you get the benefits you are entitled.4. Reexamine your insurance coverageA. Insurance coverage- Have coverage on your own or continue with cobra.B. Child support or alimony- Understand tax implicationsC. Life insurance- Have a police in place that would cover the loss of child support and alimony in the event of death.5. Rework your budgetA. Your budget- Should reflect your new lifestyle.B. Retirement savings- Things have changed still plan for the future.C. Reexamine your expenses- Change what doesn’t work in your budget any more.D. Emergency fund- A must have it is just you now!E. Tax breaks- Investigate and plan accordingly. ................
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