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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