Welcome to 2022! Is this the year you plan to make personal finance a top priority?
You’ve read about Assets – Liabilities = Net Worth, done the work to figure out your cash flow (aka budget), figured out and written down your emergency fund amount. Now, what do you do?
Consider checking-in with yourself (and your team of professionals) on these 7 key areas in financial planning:
General Financial Planning Net worth, budget, emergency fund, relationship with credit and/or debt management, and financial goals are a few items that fall under this category. Write down your goals: why do you want to save your money? How much do you want to save this year?
Educational Planning What skills do you want to learn in 2022? Do you have children and want to provide a measure of financial support when they attend college? A CERTIFIED FINANCIAL PLANNER™ may help you determine how much money you need to set aside for these goals, sources of financial assistance, and the most appropriate type of account (ex. 529 or UTMA).
Risk Management and Insurance Planning Review your insurance policies, from property and casualty to life and health, for the appropriate coverages. Are you a renter? A homeowner? Do others depend on your income? A CERTIFIED FINANCIAL PLANNER™ may help you to identify the types of insurance that may be appropriate for your situation.
Investment Planning Invest according to your goals, time horizon, and risk tolerance. What rate of return do you need to achieve to reach your goals by the time horizon you’ve selected? How much do you need to contribute to help achieve that goal? A CERTIFIED FINANCIAL PLANNER™ may help you articulate these elements to tailor your investment plan.
Tax Planning What are the tax implications of your investment decisions? Of buying and selling property? What strategies are available to you that may enhance your charitable donations while decreasing your income tax liability? A CERTIFIED FINANCIAL PLANNER™ may help you to identify these tax implications and collaborate with your tax professional.
Retirement Savings and Income Planning How much income can you expect from your investments when you retire? How much money do you need to save to reach your retirement goal? What rate of return do you need to achieve? How will inflation impact those numbers? A CERTIFIED FINANCIAL PLANNER™ may help you to identify these numbers and collaborate with you to create your plan.
Estate Planning What steps have you taken to prepare your family for your passing? When is the last time you met with your estate attorney to discuss how your property is titled? What are the tax and estate planning implications of re-titling property that involves family members? A CERTIFIED FINANCIAL PLANNER™ may help you to identify tax implications and collaborate with your tax professional and/or attorney.
By collaborating and reviewing these 7 key areas of financial planning with you, a CERTIFIED FINANCIAL PLANNER™ may help you to make 2022 the year that your finances are a priority and help you see your financial situation from a new perspective.
Wendolyn Forbes is a CERTIFIED FINANCIAL PLANNER™. For more information about Wendolyn’s financial services practice, please visit her website at www.wtf-asn.com.
Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™ and federally registered CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements.
This material is provided as a courtesy and for educational purposes only. Please consult your investment professional, legal or tax advisor for specific information pertaining to your situation.
Originally appeared in the January/February 2022 issue of Positively Haywood by Vicinitus. https://www.vicinitus.com