Starting Out Checklist

Posted On March 12, 2017

Starting Out Checklist

General information Yes No N/A
1. Has relevant personal information been gathered?
2. Has financial situation been assessed?

  • Income
  • Expenses
  • Assets
  • Liabilities
Notes:
Savings and cash management Yes No N/A
1. Have financial goals been discussed and prioritized?

  • Cash reserve for emergencies
  • Saving for down payment on home
  • Saving for other major expense (e.g., car, travel)
  • Saving for retirement
2. Have saving and investment vehicles been established?

  • Savings account
  • Checking account
  • Money market account
  • Certificates of deposit
  • Mutual funds
  • Stocks
  • Bonds
  • Annuities
  • IRA
  • 401(k) or other retirement plan
3. Has making appropriate investment decisions been discussed?

  • Risk tolerance
  • Liquidity needs
  • Time horizon
  • Types of investments (e.g., income, growth)
  • Diversification
  • Tax consequences
  • Dollar cost averaging
4. Has a budget been prepared?
5. Is an appropriate financial record-keeping system being used?
Notes:
Credit management Yes No N/A
1. Has good credit history been established?
2. Have ways to maintain a good credit history been discussed?
3. Has outstanding consumer debt (including interest rates) been listed?

  • Credit cards
  • Auto loans
  • Student loans
  • Mortgages
  • Other secured or unsecured loans or lines of credit
4. Have ways to reduce consumer debt been discussed?

  • Paying cash vs. using credit
  • Lowering interest rates on loans and credit cards
  • Consolidation of student loans
  • Debt consolidation loans
  • Use of home equity loan
Notes:
Insurance planning Yes No N/A
1. Have insurance needs been reviewed?

  • Health
  • Life
  • Disability
  • Auto
  • Homeowners/renters
  • Liability
2. Is group coverage available from employer or other source?

  • Health
  • Life
  • Disability
  • Auto
  • Homeowners/renters
  • Liability
3. Does insurance need to be purchased or upgraded?

  • Health (including short-term coverage)
  • Life
  • Disability
  • Auto
  • Homeowners/renters
  • Liability
Notes:
Retirement planning Yes No N/A
1. Have retirement income needs been evaluated?
2. Have retirement income sources been discussed?

  • Social Security
  • Pension
  • 401(k)s and other retirement plans
  • Personal savings (including IRAs)
Notes:
Estate planning Yes No N/A
1. Is there a will?
2. If so, was it drafted recently (i.e., within the last five years)?
3. Have durable powers of attorney been executed?
4. Have health-care directives been executed?
Notes:
Tax planning Yes No N/A
1. Has appropriate income tax filing status been chosen?
2. Has proper income tax withholding amount been calculated?
3. Will estimated income tax payments need to be made?
4. Is self-employment income a consideration?
5. Has personal deduction planning been explained?

  • Taking standard deduction vs. itemizing deduction
  • Timing of deductions
  • Limits on deductions
6. Have relevant deductions and credits been reviewed?
Notes:

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About The Author

Kingdom Financial Ministries

A financial professional can apply his or her skills to your specific needs. Just as important, you have someone who can answer questions about things that you may find confusing or anxiety-provoking. When the financial markets go through one of their periodic downturns, having someone you can turn to may help you make sense of it all. Donald A. Galade is a self-starting motivated individual who believes the Bible is the inspired Word of God. Don is President of Galade Financial Services, Inc. a full-service insurance brokerage firm, and CEO of GFS Financial Advisors, LLC. which is a registered investment advisory (RIA) firm located in Drums, PA.