A Few of the Finer Things - January 2018

Here are a few suggestions for making 2018 healthy, happy and successful:

1. Create emergency savings

Life is full of unexpected emergencies, and having extra cash on hand can help keep a serious illness, home repair, or other sudden financial need from derailing your finances. Prepare for unpredictable expenses by putting aside the equivalent of six months of expenditures.

2. Make a monthly budget and stick to it

Budgets may sound like a lot of unnecessary work, especially if you're financially comfortable. But if you're not tracking your spending, you may be surprised by how quickly it adds up - and which expenses are costing you the most. As 2018 begins, set a budget and work on sticking to it for three months. Track your performance and revise the budget, as needed. Don't aim for perfection—instead, try for incremental improvement.

3. Save more for the future and have various “buckets”

Creating a disciplined savings strategy is an important way to stay on track for your retirement and other goals. We recommend keeping separate "buckets" of savings for short- and long-term goals. With the pending tax bill there are going to be some significant changes—one of the focuses for us is to be able to manage tax volatility. A strategy we use for this is to have three additional separate “buckets”—taxable, tax-free and tax-deferred…this will allow us to better manage tax volatility.

4. Make retirement plan contributions regularly (instead of all at once) and maximize them

Even if you're diligently saving, you may be among the 71% of Americans who haven't put aside enough money for retirement. One key change you can make is to take advantage of "time in the market". Instead of waiting until the last minute to make your annual contributions, give your money more time to grow by making automatic contributions to your account every month. Tax-managed retirement accounts are one of the most powerful ways to save for a more comfortable retirement, because they allow you to control your tax liabilities today - while accumulating assets for the future. Make the most of these accounts by contributing as much as you can. (Source: Washington Post)

5. Pay down high-interest debt

Did you know that 54% of Americans believe they will never pay off their debts? Don't let high interest debt keep you from getting ahead financially. If you're carrying a significant amount of debt, make paying it down a top priority. (Source: Associated Press)

6. Create a powerful legacy for the world

We believe that a rich life involves more than financial success and a comfortable lifestyle. Whether you want to leave something to your loved ones or support causes you care about, take time to address the legacy you'd like to leave.

7. Review your estate planning and legal documents

Your core legal documents need regular reviews to ensure they keep up with any changes in your life. If a few years have passed since you looked at your documents, dust them off and make sure that they still represent your wishes.

8. Stay on top of your health

Healthcare is a major expense for most Americans, especially if serious illness strikes. Take steps to protect your well-being by building a healthy lifestyle and prioritizing preventative care.

9. Have a long-term healthcare plan

Notice that we did not say “have long-term healthcare INSURANCE”…insurance may or may not be the best solution for you, but healthcare in retirement typically costs far more than most people think. We need to address plans to have this important need covered.

10. Involve your children and grandchildren in your finances

Fostering financial wisdom is a powerful way to help your children and grandchildren build a solid, stable life - and help ensure you're able to pass on your values and wealth in the future. Rather than keeping your finances private from your loved ones, we recommend including them in conversations about your goals and priorities.

– Gary Weiss & Kelly Hughes, January 2018