Monday, February 05, 2007

2007 Wealth Building Plans - January Review

“He who fails to plan, plans to fail.” - Proverb quote

As a reminder, I have three financial goals for 2007:

1. Keep investment income to salary ratio >0.8.
2. Increase savings to salary ratio by 1.5.
3. Decrease debt to salary ratio by 0.1.

Below is my plan for the Q1 2007, broken down by month. I have crossed out the items that have been completed. The red items are late. Blue items were completed ahead of time.

  • Send payment to pay down 4% of mortgage principal.
  • Make maximum 2007 IRA contribution.
  • Make maximum 529 plan contribution for college.
  • Meet with Financial Advisor to review investments status.
  • Consolidate tax records by end of month for April 15th filing. Get preliminary estimate of capital gains from stock investments.
  • Adjust automatic savings deposits to be 20% of salary.
  • Review stock selection model and invest in picks.
  • Allocate a portion of 401K to international funds.
  • Executor work - complete transfer of assets to trust.
  • February
  • Do first draft of 2006 tax return.
  • Make full year contribution to Church via appreciated stock.
  • Executor work - complete getting basis for 2005 and 2006 returns.
  • March
  • Final draft of 2006 tax return.
  • Review Company retirement plan results.
  • Calculate Q1 Wealth Ratios.

  • Overall, I am satisfied with the completion of action items for January, 2007. Our college, retirement IRA and mortgage debt reduction contributions are completed for the year. For our tax filing work, I have most of the 1099's, with couple brokerage accounts of still outstanding. I have made my stock picks for this quarter.

    My only outstanding task item is the executor work that I wanted to complete in January. I have pulled together all the necessary documentation and still need to send the completed forms to the multiple DRIP accounts. Given the lighter task load in February, I will complete the executor work in that month.

    For more on Strategies and Plans , check back every Monday for a new segment.

    This is not financial advice. Please consult a professional advisor.

    Copyright © 2007 Achievement Catalyst, LLC

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