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Monday, January 08, 2007

2007 Wealth Building Plans

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

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.

Here is my plan for 2007, broken down by month.


January
  • 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.
    • April
  • File 2006 tax returns.
  • Meet with Financial Advisor to review investments status.
  • Review stock selection model and adjust holdings.
    • May
  • Revise withholding to minimize tax refunds based on 2006 tax return.
    • June
  • Review Company retirement plan results.
  • Calculate Q2 Wealth Ratios.
  • Review 529 plan investments and make changes if needed.
    • July
  • Meet with Financial Advisor to review status and make mid-year changes.
  • Review stock selection model and adjust holdings.
    • August
  • Make charitable contribution of goods to church festival.
    • September
  • Review Company retirement plan results.
  • Calculate Q3 Wealth Ratios.
    • October
  • Review investment portfolio for stocks to sell at a loss to offset gains.
  • Review stock selection model and adjust holdings.
  • Meet with Financial Advisor to review status and make changes.
  • Make charitable contribution to United Way via appreciated stock.
  • Make charitable contribution of goods to the Salvation Army.
    • November
  • Pay additional mortgage principal if possible.
  • Buy or sell stocks to avoid the wash sale rule.
    • December
  • Review Company retirement plan results.
  • Calculate Q4 Wealth Ratios.
  • Sell any additional losses to offset gains.
  • Make final charitable contribution of goods to Salvation Army.


    • While I have given myself the whole year to complete the goals, I like to get a good jump on them early in the year. Therefore, I have front loaded completion of some of my 2007 action steps (e.g. mortgage principal payment, IRA and College Savings Plan contributions) into January.

    New items will be added (in green) as needed. Also, as items are completed, I will signify with a strikeout. I will also include the month completed, if it is different from the original plan.

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

    Copyright © 2007 Achievement Catalyst, LLC
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    Posted by Super Saver at 8:14 PM

    1 comment:

    Super Saver said...

    Dimes,

    Thanks for your comment and question.

    I put in the possiblity of multiple drafts since I've learned over the years I never get it right the first (or second) time:-) First I usually find I am either missing a form or missing a 1099 when I do my first draft. Second, I sometimes get amended 1099s in March, which then requires an revision to my tax return.

    Someday, I hope to be able to get done and filed on the first try:-)

    1/10/2007 10:07 PM

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