Sensible Perspectives

Annual Progress Review

Posted by on August 25, 2015

Your annual review will focus on:

Cash flow

– Saving enough to retire comfortably, and spending enough to enjoy life now

– Balancing college savings opportunities with potential grant and loan eligibility

– Developing a well-diversified approach to provide sufficient income throughout retirement

– Making large purchases wisely (e.g., buying enough house, but not becoming “house poor”)

– Making cash available when you need it while investing as much as possible

– Making the best Social Security decisions for you

Human capital

– Integrating your career plan and your financial plan

– Assessing financial implications of (actual and potential) income changes for your life plan

– Incorporating income fluctuations into your plan

– Making the best use of your employee retirement, life and disability insurance benefits


– Choosing the account types that best support your financial plan

– Balancing growth potential with desired asset stability

– Maintaining your asset allocation at the target you choose

– Adjusting your asset allocation target to respond to changes in your life situation

– Matching asset types with accounts to maximize after-tax income

– Choosing efficient investments to implement your plan

– Tracking the performance of your portfolio

Income tax considerations

– Choosing the right savings vehicles to maximize your tax savings

– Contributing enough to tax-advantaged accounts while limiting pressure on cash flow

– Incorporating income tax considerations in decisions to realize capital gains

– Taking advantage of investment losses to reduce income taxes

Estate plan considerations

– Enabling your family to cope even if you can’t help make decisions

– Taking account of your heirs’ financial needs and their capacities to deal with money

– Jointly maximizing the resources available to your heirs and your chosen charities

– Protecting your (and your heirs’) assets from unfortunate contingencies

Insurance plan

– Ensuring that your family:

– Will have enough resources even if you aren’t there to provide them

– Can cope if you can’t work and earn income

– Can afford long-term care that might be needed

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