Question #1 - Do we have enough in savings to go without income for six months if we had to?

Six months is usually enough time to find a new job, obtain bridge financing, reposition assets, or transition to being a dual income family. Some prefer to increase their cash buffer to a full year. Remember, savings are different than long term investments. You should be able to manage the income gap without selling investments to avoid disrupting the rest of your plan.

Question #2 - Do we know how much we need to save so we can retire when, where and how we want no matter what happens between now and then?

Saving for retirement shouldn’t be a guessing game. You need to know specifically where the money will come from to fund your vision and test your plan based on a range of different economic, tax and rate of return scenarios.

Question #3 - Do we know how college will be paid for?

There are more opportunities to help pay for college today than ever before. Those who plan ahead will be better positioned to maximize their child’s pool of resources.

Question #4 - Do we have enough insurance to keep our home and support our lifestyle if one or both of us gets sick, hurt or dies unexpectedly?

According to LIMRA’s 2016 study Life Insurance Ownership in Focus, life insurance ownership today is at the lowest level since 1970 with just 46% of families owning their own policy and only 70% of families having any coverage at all[1]. Life, disability and long term care coverage are more accessible and, in many cases, less expensive today than ever before. There is no excuse not to have this critical layer of protection in place.

[1] Scanlon, M.S., HIA, James (2016). Life Insurance Ownership in Focus. LIMRA. Retrieved from LIMRA.com, https://www.limra.com/en/research/research-abstracts-public/2016/life-insurance-ownership-in-focus-2016/ 

Question #5 - Are we paying only as much in taxes as we legally have to and no more?

Despite the proliferation of tax prep software and “free” filing solutions, it’s been my experience that high earners who obtain tax advice from a qualified tax professional usually get back far more in taxes saved than they will ever pay their CPA in fees.

How Does Your Plan Stack Up?

If any of your answers were less than a confident "Yes", it is probably time for a second opinion on your financial plan. Contact us today for a free consultation and let's close those planning gaps.