We discussed some ideas for 2014 financial goal setting in the 12-02-13 show which also featured a visit from my wife, Lisa (go to "media" tab and select "podcasts" to listen). As mentioned, I am including some of the content here for those who wish to read instead!

Goal suggestions:

Let’s begin with the end in mind, essentially death preps (wealth transfer):

• Will or Trust. This ensures your wishes will be honored and helps protect spouse in some cases. So skip the jewelry store and go see an estate attorney! Wives like to know that husband is looking out for them.
• HCD and POA in case of incapacitation.
• Adequate life insurance depending on age and circumstances.
• Business owners: buy/sell agreement with funding.
• This is a topic of great debate amongst some of the ultra wealthy. Some believe that children should not benefit from parents’ success. Buffett is an example of this. Others believe that children, if properly prepared, are the best recipients of parents’ wealth. Trump exemplifies this idea.

Wealth enhancement goals

• Net worth: do you know it? If not, this is your next goal! How much additional by year’s end?
• Tax situation: Do you use a CPA? If not, then why not?!? You are likely over-paying your taxes. Schedule a consultation. I meet 2 x’s per year with mine for tax planning purposes.
• Retirement situation: If still working/earning, do you know how much is enough? Rough figure is 8 x’s annual income. If in retirement, do you have enough to keep you there? Can go through retirement income estimator process to verify. If it has been more than 5-7 years, might be a good idea, unless tracking net worth shows excess/surplus.
• Fees and costs: do you know what your current investment portfolio costs in real terms? For many people this is a mystery. People assume that somehow something “magic” takes place that makes money available for the service provider. I am not saying all fees are bad. I charge a fee. Just know what you are receiving in return for the costs incurred.

Open-ended financial risk mitigation (wealth protection)

• Business owners: sufficient amount of needed coverage? Liabilities will vary by industry/profession.
• Home and auto coverage, especially liability? Remember, 25% of MN drivers have no coverage!
• Health insurance: Fidelity estimates this could be as high as $240,000 for a retired couple during retirement years.
• Long-term care insurance: There is no safety net for this other than poverty.
• Asset protection from lawsuits/judgments.
• Schedule an appointment with an attorney to discuss your personal and professional risks. You might be surprised by what you learn.

Charitable giving

Are there causes out there that matter to you? How are you helping them?