Fairhaven Checklist

September 2020

For many of us, our 50th birthday is a catalyst for reflection on accomplishments achieved. Getting children through college, started on their own careers and moved out of the house (hopefully), climbing that corporate ladder, all while balancing spouse/partner relationships are achievements to be celebrated!

 

The big “5-0” can also be a time to review goals yet to be accomplished and formulate actions plans for our “second half.” Starting/selling a business, giving back via teaching/mentoring or practicing for retirement (check out the Fairhaven video library to learn more about this underused concept) are all common goals yet to be achieved.

 

The Fairhaven Standard of Care

 

An important element in achieving any goal is a well thought out plan. When planning, whether that be financial planning or planning for a trip to the grocery store, it can be helpful to start with a checklist.

 

Goals being highly personalized, not all elements of the following checklist will apply to you. Unique circumstances will likely demand unique solutions. However, the following framework is intended to facilitate discussion particularly for those in their 50s or anyone else who is considering re-evaluating their financial lives and what they still have to accomplish.

 

1. Financial planning

  • Define or redefine long-term financial goals

  • Review spending and cash flow (nicer than the “B” word … Budget)

  • Stress test your plan with a Monte Carlo analysis

2. Portfolio Review

  • Does the risk in your portfolio reflect your personal risk tolerance?

  • Is your portfolio properly diversified?

  • How do you diversify across asset classes? How many asset classes and why?

 

3. Retirement

  • Visualize your retirement? What do you see yourself doing on a Tuesday morning at 11am?

  • Are you maximizing employer-sponsored retirement plans?

  • Are you making use of Roth IRAs?
     

4. Family/Legacy

  • Are you saving for a wedding … or two?

  • Might there be a need to financially help adult children? If so, when and how much?

  • Is caregiving for aging parents a possibility?
     

5. Education

  • College spending plan: How do you balance 529/savings/scholarship/student plans?

  • Should spending be equalized if children have different college expenses?

  • Are you ready to negotiate your college tuition bill? YES, this can be done!
     

6. Debt/Liability Management

  • Should an asset-based line of credit be considered as a better way to borrow?

  • Have you reviewed loans and mortgages for interest rate savings?

  • If you own or manage a business, have you compared your commercial banking relationship?

7. Insurance Review

  • Should your life insurance be modified?

  • Review home insurance for replacement cost coverage, especially in areas with rapidly escalating replacement costs

  • Review health, disability and umbrella insurance policies for coverage amounts and possible coverage gaps


8. Estate Planning

  • Discuss advance medical directives and durable power of attorney for medical and financial decisions for adults and children; consider sharing with godparents and other adults

  • Consider inheritance/intergenerational gifting strategies

  • Review ALL beneficiaries for ALL plans (IRAs, company sponsored plans, insurance policies, etc.)
     

9. Safety and Documentation

  • Stay vigilant against identity theft and cybercrime; check-in on grandparents…they are frequent targets

  • Maintain a record of safes, storage units and safety deposit boxes as well as accessibility for each

  • Securely store records of computer files and passwords, photos of personal property, inventory of vehicles, and confirmation of financing and ownership

 

For more information, please always feel welcome to reach out to Team Fairhaven. We are here to help!

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About Fairhaven

Fairhaven Wealth Management is an independent, privately-owned investment and wealth management firm serving select families and small to mid-sized businesses. At Fairhaven, our commitment is simple – we exist to serve our clients…period. Our culture of service and accountability combined with prudent risk management and tax-efficiency are the cornerstones of our client commitment.

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For more information, please contact:

Marc Horner, CFP®

Founder & Wealth Advisor

mhorner@fairhavenw.com

630.990.9000

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This material has been prepared for informational and educational purposes for our clients and friends. Please consult your Fairhaven Wealth Management professional to discuss how this may impact your own financial plan and/or investment portfolio. This material is not intended to provide, and should not be relied upon for accounting, legal or tax advice or any other purposes. Neither Fairhaven Wealth Management nor its subsidiaries or affiliates provide accounting, legal or tax advice. Please consult your tax advisor or attorney for such guidance. Fairhaven Wealth Management is an SEC registered investment advisor. For a copy of the firm’s ADV Part 2 disclosure document please direct your inquiry to admin@fairhavenw.com.

 

 

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