Client Name
THE FINANCIAL FREEDOM BLUEPRINT
®
01
Your budget and cash flow come first
Check out our great budgeting spreadsheet along with our state of the art budgeting software. a. It’s important to have an idea of what your taxes will be at year end i. IRS Withholding Calculator ii. Missouri Withholding Calculator iii. Kansas Withholding Calculator
BUDGET & CASH FLOW
02 SALARY
Every year you should be having salary negotiations with your employer It is imperative you always know what is expected and how you can advance your career and salary/bonus.
NEGOTIATION
03
I recommend keeping $xx in your checking account at all times. This will serve as a buffer for larger expenses that don’t happen on a monthly basis
FUND EMERGENCY
Current savings balance is $xx
a
ACCOUNT
Your current interest rate is xx%
On an annual basis, any money above $xx in this account will be sent to a High-Yield Savings Account, an investment account, or some other savings vehicle.
THE FINANCIAL FREEDOM BLUEPRINT
At your current balance, you would earn an additional $xx a year in interest
®
d We recommend opening a High-Yield Savings Account, currently yielding 1.30%
Set up $xx auto contributions on a monthly basis from your primary checking account
b c
Any extra money on a monthly basis should fund this account first
Add additional savings accounts for other goals and large purchases a. Set up auto contributions on a monthly basis from primary checking b. Any additional monies on a monthly basis should fund these accounts after your emergency savings has been funded
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04
Pay off Credit Card Debt a. Name of Credit Card i. xx% interest rate ii. Current balance of $xx iii. Monthly payment of $xx iv. Payoff date goal of xx
PAY OFF CREDIT CARDS
Personalized Recommendations for You
05
Pay off Auto Loan (Best Practice: Drive for 10 years and pass down to a child) a. Name of Auto Loan i. xx% interest rate ii. Current balance of $xx iii. Monthly payment of $xx iv. Payoff date goal of xx
PAY OFF AUTO LOAN
Personalized Recommendations for You
06
Pay off Student Loan Debt a. Name Student Loan i. xx% interest rate ii. Current balance of $xx iii. Monthly payment of $xx iv. Payoff date goal of xx
PAY OFF STUDENT
LOANS
Personalized Recommendations for You
07
Refinance Home Loan a. Primary Residence i. ii. iii. iv.
REFINANCE HOME LOAN
xx% interest rate Original loan of $xx with principal balance of $xx Monthly P&I payment of $xx with escrow of $xx Payoff date xx
Personalized Recommendations for You
Referrals can be Provided
THE FINANCIAL FREEDOM BLUEPRINT
®
(816) 287-4780 // WWW.NEXTGEN-WEALTH.COM
08
Consider a Home Equity Line of Credit These are ideal for an emergency account even if they are never used.
HOME
a. Great if you lose a job expectantly (might be too late after you lose the job) b. Investment property or second home purchase c. Debt consolidation d. College tuition (see college savings section for more information)
EQUITY
CREDIT
Referrals can be Provided
09
Homeowner’s and Auto insurance Investigate the savings if deductibles are increased to $1,000 each, for each (comprehensive and collision). a. I also recommend the following for your auto coverage i. Bodily Injury $250,000/$500,000 ii. Property Damage $100,000 iii. Uninsured Motorists $250,000/$500,000 iv. Underinsured Motorists $250,000/$500,000
HOME & AUTO
INSURANCE
b. I also recommend checking if additional riders need to be added for jewelry or any other valuables that are only covered to a certain extent under your homeowners policy. Along with this, I also recommend taking an inventory video of every room in your house and saving it to your shared drive. c. I would also recommend getting updated quotes to ensure your current rates are in line i. Referrals can be Provided d. I recommend adding an $xx umbrella policy to your insurance. Inexpensive and adds extra protection
10
Retirement Plan Analysis Personalized Recommendations for You
RETIREMENT
PLAN
THE FINANCIAL FREEDOM BLUEPRINT
®
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11
Investment Allocation Analysis a. Tax efficient mutual funds, ETF’s, and stocks should be held in taxable accounts b. Tax inefficient mutual funds, ETF’s, stocks, etc. should be held in tax-deferred accounts i. Bond funds, REIT’s, high turnover funds, high income producing funds taxed at income tax rates
INVESTMENT
ALLOCATION
ANALYSIS
c. All investment assets should be taken into account when reviewing and creating an overall portfolio i. 401k’s, IRA’s, trusts, cash, rental properties, REIT’s, MLP’s, cash value life insurance, collectibles, etc. Personalized Recommendations for You
12
Heath Insurance Analysis a. Consider a high-deductible insurance policy if it is right for you and your family. Having a high-deductible health insurance policy gives you access to a Health Savings Account. These are the most tax advantaged accounts available today i. Tax deductible contributions (tax savings) ii. Tax deferred growth iii. Tax free withdrawals for medical expenses
HEALTH INSURANCE ANALYSIS
b. Consider contributing to a Flexible Spending Account (if offered) if you do not have access to a Health Savings Account. i. Tax deductible savings for qualifying medical expenses ii. Tax deductible savings for dependent/daycare expense. You can contribute to both an HSA and Dependent Care FSA at the same time Personalized Recommendations for You
Referrals can be Provided
13
Life Insurance Analysis a. Current Policies i. Name of policy, amount, term and premium b. Benefits are tax free c. I highly recommend you check all of your life insurance policies to ensure all beneficiaries are updated and correct.
LIFE INSURANCE
ANALYSIS
Personalized Recommendations for You
THE FINANCIAL FREEDOM BLUEPRINT
®
(816) 287-4780 // WWW.NEXTGEN-WEALTH.COM
14
Long-Term Disability Insurance Analysis a. Current Policies i. Name of policy, amount, and premium ii. Benefits are tax free as long as premiums are not being deducted
LONG-TERM
DISABILITY
Personalized Recommendations for You
15
Long-Term Care Insurance Analysis a. Current Policies Personalized Recommendations for You
LONG-TERM
INSURANCE
16
College Planning Analysis a. Names and details of current college savings plans in place b. Strategies reduce the cost and/or pay for college i. College Discounts for Students – www.money.com/collegediscounts
COLLEGE PLANNING
ANALYSIS
ii.
Earn college credits in high school
iii.
Spend first two years at a community college – very important if they haven’t decided on a major and can take electives
iv. v.
Part-time job Join reserves
Personalized Recommendations for You
17
Tax Analysis Personalized Recommendations for You
Referrals can be Provided
TAX ANALYSIS
THE FINANCIAL FREEDOM BLUEPRINT
®
(816) 287-4780 // WWW.NEXTGEN-WEALTH.COM
18
ESTATE PLANNING ANALYSIS
Estate Planning Analysis Meet with an Attorney a. Create will and trust if necessary b. Create durable power of attorney c. Create Living Will d. Create healthcare power of attorney Personalized Recommendations for You
Referrals can be Provided
19
Credit Analysis and Credit Card Recommendations a.
Get your free credit report from every four months from one of the three credit reporting agencies (Transunion, Equifax, Experian) at annualcreditreport.com
b. c.
Check out creditkarma.com to view your credit score for free
CREDIT CARD
ANALYSIS
Sign up for Optoutprescreen.com i. No more credit card offers in the mail
Credit Card Recommendations for You
20
Annual Charitable Contribution Analysis
CHARITABLE ANALYSIS
a.
It is a must to visit with your CPA at the end of every year to determine where your income taxes will fall, so you can make a determination prior to year-end
b.
Charitable contributions are the easiest way to cut down on a tax payment every year
c.
Go with your church, non-profits you’re passionate about or a Donor Advised Fund
Personalized Recommendations for You
21
Financial Automation Recommendations
FINANCIAL AUTOMATIONS
THE FINANCIAL FREEDOM BLUEPRINT
®
a.
Set up level bill pay for all utilities i. This will allow for a more consistent monthly budget
b.
Set up auto-draft our monthly fixed expenses i. This will allow for a more consistent, streamlined monthly budget.
c.
Set up budgeting tracking within a synced financial dashboard (this software is provided free of charge to our clients)
BILL PAY
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22 UTILIZE
CLOUD STORAGE
Utilize Cloud Storage
Store important documents on the cloud for access from anywhere. a. Share documents with family and other advisors b.
Storage for all of your important documents
ii. ii. iii. iv.
Passport Estate planning documents Birth certificates Social Security Cards
We provide a secured shared folder for all of our clients
23 FINANCIAL
DASHBOARD
24
Set up Your Financial Dashboard
Sync all of your financial accounts into one single dashboard for a complete snapshot of your financial picture with just one sign-on. This software is provided free of charge to our clients
Review and Update Your Financial Freedom BlueprintÂŽ Annually
FINANCIAL BLUEPRINT
FREEDOM
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