More Money in 2009!

Got goals? Still working on your goals for 2009?

Normally, I kickoff the New Year by sharing ideas related to setting goals for real estate investing. This year – though – I’d like to try something new. The following list is a broad brainstorm of ideas for making, keeping, and investing MORE MONEY!

Caution – don’t try to do everything! Just read through the list & pick a couple of ideas that would help you create an awesome financial future for you and your family.

How I can help? Call me if you want referrals to get started on any of these ideas. My colleagues and I are eager to assist you in reaching your goals! (And of course – I’m always ready to help you and your referrals in anything related to investing in real estate!)

Income Goals

• Primary income – how much do you plan to make in your “day” job or primary source of income

• Secondary income stream – is this the year to start or expand a secondary income stream?

• Passive or residual income- is this the year to start or expand an income stream that comes to you – whether you’re working on it or not?

Planning Goals

• Savings goals - Emergency funds, investing funds
• Debt reduction – credit card, student loans, car loans, home equity loans, etc.
• College – did you know that a professional college consultant can help you plan the process for selecting a college with your high school junior or senior, & then advise you on financing options?
• Retirement – do you know how much you will need & have a plan for accumulating it?
• Real Estate – do you have a plan for selling or purchasing a residence? An investment property?

Investing Goals

• Cash
• Stocks, bonds, mutual funds, ETFs (exchange traded funds)
• Retirement accounts (401Ks, solo 401k, IRAs, Roth IRA, SEP, etc.) – setup, review, rebalance, contribution goals for 2009
• Rollover - do you have any accounts to rollover due to a job change?
• Flexible spending account
• Real Estate Investing

• Buy ___ properties
• Sell / 1031 exchange property
• Refinance property (with what objective?)
• Entity planning – is this the year to setup an LLC or other entity for holding your real estate?
• Properties in your trust or not? Did you take any properties out of a trust to refinance them & forget to put them back in your trust?
• Property tax review & potential reassessment request
• Get update on local market & rents
• Get update on property value
• Chattel appraisal
• Maintenance plans for properties
• Hire property manager (if you’ve been managing a rental yourself – is this the year to hire a pro?)

Financial Housekeeping Goals

• Track & categorize monthly income & expenses (this can dramatically change your financial life, even if you only do it for one month!)
• Budget – create or update a household budget
• Credit – check on credit score & take actions to improve it, if needed
• Account clean up – do you have multiple savings or investing accounts that should be consolidated to save time & fees?
• Contract review – phone service, Internet, cell phones, cable, satellite TV, Netflix, etc. Are you on the most cost effective plans for your usage?
• Financial appendix - did you sign up for a service that you no longer use?
• Stuff – what have you been meaning to sell on eBay or craigslist?
• Important Papers – are your important papers organized and protected? Does your significant other, family and estate executor know where to locate the papers (including important account numbers and passwords)?

Wealth Protection Goals

Insurance

• Review current policies – home owners, life, car for sufficient coverage & appropriate deductibles
• Umbrella liability policy – got one?
• Long term health care coverage
• Health insurance - if you are currently on COBRA – have you investigated more cost effective forms of health insurance?
• Visual inventory – do you have a digital inventory (camera or video) of the contents of your home?

Taxes

• CPA – is this the year to graduate from TurboTax & hire a CPA to prepare your taxes?
• Bookkeeper – is this the year to get help in organizing and managing all that paperwork?
• Tax Planning – do you have a plan for how to minimize the taxes you’ll owe on 2009 earnings?

Legacy planning

• Advance health care directive and a durable power of attorney naming who can make medical decisions for you so that you can avoid conservatorships
• Living trust in place so that your family can avoid probate? Properties in other counties and other states? If so, do you know that without a living trust, your family would have to probate your real properties in each county and state in which the property is located?
• Guardians named to take care of your minor children? Will your children receive their inheritance outright at a certain age or leave it in a trust until a certain age?
• Blended family? Does your living trust reflect children from a previous marriage, new children, etc.?
• Old living trust? Do you have a living trust that you did more than 5 years ago? It needs to be reviewed and updated
• Gifting plan - that states how you would want to gift your property? (If you would like someone other than your immediate family, like a partner, friend, or charity to receive some of your assets, you have to do so in writing.)

This time next year, how do you want 2009 to have looked for you and your loved ones? Take steps now, to be at the leading edge (to take advantage of) of the opportunities ahead as the economy rebounds.