IT’S A NEW YEAR – WHAT’S THE PLAN?
Neal A. Deutsch, CFP®
Published in Rivertown Journal, February 2008
By now, the holidays are a distant, fond memory (OK…the bills may not
be so warm and fuzzy). We’ve returned to the real world, sans presents,
parties and the like. It’s interesting how the evolving Northeast seasons
bring equally evolving thoughts: we equate Winter with tax time, Spring with
flowers, Summer with swimming, and Fall with Thanksgiving- OK…these
are mine- feel free to fill in your own! What we tend to forget is each year
on January 1, the calendar give us a fresh start on shaking up the schedule
we have learned to set ourselves into. I’d like to suggest a major shakeup.
While we are busy getting our paperwork together for tax year 2007, how about
starting now to get ready for 2008? Instead of scrounging onto drawers and
pockets at the end of the year to find those deductible receipts, how about
a trip down to Staples for a folder to keep them organized starting now?
If I offered you a couple of hundred dollars to clean out your closet and
garage, would you do it? I’ll bet you would- think about all of the clothes
you don’t use, and how many folks who are not as fortunate. Take a trip
down to your local charity with those precious clothes- with a detailed list.
Have them stamp it, and give it to your accountant next year. You’ll
be amazed how great the closets look with more room- not to mention the tax
savings.
Review your insurance policies. Call your Property and Casualty (car, boat,
home) agent, and make sure that your coverage is current and up to date. Shop
it around- premiums vary from company to company. Have there been any material
changes in your life, like a marriage, divorce, new acquisition, etc? Check
with your life and disability agent to make sure that you are adequately covered
in the unlikely case of a catastrophe.
When’s the last time you called your investment planner for a review?
In this ever-changing economic environment, you should be meeting with your
advisor once or twice a year. Give them a call to discuss your portfolio and
to discuss a strategy for the coming year. Talk about your short and long term
plans, and how your investment management conforms to your aims, goals and
objectives. Doing it yourself? Perhaps it’s time to consider a professional
advisor, who has the skills to guide you through the myriad of investment choices
and help you to set a path toward retirement, funding college, or any dream
you may design.
Check you credit cards for terms and conditions. Refer to our website (www.chestnutinvestment.com,
click on news) for an article on “Negotiating your credit card rates” for
a guide through this confusing area.
Been planning to start a diet or join a gym? We can’t take care of those
around us before we take care of ourselves. Remember the last time you were
on a plane, and the beginning speech tells you to put the oxygen mask on yourself
before taking care of the children? It’s because if you are not healthy,
you can’t help others. Do it for those you love, and do it for you.
Ready for vacation yet? Let’s try something different this year…coming
back with no bills! Figure out the cost of the trip, divide it by the amount
of months before leaving, and set up a saving account making monthly deposits
to pay for the trip PRIOR TO DEPARTURE. Wow…what a concept – a vacation
we don’t have to pay for long after the tan is faded!
Let’s start thinking “in advance” this year. In short, think
about those deadlines that wake you up at 2 AM. Get a jump on them – beat them
before they wake you up again!
Neal A. Deutsch is a Certified Financial Planner™, Registered
Securities Principal and President of Chestnut Investment Group in Suffern,
NY, helping people with financial planning since 1984. Please feel free to
call Neal at 845.369.0016 or email him with your questions at neald@chestnutinvestment.com
Feel free to visit his website at www.chestnutinvestment.com
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