Financial Planning - pt.2

By

Ginaya Donnette

So, after the first article, I received some inquiries about where to start - in other words encourage me!! 

My financial planner Keisha and I came up with the following milestones for me to accomplish during my year of 40.  Once these marks are met I can kick my feet up and begin enjoying the fruits of my labor.  Well almost enjoy.  I won’t be making any money but my accounts will be set up and running on autopilot...  Let's get started:
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(1) Move my small accounts into large plan that covers IRA and deferred compensation balances over to a higher yielding account through her company.  I chose a mix that included dividend earning stocks and this is just one of my ideas on creating passive income.  

(2) Increase my income through multiple streams.  I already have a part time job and the plan was to ask for a raise but I may have missed my chance to do so before corona hit us.  Now while I’m home I decided to start a new business or side gig.  At least I have time to research and figure out what that will be.

(3) Build an emergency fund.  Keisha insists on the importance of this.  I myself have always been a big saver so this area was good for me but it feels so great to have someone to discuss the best ways to balance saving and investing.  

(4) Create a budget template to review. The intention is to lower high interest debt and reduce Keisha helped put me in contact with insurance agents and a CPA to make sure I was saving money there.  I made changes to my budget (before Coronavirus thank goodness) and saved over $1000 a month! You’d be surprised by all the things we pay too much for. Another thing Keisha did for me was send my student loan information to a consultant to review if I qualify for forgiveness.  *Most of you know I am a librarian so of course I should qualify, but the program is a bunch of red tape and lies. I thought I was doing what was required to be forgiven but after ten years of service they told me I didn’t qualify.  Keisha walked me through a temporary program created for cases like mine and my application is in!  

(5) Increase life insurance. How much is enough?  I already have term life insurance but I think I will increase it now while I’m young and the price is low.  I figure that life insurance will ensure that my children have an inheritance and I could also put some of it into a trust for my descendents education needs or other kinds of support.  Wow that sounds really privileged doesn’t it?  Yes, yes it does. 
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(6) Write your will and power of attorney. Especially now that your assets are in order and growing.  I made sure that after divorcing I changed my beneficiary and now I will be writing up a will and estate documents so that my children are covered in the case that I pass before they turn 18 and to indicate where I want my money to go much later down the line (see number 5).   

I’m sure I will have more goals after these are accomplished but that’s normal.  It just means you're progressing.  But if you need help figuring out where to start hope this helps!