End of Year Financial Planning Checklist
6 time sensitive financial moves you should consider now, in order to successfully close out 2018.
With the holidays upon us, it can be difficult to make time to get your finances in order. Many people push out closing their year until well into the next year (ever scramble in April to get all your tax work completed?). But there are several time sensitive financial moves you should consider now, in order to successfully close out 2018.
Review your open enrollment options and optimize your selections
Make sure that you and your spouse are coordinated on health care and dependent spending and 401k and Roth saving goals.
Adjust your tax withholdings
If you have had a child in 2017, been through a divorce, changed jobs or had a change in income, you will likely need to adjust your withholdings.
Fund long term savings vehicles (401k, Roth IRA, IRA, SEP IRA, 529s).
Contribution limits for your 401k is $18,000 and IRA is $5,500. Beware that there are limits on IRAs depending on your income. If you are self employed, take the time to fund a SEP IRA, which has much higher limits than a standard IRA or 401k.
Check your health and dependent care flexible spending plans
Track down your receipts and enter them now. I like to use this wind fall to fund Christmas. If you have not used all of your money, its time to do it now. Also, if you have hit your health care deductible, it may make sense to hit the doctor one more time to take care of anything you have been putting off.
Set an end of year budget.
There is a lot going on: gifts, travel, family events, parties, family pictures. Start to think, at the very least, about some guard rails that you want to set.
Start Planning for Next Year
Set up a meeting with your financial planner. Now is the time to start setting some longer term goals for next year and help secure your retirement for tomorrow. Let me guide you through the process and monitor your progress.
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My 18 Photos of Gratitude
When I look back at our year in pictures, I am reminded of just how much we have been able to accomplish.
When reflecting on the year and looking at my photos, I am reminded of my accomplishments and how thankful I am for my friends, family and clients that have helped make this year so memorable.
Grateful for achieving my short term goals, while building on my long term, in 2018.
Hosting my family for Thanksgiving and cousin’s camp. Coaching my son’s sports teams. Skiing with my friends and family in Colorado. Flying private to NYC to see Hamilton with my friends. Sending my boys to summer camp. Seeing Atlanta United win. It has been a great year.
I am incredibly grateful to do what I love for a living: working with families to manifest their financial success and goals, so they are free to focus on their vocation and vacation. I am grateful and deeply humbled, that many of my clients refer me to their friends and colleagues. If you are ready to make 2019 an even better year, contact me. Let’s create your financial plan, that will allow you to enjoy today while building for tomorrow. Wishing you a Happy Thanksgiving, Josh.
2018 in Pictures
A BIG thank you to my wife and Chief Marketing Officer, who very patiently walks with me through life.
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Why Thanksgiving is My Favorite Holiday
Thanksgiving is a major operation!! Much like financial planning, you better have a plan if you want to enjoy reaching your goals.
Thanksgiving is almost here! It’s my favorite holiday and features all my favorite things: Cooking, family, relaxing, wine, blazing fires, card games, pies, football and kids running and playing! No gift giving expectations, the weather allows plenty of outside time, and it’s a time to recognize the meaning that your friends and family bring to your life. Thanksgiving! I love every minute of it.
A big added bonus, for me, is that our family tradition is to host. My family comes in from Lake Ocononee and Rome, GA. My in-laws come in from Florida and Connecticut. And I savor the 3 or 4 days of the year that we are all together.
Did I mention that I love to cook and I’m head chef for ~20 people during our Thanksgiving visit? Yes, I cook 3-4 days for 20 people and I still have time to enjoy and savor the time with my family. What’s my secret? Planning. Yes, It’s all about creating a plan that fits our family’s needs, then following through with some hard work, while enjoying the process.
Josh Chamberlain’s Thanksgiving Plan
Saturday/Sunday
Finalize the menu for the week
Grocery shop at the YDFM
Buy beer, wine and bourbon
Monday
Audrey (my mother-in-law and sous chef) and I check for missing ingredients
Make another run to the farmers market
Start the pie dough
Drink wine and relax
Tuesday
Brine turkey
Make pies
Cook black eyed peas
Drink wine
Wednesday
Bake mac & cheese
Cook greens
Bake potatoes
Roast brussel sprouts
Audrey and I each make a soup for our yearly “Soup Off” (she normally wins)
Attend neighbors pre-Thanksgiving party
Thursday
Fry turkey
Prime rib
Roast Carrots
Bake rolls
Make the gravy
Make Salad
Savor the feast
Watch football
Drink wine
The kids love to help make whipped cream.
Friday
Enjoy Leftovers
Family hike
Family pictures with Cathy Davis
Saturday
The weekend is only just beginning!!
It’s a plan with lots of room for a wonderful week with family and friends.
*Does anyone see the parallels to financial planning? If you want to talk turkey, contact me.
Happy Thanksgiving to you and your family!
What The Hell Is Financial Planning?
Financial planning isn’t a budget or getting life insurance or something you do once and can set it and forget it. Financial planning is an ongoing process to help you make sensible decisions about money that can help you achieve your goals in life. Here’s what it looks like…
I have recently been asked: “Josh, What exactly is this financial planning thing you keep talking about?” Is it something you do one time? Is it creating a budget? Is it just getting assets into a brokerage account and then figuring out how to invest those assets?
Financial planning isn’t a budget or getting life insurance or something you do once, set it and forget it. Financial planning is an ongoing process to help you make sensible decisions that can help you achieve your goals in life.
Financial planning: An ongoing process:
1. Developing a set of family goals and objectives
2. Creating a strategy for reaching those goals
3. Implementing the tactics that will enable the strategy
4. Monitoring the plan to ensure goals are being reached
5. Adjusting the plan as new variables become known
An Example (aka Free Financial Advice)
Here’s an example of how financial planning works. I’ll use a family goal that we can all relate to. Consider this free financial advice. The specifics below might be slightly different for your situation but you will be able to see yourself in this scenario. Feel free to bookmark this page ;)
Family Goal: Safeguarding you and your family from the unexpected
If things go sideways (e.g. the roof blows off the house, you unexpectedly need a new car or there is no salary for several months) you and your family can continue to maintain your current lifestyle without worrying about your day-to-day expenses.
2. Strategy to reach this goal:
Disability insurance
Monthly budget for “things that come up”
Rainy day fund
3. Implement the following Tactics:
Sign up for your company’s disability insurance covering x% of salary.
Factor in an additional $500 into the monthly budget for “things that come up”
Build a rainy day fund equivalent to 3 months of expenses
4. Monitoring:
Is the paycheck reflecting disability insurance getting paid?
Is the monthly budget getting funded an additional $500 each month?
How is the rainy day fund progressing towards 3 month’s of expenses?
5. Adjust:
Once the rainy day fund is fully funded, its time to start diverting money to another longer term goal.
ThIS planning thing seems like a major undertaking!
It is a serious undertaking. Understanding your goals, from securing your future, to living life to it’s fullest today and tomorrow, takes a lot of planning and commitment. My passion is helping families dream big, make a plan to get there and then monitor them and their assets to ensure they succeed. We each get one life to live and we need a plan to make sure we make the most of it: Work hard, have fun, and love our friends and family.
A Chamberlain Financial Advisors Financial plan will cover:
Understanding your long term goals.
Looking at insurance and risk mitigation.
Understanding streams of income.
Understanding streams of expenditures.
How to fund various investment vehicles that will be used to your fund goals.
Selecting low-cost ETFs that match your risk profile.
Retirement planning - how will you live when working less.
Estate planning - what will happen after you turn into a rainbow in the sky.
Are you ready to start the process that will ensure you live your life to the fullest and help you reach your long term success? Let me help!
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How to Set Financial Goals as a Couple
It is important to set goals that you can work on as a couple. Being on the same page with your joint finances helps to strengthen your money situation and your relationship. As a follow up to How to Talk about Money with Your Spouse, we are taking things to the next level: 9 Steps to Setting your family financial goals.
9 Steps to Setting Family Financial Goals together As a Couple
It is important to set goals that you can work on as a couple. Being on the same page with your joint finances helps to strengthen your money situation and your relationship. As a follow up to How to Talk about Money with Your Spouse, we are taking things to the next level: Setting your family financial goals.
“Our goals can only be reached through a vehicle of a plan, in which we must fervently believe, and upon which we must vigorously act. There is no other route to success.” -Pablo Picasso
Organize your goals by Time frame
I like to break goals into short, mid and long range time frames:
Short term goals: < 1 year
Mid term goals: 1 - 5 years
Long term goals: 10 - 20 years
2. What are Short term goals?
What is going on in your life, that needs to be immediately addressed? Maybe you have been putting off a house project, but you don’t know how to get started. Maybe you want to plan a family vacation, for some good quality time or you need to you have money sitting in an 401k from your last job and you need to roll it over but your not quite sure what to do with it.
Short term goals are generally fairly easy to envision. You know your current self, so you know what you need to do. However, writing down your short term goals and talking about them, will help in actually getting them done.
3. Mid term goals
Mid term goals tend to be a bit tougher than short term goals, because you know what they are, but you know it is going to take more time and effort to get there. You will need to monitor your progress and you will need a plan. Mid term goals are things like: Planning to start a family, paying down debt, saving up for a down payment on a house or switching careers in the next few years.
4. Long term goals
“A goal is a dream with a deadline.”
-Napoleon Hill
While mid term goals are difficult because they require work, long term goals are more challenging because they seem ephemeral, variables can change as time passes and they are difficult to envision. You may not know what really matters to you, yet. You may foresee changes in the future that could impact your goals. Or maybe you just can’t imagine yourself in 10 years. Long term goals require some real thinking, discussion and envisioning. You may need to dig in and dream a little!!
5. Brainstorm, then compare notes
Now we have defined what we mean by the different time frames for goals. How do you actually have a discussion around your shared financial goals? First, realize that this discussion may prove to be harder than you thought. For example, you may find that your goals are not aligned (at all).
I am a fan of the sticky note method: Using sticky notes, spend 5 minutes separately jotting down as many short term goals as possible. Write it all down, even the absurd … brainstorming is not a time to “cull the herd”, dream a little and have fun!! Then come together and share your sets. As a team, now is the time to really start to evaluate what makes sense. It is also a time to stop and appreciate the unique perspective of your sweetheart. DON’T go about bludgeoning, like baby seals, your sweetheart’s ideas. Be open minded. Then iterate through mid and long term goals.
6. Don’t jump into solutioNing!!
The point of the discussion is to create a set of goals. A plan to accomplish those goals, should come after the set is created. Too often, a goal may be jettisoned early in the process because it may seem hard, or because there is no clear path to achieving it. Don’t let that hinder you. Goals are meant to be hard. They will force you to plan and work.
7. Prioritize
“Most people overestimate what they can accomplish in a year, and underestimate what they can do in 10!”
-Bill Gates
It’s time to determine if the entire set is reasonable. If you believe you can reliably reach all of your goals, it’s possible you were not audacious enough. I say live a little, be bold!! If on the other hand, you have gone completely nuts, now is the time to start getting realistic. Start by deciding how much you have to fund your goals. Then break up the funding as a percentage of short/mid/long term goals. A good recommendation is: 25% - short, 35% - mid, 40% long term. Now is the time to edit, get rid of things that you can’t fund. Or deprioritize them to a future discussion. My mantra in these discussion is: if I can’t prioritize them now, maybe they are not really worth prioritizing at all. This is where the planning really comes into play.
8. Share your goals with friends and family
Now that you have your set of goals, unpack them in front of friends, at dinner or over drinks. How do they feel having rolled them around in your mouth, are you still resolute in what you have? Did you get any good opinions? Additions? Good Ideas? Do you now have some accountability partners? Did you inspire your friends to have a similar discussion? Incorporate good ideas into your plan. But don’t necessarily allow someone to dissuade you from something important.
9. Rejoice!
You made it through the discussion. Having these crucial discussions with your sweetheart will fundamentally strengthen your relationship. Too many times, we hold back, in order to not offend or hurt our significant others. When you shared insights with your friends, did the two of you have to work together defending your aspirations? Having struggled through the discussion, will ultimately make your relationship stronger.
Please don’t worry if you hit some road blocks during the discussion, I am here to help. This is tough to navigate on your own. Sometimes the issue is in getting an achievable list. Sometimes the struggle is coming up with the plan to reach the goals. Let’s set up some time to talk!
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How to Talk About Money With Your Spouse - 11 Tips
Money is one of the most common reasons couples fight and even split up. Don’t worry, there’s hope...
Do you find sharing a glass of wine with your spouse is made more enjoyable when combined with a conversation about budgeting? When was the last time you two were out on a walk around the neighborhood and discussed the tax advantages of IRA’s?
If you find broaching finances with your spouse generally causes stress and tension in your relationship, you are not alone! Money is one of the most common reasons couples fight and even split up. Don’t worry, there’s hope. By being proactive and discussing your finances, even seemingly incompatible spender-saver couples can find common ground and live happily ever after.
Whether you are about to tie the knot, or you’ve been married for years, with a few strategies and tips, you can find peace and happiness to last through the years:
Some people search their whole lives
to find what
I found in you.
Working together on your goals is a gift.
Begin by setting expectations. Starting simply by saying “I am interested in talking about our finances. It doesn’t have to be now, but lets make some time in the next week.” Then get it on the family calendar.
Take it slow. If you don’t know, a good starting place would be to talk about your individual views on money. Many times I find a client’s perspective on money comes directly from their childhood and parent’s relationship to money (sometimes parallel and sometimes opposite). Understanding where someone is coming from, will help you navigate your conversations moving forward.
Start out with an easy topic. A good finance starter conversation, is discussing short-term goals, such as a birthday gift or a summer trip.
Follow up your short-term “goal conversation” by discussing “how” to reach that goal. Even if it seems easy to pay for it directly out of pocket, discuss how budgeting could play into it. Saving in a special account, each pay check is a simple way to begin.
Sometimes understanding a couples role in the relationship is an important topic. Regardless of who makes more money, I find that one person generally “handles” the day-to-day finances. If that is case, make sure both sides regularly discuss, both how much money is coming into the accounts, and the money going out of the accounts.
Make sure that the spending side of the equation is distributed in some sort of equitable situation. In my family, the bills are distributed based on percentage of income, while the mortgage is paid evenly between us. Make sure and discuss.
Talk about the difference between “monthly bills” and “discretionary spending”. Bills you must pay each month: electricity, insurance and mortgage. Discretionary spending, you can control with choices: grocery shopping, sporting events, clothing, eating out.
Discuss what’s important to you and your long-term goals. Having a clear understanding of your shared long-term goals, make all of the short-term decisions easy. The problem is, most people forget about the long-term when making day-to-day short-term decisions. Keep your eyes on both.
Set up a standard cadence to talk money and stick with it. Some meetings will be longer than others. But a ten minute weekly check-in is key to keeping you both updated and on track towards your short and long term goals.
During open enrollment each year, talk to each other about your respective plans. The key is to make sure that both parties are driving towards the same long-term goals. For example, if you are both working, both of you should be saving an equal(ish) amount in a 401k, disability insurance and FSA’s.
If you have followed along above, and you and your significant other are having healthy conversations, thats great!! It may be time to discuss things that are making each of you uncomfortable (CRAZY). You each should write out a list, of things to discuss, and take turns each week. Make sure that each of the conversations work towards mutual understanding, as well as reaching long-term goals.
If you find that having these conversations is still uncomfortable, or becoming unproductive. That is a key spot for a financial advisor to step in and help out. A financial advisor brings an objective view point that can help pave the path towards resolution. Find someone you will feel comfortable being candid and open about your financial wants, needs, goals and struggles. Here’s a list of questions to aid you in finding the right financial planner for you.
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Financial Checklist for Expectant Parents
Becoming a parent is one of life's biggest joys and responsibilities.
Congratulations! You are having a baby!
Becoming a parent is one of life's biggest joys and responsibilities. Once you find out you are having a baby, life quickly becomes very busy with preparations and planning for your little one. Your calendar will become full with everything from scheduling medical tests to signing up for childbirth classes and picking out a car seat.
Preparation you can’t afford to avoid!
A topic that many expectant parents are reluctant to discuss with their close family, friends, professionals or even each other, is money! How in God’s name are you going to pay for another person to live in your house and eat your black olives and 12 month old Manchego?
The Cost of Having a Baby
The average child, in 2018, will cost, out of pocket, ~$3,500 to deliver … and they are not even home yet. And the cost of raising a child from birth to 18 years is somewhere in the neighborhood of $350,000! If you enjoy splurging on your kid, taking vacations, weekend trips, nice clothes and going out to eat, it can quickly add up to $700,000. Now, take a deep breath. By implementing a plan, there won’t be any need to stress over baby related finances.
Pre-Pregnancy Planning
If you can, get started when you decide to start a family.
Assess Your Car.
Is it safe, dependable and can it accommodate a baby? A baby doesn’t require a SUV or a minivan, a decent sized sedan will do. Every 3 years, my wife and I take turns getting a car. I like to drive them to ~160,000 miles. When “baby making” enters the family discussion, the next car purchased should take baby into consideration. (We bought a Subaru Outback 2 years before our first son was born).
Assess Your Living Situation.
Get into a housing situation that is not likely to change for 3 to 5 years. If you are renting, get something big enough to accommodate your growing family. If you have a house, make sure the location is family-friendly. If you don’t have a garage or car port, think about how you are going to feel dragging a car seat through a cold rain storm.
Have Fun with your Partner.
You may think that things are not going to change for y’all. THEY WILL. You won’t be going out for late night dinners. You won’t be catching a last minute flight down to Miami. You won’t be tailgating with your college friends on Saturday’s— or at least not very often. So enjoy your baby-free freedom while you still can. Jenn and I hit Costa Rica, Belize and Hawaii in the two years leading up to becoming parents.
Save.
I recommend $20,000. But do what you can, while having fun.
First Trimester
Mom-to-be may be experiencing some morning sickness and be worn out from her pregnancy, but you should still prioritize:
Start a budget for the coming 40 weeks. Plan on a weekly/monthly schedule, how you will draw down and distribute your cash.
Get a will drawn up by a trusted estate lawyer.
Complete any house projects (non-baby related), that you’ve been putting off.
Review your health insurance. It will be important to have a doctor in network, at a hospital you trust and close by. Reviewing your health coverage will give you an idea of your out of pocket costs. Also, you may determine after reviewing your coverage from a parent perspective, you may want to change providers or plan at your next open enrollment.
Second Trimester
By now, you should know if you are having a boy or girl — or maybe you’re keeping it a surprise. Either way, you can start nesting in earnest!
Set up the nursery. Buy the bed, changing table, nursing chair, paint the walls and decorate.
Determine your maternity and paternity leave. And then talk to your boss or Human Resources. If you work at a small business, the quicker they know what is coming, the better they can prepare.
Review your company’s paid leave benefits. If that’s not an option, look into Short Term Disability benefits. Short Term Disability can cover you for a percentage of your compensation. If you are a dad, take a long hard look at paternity leave. The difference in women’s and men’s pay in the work force these days is actually statistically related to “moms” -v- men. Women with no kids, earn just as much as men. A key to potentially solving this, is having dad take paternity leave. It is a complicated topic, but worth consideration.
Borrow and bargain shop. This is something I wish I did with my first son. We wanted all new, the latest and greatest for our little one. We spent a lot and didn’t realize how quickly the first year goes by and how quickly he would grow out of things. Reach out to your network of friends, family and Facebook and see who has baby gear they're willing to sell or give to you. Cribs, changing stations, strollers and clothes for you and baby are great items to borrow.
Set up baby registry. Make sure and ask for all of the things that you really want and/or need. Check out the online lists like Amazon’s Baby Registry. It offers almost everything, and is convenient and easy for family and friends that don’t live close by. Be thoughtful about compiling your list. And also be cognizant of the size of the shower, when setting your wish list.
Explore Child Care. Will one parent stay home? If not, tour day care facilities and/or interview nannies and ask friends for recommendations.
Third Trimester
Finalize Child Care. Make sure day care applications are complete and starting dates are set or get a commitment from your nanny.
Stock pile baby supplies. Be savvy, get to know prices and buy diapers, wipes, food, clothes when they go on sale.
Pack your Hospital Bag: At 36 or 37 weeks, pack your hospital bag and install your baby’s car seat, just in case you go into labor early. Here’s a great list of what to pack.
Schedule a newborn photoshoot (with an affordable photographer). You’ll treasure those photos forever. **Yes, that is my son in the top pic. Isn’t he cute?
FOCUS ON BABY!!
How a Financial Planner Can Help
Becoming a parent is both exhilarating and overwhelming. You want to provide your baby with a safe, secure and loving home. Having a sound financial plan can help you provide that security for your family:
Estimating your medical costs
Planning leave from your job
Budgeting for your new arrival
Estate planning - will or trust
Life and Disability guidance
14 Questions to Ask a Financial Planner
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