Your Wealth Management Checklist

Wondering if your finances are in good shape and looking for a resource to make sure that they are? This wealth management checklist is a good place to start a DIY financial check-up.

Debt Checklist

  • Pay off your credit cards monthly
  • Establish a Home Equity Line of Credit for emergencies and short-term cash needs
  • Make sure your debt is at low rates and it doesn’t make sense to refinance even further
  • Don’t take on too much debt compared to your assets (consider capping debt at 25% – 35% of your net worth)
  • Only borrow for investments that target strong returns that are competitive with what you can earn in stocks
  • For more, please read Using Debt Smartly to Build Wealth

Spending Checklist

  • Track spending to fix any problem areas
  • Make sure you’re using all your monthly subscriptions

Reducing Taxes

  • Avoid realizing short-term capital gains
  • Have a low portfolio turnover rate in your taxable accounts (sub 35%)
  • Maximize retirement plan contributions if you’re an employee
  • Have a retirement plan to maximize contributions if you’re a business owner
  • Contribute the maximum to IRA accounts
  • Contribute the maximum to a Health Savings Account if that is an option at work and the right fit for your health
  • Gifting to charity with something other than cash, such as with appreciated securities or an IRA Qualified Charitable Distribution
  • For more, check out Minimizing Taxes Under Biden’s Proposed Tax Plan

Cash & Investments Checklist

  • Establish a rainy day fund covering at least 3-6 months of expenses
  • Divest from investments that are not earning a competitive long-term return
  • Maintain the right asset allocation and make sure you’re investing your excess cash
    • Short-term money (needed in next three years) is invested in cash
    • Long-term money (needed at least 10-15 years from now) is invested in stocks
    • Mid-term money (needed between 3 and 15 years) is in a mix based of stocks and bonds based on when you’re going to need the funds and how much per year
    • For more, see The Easiest Way to Increase Your Investment Returns
  • Avoid speculative investments that could go to zero
  • Invest only in illiquid things if they target higher returns
  • Maintain a diversified portfolio
  • Use a 529 plan to save for college – For more, please read 529’s and Financial Aid
  • For more, please read Investment Mistakes to Avoid

Wealth Management Protection

  • Protect your plan from disability through insurance (for more, please read Disability Insurance Overview and Tips) and a Power of Attorney and Health Care Proxy
  • Protect your plan against early death with life insurance and up-to-date wills and trusts (for more, please read You Need an Estate Plan)
  • Make sure your beneficiary designations are up-to-date and accurate
  • Title your assets correctly
  • Maintain up-to-date and sufficient home, auto, and umbrella insurance coverage

Finding the Right Advisor for more help with these wealth management checklist items

  • Offer financial planning and investment management for a fee of 1% or less
  • Fiduciary
  • Independent
  • Clean compliance record (check here)
  • Financial planning work is done by a CERTIFIED FINANCIAL PLANNER™ professional and the investments are managed by a Chartered Financial Analyst® (or teams of both)
  • They build a financial plan for you before deciding on an investment plan
  • For more, please read Finding a Good Financial Advisor


Take your DIY financial check-up to the next level

Check out the book that can help

Beyond the Basics source for wealth management checklist and financial check-up tool