2007 Wealth Building Plans - January Review

“He who fails to plan, plans to fail.” - Proverb quote

As a reminder, I have three financial goals for 2007:

1. Keep investment income to salary ratio >0.8.
2. Increase savings to salary ratio by 1.5.
3. Decrease debt to salary ratio by 0.1.

Below is my plan for the Q1 2007, broken down by month. I have crossed out the items that have been completed. The red items are late. Blue items were completed ahead of time.

January	Send payment to pay down 4% of mortgage principal. Make maximum 2007 IRA contribution. Make maximum 529 plan contribution for college. Meet with Financial Advisor to review investments status. Consolidate tax records by end of month for April 15th filing. Get preliminary estimate of capital gains from stock investments. Adjust automatic savings deposits to be 20% of salary. Review stock selection model and invest in picks. Allocate a portion of 401K to international funds. Executor work - complete transfer of assets to trust.
February	Do first draft of 2006 tax return. Make full year contribution to Church via appreciated stock. Executor work - complete getting basis for 2005 and 2006 returns.
March	Final draft of 2006 tax return. Review Company retirement plan results. Calculate Q1 Wealth Ratios.

Overall, I am satisfied with the completion of action items for January, 2007. Our college, retirement IRA and mortgage debt reduction contributions are completed for the year. For our tax filing work, I have most of the 1099's, with couple brokerage accounts of still outstanding. I have made my stock picks for this quarter.

My only outstanding task item is the executor work that I wanted to complete in January. I have pulled together all the necessary documentation and still need to send the completed forms to the multiple DRIP accounts. Given the lighter task load in February, I will complete the executor work in that month.

For more on Strategies and Plans , check back every Monday for a new segment.

This is not financial advice. Please consult a professional advisor.

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