Actions
Review Life Insurance Coverage
Current coverage of $500K is below the recommended $1.2M based on income replacement needs, mortgage balance, and education funding goals. Gap of $700K identified.
- Get quotes for additional $700K term policy
- Compare 20-year vs 30-year term pricing
- Schedule medical exam if required
Max Out 401(k) Contribution
Currently contributing $1,875/mo ($22,500/yr). The 2026 max is $23,500. Increase by $83/mo to capture full employer match and tax benefit.
Create Buy-Sell Agreement
Business valued at $760K but no buy-sell agreement exists. If something happens to you, your family has no guaranteed buyer or fair price mechanism.
- Consult with business attorney on agreement structure
- Get updated business valuation
- Fund with key-person life insurance policy
Update Estate Plan Beneficiaries
Last beneficiary review was 18+ months ago. Life insurance, 401(k), and IRA beneficiaries should be verified annually. Ensure trust is named where appropriate.
Evaluate Roth Conversion Opportunity
With business distributions variable, there may be a low-income year opportunity to convert Traditional IRA to Roth at a lower tax rate. Analyze Q3 income projections.
Document Business SOPs
Business exit valuation depends on reducing owner-dependence. Start documenting key processes to increase transferable value and support higher multiple at exit.
Review Umbrella Insurance Coverage
Net worth exceeds $1.2M. Consider $1M umbrella policy (~$300/yr) for additional liability protection beyond auto and homeowner limits.
Set Up Donor-Advised Fund
Bunch 2-3 years of charitable giving into a DAF contribution this year to itemize deductions and exceed standard deduction threshold.
Research 529 Plan Options
Compare current 529 investment options vs. direct-sold plans from other states. Some states offer tax deductions for in-state contributions.
Consolidate Old 401(k) Accounts
Two dormant 401(k) accounts from previous employers (~$85K combined). Roll into current IRA for simpler management and better investment options.
Review Credit Report
Annual credit report review. Check for errors, outdated accounts, and optimize credit utilization ahead of any future lending needs.
Explore HSA Contribution
If switching to HDHP at next open enrollment, maximize HSA contributions ($8,300 family limit 2026) for triple tax advantage.
Build Emergency Fund to 6 Months
Reached $52,400 in high-yield savings. Completed Oct 2025.
Set Up Automatic 529 Contributions
$750/mo auto-transfer established for both children's 529 plans. Completed Jan 2026.
Create Basic Estate Documents
Will, POA, healthcare directive completed with attorney. Completed Feb 2026.
Refinance Mortgage
Refinanced from 6.2% to 5.4%. Saving $220/mo. Completed Mar 2026.
Complete Financial Discovery
Full financial picture documented. All 8 dimensions captured. Completed Dec 2025.