The Year-End Numbers Game

Today's topic is some tips to minimize your income taxes due in the spring. Generally speaking, you have until April 15^th to contribute to your IRAs for 2011.  But by completing this before year end, you may be eligible for some tax savings and credits.  Also look at increasing your 401k and 403b contributions as they will decrease your taxable income.  

Do you have securities that are less than what your original investment was?  It’s possible you can harvest those tax losses and offset some income. 

What about deductions?  If you purchased a new home, you’ll have mortgage interest.  Or if you are newly into the workforce after years of college, student loan interest or expenses related to job searches can be deducted.  Don’t forget about energy efficient upgrades you did to your home or home improvements if you’ve got an office in the home.  And keep those health related receipts if you’ve had a year filled with unexpected health costs and challenges.    

Meet with your tax advisor before the year ends to compile some estimates and determine what your income tax bracket will be and any year end moves you can do to save.

How eventful was 2011?

In some ways, I had an eventful 2011.  I said goodbye to my Grandma Ann but I also said hello to my nephew Owen.  What changed for you? 

• Did you get a new job or leave an old one?
• Did you get married or engaged?  Or become a widow(er) or get divorced? 
• Did you start a family? 
• Did you move and buy or sell a house? 
• Did you start a business or sell a previously owned one? 
• Did health change significantly for you or someone you love? 

All these life events merit a review of your plan.  If you fall into one of these categories, you should talk to your financial, insurance, tax, and estate professionals to make sure your ducks are in a row.

Your Year-End Financial Check-up

 The next couple weeks will highlight some items you might want to do before saying goodbye to 2011.  They may seem minor, but little year end moves may lead to significant improvements down the road.  So, before you pop open the champagne to ring in 2012, connect with your advisors before the new year starts.  Did you have a significant birthday this year?  Remember if you turned 70 ½ that you need to start withdrawing money from your IRA accounts - aka RMDs (required minimum distributions).  If you turned 50, you can start saving more into your retirement accounts.  Medicare starts at age 65 and most are eligible for social security at 62.  In the same light, are you having these significant bdays in 2012?  Get with your advisors early to start planning so you can maximize benefits.

Long-term care planning - It's time to start

Some things I believe you need to know about long-term care:  You're probably not covered.  Many people mistakenly believe they are covered for long-term care, but this assistance is not typically covered by your health or long-term disability insurance. 

Government programs aren't designed to pay for all your long-term care needs.   Medicare only pays for skilled care, while Medicaid only covers the very poor – those whose assets are at or below state-required levels.  These programs often don't cover care provided in your own home. 

Long-term care doesn't mean nursing home care.   In fact, the majority of people who need long-term care remain in their own home or in their community.   Most long-term care insurance policies will cover people in all care settings including the home.  That's a significant benefit.

  Your age and health make a big difference in what protection costs.  Many people put off looking into long-term care insurance protection.  Waiting to plan can be a mistake because the cost of insurance is based on your age, increasing as you get older.   Your health is also a most important factor.  Waiting to plan can be a costly mistake because a change in your health can make you ineligible for this protection (no matter how much you are willing to pay).

Make Long-Term Care Awareness Month the time you start planning.

There is no cost or obligation to find out how much long-term care insurance protection costs. Why not find out now.  It's an important first-step to take.  Call me today, at 616-942-8600.

You’re NOT too young to plan NOW for long-term care

November is Long-Term Care Awareness Month.  Even the U.S. Congress has urged "the people of the United States to recognize (this) as an opportunity to learn more about the potential risks and costs … and the options available."  Smart reasons to think about long-term care as part of your overall financial plan.  You protect against other risks like a car accident or house fire.  A need for long-term care is a risk to your savings and to your retirement.  It will impact your family and loved ones.   Just as it is smart to plan ahead for retirement, it's smart to plan now for long-term care.  Here are some things you should know: 

      - Buy before age 65; avoid the high cost of waiting.       - At younger ages you can lock in good health special savings.       - Discounts can help significantly reduce the cost.       The first step is in your hands.  Getting the information you need to make an informed decision is always a smart move.   Waiting is never advantageous.  I encourage you to take this first step.  Call me at 616-942-8600.  There's no obligation, of course.  Make Long-Term Care Awareness Month the time you start planning.

Has Wall Street learned from 2008?

 Some market bears think very little has changed. They could be right.

Presented by Kim Bolker

Memories of 2008 are still fresh: The credit crisis; the collapse of Lehman Brothers and Washington Mutual; the federal takeover of Fannie and Freddie; the market downturn. There’s little doubt Wall Street would like to erase it all from its conscience, and maybe it has.

Part of the anger of the Occupy Wall Street movement comes from the perception that nothing has changed. While the Dodd-Frank Act (designed to make the financial system more accountable and transparent) is now taking effect, the Volcker Rule (intended to stop banks from trading for their own accounts) may be watered down or put off. Beyond that, the U.S.economic recovery from the Great Recession has sputtered and made people question the recent bullish sentiment. 

Stocks have rebounded strongly since 2009, but there are still many factors to worry about; this may lead to a little contrarian thinking.

 This bull market may be a diversion from a secular bear market. For most of 2011, the S&P 500 has been above 1,200 (a great rebound from the March 2009 low of 676). What was behind that? The short answer: a weak dollar. We haven’t exactly had a boom economy in that timeframe.^1,2 

Some analysts look at Wall Street right now and see a rerun of the 1970s, when you had momentous rallies masking a bear market that went from 1967-82. In addition, researchers at the Federal Reserve Bank of San Francisco are concerned about the possibility of a generational sell off; a potential market “headwind” for 10 or 20 years stemming from greying Baby Boomers getting out of stocks as they get closer to retirement, countered only partly by overseas investment.^3,4

What has changed on Wall Street since 2008? Perhaps not much. The general perception that the CEOs of the big investment banks and mortgage companies whose thoughtlessness contributed to the Great Recession met with no real consequence seems to be taking hold, as evidenced by the Occupy Wall Street movement.

By the way, remember the furor directed at risky derivatives trading? In September 2011, the Comptroller of the Currency had recorded an 11% year-over-year increase in derivatives investment in the banking industry. Banks now hold almost $250 trillion of the contracts.⁵ 

A truly severe punishment of Wall Street would come at a dear price for Washington. Some of the biggest names from Wall Street (and the real estate sector) have also been major lobbyists and campaign contributors. According to the nonpartisan Center for Responsive Politics, the National Association of Realtors has contributed more than $40 million to federal-level political campaigns since 1989; Goldman Sachs has contributed almost $36 million since then, and Citigroup nearly $29 million. The financial, insurance and real estate industries have collectively spent over $4.6 billion in lobbying efforts since 1998.^6,7 

What is happening with the recovery? Not much. While unemployment is above 9%, underemployment is the real story – in September, 16.5% of Americans worked less than 40 hours a week. No wonder homes sit on the market and consumer spending increases mostly in response to rising food and energy prices. Wages even retreated 0.2% in September and incomes fell 0.1% - the first monthly decrease in income since October 2009. Assorted 2012 forecasts see slow or slowing growth in various European and Asian nations.^8,9 

Is there a bright side for Wall Street? Actually, there could be. The European Union is making decisive moves to address its debt crisis. Indicators still show that our economy is growing, not contracting; September was the best month for U.S. retail sales since March. Many analysts think that the Dodd-Frank regulations will discernibly impact the Wall Street mindset. Lastly, the strength and duration of seemingly every major bull market has been questioned by the bears; history may record that a secular bull market began in 2009, after all.¹⁰ 

Only time will tell. Over time, the stock market has faced some great challenges – and risen to meet them again and again. This time around, the hope is that Wall Street’s behavior (and behavioral assumptions) won’t sabotage the rally.

Kim Bolker may be reached at 616-942-8600 or kbolker@sigmarep.com

 This material was prepared by MarketingLibrary.Net Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. All indices are unmanaged and are not illustrative of any particular investment. The S&P 500 is a market-capitalization weighted index of 500 Large-Cap common stocks traded in theUnited Stateson the NYSE, AMEX and NASDAQ.

 Citations.

1 - money.cnn.com/data/markets/sandp/ [10/13/11]  

2 - moneywatch.bnet.com/economic-news/blog/financial-decoder/jill-on-money-stock-anniversary-mortgages-cash/5308/ [10/8/11]         

3 - montoyaregistry.com/Financial-Market.aspx?financial-market=the-financial-security-rulebook-5-crucial-steps&category=3 [10/13/11]      

4 - money.msn.com/retirement-investment/latest.aspx?post=9bb7f5b7-8c8a-4723-a543-7930cb51e2af [8/23/11]

5 - dealbook.nytimes.com/2011/09/23/banks-increase-holdings-in-derivatives/ [9/23/11]

6 - opensecrets.org/orgs/list.php?order=A [10/13/11] 

7 - opensecrets.org/lobby/top.php?indexType=c [10/13/11]       

8 - articles.latimes.com/2011/oct/08/business/la-fi-jobs-report-20111008 [10/8/11]               

9 - businessweek.com/news/2011-09-30/u-s-economy-consumer-spending-cooled-in-august-as-wages-fell.html [9/30/11]            

10 - latimes.com/business/la-fi-economy-retail-20111014,0,1716584.story?track=rss [10/14/11]

HOW DOES GREECE IMPACT ME?

Is it all negative, or are there opportunities to consider because of the crisis? Many economists think a Greek default is inevitable. As we enter 4Q 2011, Greece has a debt-to-GDP ratio of about 160% (and that percentage is rising). While Greece accounts for less than 3% of Eurozone GDP, ripples from a Greek default could strain the European banking sector and global financial markets.1,7

Struggling for the best worst-case scenario. Greece is redoing its financial system, but it is still facing one of five potential (and painful) outcomes.

1. Greece renegotiates its debts & forces its lenders into write-offs. Many Greek banks are nationalized; Greece endures a long recession. 2. Greece can’t renegotiate its debts. It sinks into a multi-year depression exacerbated by additional austerity measures. 3. Greece rejects further austerity cuts recommended by the EU. A standoff with the International Monetary Fund and European Central Bank results; the ECB and IMF blink and continue bailout payments to Greece; Italy and Spain see the way Greece made the ECB and IMF cave in and later wrestle the ECB and IMF into submission in the same way; Germany gets frustrated with all this and ditches the euro. 4. Greece rejects more austerity cuts & the EU stops bailout payments. Civil unrest jeopardizes the country. Its banks close; its public services halt. The CIA has advised that a coup may occur in Greece in such a scenario. 5. Greece lapses into a banking/cash flow crisis & leaves the euro. This is the “doomsday” scenario. Assume #4 occurs with Greece also electing to go back to the drachma. That could mean a run on Greek banks, and then Spanish and Italian banks. A return to the drachma could mean frozen borrowing for Italy and Spain and possibly lead to insolvency for major banks in Europe. Picture 17 nations trying to agree on and quickly implement an EU version of TARP. Havoc could result for stocks and the global economy.2

This all sounds very gloomy, but prospects may emerge from the gloom.

A(nother) golden opportunity? In the event Greece defaults, the search for safe havens could mean a quick flight to gold. If a Greek bailout succeeds, there may still be fiscal instability among EU members, and presumably an easy monetary policy fostering loose credit. If Greece defaults, then you could see big drops in the spot prices of currencies plus some competitive devaluation. All of this could make gold look very, very good.

On the other hand, if true systemic risk hits global markets, investment banks and hedge funds might need capital fast – and gold is easily liquidated. So a gold selloff could also possibly occur if the situation becomes dire.

What about Treasuries & the dollar? Treasuries remain popular, and demand for them could jump after a Greek default. What other choices do central banks have if they want to shop around for a stable, readily available, reasonably liquid investment? The euro is hardly a rival to the greenback right now.

How about emerging markets? Here is another option. The BRICs and some of the other emerging-market nations have managed to ride out the recent volatility fairly well – there has been some “decoupling”, if you will.8 No one is saying these markets would be immune from a continental banking crisis or a flight from stocks, but you have to concede that emerging markets have the capability for independent behavior.

Would it still be worthwhile to own blue chips? Keep in mind that the Dow did not fall to 4,000 after the Lehman Bros. and Washington Mutual failures and the initial rejection of TARP by Congress. Stocks did pull out of that plunge, and spectacularly so; bargains abounded, for that matter. So it might certainly be worthwhile to hold onto stocks in the coming months, especially as some European governments have hinted at possible capital injections for banks if the need arises. On September 13, German chancellor Angela Merkel noted that the EU would not let Greece fall into “uncontrolled insolvency” and reports surfaced of China getting ready to purchase Greek debt. Treasury Secretary Timothy Geithner even got involved in the search for solutions in mid-September.3

Europe’s biggest private lenders may be deemed “too big to fail” by the EU and ECB, and if unwinding of any financial institutions is needed, the authorities should do everything within their reach to try and make it gradual.

It could be that Wall Street has already priced in a Greek default and will just wince, not stumble, at its confirmation – assuming the news arrives with more inevitability than frenzy.

The biggest fear of all: contagion. Italy and Spain may be “too big to fail” in the eyes of the EU and IMF, but they also face big debt problems. Standard & Poor’s cut Italy’s credit rating to ‘A’ in September; Moody’s Investors Service is weighing downgrades for Italy and Spain before November.4,5

How diversified are you? These debt issues in Europe may linger for years. With the market so volatile, don’t forget the wisdom of having a diversely allocated portfolio.

This material was prepared by MarketingLibrary.Net Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. All indices are unmanaged and are not illustrative of any particular investment. The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the NYSE and the NASDAQ.

Citations. 1 - business.financialpost.com/2011/09/21/preparations-for-greek-default-gathering-steam/ [9/21/11] 2 - bbc.co.uk/news/business-14977728 [9/21/11] 3 - thestreet.com/story/11246102/1/stock-futures-sept-13.html [9/13/11] 4 - nytimes.com/2010/01/29/business/global/29bailout.html [1/29/10] 5 - businessweek.com/news/2011-09-20/italy-credit-rating-cut-by-s-p-as-crisis-contagion-spreads.html [9/20/11] 6 - montoyaregistry.com/Financial-Market.aspx?financial-market=advanced-estate-planning&category=30 [9/21/11] 7 - siteresources.worldbank.org/DATASTATISTICS/Resources/GDP.pdf [6/1/11] 8 - firstpost.com/economy/asian-markets-eye-china-data-for-signs-of-decoupling-66749.html [8/23/11]

CFP® - Let's make a plan

CFP® - Let's make a plan Click on the link to see a short video about what I do

Life insurance on children

 I’m often asked if life insurance on children is necessary.  They don’t contribute financially to the household, don’t carry debt (at least the minor ones), and are usually pretty healthy.  But that last statement is the reason I encourage families to have policies for their kids or at least a child rider on their own life insurance policies.  Child riders in particular are fairly easy to add to a policy and once it’s added for one child, you can add future children with just a signature.  This protects their insurability moving forward.  We can all think of families who have kids that were diagnosed with an illness during their childhood.  Most survive but it’s difficult for them to qualify for life insurance as an adult.  Taking out a life insurance policy on the child just a couple months after they are born is a great idea.  Not only is it inexpensive but it is an asset that starts building for their future.   

Insuring the times of your life

Chances are, you need life insurance.  And according to the LIFE Foundation and Kelton Research in 2008, 93% of Americans say that life insurance is something most people need.  However, only about 41% own an individually purchased policy.  Here are some specific life events that might trigger the need for life insurance.

• Married or getting married
• A parent or about to become one
• A homeowner
• Changing jobs
• Retired or planning for retirement
• Single
• Joint owner of a business

Don't live without life.

Myth: Only the primary breadwinner needs life insurance

Growing up with a stay home mom, I can appreciate all the little things she did for me and my sister.  And even though she did not provide a cash income, her valuable services would have had a huge replacement cost.  Those include personal chef, catering, housecleaning, childcare, chauffer, household management, tutor, mentor, the list goes on.  If you were to hire those services out, that could cost anywhere between $50,000 and $120,000 a year.  My mother had a significant contribution to our family.  I suspect that if your family operates on one income or if one of the parents is part time, you can relate with this.  I hope you will see how much economic value a stay home parent provides and that life insurance is just as important for them too.

Don't live without life

September is traditionally known as the month for back to school or the month when football season starts.  But it is also Life Insurance Awareness Month.  Life Insurance is a simple answer to a very difficult question: how will my family manage financially when I die?  It's a subject no one wants to think about and it's easy to procrastinate.  But if someone depends on you financially, it's one that you cannot avoid.  If you or someone you love is married or engaged, a parent or about to become one, a homeowner, or changing jobs - those are all life events that might trigger the need for life insurance or at least a review of what you have currently.

Here's a link that features Lamar Odom (2 time NBA champion with the LA Lakers and reality TV star) and his personal story  http://www.lifehappens.org/lamar-video/

Education Savings Accounts

A Coverdell Education Savings Account (or ESA) is an education savings tool that works for elementary, secondary, and post-secondary education.  This would be an account you would use to begin saving for a child’s private K-12 education.  You can contribute up to $2000 per designated beneficiary (aka child) under the age of 18 per year (with special exceptions for a special needs beneficiary).   As long as the designated beneficiary uses the funds for qualified education expenses, the earnings within the account grow tax free.  Examples of qualified education expenses are books, tuition, and fees.  Talk to your accountant for a full listing of what is considered a qualified education expense.  If the beneficiary uses the funds for something other than education (like a car or home purchase), those earnings may be taxable to them.

College Planning

August for me is “Back to School” mode.  Kids from elementary school age through college begin preparations for the new school year.  When I was in school, I loved this time of year.  Education is a growing expense in this country, particularly on the collegiate level.  Knowing which types of education funding accounts are available and how they work is an important distinction.  In the next couple weeks we will explore the following different education funding tools:

• Coverdell Education Savings Accounts
• 529 plans

 While college planning is important, it should not jeopardize your own retirement planning.  Some families put a higher emphasis on saving for their children’s college and while that is a noble financial goal, it cannot come at the expense of your own retirement.  A college student can loan themselves through college – you cannot loan yourself through retirement.

Medicaid vs Medicare

Let me start out by saying that whoever decided to call these programs Medicaid and Medicare has caused a lot of confusion and rightfully so.  People get Medicaid and Medicare mixed up constantly.  It would make this much simpler if they didn’t sound the same because they sure do not act the same.  The only thing they have in common is a health care program.   Medicaid is administered by the states for people with low incomes and limited resources.  Michigan allows children eligible for SSI to automatically be eligible for Medicaid benefits. Even if the child does not qualify for SSI, they could still qualify for Medicaid.  Visit www.michigan.gov/mdch for more information on programs available to children and families. 

Medicare is a federal program for people age 65 and older and for some people receiving Social Security disability benefits under the age of 65. 

It is possible to be eligible for both Medicare and Medicaid.  That’s a complicated topic and one that you should speak to Social Security about if you think your adult child is eligible for both.

Social Security Benefits for Children with Disabilities Part II

What happens when your child turns age 18?  Under Social Security benefits, the child becomes an adult and new rules apply.  The biggest change is that only the adult child’s income and resources are used in determining eligibility (not the other family members).  So individuals may qualify for SSDI as an adult child when they couldn’t qualify for SSI as a child.   The definition of disabled also shifts to the adult definition.  Disability under the Social Security definition means:

• “you cannot do work that you did before;
• We [Social Security] decide that you cannot adjust to other work because of your medical condition(s); and
• Your disability has lasted or is expected to last for at least one year or to result in death.” 
• www.ssa.gov/dibplan/dqualify4.htm

If an adult child was disabled before the age of 22, they may qualify for Social Security Disability Insurance (SSDI).  Social Security considers this a child’s benefit since it is paid on the parent’s Social Security earnings record.  If the parent has never worked, no benefits would be paid to the adult child.  The adult child can still work and receive SSDI, they just cannot have “substantial earnings.”  In 2011, Social Security defines that as earning more than $1000 per month. 

The application process is the same as it is for SSI benefits.  You can either call 800-772-1213 or visit your local Social Security office.  Because we are taking about disabled adult’s child benefits, you cannot apply online at this time.  That can be misleading because ordinarily, SSDI benefits can be applied for online.

Social Security Benefits for Children Part I

Supplemental Security Income (SSI) makes monthly payments to people with low income and limited resources, based on financial need.  Children under the age of 18 may qualify for SSI if certain requirements are met.  Here are some general guidelines in evaluating if your child or one you know of may be eligible for SSI.

• SSI is for children under the age of 18 (or under the age of 22 if regularly attending school)
• There is no minimum age requirement
• Criteria includes:
  • “medically determinable physical or mental impairment or impairments which result in marked and severe functional limitations; and
  • The condition(s) must have lasted or be expected to last for a continuous period of at least 12 months or be expected to result in death”
  • www.ssa.gov/ssi/text-child-ussi.htm
• Social Security has developed a Compassionate Allowance initiative to target and help those most obviously disabled.  A complete list can be found at www.ssa.gov/compassionateallowances
• Low Income and Limited Resources – SSI doesn’t just look at the child’s income and resources but his or her parents’ and/or family members within the household as well.  SSI annual limits for resources are $2000 for an individual or $3000 for a couple.  SSI has limits for income that can reduce the benefit amount as well.  www.ssa.gov/ssi has a list of income and resources excluded from the calculation to determine eligibility.

 If you think your child or one you know of meets these general guidelines, you should apply for SSI benefits.  At this time, Social Security does not have applications online.  You can either call 800-772-1213 or make an appointment at your local Social Security office.

SSI/SSDI

Happy 4th of July! I love this time of year. Probably because it entails time with family and friends, a road trip or two, and grilling out every night possible. And I still have child-like amazement every time I watch a firework show. This month I’m focusing on benefits for children with disabilities. I get asked all the time by families if they qualify for extra help. I am certainly no Social Security expert, but hopefully in the next couple weeks I can point you in the right direction. If you have a topic or question you’d like addressed this month, please email that to me at kbolker@sigmarep.com and I’m happy to add it in if I can. Topics will include SSI, SSDI, and Medicaid/Medicare.

What's a POA?

True or False?  If your spouse is in a coma, you can make his/her financial and medical decisions just because you are married.   False.  This is a misconception with not just newlyweds.  A Power of Attorney is a legal document that grants you the legal capacity to make those decisions on behalf of your spouse.  You can find power of attorney documents online or meet with an estate planning attorney and have it drafted for you.  Many attorneys will offer you an initial free consultation and give you more guidance on what the power of attorney is, does, and how it works. 

You should also have a will created.  A will makes sure your wishes on who gets what are carried out after you pass away.  If you don’t have a plan, be sure the state does.  The courts are happy to host a fight amongst your remaining family members to figure out who gets what – more officially referred to as probate.  You may think your family will be civil or you don’t have much for people to fight over, but I’ve watched it break too many families apart because the person that died didn’t have a plan. 

Regardless if you are young or old, newlywed or single, you need to get a will and a power of attorney for healthcare and finance established.  It makes it much easier to make decisions on behalf of your spouse.  And as you become more established, have children, start a business, or accumulate assets, you may have to do more planning than just this down the road.  Estate planning is just another way to keep you in control.

Tying the finances

My husband and I were in our mid to late twenties when we got married.  That meant we each had our own car insurance company, bank, and habits of spending money.  Keeping your own doctors is one thing, but keeping your finances separate once you get married is something else entirely.  Here's some tips to get your finances on the right track. 

1. Merge your bank accounts or at minimum, add each other as co-signer.  The bank doesn’t care if you are now married, you need to add your spouse if you want them to be able to access your accounts. 
2. Select one insurance company.  You will lose out on multi-line discounts by keeping your car insurance separate, especially if you purchase a house down the road.  Also, don’t forget the renter’s insurance or condo insurance. 
3. If you have benefits at work, compare both plans and see which provides the better health insurance coverage.  You should have 30-60 days after you get married to make the switch. 
4. Changing your name?  It’s not a legal requirement to do so but if that’s what you have chosen, start with the Social Security office first.  Also, you will probably need to change/update your beneficiaries on your investment accounts and life insurance as well.   
5. Select a financial professional to help you with budgeting, savings, and investment selections.  Consider the planner’s experience, pay structure, ethics and fiduciary standards, and designations.  A CFP® or CERTIFIED FINANCIAL PLANNER ™ is licensed, regulated, and takes mandatory classes on financial planning topics.  Run a background check on them, to verify they are who they say they are.   
6. Get a will and a POA – that’s next week’s topic