Investing Unit 1: Action Steps

• Introduction
• Unit 1: Basic Building Blocks of Successful Financial Management

• Building Blocks
• Wealth Protection
• Wealth Accumulation
• Wealth Distribution
• Summary
• SMART Financial Goal-Setting
• Action Steps
• About the Author

• Unit 2: Investing Basics
• Unit 3: Finding Money to Invest
• Unit 4: Ownership Investments
• Unit 5: Fixed-Income Investing
• Unit 6: Mutual Fund Investing
• Unit 7: Tax-Deferred Investments
• Unit 8: Investing Small Dollar Amounts
• Unit 9: Getting Help: Investing Resources
• Unit 10: Selecting Financial Professionals
• Unit 11: Investment Fraud

• Study Guide
• Action Steps
• Monthly Investment Messages
• Glossary

Check off the Action Steps after you have completed them.

Cash Management

Develop financial management knowledge and skills, i.e., record-keeping, budgeting, tax, risk, and credit management.

Reduce expenditures to free up money to help achieve financial goals.

Compare financial account statements provided by institutions with personal records.

Complete an annual financial checkup, including net worth and cash flow statements.

Build a team of financial advisors to guide and direct financial decision making.

Review financial management strategies periodically and revise when necessary.

Emergency Cash Reserve

Determine/establish adequate amount of emergency fund for your individual situation.

Deposit funds in easily available accounts where they can be accessed with minimal financial penalties.

Risk Management

Locate your insurance policies such as life, health, property, casualty, automobile, liability, and disability.

Evaluate current policies and shop around for additional or replacement coverage if indicated.

Tax Management

Learn about tax laws and use related strategies to reduce total taxes owed.

Check your income tax withholding level and adjust, if indicated.

Explore the advantages of different tax strategies.

Utilize tax-advantaged and tax-deferred options when appropriate, i.e. IRAs, 401(k), 403(b).

Maximize tax deductions (e.g., using home equity credit-line loans versus non-deductible consumer interest.

Financial Goals

Write out short-, intermediate-, and long-term financial goals following the SMART goal format.

Credit Management

Keep credit use at a safe, manageable level.

Obtain a copy of your credit report to see if it is accurate and complete.

Home Ownership, Investments, Children’s Education, Retirement Planning

Determine which of these categories contain areas you wish to include in your financial goals.

Write down specific financial goals for those categories following the SMART goal format.

Estate Planning

Establish and periodically evaluate wills and estate plans.