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Wealth Care Kit

counting cash

Ready to take your finances to the next level? After you’ve set financial goals, figured out your net worth and cash flow and established an emergency fund, you’re ready to start building real wealth.

Building sustainable wealth isn’t complicated, but much like staying healthy, it does require some regular maintenance. The Wealth Care Kit from the National Endowment for Financial Education® (NEFE®) breaks down each area you’ll want to keep tabs on to keep yourself financially healthy.

First download the Wealth Care Kit — Introduction to get started with setting financial goals, figuring out your net worth and cash flow and establish an emergency fund. Then, download any of the five other PDFs of the Wealth Care Kit to learn more about any of these subject areas. Taking care of your wealth is simple, but it will require a little bit of upfront work and regular analysis.

PDF 1: Estate Planning

You might not own sprawling acres of land, but that doesn’t mean you don’t have an estate. Your estate can include anything from jewelry to an insurance policy, a house to a checking account or a vehicle to a retirement fund.

Now that you know you have an estate, how do you manage it? Be sure to create and regularly update necessary documents like a will and durable power of attorney.

PDF 2: Income Tax Planning

There are only two things that are certain in this life: death and taxes. Your taxes don’t have to kill you, though. With a little planning, you can minimize your tax burden through 401(k) contributions, bunching deductions or hiring your children to work at your small business. Learn how to make the most advantageous decisions throughout the year to lessen the pain of writing to a check to the IRS next spring.

PDF 3: Insurance

You might be surprised to learn that you don’t always need the maximum amount of insurance coverage. If you build a large enough emergency fund, you can protect your assets in other ways. If you do things like quitting smoking and installing anti-theft devices in your vehicles, your premiums can go down.

When you do need insurance, though, don’t skimp. Auto, health, disability, long-term care, homeowners and umbrella insurance policies protect you against tragedies and potential liabilities that could wipe out your wealth. Lower premiums as much as possible while still keeping an adequate amount of coverage.

PDF 4: Investment Planning

No matter how much you save in your bank, it might feel like it is never enough. That’s because inflation erodes the value of your money. This makes investing extremely important; while the market holds greater risk, it also has the potential for greater returns, especially when you invest over decades.

The Wealth Care Kit — Investment Planning will help you learn how to invest in stocks, bonds, CDs, money market accounts and mutual funds while mitigating the market risk though dollar-cost averaging, diversification and adopting a “buy and hold” strategy.

PDF 5: Retirement

Regardless of where you are in your retirement savings, you can take action now and give your money time to grow through the power of compound interest. Be sure to pay yourself first, maximize your contributions, invest in growth assets and continue investing even after you’ve reached age 65.

[Any reference to a specific company, commercial product, process or service does not constitute or imply an endorsement or recommendation by the National Endowment for Financial Education.]