What is a Financial Plan Checklist?
Trying to get your life together, and figuring out where to even begin? A financial plan checklist is the best place to start!
This post is about a financial plan checklist.
Let’s dive into the top 3 things to include in a financial plan checklist:
1. 401k
This is what people mean by don’t leave money on the table. If you work a typical job that offers benefits, it’s likely a 401k match is among one of those benefits. There’s a reason this is the first item on the list. Reaching the limit for a 401k account can be quite challenging; however, you don’t necessarily have to contribute up to the limit. Just make sure you contribute enough to get the company’s match! If not, you’re leaving money on the table!
2. HSA
Otherwise known as a Health Savings Account. Why is this so important? It’s triple tax-advantaged! This means using pre-tax dollars, tax-free gains, and tax-free withdrawals. This account is used for health-related expenses. Whatever you don’t use, you can invest.
3. Roth IRA
While it’s not triple tax-advantaged, a Roth IRA still has its tax benefits. This uses post-tax dollars for tax-free gains and tax-free withdrawals. Because there are some pretty sick tax benefits, there’s a cap of how much you can contribute each year. For 2023 it was $6,500, 2024 was $7,000, and 2025 is $7,000.
Keep in mind, for the HSA and Roth IRA, you’ll still have to invest the money after your contributions. This means, you’ll have to purchase the stocks, bonds, or index funds after you deposit money into those accounts.
To reiterate, the top 3 things to include a financial plan checklist are:
- 401k
- HSA
- Roth IRA
