Get a Year-End Grip
Year-End Planning
December 3, 1997

December was always my favorite month when I was kid. Not just because of Christmas, but because it came right before New Year's. January was a time of starting over, of renewal. Whether it was that second quarter report card that needed improving or the throw from center field that could use some work before spring training, the new year brought something that we all need at one time or another... a second chance.

Now that I'm older it's my 401(k) plan that needs to be reworked, not my algebra grade. And the perfect time to start planning for it is now, while we're in the mood to be a little less hard on ourselves and a little more hopeful for what we can accomplish.

So, how's your life doing? Are you where you want to be? Are you doing the things that you thought you would be doing 10 years ago? Or are things even better than you had planned? If you're like most of us, there are at least a few things deserving of a review and a resolution in your life. This week in the Family Fool we've put together a handy-dandy checklist to remind you of what some of those things might be and some tips on how you can get a year-end grip.

1. Your today. Are you happy? Do you like how you spend your day? Do you like where you live and the people you spend time with? Think about what you told people you wanted to do when you were a little girl or boy. Are you doing those things? Have you learned to scuba dive? Have you ever made love in Paris? Don't just think about the usual resolution stuff like quitting smoking or losing 20 pounds. Maybe the reason that you don't stick with your resolutions is that your dreams have been too small and just haven't inspired you. Dream big! Pick Three Big Dreams that you want to accomplish in 1998.

2. Your future. Where do you want to be in 10 years? Does it have anything to do with those Three Big Dreams from Step 1? Do more than just envision it. What will it take to get you there? Do you need to go back to school for a graduate degree? Or maybe you never finished that first one; is it time to do that? Do you want to live on a ranch in Montana? Then you'll need to learn to ride a horse. Think about what concrete measures you need to do to make those dreams a reality. For each of your Three Big Dreams make a list of five things that you can do to make each really happen.

3. Your family. Are you as close as you'd like to be? Do your Big Dreams involve your spouse and kids? How will they feel about it? Make them your allies and you've increased your chance for success two-fold. How will they be affected by your dream? Can you take care of them and still accomplish what you want? How are the savings for the kids' college going? What about your parents? Will you need to help them out in their retirement. You don't live your life in a vacuum and while taking care of others may sometimes seem more like a responsibility than a gift, remember that they're there to help you too.

4. Your career. Does your dream involve your job? Do you want to become more successful or do you want to entirely change your career? What do you need to do to make it happen? Even if your Three Big Dreams don't involve your job, make a promise to yourself that you'll make an investment in your job skills somehow this year. Rewrite your resume, if for no one else than yourself. What have you learned this past year? A new computer program? Editing skills? Are you better at giving presentations? Sometimes we don't realize that we've really grown until we make a list to show someone else. Use your resume as an exercise in patting yourself on the back and planning how to get even better.

5. Your home. Do you own your own home? Or is that one of your dreams? If you are still renting, educate yourself on what you'll need to do to make that house a reality. Learn about mortgages and closing costs and points. Think about where you want to live. Figure out how much you'll need for a down payment and really start saving for it. If you already are in your dream house, how's it holding up? Are you taking care of it? Does it need any major repairs? Do you need to start saving for a new roof? What about improvements? If working from home is one of your dreams, how about putting on an addition for a home-office? Realtors say that it's the biggest improvement you can make to increase the value of your home. How about your mortgage? With interest rates so low you can probably get a really good deal if you refinance (assuming you haven't done it already).

6. Your investments. How are those brokerage accounts doing? After several record years in a row, chances are you've done pretty well for yourself. Especially if you were a true investor and not just a trader. The end of the year is a good time to assess your gains and losses. But remember, everyone else is too. That means that some stocks which haven't done very well may see even more of a downturn because of investors taking tax losses or mutual fund managers doing window dressing.

7. Your savings. I bet at least one, if not all, of those Big Dreams are gonna take some money to make happen. Do you have a plan for saving for it? Do you have a savings plan at all? Take a good look at your retirement, college, home and dream savings. Is it going to get you where you want to go? If not, how can you change it? Giving up smoking can add almost $1,000 to your piggy bank. What are you willing to give up to make your dreams come true?

8. Your insurance. Especially if you've done well in the market lately, you might really be worth something! What that means is that someone else might see you as a meal ticket if you're in a car accident or they're hurt on your property. The end of the year is a good time to take stock of your insurance needs. Are your liability levels sufficient to cover you if you needed it? What about life insurance? If you haven't looked at your policy in the last three years chances are you need to reevaluate things. What would happen to your family if something happened to you? Not only your children, but what about your parents? Are you happy with your health insurance? If you belong to a program where you can choose among many options, December may be the time to change plans. Look at your new policy and make sure there aren't any changes you can't live with.

9. Your property. Take stock of any other valuables you might own, like a car or boat or jewelry. Are they insured? Are you paying too much for your insurance? As long as you're going over your policies call around for some quotes too. Are things in pretty good shape? Or is it time to start thinking about that new car? Maybe one of your Big Dreams is to have another toy like a boat. When you're planning for it, don't forget to factor in things like upkeep and storage. Just getting something is only one part of the cost, you have to take care of it, too.

10. Your taxes. Whoa, Rudolph! Lots of stuff going on this year with taxes. What are you doing to reduce your tax bill? Are you aware of all the new changes in the tax laws? Take a look at the Fool Quiz and our 10 Foolish Money Savers for some tips. Also don't forget to check out the Foolish Tax area to get a grip on how all of the changes will affect you come April.

Those dreams really can come true. All it takes is a lot of planning and the determination to do it. Are you a mouse or a Fool? Take a good look at where you want to be this time next year and make it really happen. And keep checking in with us throughout the year at the Family Fool for tips on doing just that..

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