1. Emergency Fund – 1 months savings in the bank, cd, money market etc. (FDIC insured)
2. Contribute to matching 401k
3. Set aside savings for Health Deductibles and perhaps max out of pocket if a lot of healthcare needs. If you are in an HSA plan, contribute. $3,600, $7,200 per couple, if over 55, $1,000 catchup contribution.
4. Set aside savings for Life Insurance Premiums (10x Income per year) and Disability Insurance
5. Payoff all credit card and high interest debt.
6. Emergency Fund (6 months to a year) If in a high furlough or layoff industry consider longer Emergency Fund. Also consider I-Bonds for the more sophisticated investor (very flexible 1-30 years).
7. Fund your 401k, 403B, and/or 457s. 401k 19,500 some states protect retirement accounts more than IRAs (look at Roth and non-Roth. Over 50 6500
8. Education Savings (529 usually better than Coverdell, can out more in and more
9. Fund Traditional or Roth IRA $6,000 (+$1,000 catchup)
10. ESPP (not more than 5% of wealth) don’t want all eggs in one basket. Take advantage of the discount. Also consider your stock options, RSUs, ISUs and their tax implications here.
11. Brokerage Account tax buckets for retirement (cost basis increases yearly)
12. Real Estate Investments
13. High Income/At Risk Plans
14. Payoff low interest debt (Cars, Mortgage, etc.)
15. Speculative Investments (Art, Cars, Bitcoin). No more than 5% of total wealth.