Prosperity Checklist

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Use the Prosperity Checklist as a key resource to tune-up your current financial reality and make certain you are on track with your personal economy. If you have any questions regarding

  • why increasing your insurance deductibles is a benefit,
  • why only contributing up to your match on your 401(k) is more efficient,
  • or if restructuring your mortgage is smart,

please feel free to reach out to us and we will be more than happy to answer any questions you may have.

  • Car Insurance Deductibles: $1,000 or as high as possible for you.
  • Home Insurance Deductibles: $1,000, 1% of home value, or as high as possible for you.
  • Documentation: Do you have pictures of your valuables stored off-site or online in case of a loss?
  • Personal Liability Umbrella: $1M minimum or 1x Net Worth. Pass: P4P
  • Medical Insurance: Maximum coverage possible, $1-2M; high deductible.
  • Disability Insurance: Maximum allowable for long-term disability is approximately 60% of income; have as long of a waiting period as possible and use short-term savings or cash to fill the gap.
  • Long-Term Care Insurance: Consult with your advisor as this is largely impacted by various personal and cash flow concerns
  • Wills and Trusts: Make sure they reflect your current wishes and that Trusts are funded. Additionally, go to for a letter of instruction and for medical power of attorney ideas.
  • How are you Taxed – W2 or Business: LLCs and Corporations have tax benefits; speak with a CPA about one for yourself. If you have one already, are you taking full advantage of it?
  • Life Insurance: How much life insurance do I need? Your Human Life Value is 15x -20x income or 1x Net Worth. Human Life Value is the value of your future earnings. Talk to your advisor regarding how to combine term and whole life to reach your human life value. Some Term insurance can be converted into whole life. Ask your advisor
  • Cash/Checking/Savings/Money Market Accounts: Store two or three months of expenses here; the rest should be in your life insurance policies doing many more jobs.
  • Mutual Funds, Stocks, and Bonds (non-IRA): Dividends, interest, and capital gains should be paid out in cash to a separate (non-checking) account so they can be re-deployed.
  • 401(k): Only contribute up to the match; if no match, invest elsewhere.
  • IRA: Should be in Life Settlements or restructured to provide income now.
  • Primary Residence: Mortgage should be structured to increase saving and investment opportunities while lowering your risk. Talk to your advisor for details.
  • Investment Real Estate: Calculate tradeoffs. Funding a larger down payment so the property cash flows has an opportunity cost. Talk to your advisor.
  • Life Settlements: Consider for IRA and 401(k) rollovers or long-term money. These investments are not correlated to the stock market, world politics or real estate.
  • Vital Documents: A file with important passwords, photos, videos, and other documents should be kept in a fireproof safe or deposit box at a bank or online, with at least three other people knowing its whereabouts (we can be one of the three). It should have contact information for your CPA, attorney, stockbroker or online accounts, real estate agent, financial planner or advisor, property and casualty insurance agent, life insurance agent, mortgage broker, banker, executor, and other advisors.  Consider for a solution.

We are your Prosperity Partners and happy to help with all of the above. Let us know if anything in your economy needs a review by contacting Dave at 877.889.3981 ext. 108, or to schedule some time with one of our team.  

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This website is provided for informational purposes only. The information contained herein should not be construed as the provision of personalized investment advice. Information contained herein is subject to change without notice and should not be considered as a solicitation to buy or sell any security or investment. Investing involves the risk of loss and investors should be prepared to bear potential losses. Past performance may not be indicative of future results and may have been impacted by events and economic conditions that will not prevail in the future.