Savings Allocation Decisions – Where Should My Next Dollar Go?

2026 · WHERE SHOULD MY NEXT DOLLAR GO?
NoYesNoYesYesNoYesNoYesNoYesNoAre you financially secure (e.g., adequate emergency fund, no high-interest debt, adequate insurance, financially solvent, etc.)?Have you taken advantage of all the “free money” available to you from your employer benefits (e.g., matching contributions, ESPP, etc.)?What is the primary goal behind the next dollar you want to save or invest?Saving for retirementSaving for a specific expense or goal (e.g., education, medical, charity, gifting, wedding, home, vehicle, vacation, rental property purchase, etc.). Pursuing a broader financial planning objective (e.g., strategic tax planning, estate/legacy planning, risk management, paying off debts, etc.). Are you able to save in a retirement account (e.g., IRA, 401(k), etc.), and are you comfortable with potential limited flexibility regarding withdrawals?NoYesAre you concerned about needing the money in the short term (e.g., 5 years or less)?YesNoDo you expect your future taxes to be equal to or higher than your current taxes?Do you have access to accounts or assets that complement your specific goal (e.g., HSA for medical, 529 for education, DAF for charity, etc.), and are you OK with potential liquidity issues, associated penalties, or limitations?Consider bolstering your emergency funds, paying off additional debts, or increasing insurance coverages.Consider contributing to Traditional (pre-tax) retirement accounts.Consider investing in more predictable, low volatility assets (e.g., bonds, bond funds, CDs, MYGAs, money markets, cash, etc.), but be mindful of your liquidity needs and duration.Consider staying flexible by saving in non-qualified accounts or assets (i.e., non-retirement, not penalty-prone, etc.).Consider contributing to Roth (after-tax) retirement accounts, and make sure to elect your employer match to go to Roth (if applicable). Consider saving in assets that synergize with or complement your specific funding goal.Consider implementing your planning strategy. Consider investing in assets that may offer better long-term growth (e.g., equities, real estate, high- yield bonds, etc.), but be mindful of your liquidity needs and risk tolerance.Consider taking advantage of any “free money” made available to you by your employer, so long as it doesn’t conflict with other time-sensitive or higher- priority goals. Be mindful of any restrictions (e.g., vesting schedules, holding requirements, etc.).START HERE
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Aaron Vaughn
30400 Detroit Road Suite 305a Westlake, OH 44145
aaron@defiantservicesllc.com | 440-385-0208 | www.defiantservicesllc.com