Give Yourself an Annual Financial Check-Up
Annual Financial Check-Up
A financial check-up can help you reach your financial objectives faster, perhaps save some taxes and give you some financial peace of mind. Here are some questions to ask yourself.
- Have you chosen deductibles that provide lower premiums with an acceptable level of risk?
- Do you have an umbrella liability policy for potential large damages?
- Do you have enough life insurance?
- Could you reduce your monthly mortgage payments by refinancing your mortgage?
- Should you consider some other type of mortgage (ARM, 15 year, and 30 year) that corresponds with how long you plan to stay in your current home?
- Do you have a household budget?
- Have you analyzed your monthly spending to identify ways to save?
- Have you calculated your retirement income and asset needs?
- Are you taking full advantage of your employer’s 401(k) plan or other retirement plan?
- Should you consider converting your IRA to a Roth IRA?
- Are you saving for a child’s college expenses?
- Have you investigated Coverdell Education Savings Accounts (Education IRAs) or Qualified Tuition (Section 529) Plans?
- Do you have an asset allocation plan to serve as a framework for your individual investment decisions?
- Have you reviewed your portfolio holdings recently?
- Does your investment strategy match your time horizon and risk tolerance?
- Are your withholding and estimated tax payments at the right level?
- Have you considered deferring income to next year or accelerating deductions this year to save on this year’s tax return?
- Have you had your estate plan reviewed recently? If you have moved, had a change in your family situation (births or deaths) or a change in your financial status, you may want to schedule a review with your advisor.
- Does your estate plan provide for the naming of the guardians for your children and executor of your estate?
Begin the New Year with a financial check-up for you and your family!