As spring arrives, many of us look forward to spring cleaning our homes – dusting the corners, organizing cabinets, and airing it out in preparation for a new season. But spring is also a good time to get your financial house in order.
That means you may want to meet your advisor for an annual financial review. Here are some areas to examine during your meeting:
Your accounts: Look at your bank and retirement accounts, credit card balances, and investments. Do they still meet your needs? Discuss your finances with your advisor to decide whether you should consolidate, close, or open.
Updated account information: Ensure that all your financial accounts are up to date. Is the contact information still accurate and is the status of your beneficiaries current? If you haven’t checked your beneficiaries’ information in some time, you may want to review it. Some distant relations may have moved or changed their names.
Your budget and debts: Is your spending on budget? If not, determine why. Are you spending too much money on luxury items? Are you overwhelmed with debt? Work with your advisor on a strategy to keep spending on track and eliminate debt.
Estate planning: Estate planning isn’t just for the wealthy; everyone should have a will. If you don’t, get one. If you have one, ensure it still protects your family as you intended. For example, did you know that by making as many of your financial accounts as possible “transfer on death” you can help your beneficiaries avoid probate? Your lawyer can provide details.