There are many types of wellness that we make an effort to nurture—emotional, physical, spiritual, social and occupational. What about financial wellness? Is your wealth growing at a healthy pace and set up to live for all the years you expect it to be there for you and your family? The end of the calendar year is a good time to revisit your financial choices, starting with seven simple actions.
STARTER CHECKLIST
- Review and rebalance your retirement accounts.
- Use your FSA account before you lose those funds.
- Review your estate documents and beneficiaries.
- Review tax withholdings and tax planning.
- Assess your insurance needs (beyond open enrollment).
- Plug budget leaks and re-evaluate your cash-flow plans.
- Schedule a review meeting with a financial advisor to find out what you may be missing.
This year-end financial checkup starter checklist is only the tip of the iceberg when it comes to the complexities of planning for long-term goals. But, starting somewhere with purpose can make all the difference. Let's dive in!
DON'T SET IT AND FORGET IT
1. Review and rebalance your retirement accounts.
Retirement accounts are often set up and then rarely or never revisited. What about changing your contribution amounts? When is the last time you rebalanced your investments and checked your asset allocation? If you already have someone doing that for you, how often are they reporting the changes to you and do you understand what they're saying?
RELATED MEDIA: Retirement Plan Checkup & 401(k) Checkup with Joseph Goldfeder, CFP®
2. Use your Flexible Spending Accounts.
Flexible Spending Accounts offer a great tax-saving strategy, but make sure you use it before you lose the funds. Whether it is going online to submit your expenses or using your debit card, understand how you make the most of this benefit.
3. Review your estate documents and beneficiaries.
Marriage, divorce, family members passing away or demonstrating that they are unsuitable all impact your estate planning and the documents that you need. In addition, you will want to coordinate your beneficiaries with the estate plan you want. Do you have secondary beneficiaries on record?
4. Review tax withholdings and tax planning.
Consider the new tax laws and how that might affect the outcome of your tax return, in addition to the potential impact to your long-term planning. Some itemized deductions were eliminated, personal exemptions erased, the standard deductions doubled and tax rates changed. The withholding tables changed mid-year as well and, with all of these changes, it is not wise to guess at how it will affect you.
5. Assess your insurance needs (beyond open enrollment).
Revisiting insurance needs should be part of your planning review. You evaluate and select your health insurance each year during open enrollment. You give up “15 minutes” to see if you can get a better car insurance rate. Why not take a glance at your lifestyle and needs around health, life, long term care and disability insurance? Maybe you're even over-insured and could free up some money by changing things up.
6. Plug budget leaks and re-evaluate your cash flow plans.
If putting yourself on a budget doesn't work, implement a system to control your spending. Only deposit your expected spending needs into your checking account with the balance to your savings account. If you only spend for your needs, your savings will build up and be available toward reaching your longer-term goals. If you spend more than what you anticipated your needs to be, then it is time to re-evaluate your spending. It is a great way to find out where the leaks exist.
WHO'S GOT YOUR BACK?
7. Schedule a review meeting with a financial advisor to find out what you may be missing.
Do you have a relationship with a trusted professional who can offer you some perspective on all these considerations and help you as you move through life and face new financial choices? There are financial professionals who go through years of education, study and practice, experience and learning to help individuals reach their financial goals. Using a strategically crafted financial plan can help you move forward with confidence and security, today and in the future. Start by reviewing the items on this year-end checklist to find out where you might want to start the conversation.
Contact the team at Valley National Financial Advisors for more information.
Valley National Financial Advisors is the marketing name for Valley National Group, Inc. and its affiliates. Securities offered through Valley National Investments, Inc. - an independent broker/dealer and member FINRA and SIPC. Valley National Advisers, Inc is a Registered Investment Adviser with the U.S. Securities and Exchange Commission.
Valley National Financial Advisors | 1655 Valley Center Pkwy Suite 100, Bethlehem | valleynationalgroup.com
This post is a sponsor collaboration between Valley National Financial Advisors and Lehigh Valley Style.
