In the listicle of life, three things come to mind that we should pay attention to annually: your house, health, and wealth.
There are plenty of checklists for your house and health, but what about your wealth? We’re often at the ends of the spectrum when we pay attention to a full review of our financial wellness. Usually, we do it at the beginning of our financial planning and then annually at tax time. However, you can benefit from a midyear review, especially when you know that your house and health can have a direct impact on your overall wealth.
We’ve created a checklist to help you think about three main areas in your financial review.
- Tax-advantaged accounts: Check your tax-advantaged retirement accounts to identify possible changes or a rebalance as retirement approaches.
- Investments: Review your investment portfolio to ensure it’s on track to meet your goals, ensure beneficiary designations are updated, and don’t forget to include your company stock plans.
- Insurance: If you’re an entrepreneur, get to know what Key Man Insurance is; if you own a home, it’s likely the value went up this year, and you may need to ensure you have enough coverage, and thinking long-term care now can help prepare future needs for you or your parents.
With so much to review, you should also include people in your financial planning sphere to update life events or get their expert knowledge regarding changes from tax planning to estate plans. While your financial advisor and accountant are likely on your list already, also include your company’s Human Resource representative to assist in reviewing benefits or update beneficiaries, especially if you changed jobs this year.
Regardless of where you are on your wealth journey, the common thread is having a holistic, well-coordinated effort to achieve your goals. And like all goals, reviewing more than once a year can give you confidence that you’re on track or identify adjustments needed.