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Spring Cleaning for your Finances

Spring cleaning doesn’t just have to be for around the house. Your finances may be in need of a little spring cleanup as well. There are several important areas of your financial situation that probably need a review annually.
 
What are the typical financial areas that might need a review?
There are three main areas that should be reviewed annually:  Investment and retirement accounts; credit cards and other debt; and estate plans including insurance.
 
What are two important actions for the investment and retirement accounts area?
The first is to consolidate retirement accounts and previous employer 401k plans as much as possible if you have multiple accounts. It’s probably costing you more in fees than you realize to maintain several small accounts.  
 
A second important action is to update your beneficiaries on all of your retirement and investment accounts. People often forget to change beneficiaries as their family status evolves through marriages, kids or divorces.  This is something that you want to review on a regular basis.
 
How should credit cards and other debt be cleaned up?
Make sure you have properly closed out all credit you don’t intend to use again, especially store charge cards and old credit cards.  It will help your credit score and is also a good way to help lessen your chance of being a victim of fraud.
 
It is also a good time to review your credit cards and other debt to see if refinancing or transferring to a lower interest card can save you money or help you pay the debt off faster. There are always ways to consolidate your debt too to help you lower payments and pay it off quicker.
 
What might need to be spring cleaned with estate plans?
First and foremost is having an updated will. A will isn’t something that you should do once and forget about it.  You should also consider adding living wills and financial powers of attorney if you don’t have them.
 
Another area to consider as part of your estate planning is a review of your life insurance needs, especially if your family has changed or your financial circumstances are different. Maintaining the proper level of insurance is important to your overall financial plan.


Posted: 3/24/2014 with 0 comments

Categories: Estate Planning, Money Matters, Planning



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