Today is the perfect time to review your financial affairs. Why not go one step further and perform a complete financial review? It could have a positive impact on your long-term financial picture.
Before you sit down with your financial advisor, take time to read the important considerations to keep in mind.
Here are seven suggested action steps that’ll help guide you through your review:
1. Talk to your family
Factor in the financial decisions and goals of your spouse and children.
2. Put your financial goals in writing
Figure out how much money you’ll need to meet each goal, when you’ll need it, and how you’ll get it.
3. Create a net worth statement
Create a list of your assets and debts, and compare it to last year’s statement. Are you gaining ground or losing it?
4. Review investment performance
Determine which investments are worth it and what may need to change this year.
5. Protect what you have
Consider the risks of your financial strategies. Your long-term goals may be unobtainable if you lose your present assets or your income potential.
6. Determine if you have the insurance you need or if you’re missing critical coverage
Don’t duplicate employer-provided coverage. Review your coverage annually; don’t just automatically renew policies.
7. Review your will and your estate plan
Did your situation change during 2018? If so, make the appropriate changes to your will and estate plan.