Annual financial check-up if you’re over 45
Just as you visit your doctor for a yearly exam and take your car in for regular tune-ups, it’s also smart to perform an annual checkup on your finances. Checking in on your financial health will help you stay on track -- next week, next year, and far into the future!
Here’s what needs reviewing if you’re over 45:
- Could you reduce your monthly mortgage payments by refinancing your mortgage?
- Should you consider some other type of mortgage (ARM, 15-year) that corresponds with how long you plan to stay in your current home or allows you to pay down your home loan faster?
- Have you chosen deductibles that provide lower premiums with an acceptable level of risk?
- Do you have an umbrella liability policy to cover larger claims beyond what your regular insurance covers?
- Do you have disability insurance?
- Do you have enough life insurance? By age 50, you should consider supplementing your employer-provided life insurance with an additional policy.
- Do you have long-term care insurance?
- Are you taking full advantage of your employer's 401(k) plan or other retirement plan?
- Are you going to make an IRA contribution? If so, make it early in the year.
- Should you consider converting your traditional IRA to a Roth?
- Have you calculated your retirement income and asset needs?
- If you’re planning to live on less in retirement, can you test it out for a few months to make sure it’s realistic?
- Do you understand your sources of income in retirement, and steps you can take to increase each of those sources now?
Paying for your child’s college education
- Are you confident that you are on track with your own retirement savings before paying for your child’s college education? (You can take out a loan for college but you can’t take out a loan for retirement!)
- Are you familiar with the many ways of saving and borrowing for college?
- Have you reviewed your investment portfolio lately?
- Does your investment strategy match your time horizon and risk tolerance?
- Have you had your estate plan reviewed recently by a financial advisor or attorney? (You are more likely to achieve the desired results of your estate plan with expert guidance.)
- Does your estate plan reflect the changing estate tax laws?
We can help
A financial advisor can assist you with an annual financial check-up, and help you take control of your financial future. If you need help, call us at 1-800-288-3425.