Many of my clients have had many changes over the past year. Some have changed jobs, some have retired, and many have moved to new locations. Since I am a fee-only comprehensive financial planner, I like to ask my clients about changes that have occurred and to update their financial plans to reflect these changes, so that they can stay on track to achieve their financial goals. If you have made any of these changes over the past year, it is a good idea to re-connect with your financial advisor, or to contact a financial planner if you do not current use one.
- If you have a mortgage, would you benefit from refinancing? Interest rates may be rising, so it is a good time to look at this
- Have you accumulated high interest credit card debt? It makes sense to strategically target debts with the highest interest rates first. I have shown my clients how much they can save by taking this debt repayment strategy, and they are often surprised at how much can be saved by paying highest interest rate debts first using the avalanche method.
- Do you need to review your credit report/score? I usually recommend that my clients freeze their credit
- Would Roth conversions be beneficial this year? If your income has dropped significantly, it may make sense to convert some of qualified retirement money to a Roth IRA up to your current marginal tax rate.
- Do you need to review your unrealized gains and losses and possibly create a harvesting strategy?
- Do you expect any changes to your health or medical treatments? If so, you may want to review your health insurance coverage and alternative options.
- Do you need to review your life or disability insurance coverage?
- Is it time to consider long term care insurance?
- Do you need to review the titling and beneficiaries on your assets? If you have an estate plan, do you need to make changes to it this year? It is very important to have the appropriate beneficiaries on your retirement accounts, as these assets pass to the beneficiaries based on who is named on the account.
- Have you reviewed your current asset allocation? Because of changes in the market, your target allocation may be out of balance.
It is important to update your financial plan when your life changes. The plan is only good when it is prepared, and once things change, it needs to be updated so that you can stay on track.
If you are interested in scheduling an introductory call, please contact me using this form.
About the Author
Patti Hughes is a Chicago Fee-Only Financial Planner. Lake Life Wealth Advisory Group provides comprehensive and objective financial planning, retirement planning, and investment management to help clients organize, grow and protect their assets through life’s transitions. She is a fiduciary, and does not sell products or earn commissions, so she truly acts in the best interests of her client