Happy New Year! Wisdom Wealth Strategies wishes you a very successful and satisfying 2017. By now, you’ve probably thought about or written down your New Year’s resolutions. Chances are, there is a financial goal on your list. Good for you! We have a few suggestions for your consideration. Hopefully our advice will help clarify your list or give you an idea for a resolution to add to your list. Want to share your resolutions with us? We’d love to hear them! E-mail us at Wisdom@WisdomWS.com.
- Update or draft your estate planning documents. Often overlooked on the priority list of financial planning, estate planning can make a difficult time more manageable for loved ones. Estate planning doesn’t need to be expensive or complicated. Consider getting the basics in place this year, including your will and your medical and financial powers of attorney. Need a referral? Send us an e-mail or give us a call. We work with and refer our clients to highly-competent attorneys and we’re happy to share their information with you.
- Review your insurance plans. Your insurance plans shouldn’t be a “set it and forget it” strategy. As your life and your finances change, so too should your insurance coverage. Is the level of life insurance you own still the correct amount? Do you understand the disability coverage you have through your employer? Have you researched long-term care insurance? It’s also prudent to review your homeowners insurance, liability insurance, and auto insurance on an annual basis. It may save you money, and knowing you’re protected will certainly give peace of mind.
- Add to your emergency fund. The standard answer to how much money should be in your emergency fund ranges from three months to six months of fixed expenses. As we’ve learned from the last recession, three months may not be enough to provide funds in an unemployment situation. If you don’t have six months saved, start adding to your emergency fund.
- Review your investments quarterly. Do you review each of your accounts regularly? If not, consider starting to review your quarterly statements for all of your investment accounts. After all, an educated investor is a smart investor. You should know what you own and how it is performing. Have you undergone significant changes in your life in the last year? If so, review your portfolio to ensure that it still matches your time horizon, your risk-tolerance, and the growth rates you need to support your future needs.
- Build a written roadmap to financial independence. If you don’t already, consider working with an advisor to map out a strategy for attaining your financial goals. Take into consideration your needs for college planning, insurance protection, retirement planning, and any other financial topic that is important to you. When you’re finished, you should have a comprehensive view of your financial condition. Creating a financial plan will result in better control of your finances and your future.