6 Check-Ups to Get Your Finances In Order

I don't like looking at my finances primarily because I am instantly reminded of how far I am from my goals.  With 3 kids (which includes twins), my plan for college tuition right now consists primarily of Powerball tickets.  I'm kidding.

Regardless of the size of your 401(k), IRA or college savings, plan, it's important to give your portfolio a regular check-up to make sure the plan reflects your current life and goals.  Here are 6 steps that will get you headed in the right direction.

1. Check the balances and allocations in your various investment accounts.  Call your financial adviser and tell him you'd like to review the allocations in your investment accounts. Depending on where you are in your life, the state of the market and several other factors, your investments could use some readjustment.  For example, if a stock has split, it may now occupy a larger than ideal portion of your investment.  If you play your cards right, you might even be able to get your adviser to pick up the bill for lunch!
2. Review insurance coverage.  Make sure your life and disability insurance coverage reflect reality.  If you've received a raise, had another child, bought a new house, then you need to make sure your insurance reflects these changes.
3. Review and update beneficiaries.  This is an important one, especially if you have minor children.  If you don't have a revocable living trust and something were to happen to you while your children were still under 18, then the children would receive the life insurance proceeds and retirement accounts outright.  You may have the most responsible kids on the planet, but an 18-year old with hundreds of thousands of dollars (or more) is simply not a good idea.
4. Assess and review your estate plan.  "But I don't have an estate plan!"  Yes, you do.  The state has one for you, and it's time-consuming, a burden for your family, and usually expensive.  If you have a will or, even better, a Family Legacy Plan, then it's a good idea to review it to make sure the plan still reflects your current wishes and goals.
5. Guardians for minor children.  If you have a plan in place, make sure it is still consistent with your wishes.  If you don't have a plan, make one.
6. Review your advanced health care directive.  Make sure you have a healthcare power of attorney and living will.

If you have questions on how to get any of these accomplished, or you would like more information on how a Family Legacy Plan can take care of most of this list, feel free to contact Bobby Sawyer at (704) 266.0727 or rsawyer@sawyer-law.com.