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:

Your home

  1. Could you reduce your monthly mortgage payments by refinancing your mortgage?
  2. 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?

Your insurance

  1. Have you chosen deductibles that provide lower premiums with an acceptable level of risk?
  2. Do you have an umbrella liability policy to cover larger claims beyond what your regular insurance covers?
  3. Do you have disability insurance?
  4. Do you have enough life insurance? By age 50, you should consider supplementing your employer-provided life insurance with an additional policy.
  5. Do you have long-term care insurance?

Your retirement

  1. Are you taking full advantage of your employer's 401(k) plan or other retirement plan?
  2. Are you going to make an IRA contribution? If so, make it early in the year.
  3. Should you consider converting your traditional IRA to a Roth?
  4. Have you calculated your retirement income and asset needs?
  5. 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?
  6. 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

  1. 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!)
  2. Are you familiar with the many ways of saving and borrowing for college?

Your investments

  1. Have you reviewed your investment portfolio lately?
  2. Does your investment strategy match your time horizon and risk tolerance?

Your estate

  1. 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.)
  2. 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.