Annual Financial Check-up
March 8, 2020Greg Felton, CLU, ChFC, Sales Director
gfelton@nsslife.org
Every year smart people conduct a financial check-up on their finances. This is a time to review, evaluate and make adjustments. Here are a few things to consider:
Review your Insurance coverage. Could you save money by increasing your home and auto deductibles? Do you have an umbrella liability policy? Does your employer offer the chance to buy low cost term insurance? If so, take advantage and add this extra protection at a reasonable cost. Do you need more life insurance? What about disability protection? Have you ever thought about long term care insurance? And last but not least, make sure the beneficiaries on your insurance, IRA, 401k, etc., are all up to date with the correct names.
Let’s talk about your mortgage. This is one of the largest expenses most people will ever have. One item that you may consider is sending an extra amount ($100) on every payment. This will lessen the time and interest you ultimately would have to pay the mortgage. Another idea to consider is re-financing. The low interest rate environment has made this an attractive possibility. Do you have a 20 or 30 year mortgage? If so, think about a fifteen year mortgage. Payments would be more but again the time and interest saved make this a wise idea.
Are you saving some money for the children’s education? A Coverdell ESA is a great way to give youngsters a head start in life. Most states also offer a 529 plan and these are good options too.
How about your work benefits? Do you take advantage of your employers match on the 401k? If not, you are leaving free money on the table. Review this option and be smart.
No financial plan would be complete without mentioning a will, power of attorney (POA), health care directive, living will, and trusts. These are all good topics to review with your legal advisor.
Some miscellaneous items to think about is creating a budget. Some people use the envelope system, you can google that to see if it could work for you. Another good idea is to track your actual expenses for 30 days. Most people are surprised to find out that they spend a lot of money on McDonald’s, lattes, lottery tickets, etc. Make sure to check your credit report a least once a year. You may want to consider an outside resource to protect your credit (ie: LifeLock) or credit freezes.
Automate payments and savings as much as possible. Pay your bills through your checking account and never worry about being late again. Have money deducted from this same account to a savings plan. This amount over time will add up and never be missed.
Since tax time is right around the corner, now may be a good time to review how much you are paying. Too much withholding, to get a refund is a free loan to the government. There are better ways to allocate this money. Talk to your tax professional. This person can help you because they know your particular situation. This is a partial list and only touches on a few items.
Finally, no plan would be complete without a financial professional. This person can help you answer any questions you may have. Their goal is to help you. For more information please call your local NSS representative, or Joe Elliott, in the Home Office.
NSS offers some of the best rates and plans that money can buy. Call your local representative or Joe Elliott in the Home Office for more information. Let us help you and your family build a secure future together.