No matter your age or stage of life, it’s essential to conduct a yearly financial review with your financial professional. A financial review will allow you to take a close look at your finances, assess the success of various strategies, and determine whether you need to make any changes.
A yearly review can help ensure that you’re headed in the right direction financially. In honor of Effective Communications Month this June, we’ve compiled this list of tips to help you make the most out of your yearly financial review:
A budget helps you track how much money is coming in and going out each month. When you meet your financial professional for your yearly review, review your budget for the past year and use it to design the ideal budget for the upcoming year. Reviewing your budget will help you determine where you can cut any unnecessary expenses.
Since your ability to save will play a vital role in your financial success, take a look at your savings. Determine if your savings goals for the year still apply. Ask yourself if there is any room for improvement and how realistic it is for you to boost your savings. If possible, work toward increasing your savings rate each year to help compound your money and change of savings rate success.
As you review your financial plan, make sure you’re saving enough this year. Adjust to keep you on track for retiring on your retirement timeline. You may consider increasing your retirement savings contributions at work or contributing more to your other retirement savings accounts.
If you’re already retired, meet with your financial professional to help determine whether your spending down plan is appropriate. For the current economic environment or if you should consider other strategies.
It’s essential to review each investment’s performance and take action to improve your portfolio’s future performance. While you can’t control market performance, you can take action to help ensure that your investments align with your goals. During this time, review performance net fees, and discuss other investment vehicles. During your yearly financial review discuss strategies appropriate for your situation with your financial professional.
Taxes can get complicated, so that you may need help from a tax professional. Understand how you can max out your retirement savings accounts or give charitable donations to help lower your taxable income. Also, determine whether you qualify for any new tax credits or deductions. If you’re gone through some life changes, you may have access to tax perks that weren’t available to you in the past. Tax planning can occur anytime throughout the year, and well ahead of the end of the year is optimal for your yearly financial review.
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