Are Your Finances Ready for the New Year?

If you're not sure whether your financial strategy is as comprehensive as it could be, a checklist and your financial professional can help. Get a fresh start in the new year by reviewing the items on the list to see if you're on track.

• List your assets, including investments, savings, retirement accounts, real estate, college funds, and other valuables. Then list liabilities, such as your mortgage; student, personal and car loans; and credit card debt to see the big picture.


• Revisit your budget. If it’s stretched thin every month, look for ways to reduce costs. Cable and streaming services, cell phone plans, dining and entertainment are good places to start.


• Save money in an emergency fund to cover living expenses for three months to a year.


• Come up with a plan to pay off debt, especially high-interest credit cards.


• Check your credit score and credit reports from the three major credit reporting bureaus: TransUnion, Equifax, and Experian.


• Review your investments and rebalance your portfolio if your asset allocation* or your risk tolerance has changed.


• Estimate retirement income needs. Contribute the maximum to an employer’s retirement plan, or at least enough to receive any employer matching funds. No plan at work? Consider opening a traditional or Roth individual retirement account.


• Save for college with the help of your financial professional.


• Check your estate planning documents. At a minimum, you need a will; durable powers of attorney for health care and finances; and a health care proxy specifying your treatment preferences.


• Review your insurance coverage. Protection for yourself and your family might include life, disability, auto, homeowners/renters, long-term care, and umbrella policies.

*Asset allocation won’t guarantee a profit or ensure against a loss but may help reduce volatility in your portfolio.