| While you're making your New Years' | | | | long-term care and disability policies |
| resolutions, don't forget to give your | | | | as well. And if your needs for life |
| financial house an annual tune-up. As | | | | insurance have changed, maybe it's time |
| the old saying goes, an ounce of | | | | to cancel some policies or up your |
| prevention is worth a pound of cure, and | | | | coverage. |
| few adjustments now could save you | | | | If you're still employed, talk with your |
| thousands of dollars, not to mention | | | | human resources department and make sure |
| some major headaches, in the months and | | | | you're maximizing all available |
| years to come. | | | | benefits. Max out your 401k and any |
| The first step in any financial tune-up | | | | matching contributions from your |
| is to reassess your financial goals and | | | | employer. See if there are ways to lower |
| make sure you're on track to reach them. | | | | your health insurance costs. Some even |
| For instance, has your target date for | | | | offer tuition reimbursement. |
| retirement changed? Has a spouse had a | | | | The last major step of your financial |
| career move that affects how much you | | | | tune-up is a close inspection of your |
| have going into savings? Are you | | | | investments. If you have mutual funds, |
| planning any major purchases this year, | | | | check out your funds at By entering |
| such as a kitchen remodel or buying a | | | | each fund's symbol, you can quickly |
| car? | | | | measure your fund's performance, rating, |
| If you depend on your investments for | | | | how they compare to similar funds, and |
| income, perhaps your cost of living has | | | | whether your fund has had a recent |
| increased and you need to find a way to | | | | management change that could affect |
| increase your returns. Maybe you've | | | | performance. You want to be in funds |
| downsized your home and your income | | | | that have consistently performed well |
| needs have decreased. Whatever the case, | | | | over the long haul, not just |
| now is the time to determine what your | | | | one-year-wonders. If you happen to own |
| current needs are and how to adjust your | | | | some funds that are laggards, then fire |
| investments to improve their ability to | | | | them and replace them with higher-ranked |
| achieve your goals. | | | | ones. |
| The second step of your financial | | | | When determining what funds to have, |
| tune-up is to make sure your estate | | | | don't just look at performance, but also |
| planning and insurance policies are | | | | look at diversification. If you own |
| up-to-date and in order. I know it's not | | | | several funds, but they're all invested |
| a lot of fun to do this, but believe me, | | | | in large-cap companies, that's not |
| if you could talk with folks like I | | | | proper diversification. You should |
| have, who didn't have their houses in | | | | spread your eggs among several different |
| order and are paying the price, you'd | | | | categories, types and strategies. And |
| gladly take the time to do it now. And | | | | don't forget to make sure your company |
| it's not as bad as you think. | | | | retirement account isn't 100% in company |
| Read over the estate documents you have, | | | | stock. |
| such as a will, living trust, powers of | | | | Make sure you're not too over-weighted |
| attorney, etc., and make sure they | | | | in any one category. For example, energy |
| reflect your current wishes and | | | | and international stocks did very well |
| situation. Don't have the right | | | | in 2005. If you have hefty gains in |
| documents in place? No time like the | | | | those holdings, you might want to |
| present to take care of it. Not sure | | | | rebalance some of those profits into |
| what you need? Just ask me. | | | | other categories. |
| Review your insurance policies, making | | | | An annual financial tune-up might only |
| sure to verify your liability coverage. | | | | take a few hours, but its benefits could |
| For instance, most drivers don't carry | | | | last a lifetime. If nothing else, you'll |
| enough uninsured motorists coverage. And | | | | gain the peace of mind that you're on |
| after all the hurricanes of 2005, make | | | | track to reach your financial goals and |
| sure you know exactly what is covered in | | | | you have your estate in order. If you |
| your homeowner's policy. If you have | | | | uncover some problem areas, you'll be |
| questions, make an appointment with your | | | | able to make changes now before you have |
| insurance agent and know for certain. | | | | to pay for costly mistakes. |
| Don't forget about reviewing your | | | | |