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