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