Actionable New Year’s Financial To Dos

Yes, it’s time to turn the page on 2011 and start anew!  There’s nothing like a fresh calendar to begin making plans for your envisioned future.  Last week, we provided you with some of our Center best ideas for creating financial planning based resolutions.  Here, we provide you with some very specific and actionable steps you can take now to get a start on improving your financial health: 

  1. Take score: review your net worth as compared to one year ago
  2. Review your cash flow: how much came in last year and how much went out (hint: it is better to have less go out than came in). 
  3. Be intentional with your 2012 spending: also known as the dreaded budget – so think “spending plan” instead.
  4. Review and update beneficiaries on IRA’s, 401k’s and life insurance: raise your hand if you want your ex spouse to receive your 401k
  5. Review the titling of your non retirement accounts: consider a “transfer on death” designation, living trust, or joint ownership to avoid probate.
  6. Revisit your portfolio’s asset allocation:
  7. Review your Social Security Statement: if not yet retired you will need to go online – everyone’s trying to save a buck on printing and mailing costs
  8. Check to see if your retirement plan is on track: plan your income need in retirement, review your expected sources of income, and plan for any shortfall.
  9. Set up a regular review schedule with your advisor: an objective third party is best – but at a minimum set aside time on your own, with your spouse, or trusted friend to plan on improving your financial health.

So, after you promise to exercise more and eat less, get started on tackling your financial checklist!

In subsequent posts, we will elaborate on a few of these suggestions. Wishing you a prosperous New Year!