END OF THE YEAR FINANCIAL CHECK-UP
- Posted by Kat Schraeder, CFP®
- On November 19, 2020
With all of the changes occurring this year, an often-overlooked area that may need rejuvenation is your financial health. The end of the year is the perfect time to reevaluate your financial situation and ensure you have all of your major financial bases covered to start the new year off right. The checklist below will help simplify how to go about this process.
Have you scheduled an annual plan review with your advisor?
Regardless of what stage of life you are in (new hire, mid-career, or retirement), we have services and offerings to help you navigate the journey. If you have not updated your plan in the past 12 months, please contact us to schedule a meeting.
Have you reviewed your current budget?
Most people don’t know where all their money goes, making it difficult to save and plan for future expenses. RAA has a great, interactive budgeting tool. Download your copy.
Are you prepared for the unexpected?
Do you have an emergency fund large enough to cover 3-6 months of expenses? If not, contact your advisor who can work with you on developing a plan to accomplish this.
Have you reviewed your insurance coverage?
Having proper insurance coverage is a key factor in minimizing risks to your financial security. Have you paid particular attention to your disability coverage needs? Disability can significantly alter your financial course, and even more so if you are not insured in case something happens that prevents you from flying.
Have you reviewed your estate planning documents recently?
- Are your documents current?
- Is all the information relevant?
- Are your beneficiaries correct on all your accounts and policies? Take some time to review all your accounts and insurance policies to ensure the beneficiaries are current.
- Are the documents more than five years old? Have any significant life events occurred? If either or both are true, it is time to update your documents.
- Does your advisor have a copy of your documents, specifically your Durable Power of Attorney?
Have you updated contributions on your retirement accounts (401(k), IRA, Roth, HSA)?
- Are you participating in your employer-sponsored plan?
- Do you need to adjust your contribution for 2021?
- If you are 50 or older, are you taking advantage of the catch-up contribution limits (age 55 for HSAs)?
- Does your plan offer a Roth option? Does it make sense for you to take advantage of this option?
Are you withholding too much or too little in taxes?
Like your estate plan and budget, your tax withholding should be reviewed regularly, especially if you have any changes in income. Contact your CPA to verify the withholding amount appropriate for your situation.
RAA has focused on the financial needs of airline employees and their families for over 30 years, and our team is happy to help you with customized solutions in any of these areas and more. We believe updating your financial plan on an annual basis is imperative to achieving your financial goals. It’s never too early or too late to improve your financial health – request a complimentary financial consultation with an advisor today to find out how you can get started.
Disclaimer: This blog is intended for informational purposes only and should not be construed as individual investment advice. Actual recommendations are provided by RAA following consultation and are custom-tailored to each investor’s unique needs and circumstances. The information contained herein is from sources believed to be accurate and reliable. However, RAA accepts no legal responsibility for any errors or omissions. Investments in stocks, bonds, and mutual funds may increase or decrease in value. Past performance is no guarantee of future results. Any of the charts and graphs included in this blog are not recommendations for the purchase and sale of any security.