What to Look for in a Financial Checkup
Performing a regular financial checkup is one of the best ways to stay on track with your financial goals. Taking a little time to review your progress and make adjustments can help you achieve long-term financial security and peace of mind. This checkup is an opportunity to assess your financial milestones from the past year and set new goals for the future.
Here is the Real Secrets of Money™ guide to key areas to cover in your financial checkup, along with questions you may want to discuss with your financial advisor.
Retirement Accounts and Status
Retirement may seem far away, but staying on top of it each year keeps you moving in the right direction. Check your retirement account status and use a retirement calculator to assess if you’re still on track. Be sure to account for factors like inflation, lifestyle changes and any shifts in your financial goals.
After reviewing your retirement outlook, consult your financial advisor. They can help you assess your 401(k) contributions, consolidate retirement accounts if needed and explore catch-up options. Reviewing your Social Security plans annually can also keep your retirement strategy optimized.
Retirement may seem far away, but staying on top of it each year keeps you moving in the right direction.
Life Insurance and Beneficiaries
Life changes — like a new relationship, marriage, birth of a child, or divorce — are all good reasons to review your life insurance policies and ensure your beneficiaries are up to date. It’s essential to align your life insurance with any new goals or changes in your household. Whether it’s adjusting coverage or updating beneficiary information, keeping life insurance current is a vital part of your financial checkup.
Investments and Cash Value
Take a look at your investment portfolio and consider adjusting your stock-to-bond ratio. Many people take on more risk when they’re young, then gradually shift to conservative investments as they age to protect their savings. If you hold an indexed life insurance policy with cash value, check if your cash value aligns with your financial goals. If you withdrew from it during the year, consider replenishing it with higher payments to maintain your financial plan’s stability.
Life changes — like a new relationship, marriage, birth of a child, or divorce — are all good reasons to review your life insurance policies and ensure your beneficiaries are up to date.
Loan Repayment and Debts
Debt repayment is an essential part of financial health. Annual checkups are the perfect time to reassess your debt repayment plans. You might decide to make more aggressive payments, set a goal of becoming debt-free or celebrate if you’ve achieved debt freedom. Clearing debt improves your financial stability and provides a solid foundation for future financial growth.
Now, It’s Time to Celebrate
Completing your financial checkup brings clarity and sets the foundation for a secure future. After reviewing your finances, remember to celebrate your progress and the steps you’re taking toward financial well-being. Treat yourself in a way that brings you joy, knowing you’re one step closer to reaching your goals.
