Simplify Your Financial Holdings
Simplifying your financial holdings can eliminate much of the drudgery of financial recordkeeping. If you have credit cards you don’t use, cancel them and eliminate the extra statements. Consider consolidating your credit lines to the greatest extent possible. Review your investment holdings for non-performing assets or redundant accounts and consolidate your investments.
Source: Financial Visions, Inc.
Review and Improve Your Balance Sheet
The one true path to financial independence over the long term is increasing your long-term saving and decreasing your debt. If you are not maximizing your tax-deductible employer sponsored retirement plans and your individual tax-advantaged saving plans, evaluate your monthly cash flows with an eye toward increasing your monthly saving. The other side of your balance sheet, the liabilities side, is equally important in maintaining a healthy personal financial position. Every effort should be made to eliminate completely the need for short-term debt (credit cards and debit balances) and to efficiently manage your long-term debt (mortgages).
Source: Financial Visions, Inc.
Review Your Estate Plan
Does your will still fairly reflect your personal wishes for the distribution of your assets? Have the personal or financial circumstances or your beneficiaries significantly changed over the past year? Have you considered a gifting program to move assets from your estate to those you wish to enrich? Have you reviewed your estate plan in light of changing estate tax laws or changes in your personal financial position?
Store Your Documents Safely
All your hard-to-replace legal and financial documents should be stored in a safe and fireproof location. Consider renting a safe-deposit box at your local bank or credit union, or purchase a fireproof lockbox from your local office supplies outlet. Documents you should store include wills, trusts, powers of attorney, titles of ownership (your home, cars, etc.), Social Security cards, birth certificates, photographic negatives, list of personal possessions, and so forth.
Review Your Insurance Coverages
Inadequate insurance coverage can lead to major financial loss if your business is damaged, destroyed or simply interrupted for a period of time. At least once each year, gather your insurance records together and review the adequacy of your insurance policies. Be sure to evaluate all coverages, including life insurance, disability income insurance, homeowners insurance, auto insurance, liability insurance, renters insurance, long-term-care insurance, etc.
Insurance policies vary, check with your agent or provider.
1. Meet with your insurance provider to review current coverage for such things as physical losses, flood coverage and business interruption.
2. Understand what it covers and what it does not.
3. Understand what your deductible is, if applicable.
4. Consider how you will pay creditors and employees.
5. Plan how you will provide for your own income if your business is interrupted.
6. Find out what records your insurance provider will want to see after an emergency and store them in a safe place.
Since 1989, we have been providing our clients with unbiased and independent insurance, estate, and retirement planning advice.
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