Our New Year’s resolutions often revolve around financial matters, but we tend to express our goals in somewhat vague language. We might say that we plan to save more money this year, or “get things organized”. But what do those statements really mean? To gain some clarity about your financial situation, make these three smart moves during the year. You can combine them with other goals if you wish, but accomplishing these tasks alone will help you get your financial life in better order.
Reconsider your mortgage. If you bought your home years ago, you might be throwing away a lot of money on a high-interest mortgage payment. Rates are historically low right now, so refinancing your loan might be a smart move to make before they go back up. Of course, refinancing isn’t the best idea if you don’t plan to stay in your home much longer, because it can take a while to recoup any money you spend on refinance fees. Consider all of these factors, and shop around for a loan with low fees if you decide to refinance.
Give your life insurance policy a checkup. If you chose your life insurance policy several years ago, you based that decision upon your needs at the time. But your family size, structure, income, and a variety of other factors might have changed since then! It is wise to reevaluate your life insurance policy every few years, and make changes as needed. While you’re at it, make sure your beneficiaries are correct.
If you don’t have life insurance, now is the time to accomplish that task. Call us for an appointment, and we can explain the different types of policies available, and help you choose one that is right for you.
Schedule a meeting with a financial advisor. While you’re at it, let’s talk about your retirement plan. Even if you already have a plan in place, your financial abilities, obligations, and vision for the future can change dramatically over a few years’ time. You might also have new concerns, such as your debt load or the recent changes to the Social Security system. Call us to schedule an appointment, and together we can review your retirement plan and make any necessary adjustments.
Portions of this article have been excerpted from “3 Smart Money Moves You Can Make Right Now” by Selena Maranjian, The Motley Fool.
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.