Spring Clean Your Finances - Adviser Investments

Spring Clean Your Finances

Spring cleaning makes your living space feel brighter heading into summer. But why stop there? These steps will get your finances streamlined and in tiptop shape.

  1. Scrub your budget. Shifts in spending patterns and priorities during pandemic lockdowns forced many of us to reevaluate our travel and entertainment needs. Your income may also have changed in the last two years, due to getting either a new job or a salary adjustment. With life returning to some sense of normalcy, it’s a great time to review your budget from top to bottom. To maximize saving and reach your financial goals faster, reassess both the income and expense parts of the equation.
  2. Straighten out beneficiaries. Did you know that the beneficiaries listed on your retirement plans, life insurance policies, annuities and other accounts supersede what’s specified in your will? It only takes 15 minutes every spring to make sure your beneficiaries are correct on your accounts—that’s time well spent. And while you’re at it, make sure your contingent beneficiaries are updated as well.
  3. Spruce up insurance coverage. If it’s been several years since you’ve looked at your insurance coverage, it may be time for a refresh. We’re talking about the basics: Lifedisability, home and auto, and umbrella liability. Insurance needs change when milestones come along, whether it’s a new job, getting married, having children, buying a new home or completing a major renovation. All these things are catalysts for reviewing your insurance to make sure you’re sufficiently covered.
  4. Purge old subscriptions. Remember that $10 here and $20 there adds up fast, especially when charges renew automatically. Make a list of all your monthly or annual subscriptions and you may be surprised to find a few that you can consolidate or eliminate. Before you know it, you might have a couple hundred dollars in your monthly budget that you can sock away in an investment account or use to treat yourself to something special.
  5. Refresh tax withholdings. With tax season in high gear, it’s a perfect time to assess your withholding. While it feels nice to get a refund check from the IRS, this isn’t the most efficient way to use your money—and the government thanks you for your interest-free loan! If you suspect you may be withholding too much or too little, ask your tax preparer what they think. Or check out the IRS’ online tax withholding estimator. We recommend the $500 rule of thumb—if you owe or are refunded more than that, it’s time to tweak your withholding.

Once you’re through this list, your financial plan will be in sunnier shape. If you have any questions pertaining to your individual situation, let your portfolio team know. We want to help!

About Adviser Investments

Adviser is a full-service wealth management firm, offering investment managementfinancial and tax planningmanaged individual bond portfolios, and 401(k) advisory services. We’ve been helping individuals, trusts, institutions and foundations since 1994. Adviser Investments and its subsidiaries have over 5,000 clients across the country and over $8 billion in assets under management. Our portfolios encompass actively managed funds, ETFs, socially responsible investments and tactical asset allocation strategies, and we’re experts on Fidelity and Vanguard mutual funds. We take pride in being The Adviser You Can Talk To. To see a full list of our awards and recognitions, click here, and for more information, please visit www.adviserinvestments.com or call 800-492-6868.

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