5 Ways To Spring Clean Your Finances

Please note: This update was prepared on Thursday, April 13, 2023 prior to the market’s close.

Spring Cleaning for Your Finances

Spring cleaning makes your home feel lighter and brighter heading into the summer. But why stop there? We can lighten your emotional load by putting your finances in order, freeing you up to focus on sunscreen and summer travel. Let’s start with these simple suggestions and then talk more in our next meeting.

• Organize your income and expenses. Spending patterns shifted for all of us during the pandemic. Your income may have changed over the last few years due to a new job or a salary adjustment, too. With travel and entertainment back to pre-pandemic levels, now is a great moment to scrub your budget. Let’s look at your income and expenses to make sure your personal balance sheet is on track.
• 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 takes only a few minutes to make sure your beneficiaries are correct on your accounts—and we’re happy to help. While we’re at it, let’s make sure your contingent beneficiaries are updated as well. This is the type of thing that will help give you and your family peace of mind. 
• Spruce up insurance coverage. If it’s been a few years since you’ve looked at your insurance coverage, it may be time for us to talk about a refresh. I will review the basics with you: Life, disability, home and auto, and umbrella liability. Insurance needs change when milestones come along, whether that means getting married, buying a new home or selling your business. Each of these life events is a catalyst for reviewing your insurance to make sure you’re sufficiently covered.
• Refresh tax withholdings. Tax season is in its eleventh hour, making now an ideal time to scrutinize your withholdings. While it feels nice to get a refund check from the IRS, this isn’t always the most efficient way to manage your cash flow—and the government thanks you for your interest-free loan! If you suspect you may be withholding too much or too little, let’s check in. Or you can use 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.
• Clean up your accounts. Odds are you haven’t spent your entire career with one employer—meaning you may have retirement funds stashed in several 401(k)s or other accounts. Leaving funds forgotten in ancient accounts often means they’re part of a stale investment strategy that’s no longer suitable for your goals. In some cases, rolling the funds into an IRA might lower your costs and improve your returns; in others, it may be preferable to consolidate into one 401(k). I can help you with all of this.

Once you’ve run through this list, your financial picture will be in even sunnier shape. But these items just scratch the surface of what Adviser can do for you, so let’s connect if you have any questions or would like to review your financial goals or investment portfolio. We’d be happy to help.

Financial Planning in Your Prime

With inflation concerns so persistent, financial planning is more important than ever—but no two plans are the same. That’s why we take a holistic tack to tailor financial plans to meet your specific needs. With that in mind, we’ve covered a variety of considerations based on life stages that may apply to you. You can find some of our advice in the following financial planning blog posts:

• Financial Planning in Your 40s
  
  
• Financial Planning in Your 50s
  
  
• Financial Planning in Your 60s

Market & Economy Snapshot

Markets rebounded this week on the back of fresh data showing inflation dropping to its lowest level in almost two years. And coming off another strong month for the labor market in March, there are some signs hiring may cool off down the road. This boosts the odds that the Federal Reserve will shift its interest-rate policy from hikes to a pause or even cuts in the second half of the year, increasing Wall Street’s appetite for riskier assets on the assumption that borrowing will be less expensive.

On Friday, we will be hearing earnings results from some of the largest banks: JP Morgan, Citigroup, Wells Fargo and PNC. Their perspectives on the fallout from the Silicon Valley Bank collapse, deposit flows and tighter lending standards will give us insight on the health of the banking sector and how we should allocate portfolios to that sector going forward.

Remember to visit www.adviserinvestments.com for our timely and ongoing wealth management commentary.

Strategy Activity Update

Please see below for a summary of the trades we executed over the week through Thursday and our current tactical strategy allocations.

Dividend Income

Sell VanEck Semiconductor ETF (SMH)

Buy iShares Expanded Tech-Software Sector ETF (IGV)

AIQ Tactical Defensive Growth

AIQ Tactical Multi-Asset Income

No trades

AIQ Tactical High Income

No trades

About Adviser

Adviser is a full-service wealth management firm, offering investment management, financial and tax planning, managed 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.