January is Get Organized Month
Updated: Jan 11
With a new year, many folks assess their health and wellness and resolve to make changes, tweaks, improvements, etc. It's also a great time to assess your financial wellness. January also happens to be Financial Wellness Month, so let's take a look at some steps you can take.
1) Take a good hard look at your financial picture.
This means taking a look at your savings, income level, debts, spending habits, assets and investments. Are your financial goals in line with your actions?
2) Assess your emergency plan.
You have likely heard the advice of having 3-6 months of expenses saved in the event of an emergency, but it's also important to assess your insurance coverages that protect you against loss (homeowner/renter, auto, disability, life, health). Are they still adequate? Maybe you purchased a policy years ago, put it in the financial junk drawer, and forgot about it. Now is a good time to dust it off and see if it still meets your needs.
3) What is your retirement income goal?
Yes, your GOAL. What kind of retirement do you want to have? How much income do you need to have the retirement you want? Do you know if your current plan is going to get you there? I'm not talking about how much have you accumulated in your savings vehicles, but how much income those vehicles are going to generate for you. The time to start figuring this out is before you retire, at least 10-15 years out. Don't forget to include a plan for contigencies, such as an extended care need. On that note....
4) The biggest income disruptor in retirement - extended care.
If you find yourself having to care for a loved one due to an extended care need, think about how that will affect not only your income (now you have a new expense) but how that impacts your lifestyle. Not to mention the potential tax ramifications. Have a plan that gives you peace of mind and provides tax-free income to use (you read that right!)
If you're not sure where to begin, I'm here to help!