Financial Spring Cleaning
Just when you think you are organized, tax season rolls around to give you a reality check. “Where did I put that receipt?” “I thought I already funded my IRA.” “Oh, THERE’S the form to max out my retirement contributions at work!” Then, when April 15th has come and gone, it’s easy to put all of those little things out of sight, out of mind.
Take the opportunity this year to brush the dust off your financial goals. The following spring cleaning tips will lead you to a brighter, fresher financial future:
1. Go Paperless. If you are apprehensive to toss out your financial papers, scan them to a disk for easy access and clutter reduction. Once the paperwork is on a disk, remember to shred those personal documents to avoid identity theft.
2. Stick it to the Man. If your employer offers to match your retirement contribution, then you need to contribute the maximum amount allowed. You may have to shift some of your budget around, but remember that your money is being doubled by your employer. Contributing less than your allotted maximum means you are losing money. So stick it to the man and max out your retirement plan.
3. Embrace Change. If you have had a significant change in your life, you probably need to update your legal documents. Births, deaths, marriages, divorces, even major relocations require updates to your will, power-of-attorney documents, and documents concerning your health care.
4. Make Sure You’re Covered. Spring cleaning is a great opportunity to dig out your insurance policies including home, auto, life and disability. Any major events that have occurred within the past year might require a change in your insurance coverage. Even if you haven’t had any recent changes in your life, make sure your insurance is still covering your valuables for the amount you value them today.
5. Manage Your Mortgage. When you are filing away last year’s 1098 form, pull out your loan documents for a quick review. Will your loan adjust in the future? Are you still paying private mortgage insurance (PMI)? Discuss these issues with your mortgage planner to assure that your mortgage is functioning as a beneficial financial tool.
6. Do the Math. Maximum IRA contribution + compounded interest = Cushy Retirement. Each year, you can contribute a certain dollar amount to your IRA. If you contribute the maximum amount allowed, you are one step closer to achieving your financial goals.
7. Start Fresh. Create a filing system that works for you. An accordion-style folder works best for saving and sorting those elusive tax receipts. You’ll be happy when tax season rolls around again.
For more information on financial tips or mortgage management, contact Marc at 1.877.LakeLoan. As a Professional Mortgage Planner with a Financial Planning background, Marc has the knowledge and experience to guide you through the mortgage market. |
