“Getting Your Financial House in Order”

In the Spring, we eagerly expect the soft, green resurrection of the land from the harsh bleakness of winter. It is the time of preparing and planning, as we pour over gardening catalogs and plan vacations. It is the traditional time for spring cleaning, of setting our houses in order. This makes Spring an ideal time to set our financial houses in order, too. Spring is an excellent time to evaluate and plan your financial future. Consider these ten areas, and ask yourself:

1. Do I have a will? Is it up to date? Have I named a guardian for my minor children?  Does my will adequately distribute my property? Should I have  a trust?   Do I have confidence in my executor and my trustee? Might the terms of my will cause conflict in my family? Have  I taken steps to protect my loved ones from predators and creditors? Do I want to include charitable giving in my estate plan?
2. Do I have other estate planning documents such as a durable power of attorney, a living will, and an advance directive? Are they up to date? Does my family know of my funeral wishes? Have I made an essential financial information file for my family?
3. Do I have enough life insurance to adequately take care of my loved ones? Is my health insurance adequate? Do I need critical illness insurance? Do I have long term care insurance to keep me out of a nursing home? Do I have adequate disability income insurance? Does my homeowners and auto insurance cover ALL my property? Should I get an umbrella policy? Do I have a comprehensive list of my property and a videotape in my safe deposit box?
4. Am I contributing the maximum amount to my 401(k) or other retirement plan? Can I contribute to an IRA? Should I convert my IRA to a Roth IRA? Do I have enough future income for a comfortable retirement?
5. Do I have copies of all the beneficiary designations for my IRAs, retirement plans, life insurance and annuities? Are they up to date? Am I certain of this?
6. Am I adequately saving for the education of my children or grandchildren?
7. Am I satisfied with my income tax return? Am I having too much or too little tax withheld each year? Am I needlessly paying tax on my Social Security? How can I lower my tax bill? Did I claim all the deductions and credits I am entitled to? Do I need tax-free income?
8. Do my finances adequately reflect my  tolerance for risk? Do they reflect my  time horizon, goals, and expectations? Are my finances adequately diversified? Do I understand my money personality? Do I save regularly?
9. Should I refinance my home mortgage? Can I eliminate or reduce credit card debt? Is the interest on my debt tax deductible?
10. If I have a business, should I change the type of organization, such as form a corporation  or limited liability company? Can I deduct an office in my home? Should I obtain office overhead insurance?

Bless yourself and  your loved ones by giving serious consideration to the above questions. Remember that “no one plans to fail, but many fail to plan.’’ Don’t put off preparing for a secure financial future. When should you begin? Right now!