A Fulfilled Year – a Series: Financial Check-in and Planning

The start of the year is an ideal time to review your financial situation and set yourself up for stability and peace of mind. This process helps ensure you’re prepared for both expected and unforeseen events while aligning your financial resources with your personal goals.

1. Review Retirement Savings

• Assess Account Balances: Take a look at your retirement accounts (401(k), IRA, or other savings plans) to ensure they’re on track to meet your long-term needs.
• Evaluate Investment Strategies: Consult a financial advisor if needed to ensure your portfolio is appropriately diversified for your stage of life and risk tolerance.
• Catch-Up Contributions: If you’re eligible, take advantage of catch-up contributions to retirement accounts to maximize your savings.

2. Analyze Your Monthly Budget

• Track Income and Expenses: Identify where your money is going each month and look for areas where you might cut back or reallocate funds.
• Adjust for Inflation: Factor in rising costs for essentials like food, healthcare, and utilities when planning your budget.
• Set Priorities: Decide how much you want to allocate toward discretionary spending (e.g., travel, hobbies) versus essentials.

3. Plan for Potential Expenses

• Healthcare Costs: Budget for routine medical appointments, prescriptions, and any anticipated procedures.
• Home Maintenance: Set aside funds for repairs, upgrades, or downsizing if that’s in your plans.
• Unexpected Costs: Build or review an emergency fund to handle unplanned expenses like car repairs or family emergencies.

4. Update Wills, Trusts, and Legal Documents

• Review Beneficiaries: Ensure the beneficiaries on your retirement accounts, life insurance policies, and other assets are up-to-date.
• Revisit Your Will: Make sure your will reflects your current wishes, including any changes in family dynamics or assets.
• Consider a Trust: If you have significant assets or specific wishes about how they should be managed, a trust may offer additional control and security.
• Long-Term Care Plans: Review your coverage or explore options like long-term care insurance to ensure you’re prepared for future healthcare needs.

5. Maximize Financial Opportunities

• Tax Planning: Take advantage of deductions, credits, or tax-advantaged savings opportunities. Consult a tax professional for personalized advice.
• Government Benefits: Review any benefits you may be eligible for, such as Social Security or Medicare, to ensure you’re making the most of them.
• Charitable Giving: If philanthropy is important to you, create a plan for donations that align with your values and budget.

6. Seek Guidance if Needed

• Financial Advisor: A trusted advisor can help you navigate complex decisions and create a personalized plan.
• Workshops or Classes: Consider attending financial literacy workshops tailored to women in your age group.

By taking the time to check in on your finances, you create a sense of control and security that allows you to focus on enjoying the year ahead with confidence and peace of mind.