 Personal
Finance Best Practices
Spring clean your finances
By Cathy A.
Norris CFP®, CLTC, CRPC®
As the first signs of spring arrive and you get the urge
to clean your house, don’t forget to tidy up your
finances as well. Whether you are just entering the
workforce, peaking in your career or contemplating
retirement, periodic cleaning will help keep your
financial house in order. So roll up your sleeves and
get to work on this checklist of financial chores.
Straighten your financial paperwork
Are you hording copies of bank statements, cancelled
checks and other financial miscellany? It may be time to
purge. Check into current guidelines on retaining
financial records and shred excess documents that aren’t
required. Then date and store records you need to keep
in a safe and private location.
Check your credit score
Every year you are entitled to a free credit report
from three main credit reporting agencies:Equifax,
Experian and TransUnion. If you haven’t done so already,
request a report from one of these agencies. Not only
will you be able to see where you stand, you can also
monitor your credit for suspicious activity.
Analyze and adjust your budget
Take a close look at where your money is going each
month and see if you’re working within your budget. Do
you need to tighten your financial belt? This task often
reveals opportunities for trimming expenses and may help
you free dollars for other activities you enjoy.
Revisit your retirement savings strategy
Spring is the perfect time to air out concerns about
your retirement plan and reinvigorate efforts to save
for your future. If you’re maxing out your annual 401(k)
contributions as recommended, consider supplemental
savings options to grow your nest egg.
Monitor your healthcare spending
With healthcare costs rising, you need to kick into
high gear and become a smart consumer regarding your
healthcare spending. Use your health savings account and
take advantage of your Medicare drug benefit if you are
eligible.
Assess your protection
Review your policies to ensure you have sufficient
life, auto and homeowner’s insurance. You could find
that you are paying for too much insurance. Contact your
provider to inquire if you qualify for a good driver
discount or other savings opportunities. Look for
further ways to save by consolidating your business with
one provider. Make sure your beneficiaries are correct
on your policies.
Review your personal financial goals
Where do you want to be next year? In five years?
Consult a financial professional to review your finances
and develop a plan to help you work toward your goals.
If you have a plan in place, check to see if it still
makes sense for you. Putting goals and action steps on
paper may be the first step to making your dreams a
reality.
This column is provided for informational purposes only.
The information is intended to be generic in nature and
should not be applied or relied upon in any particular
situation without the advice of your tax,
legal and/or
your financial advisor. Neither Ameriprise Financial nor
its advisors or representatives provide tax or
legal
advice. The views expressed may not be suitable for
every situation. Consult with qualified tax and legal
advisors concerning your own situation.
Financial planning services and investments offered
through Ameriprise Financial Services, Inc., Member
FINRA & SIPC.
© 2008 Ameriprise Financial, Inc. All rights reserved.
File # 72464
(3/08)
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