It’s time for your fiscal checkup

When was the last time you evaluated your financial health? Many people get a physical checkup annually but how about a fiscal checkup? It’s an opportunity to review how you’ve done financially over the past 12 months and to make sure you’re still headed in the right direction.

• Review your goals. Have you made progress on them this year? If not, where have you fallen short? Have your goals changed? If so, revise them and write them down.
• Evaluate changes in your personal situation. Big life events such as a job change, marriage, divorce, the birth of a child and so on, can disrupt even the best strategies and necessitate a change. For example, you may need to adjust your budget, your spending, your savings, etc. You may need to purchase additional life insurance, if for example, you lost/left your job and no longer have your employer group life insurance coverage.
• Protect your assets. Are you still adequately insured? I can help you review your homeowners, renters and auto insurance policies as well as your life insurance so you can be sure you have the coverage you want.
• How’s your emergency fund? Life is full of unexpected surprises. If you don’t plan for the unexpected — a car repair, illness, unemployment — these events can catch you off guard and leave you financially strapped or tapped. When the unexpected happens, it’s important to have a stash of cash set aside in an emergency fund. At a minimum, an emergency fund should consist of three months of your living expenses.
• Track your net worth. Simply subtract what you owe (your liabilities) from what you own (your assets). Like the stock market, your net worth will fluctuate so track it year-by-year. It’s the overall trend that’s important — as you pay down debt, build equity in your home, acquire more assets, and so forth, your net worth should continue to grow.
• Review your retirement strategy. Are you contributing the maximum to your 401(k) plan? If not, make sure you’re contributing at least enough to capture any available employer-matching funds. If your employer doesn’t offer a retirement plan, consider setting up an IRA on your own and making regular contributions.
• Prepare for the unexpected. Review your estate plan, including your will.
• Do you need to make adjustments? Make sure the beneficiary designations on your retirement accounts and life insurance policies are up to date.

Whether getting started or working toward your goals, contact The Wertzberger Agency today, because the more you know about your overall financial health, the better you can plan for the future.

Life insurance issued by Farmers New World Life Insurance Company, 3003 77th Ave. SE, Mercer Island, WA 98040.