Today, many people find themselves inundated by a constant stream of financial news. Yet, does all this “information age” data really help you manage your finances any better than in the past? The truth often is that the “old-fashioned” practices, such as periodic financial reviews, lead to greater success in the long run. As the year reaches its midpoint, why not spend a few hours reviewing your finances? The changes you make today could yield positive results in increased savings. Here are some important items to cover:
- Analyze your cash flow. If you have any excess cash flow each month, start saving it. If you have a short fall, identify where you can cut back, rather than adding on more debt.
- Develop a plan for your goals. Identify your goals and objectives. In other words, put together a road map of where you want to go. Then you can begin to figure out how to get there./li>
- Boost your retirement savings. Pensions and Social Security probably will not provide sufficient income to maintain your existing lifestyle when you retire. Maximize your contributions to retirement accounts.
- Review your portfolio. Review your asset allocation to make sure you are invested properly to reach your goals. Are you not taking enough risk, or too much risk? Are some of your holdings underperforming? Now is a good time to review and make needed changes.
- Manage unexpected risks. As you undoubtedly know, life can sometimes throw you a “curve ball.” Without warning, a disability or untimely death can cause financial hardship for your family. Adequate insurance is an important foundation for your financial plan—it offers the protection you need to help cover potential risks and liabilities.
A mid-year review can help bring focus to your overall financial picture. A qualified Certified Financial Planner Professional can help ensure your financial affairs are consistent with your current and long-term goals and objectives. By tracking your progress with periodic reviews you will be in a better position to realize your future goals.
Scott M. Kahan, is a Certified Financial Planner® professional and President of Financial Asset Management Corporation, a fee-only wealth management firm located at 26 South Greeley Avenue in Chappaqua. Call Scott Kahan at 914-238-8900.