By Carol Lasek, CLU, CHFC - Partner Bienenfeld, Lasek & Starr, LLC
Sheltering in place adds a whole new layer to the social distancing ramifications of the Coronavirus crisis.
While finding the silver lining can be trying, the extra time we normally would spend commuting to our businesses or dealing with work-related issues can be allocated to another project which could have ramifications long after life has returned to normal: Spring Cleaning Our Financial Closet.
We often clean the physical clutter from our lives as part of an annual ritual. Why not use the time at home to take your ritual cleaning to a higher level and spring clean your financial closet?
Here are five tips to get you started:
1. Check your credit score.
Many people don’t even think about their credit score unless they are buying a house or applying for a loan. Some are just unaware of the importance; others are under the misconception that checking your credit score will affect their credit.
You can easily check your credit score through your bank, credit card company or by requesting one free copy from the nationwide credit reporting companies.
If your score is poor, there are ways to improve it over time. If the report is inaccurate, you can correct it. Only by monitoring your credit score can you have control over your financial life.
2. Review your bills.
Download your credit card statements or pull out your paper copies and ask yourself if you are using all those products or services anymore. Sometimes we subscribe to services, newspapers (how old- fashioned) or subscriptions that we no longer need or want. For example, if you are receiving the Wall Street Journal but actually reading it online, it may be time to cancel the print delivery.
3. Create a Budget
It’s always surprising to learn how many clients consider “ budget” to be a four-letter word and shudder when you mention the b-word. While dealing with finances can be stressful, it is ultimately an empowering experience. Much like making a daily to-do list, creating a budget is a way to put your financial expenses and goals down on paper. This exercise allows you to plan for the present and the future. It’s the key to unlock a dream vacation or offer the unexpected gift to a grandchild looking to buy a car or home. Wondering where all your dollars have gone and don’t know how to start? Just download your annual credit card statement. The credit card companies do an amazing job of segmenting your expenditures and giving you an overview of your expenditures and how to plan for the following year.
4. Review our insurance policies
Over the years, your life changes. You marry and/or divorce, have children and grandchildren. Your health status may vary; so, may your finances.
We purchase insurance policies and forget to update the information as our family circumstances change.
Sometimes the policies we purchased when we were younger are no longer the best options to protect yourself, your spouse, your children and the future. It’s important to make an insurance review part of your annual spring cleaning to make sure your beneficiaries are updated and you have the coverage you need based on current circumstances.
5. Analyze your company’s 401k/403 (b) plan.
Choosing a retirement plan for your company is not a one and done deal. A scheduled annual review is the perfect time to make sure the fees associated with the plan as well as the funds are competitive and the investment options are best in class. The rules are always changing, so as an employer, you want to make sure you are in compliance with both the Department of Labor and the IRS.
Our office may be physically closed. But we are fully staffed to help you follow these steps or discuss any other financial concerns via phone, Zoom or Facetime.
Call BLS Wealth Management today at (954) 689-9484 and ask for Kari.
Disclosure: Securities and investment advisory services offered through qualified registered representatives of MML Investors Services, LLC. Member SIPC. [link to www.SIPC.org on electronic advertisements] BLS Wealth Management, LLC is not a subsidiary or affiliate of MML Investors Services, LLC, or its affiliated companies. 1000 Corporate Drive, Suite 700, Fort Lauderdale, FL 33334, 954-938-8800. CRN202204-262593
