What do most financial plans and crock pots have in common? Stumped? Here is the answer: when working with both items, people tend to “set it and forget it”. When using a crock pot, this should work out just fine. When it comes to your finances, however, the opposite is true.
We live in a very dynamic world. Given the ever-changing nature of our lives, being proactive is wise. Here are a few best-practices related to managing your financial plans:
- At least every two or three years (or ASAP if you are in the middle of a major project or purchase), engage the services of a knowledgeable, trustworthy insurance agent to walk you through your property and casualty insurance policies, covering items such as your vehicles, homes, valuables, liability umbrella policies, etc. Be sure to ask questions, such as: What coverage do I have? What are the limits of the coverage? What coverage do I not have and, if appropriate, what would adding coverage entail?
- Review your life, disability, long-term care, and health insurance policies at least every two or three years with a trusted financial advisor. This is especially important when various major life events occur, such as a marriage, the birth of a child, buying into a business, or buying a home (just to name a few). Do you have enough coverage to meet your needs? Are there any gaps that need filled?
- Every few years, read through your estate planning documents to be certain that the documents still reflect your wishes.
- Be certain that your beneficiaries on your retirement plans, annuities, life insurance policies and any Transfer-On-Death accounts are correctly reflecting who you would like to inherit those accounts at your passing.
- Look through your investment accounts annually to be sure that your investment mix is appropriate, given your tolerance for risk and the time horizon you have in mind for the various accounts.
At Master’s, we believe that proactive financial planning plays a vital role in helping you achieve your goals. We have designed our planning services with these things in mind.
When have you seen the benefits of being proactive and intentional in your life? We would love to hear from you!