4. Insurance coverage
It’s always a good idea to review all your coverage on an annual basis. From life insurance, health insurance, home insurance, and more — there are so many insurances we all need. Take a moment to review what coverage you have in place and if it is the best coverage to have in place, given everything happening in your life right now. You might find it’s time to find new coverage to better protect you, your loved ones, and your assets.
5. Savings accounts
Maybe 2020 depleted your cash cushion, so now is the time to review and plan for how to rebuild your savings account for any expenses or opportunities that may arise in the future. Your cash cushion should always be a priority so you don’t have to turn to borrowing money.
Review how much of your savings your spent this year and how much you need to save — or add — to your account for the upcoming year.
6. Investment accounts
Whether you won big in the stock market or your portfolio took a hit this year, take a moment to review your investment accounts. From your 401(k) or IRA to your brokerage accounts, are you allocated properly? Ask yourself these few questions to get a better idea of where you stand:
Do you have the right portfolio based on your risk tolerance and timeframe of your goals?
What fees are you paying on your accounts?
Does it make sense to make some changes to reduce fees and invest those savings?
It’s a good idea to review your investment accounts every six months to a year in order to feel confident with your investments and not make emotional choices if the market becomes volatile in the next year.
7. Estate planning
Year end is a good time to review your estate planning documents and make sure everything is clearly defined (in writing). Work with your attorney to ensure that everything you want in this stage of life is properly documented.
Financial planning isn’t meant to be a set-it-and-forget-it task. Take the appropriate time to review and understand your financial decisions from 2020 so you can plan for the year ahead. Whether that’s saving more, paying off more, or simply staying on your current path — make sure you feel ready to tackle 2021.
Financial advice for real people, by real people. You shouldn't need a degree to understand your money. Join Head of Education, Brittney Castro and Altruist mentors as they break down financial tips and strategies in a real way to help you finally understand how to achieve your financial goals faster.