Consumer Sense

The Importance of Regular Financial Reviews
A regular financial review can help bring focus to your overall financial picture. By faithfully tracking your progress with periodic reviews, you will be in a better position to help build financial security and realize the retirement of your dreams. Why not spend a few hours reviewing your finances? The changes you make today could result in increased savings for your future.

To start, you might ask yourself if your family is on track to achieve its key financial goals? Short term and long-term goals might include items such as a vacation, minor home repairs, college funding, and retirement. Overall, how are you doing? Your review should cover the following important items:

Retirement savings: Social Security may not provide sufficient income to maintain your existing lifestyle when you retire. Review retirement savings and investment options open to you and help ensure that you're contributing the maximum amount possible.

Manage unexpected risks: Review your health, long-term care and life insurance needs and policies. Adequate insurance is a key component of your financial plan. It offers the protection you need to help cover potential risks and liabilities. In addition, every adult should have updated, executed copies of a will, power-of-attorney and health care directive on file in a safe place.

Tax planning: Now that tax season has ended, be sure to take your tax advisor's recommendations to heart and make the adjustments that will allow you to increase your after-tax income.

College funding: The average annual price of a college education continues to rise at a rate that exceeds the annual inflation rate. Early creation and consistent funding of a college savings account are the keys to hitting your college-funding target. Be sure to fully explore the tax-advantaged options that are available to you.

Diversification and Asset Allocation: The objective of diversification, through proper asset allocation, is to help maximize return while helping to minimizing risk. Many financial professionals recommend investing in a broad range of asset classes including stocks, bonds, real estate and cash. A regular review of your portfolio holdings is not only prudent, but can help keep you on track to attain important financial goals without incurring unnecessary risk.

Consult a financial professional: With all the investment and savings options available today, staying on track to reach your financial goals might seem like a daunting task. As you prepare to review where you stand on your "financial roadmap", it may be helpful to consult with a professional who can aid in making those informed decisions. A qualified financial professional can help ensure that your financial affairs are consistent with your current needs, risk tolerance and long-term goals.

^*For tax advice, consult a qualified tax professional.
Products and services offered through CUSO Financial Services, L.P., are not NCUA or NCUSIF insured, not credit union guaranteed, and may lose value. Financial advisors are employees of Space Coast Credit Union and registered representatives of CFS. Space Coast Credit Union is in partnership with CFS. (Member FINRA/SIPC).

The information on this page is for educational purposes only. SCCU is not engaged in providing estate planning or other advice. Please consult with a competent estate planning professional regarding any specific estate planning questions.