1. Review and boost IRA or 401(k) contributions. This is a great time of year to allocate a portion of any raises and bonuses from last year to your retirement savings. “As you get raises, it’s important to give your future self a raise too,” says Dianna. Reviewing and taking advantage of automatic withholding increases creates a gradual move to a more comfortable retirement.
2. Diversify your investments. “It’s important to review the big picture of all your investments with your financial advisor,” says Dianna. “After market fluctuations, consider reviewing and rebalancing at least annually.” A financial advisor helps clients achieve long-term goals through strategic diversification of investments.
3. Simplify your saving and spending strategies. Rather than revolutionizing your budgeting process, Dianna recommends focusing on the big items. “Consider what major purchases need to happen this year and chart a path to save for those,” she says. She recommends viewing retirement savings with the same importance as your monthly bills, rather than hoping something will be left over.
4. Build an emergency fund. Having money set aside for the unexpected can give you peace of mind. Make 2020 the year you commit to your emergency fund. “Put it in a separate account, so you can get to it, but you have to take that extra step,” says Dianna.
5. Review your life insurance and estate plan. “Incomplete estate plans and lacking life insurance can derail long term financial goals,” says Dianna. A financial advisor can help you evaluate the big picture and determine a life insurance amount that provides for your family. In order to avoid estate planning pitfalls, Dianna recommends working with a qualified estate planning attorney in tandem with your financial advisor to ensure your unique goals are met.
Dianna Knudsen is a Financial Advisor and Accredited Asset Management Specialist at Edward Jones.
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513.398.2699, EdwardJones.com