January is often synonymous with making healthy choices like dieting or exercising. But what about your finances? Do know how to make “healthy” financial decisions?
Ryan Merchant, AAMS Financial Advisor for Edward Jones in Celina, shares some tips for good financial health. First, this is the perfect time to talk to your financial advisor. If any of your goals/circumstances have changed, “this could make a difference to your overall financial strategy so you can live today and save for tomorrow.”
He says, “It's a good idea to start the year by taking stock of your financial situation including five basic steps:
1. Conduct a thorough review of your personal situation and financial documents. Have your goals or risk tolerance changed? Are your beneficiaries up to date? Is your family protected if markets tumble or an emergency arises?
2. Give your portfolio a checkup. Have a well-balanced portfolio with various types of investments for different market conditions. Market fluctuations can cause portfolios to drift from intended asset allocation; it may be time to rebalance.
3. Make progress on your retirement savings. Consider maxing out on contributions to your retirement plan, IRA, and health savings account (HSA).
4. Maximize your impact. If you plan to make charitable contributions in the coming year, speak with a financial advisor and your tax professional to see if there are ways to contribute that may minimize your personal tax liability.
5. Build up your emergency fund. Your monthly budget should consider the fact that there are infrequent, yet predictable expenses you'll need on occasion. Weddings, vacations, car repairs and health scares never occur regularly, but you prepare for these events by setting aside small amounts of money each month to better prepare yourself when life happens.
Don’t have a financial advisor? Merchant suggests you pick someone who “has your best interest at heart”. Ask questions about services, fees, plus experience. This will have a “positive impact on your financial well-being. Life’s about living, and achieving financial goals on your terms lets you do that.”
To learn more, call Ryan P. Merchant-Edward Jones at 469.813.0001