We go through our daily activities and oftentimes neglect to revisit financial aspects that can earn us some extra cash or prevent future financial hardship.
The following list is not meant to be exhaustive or cover all eventualities, but it outlines some items to be aware of that you can discuss in more detail with your tax, insurance, estate or financial adviser.
1. Check the FDIC coverage on your accounts
Cash can accumulate over the years, especially if we are still working and saving. Make sure the cash in your bank accounts is not above the FDIC coverage limit, which is $250,000 per individual and $500,000 per joint account.
FDIC insurance is how much of your money is protected in the event of a bank failure. If you have a large chunk of cash (even temporarily) such as from selling and buying a house, you may want to split it between several banks.
2. Make sure your beneficiaries still make sense
Review beneficiaries on retirement accounts and add transfer on death (TOD) provisions on individual and joint accounts depending on your wishes. You should review beneficiaries especially after any major life changes, such as a death or divorce.
3. Review your 401(k) allocation
If you recently changed jobs and signed up for a new 401(k) or if you have older 401(k)s that you have not been monitoring, check your asset allocation to make sure your 401(k)s are consistent with your overall plan. You also may want to check beneficiaries on old plans to make sure they are consistent with your current desires.
4. Make provisions for minors
Guardianship/trusts may need to be set up for minor children (or children with special needs), especially for divorced or widowed parents. Minors inheriting assets outright can cause problems (such as the legal guardian having control of the funds). If your only heirs are minors, you may want to discuss options with your attorney.
5. Maximize the earnings on your cash
As interest rates are rising check what your bank is currently paying on cash as it may make sense to move banks. It may …….