Come springtime, you might be thinking about doing some spring cleaning, whether it’s cleaning out your garage, throwing out old items, or rearranging your furniture. However, it’s important not to forget to do some spring cleaning on your financial strategy as well.

In the same way that it’s important to refresh your home and living environment, it’s important to refresh your financial strategy on a regular basis to ensure you have the best chance possible to reach your financial goals.

A good financial plan is tailored to the individual and should reflect their current financial situation. So, re-evaluating your financial plan regularly can help to ensure your goals are still achievable. It can also help you identify changes that need to be made to reach those goals if you find out you’re off course.

In addition, it’s important to review your budget and expenses to get a good understanding of your costs of living. Whether you’re working towards paying down debt, reducing your spending on entertainment, or another cost, reviewing your budget can help you better understand how to optimize your spending habits.

It is important to review your investment strategy on a regular basis. An investment portfolio should be well-diversified and constantly monitored to optimize returns. Staying on top of changing markets and adjusting your investment strategy accordingly can help to ensure that your investments perform as well as possible.

If you’re in retirement, you should also review your income streams from 401(k)s, IRAs, annuities, or other sources to make sure they provide the income you require. In addition, working part-time or starting a side gig for new income sources can help you reach your financial goals faster.

Regularly updating your tax strategy can also help you identify ways to cut your costs in ways you may have overlooked. It can help you to stay ahead of changing regulations and capitalize on new opportunities. An updated tax strategy should be dynamic; constantly evolving to changing circumstances.

By refreshing your financial strategy regularly, you can ensure that it is set to meet your goals based on current financial conditions and regulations, ultimately working to achieve your financial goals.

 

Doing spring cleaning on your finances can help keep you on track to your financial goals, especially when it comes to achieving the retirement you work so hard to save for. A regularly maintained, comprehensive retirement strategy can make the difference, so contact one of our financial professionals to get started!

Securities offered through DAI Securities, LLC, member FINRA/SIPC.  Advisory services offered through DAI Wealth, Inc.., an SEC Registered Investment Adviser. DAI Securities, LLC and DAI Wealth, Inc. are separate, but affiliated, entities. This document is for educational purposes only and should not be construed as legal or tax advice. One should consult a legal or tax professional regarding their own personal situation. Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance products offered by an insurance company. They do not refer in any way to securities or investment advisory products. Insurance policy applications are vetted through an underwriting process set forth by the issuing insurance company. Some applications may not be accepted based upon adverse underwriting results. Death benefit payouts are based upon the claims paying ability of the issuing insurance company. The firm providing this document is not affiliated with the Social Security Administration or any other government entity.

Source: https://www.investopedia.com/investing/how-renew-and-adjust-your-portfolio/, https://www.investopedia.com/terms/f/financial_plan.asp, https://www.thebalancemoney.com/financial-planning-basics-personal-finance-101-1289798, https://www.investopedia.com/investing/how-renew-and-adjust-your-portfolio/#toc-how-often-should-you-rebalance, https://www.thebalancemoney.com/spring-clean-your-finances-2385567