Top 10 Financial Checklist for 2024
A financial checklist can be a valuable tool to help you stay on track with your finances and make progress towards your financial goals. Whether you’re looking to save for retirement, manage debt, or protect your assets, having a checklist can provide peace of mind and keep you organized. Here are the top 10 items to include in your financial checklist for 2024:
1. Review your budget/forecast your cost of living: Take a close look at your income and expenses to identify areas where you can make adjustments or cut back if necessary. Consider how your expenses might change in retirement and factor in inflation to create a successful retirement projection. It’s also crucial to assess your income sources and evaluate your current portfolio risk level.
2. Check your credit report: Monitoring your credit score is essential for maintaining your financial health. Take advantage of the opportunity to obtain a free copy of your credit report from each of the major credit bureaus (Experian, TransUnion, and Equifax) once a year. Look for any errors or signs of identity theft and take immediate steps to address these issues if necessary.
3. Review your emergency fund: While the general recommendation is to have enough savings to cover three to six months’ worth of living expenses, individual circumstances may vary. If you work in a field with increased uncertainty, consider saving more to your cash reserve. Unsure about the appropriate amount? Consult with a financial advisor to determine the best strategy.
4. Pay off debt: High-interest debt can significantly impact your financial well-being, particularly as you approach retirement. Prioritize paying off debt as quickly as possible by making extra payments or consolidating debt to secure a lower interest rate. However, if you have low-interest debt like a mortgage, it might not make sense to pay it off early.
5. Protect your assets/review your employer benefits: Ensure you have sufficient insurance coverage to protect yourself and your assets. This includes health insurance, auto insurance, homeowners or renters’ insurance, and life insurance. Check if your employer offers an HSA (health savings account), which can serve as a retirement savings vehicle. Additionally, verify if you’re entitled to any restricted stock, stock options, or deferred compensation benefits through your employer and seek guidance from a financial advisor.
6. Review your tax withholding: Major life events such as marriage, divorce, or having a child require adjustments to your tax withholding. If you’re unsure how to calculate it, the IRS provides a tax withholding estimator or consult with your accountant for assistance.
7. Increase your retirement savings/review your investments: Take advantage of opportunities to save more for retirement. If you’re 50 years or older, consider making catch-up contributions to your employer-sponsored 401(k) or 403(b) retirement plan, or to your IRA or Roth IRA. Regularly review your investments with a financial advisor to ensure they align with your financial goals and risk tolerance.
8. Develop a plan for health and long-term care expenses: It’s crucial to consider how you will cover healthcare and long-term care expenses in retirement. If you plan to retire before 65, explore the health benefits offered by your employer and compare them with other options available in the public marketplace. As you near age 65, seek professional advice to understand Medicare and Medicare Supplemental plans, as well as the potential costs of long-term care and available payment options.
9. Review or update your beneficiary designations: Regularly review the beneficiaries listed on your bank accounts, retirement accounts, life insurance policies, and annuities to ensure they are up to date. Consider naming a contingent beneficiary as a precaution and maintain a list with the dates of your most recent updates, reviewing it annually or when there are changes.
10. Review your estate plan: Schedule a meeting with your attorney to update your estate documents, including financial power of attorney and health care power of attorney. Stay informed about any language updates in powers of attorney. It’s also essential to have conversations with your executor(s) to ensure everyone is on the same page.
By keeping a financial checklist and regularly updating it, you can alleviate financial stress and gain peace of mind. Make note of any questions you have and bring them to your next meeting with a financial advisor to receive personalized guidance and advice. Begin the year with confidence by taking control of your financial future with this comprehensive financial checklist.
Analyst comment
This news is neutral. The market is unlikely to be directly impacted by this checklist. However, if more people become financially organized and focused on their goals, it could lead to increased savings and investments, potentially benefiting the market in the long run.
