Review These 4 Financial Factors Annually

If you're like most people, checking on your finances may not be a regular occurrence for you. However, dedicating time to assess your financial well-being at least once a year can be crucial in ensuring you're on the right path toward your financial objectives or identifying areas that may need adjustment. If you've never conducted a financial review before, don't worry - we're here to guide you. Here are some key financial aspects we suggest you take a closer look at:

1) Investments

Reviewing your investments — including mutual funds, 401(k) plans, individual retirement accounts (IRAs), certificates, individual stocks, and more — isn’t just an opportunity to evaluate investment performance. It's also an opportunity to reassess your asset allocation based on your current life stage. Financial experts often advise adjusting your investment mix to include more stocks in your younger years for higher growth potential and fewer stocks as you age to minimize risk.

Tip: Speak with a Financial Advisor to help determine whether you’re on track to meet your savings and retirement goals for the future.

2) Tax Efficiency

You can reduce the amount of taxes you pay now, or in the future, by adjusting the types of accounts, you’re invested in. For example, you can defer taxes with some accounts such as 401(k)s and health savings accounts (HSAs) or reduce taxes in the future with Roth IRAs or 529 college savings accounts. Review your contributions to see if you can increase or max out your retirement account and employee benefits. It's important to review and potentially adjust your tax withholding when major life events occur, such as getting married, going through a divorce, welcoming a new addition to the family, or receiving a raise.

Tip: Consider itemizing your deductions to leverage contributions to charity, allowing you to claim them on your tax return and effectively lower your taxable income.

3) Insurance

Checking your insurance annually may seem unnecessary. Reviewing your coverage following major life events such as marriage, home purchases, college expenses, or inheritances helps avoid gaps in protection, overlooked beneficiaries, or unnecessary premium payments. These milestones are cues to guarantee that your insurance meets your current needs and safeguards what is most important to you. For example, your home may have increased in value, leaving you with a gap in coverage. Or your car might now be old enough that full comprehensive and collision coverage doesn’t make sense anymore. Discuss with your agent whether you think any of your insurance policies need updating.

Tip: If you’re young and don’t have life insurance, this might be the time to get a term life policy. Insurers tend to offer lower premiums to younger and healthier applicants, and a term policy will lock you into a great rate.

4) Will/Estate Plan

If you were to suddenly pass away, would there be a will or estate plan that would accurately reflect your family and finances? As jobs change, children are born, marriages take place, and other life events occur, your will or estate plan should be updated accordingly. You may not need to make changes every year, but quickly looking over the details never hurts.

Tip: Don’t forget to update beneficiaries on other applicable accounts, including your life insurance policy, annuities, IRA, and 401(k).


Neither this financial institution nor its affiliates give tax or legal advice. Consult your tax advisor regarding your individual circumstances. Investment products are not federally insured, are not a deposit of this institution, and may lose value.