Review These 4 Financial Factors Annually

If you’re like many people, reviewing your finances is probably something you rarely — if ever — do. But taking the time to review your financial health at least once a year can help you confirm you’re on track to meet your financial goals, or discover some changes need to be made. Never done a financial review before? We’ll help you get started. Here are a few financial factors we recommend reviewing:

1) Investments

A review of your investments — including mutual funds, 401(k) plans, individual retirement accounts (IRAs), individual stocks, and more — isn’t just an opportunity to evaluate investment performance. It’s also a chance to determine if your asset allocation should be updated to reflect where you are in life. Many financial planners recommend that a person’s asset allocation should include more stocks when young to maximize growth potential and fewer stocks when older to reduce risk.

Tip: Speak with a Financial Advisor at Magnifi Financial n 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. You can also adjust your tax withholding if you’ve experienced a life change such as having a baby.

Tip: If you itemize your deductions, you can make contributions to charity and claim them on your tax return to reduce your taxable income.

3) Insurance

Checking your insurance annually may seem unnecessary. But the reality is that by not reevaluating your insurance, you may not realize that you don’t have the proper level of coverage, are missing a beneficiary, or are overpaying on premiums. 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. Have a discussion with your agent if 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 in to 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).

You don’t need to review your finances on your own. Get professional assistance by meeting with one of Magnifi Financial’s Financial Advisors. Learn more about our services and schedule an appointment at

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