Spring is in the air as we enter the second quarter of 2021. It’s time to put away those winter sweaters and clean your financial house, casting aside old habits and starting new ones. We survived a global pandemic – so, as the flowers begin to bloom and the days become longer, it’s time to give yourself a fresh financial start!
Here are a few ways that you can get your financial plan in order for this year.
1. Review your spending, create a budget and set up an automated savings
Revisit or start a personal household budget that tracks your income and expenses. This will show you how much money you expect to bring in, then compare that to your required expenses—such as rent and insurance—and your discretionary spending, such as entertainment or eating out. Instead of viewing a budget as a negative, you can view it as a tool for success. Creating a budget and setting aside money for savings is one of the best ways to achieve your financial goals.
2. Spruce up your retirement plan contributions
When planning for retirement, the truth is that the earlier you start saving, the better you could be, thanks to the power of compound interest. You can boost your savings by contributing and maxing out your 401(K) contributions. You can contribute up to $19,500 into your 401(k) in 2021, and if you are age 50 or over, you can make an additional “catch-up” contribution of $6,500.
3. Dust off your estate plans
Having a will and estate planning documents are important, yet many individuals fail to update them when circumstances change. Births, deaths, and divorce can dramatically alter your transfer plans, so it’s important to ensure that your will and trust reflect your intentions. Double check your list of beneficiaries and consider any life changes above that would impact your estate plan. It may help reveal some additional tax-reduction strategies that are appropriate to your situation too.
4. Review insurance needs
Spring is a great time to consider whether any life changes like having a newborn or getting married, create a need for financial protection. If someone depends on your income for any number of reasons, it’s worth considering. It’s also a good idea to review your life insurance to ensure that you have the right kind and level of coverage to protect your loved ones. And if you have permanent life insurance, it’s a good opportunity to make sure it’s helping meet your overall financial goals.
5. Put a new shine on your financial plan
A comprehensive financial plan is a crucial component to achieving your financial goals. Life changes from year to year – at times, in significant ways. If you’re still using the financial plan you created two or three years ago, it may not align with your current goals or needs. You may find that your plan needs just a quick revision or a complete overhaul. Either way, it is important to work with us to review your accounts and provide recommendations on how best to reach your financial objectives. A plan provides a sense of security as your life evolves and your wealth grows.
6. Sow the seeds of your financial future
Begin to think about financial goals for the rest of the year and beyond – what seeds can you plant today to reap the rewards you seek? Your wealth is like a flower in that it needs to be cultivated, guided, and properly taken care of to grow. Growth takes patience, and we will help you develop a holistic plan to weather the storms as you go through the seasons of life.
As you shake the dust off your financial plan imagine your future. Cleaning your financial house can help you understand your budget, needs and spark some thought towards keeping your finances in order throughout the year ahead. The flowers of tomorrow are in the seeds of today! We are here for you as you spring forward this year with integrity, compassion, and commitment.
H. Nicole Mullinix and Mindy M. Zatta are Registered Representatives of Lincoln Financial Advisors Corp. Securities and investment advisory services offered through Lincoln Financial Advisors Corp., a broker/dealer, and registered investment advisor. Insurance offered through Lincoln affiliates and other fine companies. It is not our position to offer legal or tax advice. Mosaic Wealth Consulting is not an affiliate of Lincoln Financial Advisors. 370 Southpointe Blvd., Suite 200, Canonsburg, PA 15317 Toll-Free: 844-863-9843 CRN-3555112-041921.