It is never wise to become too complacent with not keeping an eye on your finances. You might assume everything is fine, but some of your long-term investments could be going off track without you even realizing.

The investment bank J.P. Morgan shared some of their expertise for what a good yearly routine looks like for checking in with your finances. Here are some good steps you should be taking at the end of each year to monitor the health of your finances.

Were You Happy with Your Progress?

The most basic step is to just see how your results are measuring up to your expectations. Are you meeting your targets or looking low?

Look at Your Portfolio

If you are not financially where you want to be, what options do you have available to change in your portfolio to get you back on track?

How Much Free Cash Do You Need?

Everyone needs free cash for everyday purchases, but do you have an excess sitting around that could be earning you more in investments?

Higher Interest

2022 has been a significant year for interest hikes so it may be time to start looking at more fixed income options.

Gifting

Looking at your options for gifting assets helps prepare for where you want your finances to end up, as well as helps secure discounts by making those preparations now.

Life Insurance

When nearing the end of your career, you want to keep an eye on your life insurance policy to ensure it does not require any adjustments to continue covering what your family’s need will be.

Tax Efficiency

With the market projected to see increased upheaval over the next ten years, now is the time to start looking at investment options that can minimize heavy taxes.

Family Meeting

If you are in the stage of planning to pass down your inheritance, it can be helpful to keep family in the loop with any major changes your finances are experiencing.

Retirement Accounts

If you are nearing retirement age, you don’t want to put off worrying about how your accounts are doing until you already need them.

Cybersecurity

As digital crime become more sophisticated, it becomes increasingly paramount to protect yourself. Take steps such as requiring additional authentication to access your accounts and strengthening your passwords.

Economic Changes

Fred Hubler, CEO and Chief Wealth Strategist for Creative Capital Wealth Management Group which offers retainer-based advice and access to accredited investments for clients in 27 states see the economic seas changing.

“When 2008 happened, it caught everyone off guard, but this time most people see a storm on the horizon. Not sure what will be the first domino, but there are many things that have gone the wrong way. Pick your poison, interest rates, inflation, Fed tightening, taxes, unfunded liabilities, companies who need cheap debt to survive, pension issues, strong dollar here makes it harder for other countries to compete. It’s not a good picture, so we are in a strong defensive mode and reducing risk whenever and wherever we can. Taking an inventory of where you are is a good first step.”

Financial planning is not a fun process, but staying up to date on your progress is the best way to avoid any surprises.

Want to learn more about how to optimize your finances before the year ends? Get more information in the post from J.P. Morgan here.

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Want to know if you’re on the right path financially? CCWMG’S Second Opinion Service (SOS) is a no-obligation review with one of  Creative Capital Wealth Management Group‘s Wealth Strategists. 

It’s simply not possible to get a reliable second opinion from the same person who gave you the first one. Click here to schedule an SOS meeting with Fred and his team.

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