Why You Need A Financial Planning Date Night !
By Joe Cook Joe Cook Agency
Aside from the yearly reminder sometime before April 15 you need to gather up your financial documents and actually look at them , it ’ s easy to forget they exist the rest of the year .
One way to keep it at the top of your mind is to schedule a financial date night with your partner . Make it after you ’ ve filed your taxes ; you ’ ll have a better idea of where your investments stand then , and you ’ ll be motivated to keep your financial house in order for the rest of the year .
To keep the tax-season momentum going , make a plan about what you need to discuss and analyze regarding your personal finances . Enjoy an evening out over dinner or cocktails to discuss your finances .
Here are some personal finance areas to put on the list :
IRA beneficiaries Your IRA beneficiaries are not covered by a will . You have to name beneficiaries on the designation form . Each year , it ’ s a good idea to see who is on that form . Did you name the sibling you ’ re no longer talking to ? Did you forget to remove your ex-spouse after the divorce ? Did you have kids in the last year and you want them to receive the IRA proceeds ? Would you rather support a charity with a portion of the money ?
“ You can name a charity as the beneficiary of your IRA , regardless of the account size ,” said Dan Mathews , CFP in a post for the Certified Financial Planner Board of Standards . Talk to your partner during the date night about who you want to receive your IRA , and make any appropriate changes .
Life insurance Life insurance protects the living and ensures that your family can survive – and thrive financially — if one of the main providers dies . Life insurance proceeds can be used to pay for housing , school tuition , outstanding debt , household expenses , taxes , funeral costs and childcare .
It ’ s helpful to analyze your life insurance needs each year , because circumstances can change . Perhaps you ’ ve moved into a more expensive home or a city with a higher cost of living . Maybe the kids are now in private school . Your income might have increased . All of these affect your family ’ s financial needs . Talk to your insurance agent about what you should have in life insurance , or check a financial life insurance calculator online .
22 MOMENTUM / March 2017
Disability insurance According to the Social Security Administration , slightly more than one in four Americans who are currently 20 years old will be disabled before they ’ re 67 . Disability insurance provides a portion of your salary should you become unable to work due to illness or an accident . Without disability insurance , could you cover your living expenses if you couldn ’ t work ? Check to see if you have disability insurance through your employer . Find out how much it covers and whether you should supplement it .
Loans The yearly check-in should include a look at your outstanding debts . It ’ s helpful to know what you owe , whether it ’ s student loans , mortgage , car loans , credit cards or anything else . How much of your debt are you paying off each year , and is there a way to pay off the loans with the highest interest rates first ? Or perhaps you can adjust your budget to cut back on spending , applying that savings to pay off your debt .
Mortgage If you ’ ve had your home for a long time , it ’ s possible that your mortgage rate is higher than it needs to be . See what you ’ re paying now and what the current rates are for refinancing . You might be able to save money by refinancing to a different , lower-priced mortgage .
Investments A yearly review of your investments will help you understand how your investments are doing and whether you need to rebalance them . Make a spreadsheet to discuss during your date , noting your retirement account balances , investment accounts and available cash . Are your investments diversified ? Do you have a good mix of stocks , bonds and cash , depending on your age ? Make a plan with your partner about what you need to change in your investment mix in the next year .
Credit report and credit score Every year , it ’ s a good idea to look over your credit report and make sure it ’ s accurate . You can get a free credit report from all three major reporting agencies from AnnualCreditReport . com . It ’ s helpful to look at your credit score , especially if you ’ re planning to make a big purchase requiring a loan . This gives you time to make adjustments to improve your credit score .
Going over the finances each year with your partner can be a bonding experience . By making it a date night , you enjoy each other ’ s company along with some food and drink . Prepare all the paperwork ahead of time to ensure that it will be productive as well , understanding your joint finances and what you can do together to improve your financial future .