The new year is an excellent time to evaluate your finances to see where you currently stand and to discover opportunities for improvement. Now’s the time to put every component of your financial situation under the microscope and see how you can grow your wealth over the next year and commit to be in better financial shape when 2018 rolls around.
Review Your Investment Portfolio
One of the first things you should consider in the new year is taking a look at your investment portfolio. According to Bankrate, you should spend time at the beginning of a new year to examine your current investments and see which ones are performing well and which ones are not. Be sure to identify opportunities for reinvestments and diversification as well. Also, be prepared for interest rates to increase, but know that it isn’t necessarily a bad thing. An increase in interest signifies economical growth and lower unemployment rates.
Analyze Life Insurance Policy
It’s a good idea to take a second look at your life insurance at the beginning of a new year. According to CNBC, if you experienced a major life change in 2016 such as getting married, having children or a had a change in careers, you should evaluate your current life insurance policy. Ensure that your current policy isn’t out of date or that your family isn’t underinsured. There’s no “rule-of-thumb” when it comes to life insurance, so it’s best to speak with a financial planner to help you determine what type of coverage you will need.
Plan For Retirement
Another item on the to-do list is to check up on your retirement plan. According to Bankrate, if you have a 401(k) or an IRA, now is a great time to evaluate its performance. Maybe it’s time to increase contributions or change up your plan. If you have yet to develop a retirement strategy, it should be a priority in the new year. The MyMoneyGuide will help you see if you are on track to accumulate enough money to achieve your goals and allow you to the live you want to live in retirement.