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5 Tips to Get the Most Out of Your Yearly Financial Review

No matter your age or stage of life, it’s essential to conduct a yearly financial review with your financial professional. A financial review will allow you to take a close look at your finances, assess the success of various strategies, and determine whether you need to make any changes.

A yearly review can help ensure that you’re headed in the right direction financially. In honor of Effective Communications Month this June, we’ve compiled this list of tips to help you make the most out of your yearly financial review:

#1- Consider your budget

A budget helps you track how much money is coming in and going out each month. When you meet your financial professional for your yearly review, review your budget for the past year and use it to design the ideal budget for the upcoming year. Reviewing your budget will help you determine where you can cut any unnecessary expenses.

#2- Examine your savings goals

Since your ability to save will play a vital role in your financial success, take a look at your savings. Determine if your savings goals for the year still apply. Ask yourself if there is any room for improvement and how realistic it is for you to boost your savings. If possible, work toward increasing your savings rate each year to help compound your money and change of savings rate success.

#3- Evaluate your financial plan to retire on time

As you review your financial plan, make sure you’re saving enough this year. Adjust to keep you on track for retiring on your retirement timeline. You may consider increasing your retirement savings contributions at work or contributing more to your other retirement savings accounts.

If you’re already retired, meet with your financial professional to help determine whether your spending down plan is appropriate. For the current economic environment or if you should consider other strategies.

#4- Assess your investment’s performance

It’s essential to review each investment’s performance and take action to improve your portfolio’s future performance. While you can’t control market performance, you can take action to help ensure that your investments align with your goals. During this time, review performance net fees, and discuss other investment vehicles. During your yearly financial review discuss strategies appropriate for your situation with your financial professional.

#5- Understand your tax situation

Taxes can get complicated, so that you may need help from a tax professional. Understand how you can max out your retirement savings accounts or give charitable donations to help lower your taxable income. Also, determine whether you qualify for any new tax credits or deductions. If you’re gone through some life changes, you may have access to tax perks that weren’t available to you in the past. Tax planning can occur anytime throughout the year, and well ahead of the end of the year is optimal for your yearly financial review.

Contact your financial professional to schedule your yearly financial review today! S

WG 2208431-0522e The sources used to prepare this material are believed to be true, accurate and reliable, but are not guaranteed. This information is provided as general information and is not intended to be specific financial or tax guidance. When you access a link you are leaving our website and assume total responsibility for your use of the website you are linking to. We make no representation as to the completeness or accuracy of information provided at this website. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, websites, information and programs made available through this website.

In addition, Demo DMS specializes in providing strategies and guidance for those who are seeking a better lifestyle in retirement. If you have retirement savings of five million dollars or $50,000, we can ensure it works as hard. As a result, we offer our experience and knowledge to help you design a custom strategy for financial independence. Contact us today to schedule an introductory meeting!
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