3 simple steps to take stock or your finances
The new year is a good time to review and update your financial picture. Here are three key steps you could take this month.
Update your beneficiary designations
It’s critical to name beneficiaries on all your financial accounts, regardless of size. That’s because your retirement assets will pass on to your beneficiaries, not to the heirs named in your will or other estate planning documents.
Replenish your emergency savings
In general, strive to keep three to six months of living expenses in a safe, liquid cash reserve. This enables you to cover an unexpected, urgent expense or a setback such as job loss, without dipping into retirement savings and derailing your progress.
Review your investment portfolio
Your portfolio should always align with your financial goals, time horizon and risk tolerance. Given markets also change over time. Ensure you remain aligned to your long-term investment strategy.