Do Your Finances Need a Check Up?
July 25, 2012
Many individuals get an annual medical examination, but neglect to take the same care with their finances. Reviewing your financial affairs can pay dividends now and later. Here is a helpful list of questions to get started!
Let’s Review Your Mortgage.
1. Could you reduce your monthly mortgage payments by refinancing your mortgage? [calculator]
2. Should you consider some other type of mortgage (ARM, 15 year, 30 year) that corresponds with how long you plan to stay in your current home? [calculator & rates]
What About Your Household Spending?
1. Have you analyzed your monthly spending to identify ways to save?
2. Do you have a household budget?
Consider Retirement Planning Now.
1. Have you calculated your retirement income and asset needs? [calculator]
2. Are you taking full advantage of your employer’s 401(k) plan or other retirement plan? [calculator]
3. Are you going to make an IRA contribution? If so, make it early.
4. Should you consider converting your IRA to a Roth IRA? [calculator]
[For an investment review or to roll-over funds from a previous employer's plan, contact Hometown Investment Services* at 1-866-405-9255.]
What College Funding Will Be Needed?
1. Are you regularly saving for a child’s college expenses? [calculator]
2. Have you investigated Coverdell Education Savings Accounts (Education IRAs) or Qualified Tuition (Section 529) Plans? The new tax laws have enhanced these tools. [Contact us to get started.]
Making the Most of Your Investments.
1. Do you have an asset allocation plan to serve as a framework for your individual investment decisions?
2. Have you reviewed your portfolio holdings recently?
3. Does your investment strategy match your time horizon and risk tolerance?
[For additional investment review, contact Hometown Investment Services* at 1-866-405-9255.]
Income Taxes Preparations.
1. Are your withholding and estimated tax payments at the right level?
2. Have you considered deferring income to next year or accelerating deductions to this year to save on this year’s tax return?
3. Are you possible subject to the Alternative Minimum Tax (AMT)? Stock option exercise, large deductions or the phase out of the benefits of personal exemptions at high-income levels could subject you to this tax.
[Contact your tax professional if you think you may be subject to AMT or to review your withholdings and deductions.]
What Are Your Insurance Needs?
1. Have you chosen deductibles that provide lower premiums with an acceptable level of risk?
2. Do you have an umbrella liability policy for potential large damages?
3. Do you have enough life insurance including cheaper term insurance? [calculator]
4. Have you considered a life insurance trust to keep insurance proceeds out of your estate?
[For additional insurance review, contact Hometown Investment Services* at 1-866-405-9255.]
Manage Your Assets With An Estate Plan.
1. Have you had your estate plan reviewed recently? If you have moved, had a change in your family situation (births/deaths) or a change in your financial status, you may want to schedule a review with your advisor. The Trust & Asset Management Team at Home Federal Bank is here to help.
2. Does your estate plan provide for the naming of the guardians for your children and executor of your estate you wish?
3. Does your estate plan reflect the new estate tax laws?
Anytime is an ideal time to take some time and review your finances. Some time spent can help you reach your financial objectives faster, perhaps save some taxes and give you some financial peace of mind.
*Available through Hometown Investment Services, Inc., a wholly-owned subsidiary of Home Federal Bank. Investment and Insurance Products: • Are NOT Bank Deposits • Are NOT FDIC Insured • May Lose Value • Are NOT Insured By Any Government Agency • Carry NO Financial Institution Guarantee
Home Federal does Personal Banking, Business Banking, Ag Lending , Home Loans, Trust and Asset Management, and Investments. With so much to offer, learn what Home Federal can do for you.