Reboot Your Personal Finances with These

Easy Steps
Jill Schlesinger, CFP®

SHARE THIS ARTICLE

Summer has begun and for some, it is the time to disengage from real life
issues, like finances. However, there are easy, quick ways to stay on top of
your finances and still have plenty of time to head to the beach, mountains
or enjoy a stay-cation – just follow the tips below. Consider this your mid-
year personal finance reboot!

Track Your Money: In the age of digital convenience and easy-to-use apps,
there is no excuse for failing to get a handle on your money. These apps are
designed to make it easy to track what’s coming in and more importantly,
what’s going out!

Check/Repair Credit: This fall will mark the one-year anniversary of the
Equifax data breach (http://www.letsmakeaplan.org/blog/view/lets-make-
a-plan-blogs/fast-steps-to-guard-your-identity-in-the-equifax-breach-and-
beyond), but many Americans have become complacent when it comes to
checking their credit score since. Stay on top of it by going to
AnnualCreditReport.com
(https://www.annualcreditreport.com/index.action) to review and correct
your report, if needed. In the event something is incorrect, be persistent – it
can often take time and energy to have errors removed.
Insurance: Make sure you have the coverage you need
(http://www.letsmakeaplan.org/blog/view/lets-make-a-plan-blogs/don't-
let-insufficient-insurance-coverage-affect-your-nest-egg) and are not
overpaying.

Homeowners. Don’t wait for a natural disaster to strike before reviewing

your policy. As a reminder, most standard homeowners’ policies cover
structural and water damage, but only in limited circumstances, like when a
falling tree knocks a hole in a roof or breaks a window, allowing rain to fall
inside. Most policies do not cover damages that result from rising water
unless the homeowner lives in a designated flood zone and has purchased
insurance through the federal government's National Flood Insurance
Program (http://www.fema.gov/national-flood-insurance-program). Also,
check to see if you have at least 20 percent equity in your home – if so, you
may be able to drop your Private Mortgage Insurance (PMI).

Auto. If you have an old car worth under $5,000, eliminate collision and
comprehensive coverage and increase deductibles.

Liability. You may be able to earn discounts by purchasing car,

homeowner’s and umbrella liability insurance coverage from one company.

Life. Needs often decline as you age, so you may be able to get rid of an
old policy or consider replacing an expensive policy with a cheaper term
one.

Consolidate accounts: Do you have multiple bank accounts floating

around? By combining them, the resulting higher balance may help avoid
fees and even help you get better deals. Not to mention, it will help
streamline your personal finances. The same rule applies to orphaned, old
retirement or investment accounts that are looking for a home. Combining
accounts makes it easier to monitor your entire portfolio and ensure that
your money is properly diversified.
Retirement: Still haven’t calculated your number? You are not alone.
According to the Employee Benefit Research Institute’s 2018 Retirement
Confidence Survey
(https://www.ebri.org/pdf/surveys/rcs/2018/2018RCS_Report_V5MGAchecked.pdf)
a whopping 62 percent of workers have not determined how much money
they will need to have saved so that they can live comfortably in
retirement. Go to your retirement plan website, use EBRI’s “Choose to Save
Ballpark E$timate (http://www.choosetosave.org/ballpark)” or better yet,
seek the advice of a CFP® professional who can give you personalized and
specific information on the status of your retirement goals.

Boost retirement contributions: Crazy as it is, the first half of the year has
come and gone, and if you are lucky, or perhaps frugal, you may find
yourself with a little extra cash on hand. If so, let’s make a deal: go ahead
and allow yourself to spend some of the surplus on a summer indulgence
and use the rest to increase your retirement contributions. This year, you
can sock away $18,500 in most employer-sponsored plans ($24,500 if you
are over the age of 50) and $5,500 into a Traditional or Roth IRA ($6,500 if
you are over 50).

Investments: Volatility has returned to the markets, which while unnerving

at some points, should not meaningfully impact long-term investors. Threat
and enactment of tariffs has caused many investors to flee large U.S. cap
stocks and rotate into smaller, domestic-focused ones and strong growth
has pushed down bond prices since the beginning of the year. All of which
is to say that the end of the quarter is the perfect time for long-term
investors to rebalance accounts so that allocations remain in check. If
possible, choose auto-rebalancing so you don’t have to worry about the
direction of markets or when it’s time to reallocate.

For more guidance when working through these steps and other ways to
get your finances in order, talk to a CERTIFIED FINANCIAL PLANNER™
professional today or visit www.letsmakeaplan.org
(http://www.letsmakeaplan.org/).