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CFP Cumming

When working with a CFP Cumming, locals can be sure of being able to account for far more information and possibilities as they formulate their financial strategies.

Financial Planning Steps to Take in 2019

Many individuals are looking to update their financial plan for 2019. They feel the current plan is not allowing them to reach their goals and live the life they desire. What steps should be taken when updating this plan? A Financial Advisor Cumming offers some advice for people in this situation.

Review the Portfolio

It may be time to rebalance one's portfolio. Upon seeing the volatility of the stock market in 2018, many individuals changed their overall portfolio to better reflect the changing times. Every account needs to be reexamined once again to ensure it is still providing the returns one expected and whether changes need to be made. A person may also find they wish to diversify more or sell off some investments that haven't performed well over a number of years. The financial advisor can be of great help in making recommendations as this rebalancing occurs.

Update Beneficiaries

When was the last time you reviewed the beneficiaries on your various accounts? People often name someone and then forget they have done so. As life changes, however, these designations need to be updated also. Don't neglect this crucial step or someone unintended may benefit from your years of hard work. Be aware that many times a court will rule in favor of a beneficiary over the person designated in the will to receive something, thus this important step should never be ignored. This is particularly true when a major life event happens, such as a divorce or the birth of another child.

Increase 401(k) Contributions

If possible, increase your 401(k) contributions. Experts agree individuals should be putting 15 percent of their income toward this account, including any contributions from employers. The older you are when you begin these contributions, the higher the percentage should be. Anyone who is way behind should start by increasing their contribution by one or two percent each year until the 15 percent mark is reached.

Contact a CFP Cumming to learn more about steps that should be taken regularly to update your financial plan. This is one document that needs to be reviewed regularly. Life happens and people need to be prepared for anything. With careful planning, they can be.