Financial Spring Cleaning

By James Motte

spring flowersAlthough it has not seemed like it recently, Spring is here, and the arrival of Spring brings with it the annual ritual of Spring cleaning. This article does not focus on traditional Spring cleaning (no beating rugs or baseboard dusting), but rather on financial Spring cleaning. Below are a few items to consider:

Review of Portfolio Allocations

  1. Review your portfolio to see if your target allocations are out of balance with your current allocation.  If so, rebalance by selling from the assets that increased in value and buy the assets that have lost value with the proceeds.  For example, if your target allocation is 60% equities and 40% bonds and your current allocation is 70% equities and 30% bonds, you would need to sell 10% of you equity allocation and buy 10% more bonds.  This would restore you to your target allocation.

Review of Beneficiary designations on Retirement Accounts and IRAs

  1. It’s always good to review your beneficiary designations on an annual basis.  You should take a look at your
    1. IRA (Traditional, Roth, SEP or SIMPLE)
    2. 401k, 403B, 457 Plan or Thrift Savings Plan (TSP)
    3. Pension Plans

Review of Wills and Power of Attorney Designations

  1. You need to make sure these documents are current and make changes if circumstances have changed in the past year.
  2. Items that would likely require updates are:
    1. Getting Married
    2. Having a Child or Grandchild
    3. Death in the family
    4. Divorce

Review of Credit Report

  1. Review your credit report to make sure it is accurate and up-to-date.
    1. Go to to order a free copy of the report (you are allowed one free copy every year).  Be sure to obtain and review a copy from all three major reporting agencies:  Experian, Transunion and Equifax.

We would be happy to assist you with any questions you might have concerning the above items.

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