Cleaning Your Financial House

By Benjamin Nostrand, CFP®

Planning, consolidating, and getting ready for the best future...

In past articles I have discussed the importance of creating a financial plan with your spouse, including savings and debt reduction plans, investing your assets, retirement planning, insurance, estate planning and more.

In this article I will discuss the more mundane housekeeping tasks that you can do to streamline your finances. Here is a checklist of some of the more important logistical items that are key steps to getting your finances updated to your new status of married couple.

Beneficiaries

For any investment and retirement accounts that you both own it is very important to update the beneficiaries listed on the account. If you were previously single, you may have a sibling or your parents listed on these accounts. In most cases, you will want to update this to have your spouse as your primary beneficiary. Many times this update can be done online. If not, call the financial firm or in the case of your current retirement plan, your employer to get the proper forms to update your beneficiaries.

Review and select company benefits

If both of you are working, review carefully both company benefits and utilize the best combination. For example, if you are both working at companies that provide benefits, you will probably want to choose one company’s health insurance over another to save money and improve your overall protection. Be sure to utilize both companies’ savings plans and save at least up to the matching company contribution level on both plans.

Consolidate your assets

Most couples choose to treat all of their assets together, although some choose to keep their assets separate. This is a choice you need to make sooner rather than later. If you have savings outside of your respective employer’s plans, many times it is much easier to manage and monitor all of your investments when they are at one firm. Do you have 401ks or other retirement plans from a company you no longer work for? Consider rolling over those assets into an IRA at an investment firm that will provide you with more choices and flexibility on your investments. Consolidating makes it easier to monitor and invest your money. Checking and savings accounts can also be consolidated to make managing your budget that much easier.

Consolidate credit cards and reduce debt

For better management of debt and monitoring of expenses, you could benefit from consolidating your credit cards. Do you really need more than one or two credit cards? Choose the credit card with no annual fees, best features, and if you carry a balance, the lowest rates. Pay off the credit cards with the largest interest rates and set up a plan to reduce and eventually eliminate any credit card balances.

Insurance

Review your beneficiaries on your life insurance. You may want to increase your life insurance, especially if you are going to have children. Be sure you have enough disability insurance to support you if you become ill or disabled. As well, update your home or renters insurance and auto insurance to include the two of you together - you could end up with substantial savings by consolidating these policies.

Estate planning

Contact a lawyer to help you draft living wills, durable power of attorney and wills.

Get help:

Just as you might employ an architect to design a house properly, you may want to use a financial planner to help create your financial plan and/or guide your investments to meet your goals. Constructing a portfolio can be a daunting task that requires a great deal of time, knowledge, and diligence. A financial planner can help you create a plan, assess your risk tolerance, and choose the proper investments to achieve your goals, provide you with peace of mind, and leave more time for you and your spouse.

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Ben Nostrand

Ben Nostrand Proifessional FInancial Planning

Ben Nostrand CFP® is the president and founder of Nostrand Financial Planning, LLC; an independent, registered investment advisor.

As a CERTIFIED FINANCIAL PLANNER™ practitioner with 25 years of experience in the financial industry, Ben provides investment management and financial planning to individuals and families located nationwide on a fee-only basis (no commissions involved).

Contact Ben for a free initial consultation at (802) 496-7001, email ben [at] nostrandfinancial.com or visit www.nostrandfinancial.com

 

 

 

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