It’s that time of year again, the perfect opportunity to sort through your closet, clear out clutter, and downsize. While many may think “spring cleaning” just applies to their home, the concept can be used in all areas of your life! If you think your finances may benefit from a refresh, now is a great time to give it one. If you need help getting started, here are some things you may want to include in your financial spring cleaning!
- Review/Consolidate Accounts
When was the last time you took a comprehensive look at all your accounts? If it’s been a while, now may be a good time to do a full review to ensure they’re still meeting your needs and are aligned with your financial goals. For example, if you have 401(k)s from previous employers, you may want to consider your available options. These can include leaving the money in the former employer’s plan (if permitted), rolling it into a new employer’s plan (if rollovers are accepted), transferring the assets to an IRA, or taking a cash distribution—each option has potential advantages and disadvantages. We can help you understand your choices so you can make an informed decision. Additionally, consolidating duplicate investment or bank accounts may help simplify your financial picture and potentially reduce fees, though it’s important to evaluate the costs, benefits, and features of any accounts before making changes to make sure they align with your financial goals.
- Declutter Your Debt
Pay off high-interest debt first to save money. Also, consider refinancing or consolidating loans for better terms. If you haven’t already, this is a good time to set up a structured repayment plan to stay on track.
- Insurance Policy Update
Review your life, health, and home insurance coverage and adjust your policies if there have been life changes like income, dependents, or assets since your last review. Also, make sure to check for any gaps in coverage so you have the most comprehensive coverage for your situation.
- Organize Financial Documents
For those who keep hard copies of financial documents, sort and store tax returns, bank statements, and investment records. Shred outdated or unnecessary paperwork. Also, consider going digital with a secure cloud to help you easily store and access all your documents in the future!
- Portfolio Review
This is a great time to see if your portfolio needs a rebalance. Since your last review, assess if your risk tolerance and goals have shifted and if your portfolio accurately reflects that. Also, consider current market conditions. With tariffs and inflation on the rise, you may want to consider moving assets into lower-risk investments.
Spring cleaning, whether it’s sorting a tucked-away junk closet or doing a thorough financial account review, can be overwhelming. If you need help with spring cleaning your finances, we’re here! You can reach Envisage Wealth Advisors by calling (859) 277-6528.
Securities offered through The O.N. Equity Sales Company, Member FINRA/SIPC, One Financial Way Cincinnati, Ohio 45242 (513) 794-6794. Investment Advisory services offered through O.N. Investment Management Company.
This material is provided for informational purposes only and should not be construed as investment advice or an offer or solicitation to buy or sell securities. All investing involves risk, including the possible loss of principal, and there is no guarantee that any investment strategy will be successful.
