April isn’t just about tax deadlines—it’s also Financial Literacy Month, a good time to assess your financial strategy. While many people focus on budgeting or saving, true financial wellness goes beyond the basics and requires periodic check-ins to uncover overlooked risks, inefficiencies, and opportunities.
As financial professionals, we focus on identifying areas that often go unnoticed but can have a meaningful impact on your long-term personal finances.
Potential opportunities for refinement:
- What is your tax return telling you? Your return is more than just a bill or refund—it’s a roadmap. It can reveal whether you’re missing out on tax-saving ideas, charitable giving opportunities, or managing investment income. Send us a copy before your next meeting, or bring it with you so we can review it to determine any potential opportunities.
- Are your cash balances optimized? Many investors have been keeping large cash reserves due to higher interest rates, but holding too much cash can mean potentially missing out on other opportunities. A balance between liquidity and long-term investing is key.
- Are your accounts working as efficiently as possible? Do you have any old retirement accounts from prior employers? Consolidating old accounts can help your overall finance strategy and streamline estate management.
- Have you checked your beneficiary designations recently? Direct beneficiaries on investment accounts or life insurance policies override your estate documents, which is why it’s important to review them regularly. Otherwise, it’s possible that outdated designations could send assets somewhere unintended.
- Are you doing all you can to protect against identity theft? Fraud losses hit a record $10 billion in 2023, and many security breaches happen due to outdated passwords or weak account protections. If you haven’t reviewed your digital security, now is a good time to update passwords and consider multi-factor authentication.
A Simple 30-Day Financial Refresh
If you want to take small, meaningful steps to improve your overall financial wellness, here are a few steps you can take over the next month:
- Week 1: Review your tax return and consider making adjustments or meet with us to discuss potential tax opportunities for the next tax year.
- Week 2: Organize and consolidate financial accounts as a way to improve efficiency.
- Week 3: Meet with us to revisit your investment approach and cash strategy.
- Week 4: Check estate documents, insurance coverage, and security protections.
Taking the Next Step
Even small adjustments can help financial efficiency and long-term growth. If you’d like to review your financial strategy, we’re here to help.
Sources:
DataSnipper, August 25, 2023 https://www.datasnipper.com/resources/how-to-organize-taxdocuments
IRS, February 2, 2024 https://www.irs.gov/newsroom/filing-seasonstatistics-for-week-ending-feb-2-2024
Federal Trade Commission, February 9, 2024 https://www.ftc.gov/news-events/news/pressreleases/2024/02/nationwide-fraud-losses-top-10-billion-2023-ftcsteps-efforts-protect-public
U.S. News & World Report, May 4, 2024 https://www.usnews.com/360-reviews/privacy/identity-theftprotection/10-ways-to-prevent-identity-theft
Capitalize, June 23, 2023 https://www.hicapitalize.com/resources/thetrue-cost-of-forgotten-401ks/
Sources:
DataSnipper, August 25, 2023
IRS, February 2, 2024
Federal Trade Commission, February 9, 2024
U.S. News & World Report, May 4, 2024
Capitalize, June 23, 2023