Smart Tip! Review Your Insurance Policies, and Retirement & Estate Plans Annually

Planning for the future is an important component of your financial and wealth management. Since there is no crystal ball showing the future, this planning can sometimes be tricky. At Brannen CPA Services, our goal is to help our clients thrive with helpful and honest insights. Reviewing your insurance policies as well as your retirement and estate plans is a smart way to ensure you are mitigating risk and staying on track to meet your financial goals. In this article we discuss the importance of conducting an annual review of your policies and plans.

As the Greek philosopher, Heraclitus, said, “Change is the only constant in life.” This is why a retirement plan or insurance policy you set up last year or years ago may not fit your needs today. Conducting an annual review will help make sure you are continuing to meet your goals and avoiding surprises down the road. For example, here are a few life changes that may affect your plans and policies:

●      A job change.

When you start a new job or career, remember to explore whether to roll over your retirement account or keep your funds where they are. You may also be receiving new benefits that require a beneficiary designation on your estate plan. Similarly, if you lose your job, you will want to review your financial situation and update your policies and plans accordingly.

●      A raise.

Way to go! This bump up in earnings is a great opportunity to review your retirement contributions. It’s also a reason to update your estate plan to reflect the change in your financial status.

●      A home renovation.

If you’ve made upgrades to your home, make sure to review your home insurance policy to ensure the changes are covered properly.

●      A baby.

Congratulations! Having a baby will change just about every aspect of your life. From a financial planning perspective, you may need to reduce your retirement contributions for a period, update the beneficiaries on your estate plan, or consider a new life insurance policy.

●      A divorce or death in the family.

These painful events also have an impact on your financial situation. Make sure your needs are reflected in your policies and plans.

Beyond these life events, you may simply decide that you have different goals for the future. Also, there may be new products in the marketplace that would enhance your coverage or improve your ability to meet your financial goals. Regular reviews of your insurance policies, as well as retirement and estate plans will help you keep your wealth management plan up-to-date and in line with your goals. If you have questions or need to update our team about some recent changes to your financial plans, please give us a call at 207.271.9600. We’re here to provide you with superior service for all your tax and accounting needs!