Elisa Ross
Just as you schedule annual physicals with your doctor, your finances deserve regular check-ups. Spring is the perfect time to ensure your financial house is in order with these five essential steps.
1. Review and Update Beneficiaries. Life changes, but designations often don’t. Verify that retirement accounts, life insurance, and bank accounts reflect your current wishes. Remember, beneficiary designations on accounts, such as IRAs and 401(k)s, typically override your will.
2. Strengthen Security Protections. With fraud reaching epidemic proportions, defense is vital. Review bank statements monthly for tiny “test” charges and enroll in immediate account alerts. Check your credit reports at AnnualCreditReport.com and consider a credit freeze if you aren’t seeking new loans. Never share PINs or full Social Security numbers with unsolicited callers.
3. Reassess Your Investment Strategy. An allocation that worked at 55 may not serve you at 75. Ensure your portfolio aligns with your current risk tolerance and income needs. Professional guidance from a credit union can be invaluable; as not-for-profit cooperatives, they focus on objective member service rather than shareholder profit.
4. Consolidate and Simplify. Fragmented accounts make it difficult to see your full financial picture. Consolidate where possible by bringing your checking and savings accounts together in one place, rolling old 401(k)s into an IRA, or closing unused accounts. Managing your everyday banking through a single, trusted relationship reduces stress and makes it easier to track your progress toward financial goals.
5. Update Estate Planning Documents. Ensure your will, power of attorney and healthcare directives are current and accessible. Verify that your proxies are still willing to serve and that family knows where documents are located. Don’t forget to account for digital assets such as cloud photos and online accounts.
Take Action
Financial wellness is an ongoing journey. You can start by reviewing your credit card rates and looking for better options, exploring refinancing your car loan to lock in lower rates and evaluating whether your checking and savings accounts are working as hard as you are. Your local credit union is an excellent partner in this process, providing the education and one-on-one planning needed to help you make informed decisions.
Elisa Ross is the Chief Experience Officer at Hughes Federal Credit Union.