Spring Forward To Get a Fresh Start

By Lynn Ferraina

Each year while changing our clocks to Daylight Savings time, it reminds us of “spring cleaning”. In our homes, this could mean dusting ceiling fans and light fixtures, cleaning window sills and window tracts, vacuuming curtains and window blinds, testing batteries in your smoke detectors, cleaning the oven, arranging and purging pantries and closets. In other words, spring cleaning could keep us busy well into summer.

In the financial world “spring cleaning” could mean reviewing your financial house and getting it in order.  

Here are some financial house items to consider reviewing:

• When is the last time you reviewed your health care surrogate, power of attorney and/or your will and revocable living trust? Are the people you choose to help you in the documents still a good choice? What has changed in your life since you created the documents? Did you move, do you have a new grandchild, has someone passed away who is named in the documents?

• Insurance – When is the last time you reviewed your life insurance beneficiaries? Do they still reflect your wishes? Do they coincide with your will and/or trust? Did you name a contingent beneficiary if the primary beneficiary should pass away before you?  If you named a minor, is there a trustee named to control the assets until the minor is at an age that they would be responsible enough to manage their own affairs. Other insurances – homeowners, health, long- term care, disability, car insurance…When is the last time you checked to make sure you are adequately covered? Many things can change in a year or two time frame that requires an update of insurance. We certainly learned that when Hurricane Irma came through Naples in 2017.

• Asset Allocation – Diversification may provide a safety net in times of market turmoil. Working with your financial advisor to develop a mix of investments such as U.S. stocks, foreign stocks, bonds, and real estate. Whether your diversification is through individual holdings, mutual funds or managed accounts, your advisor can help you create a portfolio that is aligned with your financial goals.

Lastly, your financial spring cleaning should include “communication” with your family, attorney, CPA, and financial advisor. It’s time to touch base to make sure your wishes and concerns are clearly communicated. Make a location list of your financial assets and where they are held, a list of your online accounts (user names and passwords), your insurances, legal documents, deeds, credit cards, the bills that need to paid monthly, quarterly and annually, professional contacts including your doctors, where your safe deposit box is etc. Everything your successor would need to access if you couldn’t. With communication being the key to any plan, your successor will be grateful that you took the time to express your wishes and help them help you when the time comes.

Investment advisory services offered through Ciccarelli Advisory Services, Inc., a registered investment adviser independent of FSC Securities Corporation.  Securities and additional investment advisory services offered through FSC Securities Corporation, member FINRA/SIPC and a registered investment adviser. 9601 Tamiami Trail North, Naples, FL. 239-262-6577.