Our Client Survey Results Are In!

                                 Our Client Survey Results Are In!

 

Recently, we conducted our first Client Audit and I’m writing to provide you with a summary of the results. 73 surveys were sent and 54 were returned.  The percentage of clients that responded was 73% (average for client audits is 39-40%).   The goal of the survey was to gain a better understanding of your needs and interests to ensure that the service that we provide meets or exceeds your expectations. We are pleased and honored that our clients gave us and overall satisfaction rating of 4.9 out of a possible 5 points! We have worked very hard to deliver that service and those results are extremely gratifying.

Below is a summary of  the results:

 

For most questions,  the choices were Strongly Agree, Somewhat Agree, Neutral, Somewhat Disagree, Strongly Disagree and I don’t know.

 

The ratings below are on a scale of 1 to 5   (5 being the highest).

·        Overall Satisfaction.  4.9%

·        My advisor adds value above and beyond investment performance. 4.9 %

·        My advisor takes a proactive approach to managing our relationship. 4.9%

·        I receive good value for the fees I pay my advisor. 4.8%

·        My advisor takes the time to understand my financial needs and concerns. 5.0%

·        My advisor puts the needs of me and my family first when making recommendations regarding our plan or portfolio. 4.9%

·        I am confident in the skills of my advisor’s team/assistant. 4.9%

·        My calls and e-mails are returned promptly 4.9%

·        The written communications I receive are valuable.   4.7%

·        The account is handled with few errors. 5.0%

·        Many problems I encounter are resolved quickly.   5.0%

·        Do you feel it is important for your advisor to provide you with educational opportunities about the markets, investments and insurance, such as newsletters or workshops?            Yes (58%), No (28%),     I don’t know (13%).

·        Please rate the following communications that you receive from your advisor in terms of their value to you.   1 to 4   (4 being the highest).

                   Face to face meetings 3.6%

                   Telephone review meetings 3.6%

                   Performance meetings 3.8%

                   Client View Life 3.4%

·        Your advisor is considering offering clients the following communication or event in the next 12 months. Please rate each in terms of its value to you. 1 to 4   (4 being the highest).

                   Market commentary 3.2%

                   Newsletter focused on financial planning topics 3.1%

·        In a 12 month period, how often do you expect to meet (either face-to-face or by telephone), to discuss your portfolio of financial plan? 3.7 reviews per year

·        Are you comfortable discussing the administrative details of your portfolio or financial plan with

               someone on your financial advisor’s support team.  Yes (91%)  No (2%) I don’t know (7%)

·        I would recommend the services of my financial advisor to family, friends and colleagues. 4.9%

 

 

I will use the results of the survey to further improve my services to you all.  We are pleased to see that most of you see value in the way our meetings and communications are delivered.  The frequency of client meetings is based on the following schedule:

·        Clients who have $500,000 and above in assets under management have 4 review meetings per  year.

·        Clients who have $300,000 to $499,000 in assets under management have 3 review meetings per  year.

·        Clients who have under  $300,000 in assets under management have 2 review meetings per year.

·        Our minimum account size for new clients is $500,000.

 

Recently, we began sending a monthly  financial planning newsletter as well as a quarterly market commentary via email. In the future, I would like to hear your feedback on how useful these are to you.  I will connect with each of you during our next meeting to insure that we are clear on what you are expecting to accomplish over the year and tailor future meetings accordingly. Our average client tenure is  12.73 years.   We are pleased to hear that 38% of you have referred us to family, friends and colleagues.  Thank you to those who have referred us.  It is truly one of the greatest complements that we could receive. We strive to bring peace of mind to the people we work with, and appreciate your confidence in putting your friends, families and colleagues in our hands. Thank you.

 

The winner of the drawing  for $500.00 was Alan Seale. Congratulations Alan!

 

Sincerely,

 

Timothy Watters, CFP

IRA and Retirement Plan Limits for 2014

 

IRA and Retirement Plan Limits for 2014

IRA contribution limits

The maximum amount you can contribute to a traditional IRA or Roth IRA in 2014 remains unchanged at $5,500 (or 100% of your earned income, if less). The maximum catch-up contribution for those age 50 or older in 2014 is $1,000, also unchanged from 2013. (You can contribute to both a traditional and Roth IRA in 2014, but your total contributions can't exceed this annual limit.)

 

Traditional IRA deduction limits for 2014

 

The income limits for determining the deductibility of traditional IRA contributions have increased for 2014 (for those covered by employer retirement plans). For example, you can fully deduct your IRA contribution if your filing status is single/head of household, and your income ("modified adjusted gross income," or MAGI) is $60,000 or less (up from $59,000 in 2013). If you're married and filing a joint return, you can fully deduct your IRA contribution if your MAGI is $96,000 or less (up from $95,000 in 2013). If you're not covered by an employer plan but your spouse is, and you file a joint return, you can fully deduct your IRA contribution if your MAGI is $181,000 or less (up from $178,000 in 2013).

 

If your 2014 federal income tax filing status is:	Your IRA deduction is reduced if your MAGI is between:	Your deduction is eliminated if your MAGI is:
Single or head of household	$60,000 and $70,000	$70,000 or more
Married filing jointly or qualifying widow(er)*	$96,000 and $116,000 (combined)	$116,000 or more (combined)
Married filing separately	$0 and $10,000	$10,000 or more

*If you're not covered by an employer plan but your spouse is, your deduction is limited if your MAGI is $181,000 to $191,000, and eliminated if your MAGI exceeds $191,000.

 

Roth IRA contribution limits for 2014

The income limits for Roth IRA contributions have also increased. If your filing status is single/head of household, you can contribute the full $5,500 to a Roth IRA in 2014 if your MAGI is $114,000 or less (up from $112,000 in 2013). And if you're married and filing a joint return, you can make a full contribution if your MAGI is $181,000 or less (up from $178,000 in 2013). (Again, contributions can't exceed 100% of your earned income.)

 

If your 2014 federal income tax filing status is:	Your Roth IRA contribution is reduced if your MAGI is between:	You cannot contribute to a Roth IRA if your MAGI is:
Single or head of household	$114,000 and $129,000	$129,000 or more
Married filing jointly or qualifying widow(er)	$181,000 and $191,000 (combined)	$191,000 or more (combined)
Married filing separately	$0 and $10,000	$10,000 or more

Employer retirement plans

 

The maximum amount you can contribute (your "elective deferrals") to a 401(k) plan in 2014 remains unchanged at $17,500. The limit also applies to 403(b), 457(b), and SAR-SEP plans, as well as the Federal Thrift Savings Plan. If you're age 50 or older, you can also make catch-up contributions of up to $5,500 to these plans in 2014 (unchanged from 2013). (Special catch-up limits apply to certain participants in 403(b) and 457(b) plans.)

 

If you participate in more than one retirement plan, your total elective deferrals can't exceed the annual limit ($17,500 in 2014 plus any applicable catch-up contribution). Deferrals to 401(k) plans, 403(b) plans, SIMPLE plans, and SAR-SEPs are included in this limit, but deferrals to Section 457(b) plans are not. For example, if you participate in both a 403(b) plan and a 457(b) plan, you can defer the full dollar limit to each plan--a total of $35,000 in 2014 (plus any catch-up contributions).

 

Plan type:	Annual dollar limit:	Catch-up limit:
401(k), 403(b), governmental 457(b), SAR-SEP, Federal Thrift Savings Plan	$17,500	$5,500
SIMPLE plans	$12,000	$2,500

 

Note: Contributions can't exceed 100% of your income.

 

The maximum amount that can be allocated to your account in a defined contribution plan (for example, a 401(k) plan or profit-sharing plan) in 2014 is $52,000 (up from $51,000 in 2013), plus age-50 catch-up contributions. (This includes both your contributions and your employer's contributions. Special rules apply if your employer sponsors more than one retirement plan.)

 Finally, the maximum amount of compensation that can be taken into account in determining benefits for most plans in 2014 has increased to $260,000, up from $255,000 in 2013; and the dollar threshold for determining highly compensated employees remains unchanged at $115,000.

 

IMPORTANT DISCLOSURESBroadridge Investor Communication Solutions, Inc. does not provide investment, tax, or legal advice. The information presented here is not specific to any individual's personal circumstances.To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law.  Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials.  The information in these materials may change at any time and without notice.

Last-Minute Agreement Ends Government Shutdown, Suspends Debt Ceiling

 

Last-Minute Agreement Ends Government Shutdown, Suspends Debt Ceiling

 

After a 16-day federal government shutdown and gridlock over whether to raise the nation's debt ceiling, a last-minute agreement brought a temporary end to the impasse. The measure, formally known as the "Continuing Appropriations Act, 2014," was passed by both houses of Congress and signed by President Obama shortly after midnight on October 17--the day on which the Treasury had said it would begin running out of cash to pay the nation's bills.

 

What does the agreement do?

 The legislation suspends the debt ceiling until February 7 and provides sufficient funding to reopen the government for the next three months (through January 15). It applies retroactively through October 1, the day on which the federal government was forced to begin furloughing roughly 800,000 employees.

 To try to address longer-term issues, the agreement also establishes a congressional budget conference that would issue a report no later than December 13. That will be run by Sen. Patty Murray (D-Washington) and Rep. Paul Ryan (R-Wisconsin), who head their respective chambers' budget committees. The across-the-board budget cuts known as the sequester, which were adopted as part of the agreement that ended the 2011 debt ceiling and were implemented earlier this year, remain in effect. The new agreement also requires income verification for people receiving subsidies under the Affordable Care Act, and if the debt ceiling is reached again in February, the Treasury will not be prohibited from using measures like those it has been using since May to cope with the current debt ceiling.

 What exactly is the debt ceiling?

The debt ceiling represents a limit on the amount the Treasury is allowed to borrow to manage the national debt (the total amount currently owed by the U.S. government). An increase in the debt limit does not authorize additional government spending, which only Congress can approve; it enables the Treasury to help manage its cash flow and pay bills that have already been incurred.

Technically, hitting the debt ceiling is not the same as defaulting on payments. In fact, the Treasury actually hit the debt ceiling in May, and has been using various accounting measures since then to temporarily extend its ability to borrow. That created greater uncertainty about whether hitting the debt ceiling on October 17 would have prevented the country from meeting its financial obligations. That was a special concern not only for recipients of Social Security and Medicare benefits but also for investors. Because Treasuries have traditionally been seen as the safest sovereign debt in the world, overseas investors hold a substantial amount of it. The uncertainty helped underscore fears not only of a default, but that some countries might increase calls for alternatives to the U.S. dollar as the global reserve currency.

How will the agreement affect financial markets?

Investors' immediate reaction to the news was extremely positive. Word on Thursday that a deal had been reached sent the S&P 500 up 1.4% and added 206 points to the Dow Jones Industrial Average in a single day. Even if that enthusiasm fades as equities once again start to respond to other influences, it was a far cry from the reaction to the 2011 extension of the debt ceiling, which was followed by a 10.6% decline in the S&P over the week following the August 2 signing. But investors now must turn their attention once again to corporate earnings season and the question of whether the shutdown's economic impact will affect when the Federal Reserve starts to taper its economic support.

The new agreement also helps protect the nation's credit rating from a threatened downgrade that would have affected borrowing costs. Yields on 1-month Treasury bills, which had soared in October when several institutional investors began unloading them as the debt ceiling deadline neared, were cut in half overnight after the announcement.*

 

When will government agencies return to fully functional status?

The roughly 800,000 federal employees furloughed during the shutdown were instructed by the Office of Management and Budget to be ready to return to work the day after the agreement was signed. However, individual agencies may vary depending on the method each uses to notify employees, who will be entitled to receive back pay for the shutdown period.

 

What was the economic impact of the shutdown?

Standard & Poor's estimated that as of the day before the agreement, the shutdown had cost the U.S. economy $24 billion, cutting roughly 0.6% from inflation-adjusted Q4 gross domestic product.** (S&P also estimated that had there been a default, the result would have put the economy into recession.)

*Source: U.S. Treasury Resource Center (www.treasury.gov) Daily Treasury Yield Curve Rates as of 10/17/2013.

 **Source: Standard & Poor's press release, October 16, 2013.

CARING RESOURCES FOR LOVED ONES

CARING RESOURCES FOR LOVED ONES

Last month's blog post What are the top ten things you need to know in dealing with your aging parents finances?  generated many responses.

Many of us are care givers. Caregiving is a responsibility best managed with plenty of help. Yet, many of the nearly one in four adults who are caring for another adult miss out on the bounty of resources available through dozens of local and national organizations. The mission of these organizations is to help caregivers, either because they're not aware that they exist or they don't realize what they offer.

The following groups can help you solve practical problems, save time, lighten your stress load, learn about common problems of aging, connect with others in similar situations, and otherwise simplify the many challenges that caring for an older adult can bring:

1.    Area Agency on Aging

How they can help you: Get general information about eldercare and referrals to aging-related services and programs in your community. These resources include case managers, transportation, meals, adult day services, in-home caregivers, legal assistance, home repair and modification, housing options, and more. The exact name of the organization can vary by community. Area Agencies on Aging are your single best bet for identifying eldercare services in a specific community.

Extra help: Information and referrals are free, and services referred to are often free or inexpensive.

Who they are: The 629 Area Agencies on Aging are a key part of the National Aging Services Network, operating under the U.S. Administration on Aging.

How to find: Check the National Association of Area Agencies on Aging website or the Caring.com local directory. Or go directly to the federal Eldercare Locator or call 800-677-1116.

2.    Family Caregiver Alliance

How they can help you: This advocacy, research, and education group focuses on family caregivers (of aging parents and of other disabled adults or children). Sign up for webinars about tough topics like paying for care or dealing with siblings, access a trove of fact sheets about common conditions and problems, or participate in online discussion groups.
Extra help: The Family Care Navigator tool is a handy list of safety-net services in each state. You'll find links to government agencies and nonprofit and for-profit services in your area. The Family Care Navigator also includes links to national agencies and services.
Who they are: Pioneers in the area of promoting and supporting caregiver needs, FCA was founded in 1977 to create support for long-term care services in San Francisco. They still operate many California-based educational and support programs -- including one-on-one social work counseling for San Francisco Bay Area residents -- but their advocacy work and caregiver education outreach is now nationwide. The National Center on Caregiving is an FCA offshoot formed in 2001 to develop policies and programs to support caregivers in all 50 states.
How to find: Go to Family Caregiver Alliance.

3.    National Alliance for Caregiving

How they can help you: Mainly, this influential advocacy group helps individual caregivers indirectly by analyzing public policy and conducting research on topics like the economic and personal impact of caregiving. It also produces public awareness campaigns and promotes state and local caregiving coalitions. But its website points you to tip sheets, webcasts, podcasts, and publications providing basic caregiver advice on issues like caring for someone who's depressed or long-term care planning.
Extra help: Family Care Resource Connection rates and reviews books, websites, videos, and fact sheets.
Who they are: The National Alliance for Caregiving is a nonprofit coalition of a wide mix of more than 30 groups that share an interest in family-based eldercare. Members include service and advocacy groups, corporations, grassroots groups, and more. Formed in 1996, the coalition produces research and policy suggestions intended to improve the quality of life for family caregivers.
How to find: Visit National Alliance for Caregiving.

4.    Meals on Wheels Association of America

How they can help you: Find one of the more than 5,000 senior nutrition programs serving hot meals to older adults with its Find a Meal tool.
Extra help: While primary caregivers may not have the time, your relatives and friends can "give back" by going through the MOWAA site to volunteer time in their communities making deliveries, preparing meals, driving, or providing office help. Volunteers are the program's backbone.
Who they are: Meals on Wheels is the largest and oldest meal-services organization in the U.S., dating to a Philadelphia program in the 1950s. In 1976 it began working with senior nutrition programs nationwide to provide the resources, manpower, tools, and information needed to fight the problem of senior hunger.
How to find: Go to Meals on Wheels Association of America.

5.    Independent Transportation Network

How they can help you: Those who need rides apply through a local affiliate group, paying a membership fee ($40 annually) and financing a transportation account based on estimated usage. Rides, in private cars driven by screened volunteers, average $9. Rides can be planned in advance or arranged as needed. This fast-growing service is mainly still in urban areas.
Extra help: Gift certificates let family members pitch in.
Who they are: A national nonprofit transportation service for older adults, the group marries information technology with grassroots support. It was founded by Katherine Freund, the mother of a toddler injured by an older driver; she decided that a flawed transportation system for older adults, not the older driver himself, was the cause and vowed to change this.
How to find: Visit ITN America.

6.    National Council on Aging

How they can help you: Find out what benefits your loved one is entitled to through BenefitsCheckUp, a comprehensive benefits screening tool. Home Equity Advisor provides tools to help you use and protect the value of a home.
Extra help: ReStartLiving is a program to help older adults who are living with one or more chronic conditions enhance their health through better self-management. Evidence-based workshops are available online and in person and can support your loved one's ability to remain independent longer.
Who they are: A nonprofit service and advocacy group in Washington, D.C., NCOA calls itself a national voice for older Americans and the community organizations that serve them. The organization works with thousands of groups nationwide to build creative solutions to aging-services needs, including many programs for the public. Formed 60 years ago as the National Committee on Aging (and renamed in 1960), this influential mega-group has been involved in the formation of many influential initiatives, including the American Association of Homes for the Aging, Meals on Wheels, Foster Grandparents, and the Center for Healthy Aging.
How to find: Go to National Council on Aging.

7.    Next Step in Care

How they can help you: Because they tend to be left out of the discharge planning loop, caregivers are often caught off guard by the added complexities of transitioning a loved one from one care situation to another, such as from home to a hospital, from the hospital to a rehab facility or back home, or to a long-term care facility. Next Step in Care has created detailed guides and checklists to help you ask smart questions, know how to best prepare, and not overlook anything.
Extra help: Next Step in Care materials can be viewed from a smartphone or other device so you have them on hand in the event of an ER visit or while away from home; the checklists and forms are also downloadable as PDFs.
Who they are: Next Step in Care: Family Caregivers and HealthCare Professionals Working Together is a program of the United Hospital Fund, a New York-based organization that promotes high-quality, patient-centered care. In 2006, the fund created a task force to develop an initiative that would help family caregivers through these care transitions, and Next Step in Care was born. It's unique in that it addresses healthcare providers as well as family caregivers, and it focuses on transitions not just in and out of hospitals but also to and from nursing homes, in-home care, and rehabilitation programs.
How to find: Visit Next Step in Care.

8.    Well Spouse Association

How they can help you: Providing care to a chronically ill husband, wife, or life partner brings particular challenges. This group connects you with others who have been there (or are also there now), for a unique kind of support. A forum and chat line are available to everyone; paying members ($30 per year) also have access to local support groups, new telephone support groups, newsletters, and weekend respite events.
Extra help: A mentor program pairs caregivers with someone who's been through a similar experience before for one-on-one advice and support
Who they are: Ten spousal caregivers between the ages of 30 and 57, whose mates had diseases ranging from multiple sclerosis and diabetes to heart and brain conditions, came together in Wallingford, Pennsylvania, in 1988 to create the Well Spouse Association. They now count more than 3,000 members (and say there are 7 million spousal caregivers nationwide). WSA mottoes: "You are not alone" and "When one gets sick … two need help."
How to find: Visit Well Spouse Association.

9.    VA Caregiver Support

How they can help you: Resources specifically designed for caregivers of U.S. military veterans include professional support coordinators who match you to services for which you're eligible, adult daycare centers, home-based care services (skilled and unskilled), a telehealth program (education, training, and support for those who don't live near a VA center), and a home hospice program.
Extra help: The National Caregivers of Veterans Support Hotline (1-855-260-3274) can help you access services, connect you with a VA support coordinator near you, or just listen.
Who they are: Part of the federal U.S. Department of Veterans Affairs, the Caregiver Support program is a recent addition to the large roster of veterans' services. The VA was formed to fulfill President Abraham Lincoln's promise, "To care for him who shall have borne the battle, and for his widow, and his orphan."
How to find: Go to VA Caregiver Support.

10.                       Medicare Resources for Caregivers

How they can help you: Find out what type of expenses the various Medicare programs each cover, see videos about topics like hospital discharge planning, and learn about sources of caregiver support, including first-person stories, to-do lists, and state-by-state lists of helpful organizations. You can also submit questions about which tests, items, and services are covered and get pointed to a list of links with possible answers.
Extra help: Ask Medicare is a service for caregivers, expanded in early 2012, that gives information about care options, financial support, and billing terms. You can also sign up for a free Ask Medicare e-newsletter that gives caregiver advice and resources.
Who they are: Medicare is the federal health insurance system for people with certain disabilities or who are over age 65. While the whole website offers all kinds of Medicare-related information, its Caregiving section is written specifically for family caregivers.
How to find: Medicare.gov is the official U.S. government site for Medicare.

By Paula Spencer Scott, Senior Editor at Caring.com.  Because of the possibility of human or mechanical error, Paula Spencer Scott, Caring.com or Timothy Watters, Watters Financial Services does not guarantee the accuracy, adequacy, completeness or availability of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. In no event shall Watters Financial Services, Caring.com, Timothy Watters or Paula Spencer Scott be liable for any indirect, special or consequential damages in connection with the use of the content.

What are the top ten things you need to know in dealing with your aging parents finances?

What are the top ten things you need to know in dealing with your aging parents finances?

1. Know What Estate Planning Documents Your Parents Have:

• Last Will & Testament
• Durable Power of attorney
• Living Will/Health Care Proxy

2. Know Where Your Parent’s Documents Are Stored.

3. Know who has the Role of Power of Attorney, Executor, Health Care Proxy and Guardian –Are They Still the People Your Parents Want?

4. Know Who Your Parent’s Advisory Team Is and Have a Meeting With Them.

5. Know Whether Your Parents Have Filed Their Tax Return.

6. Know What Your Parents Are Invested In.

7. Know If Your Parents Have Long Term Care Coverage and If they Do, Learn What the Benefits Are.

8. Know What the Cost For Care Is For Your Region. Check Out the Metlife Long Term Care Cost Study:

    https://www.metlife.com/mmi/research/2012-market-survey-long-term-care-costs.html#keyfindings

9. Know That Poor Financial Decisions Are Often The First Sign of Trouble. Periodically, Look at the Credit Card statements and the Investment Account Statements. –Are There any Recent Unusual transactions? Are they Bouncing Checks?

     10.  Know That Financial Independence is a Sensitive Topic. It May Take a While  Before Your Parents are willing to enlist your aid.

If you have any questions about this topic, please feel free to call my office at 201-843-0044 or email me at twatters@wattersfinancial.com

Should you have Long term Care?

Genworth Financial’s  2013 Cost of Care Survey, conducted by CareScout, included nearly 15,000 LTC providers from all 50 states.

The top ten most expensive states for Long Term Care are New Jersey, New York, Connecticut,  Maine, New Hampshire, Vermont, Delaware, Massachusetts, Hawaii and Alaska. I’ve listed below the costs for New Jersey, New York and Connecticut. The study, running for its 10th year, indicates that over the past five years the median annual rate for a room in a private nursing home has increased by 4.45% (compound annual growth rate), so that the room you might have had in 2008 at a cost of $67,525 will now cost you $83,950—an additional $16,425 per year.

The top ten least expensive states include  Arkansas, Texas, Iowa, South Carolina, Georgia, Kansas, Oklahoma, Alabama, Louisiana and Missouri

I recommend Long Term Care insurance for all my clients because only a lucky 30% of the population is estimated not to need long-term care after age 65. If you want to discuss this further, please call me.

New Jersey

Average Annual Cost: $65,203

Adult day care: $20,800

Licensed home care: $46,904

Assisted living: $71,928

Nursing home (private room): $121,180

New York

Average Annual Cost: $59,598

Adult day care: $19,500

Licensed home care: $45,760

Assisted living: $47,400

Nursing home (private room): $125,732

Connecticut

Average Annual Cost: $68,983

Adult day care: $20,800

Licensed home care: $43,472

Assisted living: $60,000

Nursing home (private room): $151,658

Spring Cleaning

Spring Cleaning

Tax season is here and if you are like me, you are in the process of pulling together statements, receipts and 1099s. It is also a good time to do some spring cleaning financially. Below are a few time tested tips to follow. The good news is that you do not have to do them all at once. We are here to help you.

1.     Set up a file system that works for you. It is a good idea to separate information you will need within the next year, such as receipts or transaction confirmations; storage bins for documents you need to save for more than one year, such as tax returns (3 years after filing) or real estate records (for as long as you own the property, plus 3 years); and a fireproof, lockable box for difficult-to-replace items such as your Social Security card, wills and other estate planning documents.

2.     Read your estate planning documents again to make sure nothing has changed in your life that might require some revisions. Often, the last time clients reviewed the documents was during the signing of the documents. Make sure that the people you chose for the various roles in estate planning are still the right ones.

3.     Make sure your beneficiary assignments are up to date. Often, people name primary beneficiaries but not contingent beneficiaries. It is also not a bad idea to discuss your beneficiary assignments with your attorney as well.

4.     Get your free credit report available annually (www.annualcreditreport.com) and clean up any entries made by creditors that are incorrect.

5.     Set up an automatic transfer from your paycheck or checking account to savings account(s) and begin building “slush fund” accounts to fund different emergency reserve funds for cash needs each year (i.e.; vacations, car repairs, gift giving). This will help you avoid building credit card debt because the money will be there when you need it.

6.     Embrace technology to help you pay your bills. Use your mobile phone or computer to send you reminders of payments due. This avoids your paying late fees!

7.     When you replace the batteries on your smoke detectors, check out your home owner’s policy as well. Make sure you have the right coverage. Often people do not have enough insurance for the big risks and have deductibles that are too small.

8.     Spend time looking at your checking account and credit card statements and debit transactions from the year before. If you have online banking, you can usually export a year’s worth of transactions into a spreadsheet, which you can then sort and classify.

9.     Consider using an electronic financial planning program like Quicken or www.mint.com. You’ll see where you are spending the most money and can therefore focus your budgeting and cost–saving efforts accordingly.