Manage your insurance money

Everyone knows that it’s important to get your oil changed regularly and to keep your tires properly inflated, but have you thought about performing the same kinds of maintenance on your finances? Because of constant changes in market and economic conditions and in your own life, it’s a good idea to review some key financial issues regularly to be sure they are up to date.  The Minnesota Society of CPAs (MNCPA) recommends asking these questions to see where you stand.

Have you got the right insurance?

Insurance policies can give you peace of mind, but that doesn’t mean you should set them aside and forget them. If you have had children since you bought your life insurance policy, seen a rise in your income level or experienced some other important change in your life or your finances, you may want to adjust your coverage accordingly. If you have gotten married or divorced, for example, it may be time to change your beneficiary. You should also consider whether there are reasons to raise the deductibles on your home or auto insurance (if you want to lower your premiums) or lower them (if you prefer less out-of-pocket risk in case of an accident). And if you’ve always felt that you were paying too much for insurance, it can’t hurt to do some research every couple of years to see if a less expensive option would suit you just as well.

Are your investments on track?

Even if you’re happy with investments you made in the past, it’s smart to review them regularly to ensure that they still match your objectives and that the related risks and rewards continue to fit your current situation. The growth-oriented stocks or stock market mutual funds you started buying in your 30s, for example, may not completely suit your needs as you get closer to retirement. In addition, many people allocate a percentage of their investments in certain types of investments, but those percentages may change due to gains and losses in different markets. That’s another reason to review your holdings and decide whether changes are necessary.