It’s getting warmer. The trees are budding. And, you’re once again reminded your neighbor’s old weed wacker sounds like a fighter jet screaming passed your face. It needs fresh oil, a new motor or a trip to the landfill. Either way, it’s disturbing your nap on the hammock.
Ahh, Spring has arrived. Time to get outside, clean up the yard. Get inside, clean up the closets. Get online, clean up your finances.
I can’t help you much with the first two. Here’s one way to approach your finances:
- Clean up old 401ks – Have you changed jobs once, twice, three times…(no, I’m not channeling Lionel Richie, but it sure sounds like it?) ?Seriously, if you have money in several different 401ks, it may be hard to know exactly how you’re invested and whether it’s in alignment with your goals. So, it helps to consolidate those old accounts into your current employer’s 401k or an IRA.
- Clean up credit cards – Are you having a hard time keeping track of your cards or missing payments? You may find it simpler to scale back to just the cards you use most frequently. It’s easy to accumulate cards given their unique benefits and points. And, it can be fun playing the credit card rewards game. But, the drawbacks from missing payments or not properly tracking unwanted expenses may outweigh those benefits.
- Clean up recurring expenses ?- Consuming is part of life. It can be exciting. For some people, exhilarating. Nothing wrong with any of that if you find those purchases still offer value. Look through your expenses to find the ones that no longer light you up…in a good way. Find the ones that make you go, “urgh, why am I still paying for this?” Products or services you’re no longer using. Getting rid of those services will save you money and may also save you some brain space.
- Clean up debt – Re-examine your debt. Look for loans that have high interest rates. Do you have enough cash to accelerate payments? Can you refinance or consolidate any of your debts to a lower interest rate? This isn’t the ideal environment for refinancing. But, depending on the size of your debts, you may have a few moves to make that could save you some cash.
- Clean up documents – Yes, let’s combine the financial and the physical. Wills, trusts, life insurance policies, tax returns and more. It can be really helpful to have those documents organized so you can review them in a timely manner. ?Staying organized is the key to prudent tax and estate planning.
This is the perfect time of year to get financially buttoned up because you’re already in cleanup mode. ?And, I think you’ll find cleaning up your financial clutter is every bit as satisfying as your physical clutter!
Ahh, so much uncertainty. This week we learned the Federal Reserve is also unsure of the path forward both for the economy and interest rates. Officials held the overnight rate steady as they weigh dueling fears: a slowdown in the economy and the potential for higher inflation caused by tariffs.
So, what did they say about interest rates for the rest of the year? The answer can be found inside this week’s segment.
Okay, let’s hear your opinion:
Do you think rates are headed lower or higher this year?
This material is provided as a courtesy and for educational purposes only.? Please consult your investment professional, legal or tax advisor for specific information pertaining to your situation.?
?All views/opinions expressed in this newsletter are solely those of the author and do not reflect the views/opinions held by Advisory Services Network, LLC.
