Resources
Financial Tip of the Month
May: Financial Tip of the Month
May is an excellent month to review your personal finances, especially after the many financial literacy resources shared throughout April. Now is the perfect time to apply those strategies to your own situation and ensure your important documents and information are up to date.
Review Key Financial Information
May is a good time to update important information. Review your designated beneficiaries on life insurance policies and retirement accounts. Ensuring these reflect your current wishes can prevent costly mistakes.
Update Insurance Information
Check your home and auto insurance records. Have you purchased a new car, added drivers to your policy, moved, or received a new Medicare card? These changes require updates to your insurance documentation.
Spring Clean Your Financial Documents
Spring is a great opportunity to weed out financial documents you no longer need. If you do not own a shredder, UPS, FEDEX and Staples stores often offer shredding services. They charge by pound. Your local municipality may also host free shredding events.
Clear Digital Records
Review and remove documents stored on your computer, external drives, and other devices. Reducing digital clutter can make important information easier to locate.
Protect Yourself from Identity Theft
Keep your financial information safe by following IRS guidelines on fraud prevention and identity theft.
End on a Positive Note
After ‘spring cleaning’ your finances, take time to relax and enjoy the satisfaction of being organized and prepared. Stay tuned for next month’s AADMM Financial Tip!
Annual Financial Calendar
Daily money managers are adept at keeping track of clients’ financial obligations using a variety of methods. One such method frequently used to stay organized and make payments on time is a financial calendar. A financial calendar is a simple system for keeping track of financial obligations throughout the year or for a chosen period of time, in much the same way as people remember birthdays, anniversaries, and appointments.
For those who utilize technology, here are some options available:
- Reminders automatically generated using financial software like Quicken or Microsoft Money.
- Spreadsheets that can be sorted by payee, payment due date, or other criteria.
- Reminders created using apps for electronic devices.
- Reminders established with payees. For example, some insurance companies will send emails to policyholders a few weeks before premiums are due.
A Financial calendar does not have to be high-tech to be effective. It can be as simple as a ‘list’ of financial obligations that you review regularly, or a paper calendar with payments due and funds to be received recorded in different ink colors to make them easier to spot.
Financial calendars are also useful for documenting other financial information such as IRA required minimum distribution (RMD) deadline dates. For those living on a fixed income, tracking receipt of dividends and other distributions is useful for creating accurate cash flow projections.
It is important that the system you use is one that you can maintain.
You can create a perfect financial calendar, but you will only be successful if you use it. For those who struggle with keeping track of bills, or lack the time to handle personal financial affairs, you may want to consider hiring a daily money manager to manage your financial calendar. This will ensure that all of your bills are paid on time every month.
AADMM’s Public Awareness Committee has created a Financial Calendar Series. Each month, financial events and reminders will be added. Watch for updates on AADMM’s Facebook page.