It is always good to do annual financial checkup before the end of the year, you can receive tax saving strategies advantage.
Identify your goal:
Evaluating financial goal is the first step. Analyze whether there is any progress or not in that year, change the goal when if there is no development.
Evaluate changes in your personal situation:
Evaluating personal situation that whether any changes are taken place like retiring, adding a baby to family, buying a house, getting married, as these alter the lifestyle and income significantly. If you have a plan in advance for these changes the transactions will be made much smoother.
Protection of your assets:
Protection of assets need to be evaluated is the next step. Analyze health insurance, homeowner’s or renters insurance, vehicle insurance. Protecting greatest assets which have ability to earn income by long term disability insurance.
Evaluate your investment performance:
Calculating the return on each of bonds, stocks, or mutual funds. It may be time to sell them which investments could not cover its losses and reinvest in different modes.
Evaluate your debts:
Under this evaluate the debt to income ratio. Analyze whether debt increased or decreased in this year. If debt increases then it reduces the income by paying the interest. So evaluating debt is important.
These steps will help to do annual financial checkup and to help to make changes which are necessary in financial planning.