| Summer is right around the corner and most of | | | | The purpose here |
| us have our to-do- | | | | is to consolidate your multiple plans into one or |
| lists figured out, mentally, if not written down | | | | two accounts. |
| yet. Bible camp for | | | | This'll make it easier for you to keep an abreast |
| the kids, plant a large garden, and a trip to the | | | | of what your money |
| lake. What about | | | | is doing. With fewer accounts, you'll have less |
| financial housekeeping, shouldn't that be on your | | | | confusion, hopefully |
| list too?Early summer is a great time to take a | | | | everything is on one statement and if you have |
| financial breather. The | | | | questions or need to |
| holidays are a long way off, the taxes have just | | | | make changes you only have to talk to one |
| been paid and we're | | | | representative.Coverage CheckupInstead of |
| spending time eating in the backyard instead of | | | | merely simplifying your financial life, you should |
| dining out.If you take even one day out of your | | | | also |
| summer play/work and organize | | | | make sure that you are providing adequate |
| your finances, you could cut down on the forest | | | | protection. It is a good |
| of bills, bank | | | | idea to have insurance on your home, your |
| balancing, and paperwork facing you all year long. | | | | health, your car, your |
| Now is even a good | | | | loved ones, and your income. Don't forget, |
| time to take a look at your retirement and | | | | though, you can over do it |
| investment accounts and | | | | and have too much insurance. You need to |
| check up on your insurance coverage.Getting | | | | decide what level of self- |
| StartedStarting with your bank papers, check out | | | | insurance you are comfortable with.The law |
| how many savings and | | | | requires you to carry automobile liability insurance |
| checking accounts you have and minimize them. I | | | | is |
| like to have two | | | | required by law. At the least you should have |
| checking accounts for the house, one is used | | | | term life insurance to |
| only for the regular | | | | replace your income and help your loved ones |
| bills and the other is for household items and | | | | with debt and living |
| irregular spending. | | | | expenses. Homeowner insurance is important in |
| Two savings accounts are enough as well, one | | | | case your home becomes |
| for long-term saving and | | | | unlivable due to fire or other incident.Again, if you |
| the other for short-term.Another time and paper | | | | can get your insurance through one provider, your |
| saver is if you set up an automatic deposit | | | | life will be simpler with fewer agents to visit with. |
| of your paycheck into your checking account, | | | | Perhaps you can |
| and then set up an | | | | even have access to your account through the |
| automatic payment from your checking account | | | | Internet. The less |
| into your savings, | | | | effort it takes to understand your coverage and |
| investment, or IRA accounts. Even if you pay | | | | to make changes, the |
| yourself only $10 a | | | | less stress and the more time you'll save.Final |
| week, it adds up over the year and is a good | | | | ItemsWhen was the last time you updated your |
| discipline to learn. You | | | | will? If it was more than a |
| can even use automatic deposits to save money | | | | year ago, you might want to do it again. Assets |
| for Christmas presents, | | | | increase or decrease, |
| a vacation or other "special occasions".If you are | | | | potential inheritors are born, and maybe you've |
| technologically savy and comfortable with the idea | | | | decided that you'd |
| of | | | | like to leave a little something to your church. |
| electronic payments, consider using e-payments | | | | Updating your will |
| to pay your regular | | | | is a good way to make sure your final wishes |
| bills, such as mortgage, electric, or car loan. Don't | | | | are carried out. |
| let the | | | | Putting some of your assets in a trust can save |
| companies do electronic with-drawls for you. How | | | | on probate costs. |
| do you guarantee | | | | Also if you become incapacitated the trust can |
| that they took the right amount, and if they | | | | manage funds for |
| made a mistake (which | | | | people with special needs - a child who needs |
| happens) how do you get the money back? It is | | | | extra care, for |
| a lot simpler and | | | | example. A trust is also another way distribute |
| potentially safer for you to do an electronic | | | | your assets to |
| bill-pay through your | | | | children or grandchildren at a specific age, such as |
| bank.Another stepIn 2001 the Economic Growth | | | | when they reach |
| and Tax Relief Reconciliation Act made | | | | age 25 or have children of their own.Ultimately, |
| it easier for you, the investor, to consolidate | | | | you will have to decide just how much |
| your retirement | | | | consolidation of |
| accounts and still retain the tax-favored | | | | planners, agents and financial management you |
| treatment of the money. | | | | want to do. Once you've |
| Prior to this act, advisors frequently told their | | | | cleaned house on your finances, spending an |
| clients to keep | | | | afternoon in the hammock |
| retirement accounts separate to save on | | | | will be a lot more restful. Having a peace of mind |
| taxes.Now you can take eligible distributions from | | | | about your |
| tax-qualified plans, | | | | financial affairs is truly a good feeling.Roger |
| 403(b) and 457 pension plans and other types of | | | | SorensenAmerica's Financial Guide can be found at |
| plans like the IRA, | | | | ==> Subscribe to Money Basics via - Are you |
| and roll the money into other tax-qualified plans. | | | | ready for financial freedom? |