Planning for the New Year: Your Annual Financial Checkup

see our article on Crain's Cleveland Business website

New Year's shouldn't be just about making resolutions to better yourself. Consider before the current year's end whether your financial affairs need to be updated. This can include many things we don't think about day to day. Moving forward, at least annually, take stock of your financial and estate plan to prepare for future needs.

The following are a few of the financial aspects you should consider each year:

Bank accounts

• Are these titled correctly?
• Do they provide for proper transfer at death?

Investment accounts

• Are these titled correctly?
• Are the asset allocations diversified and updated to reflect your risk tolerance and time to retirement?
• Are the investments appropriate for your current income tax situation?

401(k) or 403(B) Retirement Plans

• Are your deferral/contribution percentages correct for the upcoming year?
• Will your deferral/contribution percentages get you the maximum company match?
• Have you considered Roth versus Traditional IRAs?
• Are the asset allocations diversified and updated to reflect your risk tolerance and time until retirement?
• Are beneficiary designations current?

Cafeteria plan elections

• Are your withholding elections current?
• Medical spending/HSA deferrals
• Dependent care Insurance coverage

Payroll elections

• Are your tax withholding elections correct?
• Is a portion going to savings/investment?
• Has your annual income tax planning been completed?

Estate planning documents

• Are your will/trusts current?
• Are named trustees, custodians and advisers appropriate?
• If you added a living trust, did you re-title your assets?
• Do you have a durable power of attorney? Is it current?
• Do you have a current Health Care Power of Attorney and Living Will?

If you have any questions on any of these documents, please contact Mary Eileen Vitale at vitale@hwco.com or (216) 378-7210.