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Pinnacle e-Letter

Financial Checkup for 2008

By Nancy Boring, Financial Advisor, Pinnacle Financial Partners

With the end of the year in sight and a new year upon us, it's a good time to subject your finances to a thorough examination.

While a financial checkup can be time-consuming, it isn't painful. In fact, it's well worth your while because determining where you are, where you want to be and the incremental steps needed to get there will go a long way to keeping your finances in good shape in the year ahead.

Consider the following game plan for a clean financial bill of health in 2008:

• Set financial goals. Take time to figure out what you want to accomplish financially in the New Year. Maybe it's establishing an emergency fund, buying a home, saving for a child's education or a comfortable retirement. Having a handle on what you want your money to do for you can help you stay motivated to save in 2008.
• Inspect your insurance. Failure to purchase adequate insurance is a common mistake. Be sure the things that matter most to you are protected -- your family, your home, your business, your health. Take time to review all of your policies to be sure you have the right kind and right amount of insurance. Be sure to adjust your policies to reflect life changes.
• Review retirement plans. Research indicates too few workers are setting aside money for their golden years. The good news is that it's never too late to start saving for retirement and it's never too late to beef up your retirement planning. An investment specialist can help you make sure you're saving enough to meet your retirement goals and taking full advantage of the retirement savings vehicles available to you.
• Investigate your debt structure. An examination of your current debts may reveal any number of debt reduction strategies. For example, it may be time to move from an adjustable rate mortgage to a fixed rate mortgage. Take advantage of debt instead of letting it take advantage of you. Also, be sure to check your credit report once a year.
• Tune up your tax planning. A little tax planning can save you a lot of tax dollars. Running a preliminary tax return before the ball drops on New Year's Eve gives you time to fix what you can, or at least know what is coming that much sooner. Talk to your tax preparer now about what you can do before year end and what new tax laws can work for you in 2008.
• Evaluate your current banking services. Be sure you're taking advantage of the time-saving tools available to you through your bank. For example, online banking can help you chart your expenses and get an overview of your financial situation, complete with charts and graphs.

For more information on conducting a financial checkup, contact your financial advisor. You can reach Nancy at (615) 690-4012 or nancy.boring@pnfp.com.

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