As we embark on a new year, it’s a great time to review and update your affairs. Here is a checklist of tasks that Indiana residents may want to consider:
1. Review Your Will and Estate Plan:
* Update Beneficiaries: Ensure your beneficiaries are still accurate, especially if you’ve experienced significant life changes like marriage, divorce, or the birth of a child.
* Review, or have prepared, Financial Power of Attorney: Verify that your designated agents are still capable and willing to act on your behalf.
* Consider an individualized healthcare directive and appointment of a healthcare representative to make medical decisions if you become incapacitated.
2. Check Your Insurance Policies:
* Homeowners Insurance: Ensure your coverage adequately protects your home and belongings. Consider increasing coverage if you’ve made significant improvements or purchased valuable items.
* Auto Insurance: Verify that your policy meets Indiana’s minimum liability requirements and that your coverage limits are sufficient.
* Health Insurance: Review your health insurance plan to ensure it meets your needs. Consider any changes in your family situation or health conditions that may impact your coverage.
3. Update Your Tax Information:
* Review Your W‑4: Double-check your W‑4 form to ensure that the correct amount of taxes is being withheld from your paycheck.
* Organize Tax Documents: Gather all necessary tax documents, including receipts, invoices, and investment statements.
* Consider Tax-Saving Strategies: Consult with a tax professional to explore potential tax deductions, credits, and other strategies to minimize your tax liability.
4. Review Your Retirement Accounts:
* Review your Portfolio: Confirm your investment portfolio aligns with your risk tolerance and long-term financial goals.
* Contribute to Retirement Accounts: Maximize your contributions to retirement accounts like 401(k)s, HSA, and IRAs to take advantage of tax benefits and build your retirement savings.
* Consider a Roth IRA: A Roth IRA can offer tax-free withdrawals in retirement.
5. Update Your Legal Documents:
* Review Contracts: Check any ongoing contracts, such as leases, rental agreements, or business contracts, to ensure they are up-to-date and meet your current needs.
* Review Business Documents: If you own a business, review your business formation documents, operating agreements, and other legal paperwork.
By taking the time to review and update your legal affairs, you can ensure that you are well-prepared for the future. Remember to consult with your professionals to get personalized advice and guidance.