SPRING CLEANING

Since childhood you’ve probably heard the saying that April showers bring May flowers and are probably also used to a traditional “spring cleaning” ritual of some sort. At our place this is the time of year that my wife, Gina, proclaims that our “yard is a disaster” and dictates that our family proceed to edge, mulch, mow, trim, prune, and weed and seed post-haste. A casual bystander may think that they had stumbled onto a natural disaster site and that FEMA would soon roll into our cul-de-sac to help address this dire situation. We dutifully snap to attention and within weeks there is a magical transformation, which largely should be credited to Mother Nature but which we have learned to praise Gina for.

If this is a scenario you can relate to, then we are brethren in a pretty large club. What this time of year can also be a good reminder for is for you to do some spring cleaning of your financial house. Here are a few things that warrant your attention and can lead to a brighter future you can be proud of.

 UPDATE YOUR FINANCIAL PLAN It is estimated that only one in four people have a written financial plan and if you are part of that minority, you have already taken an important step towards financial security. Unfortunately, many of those who invest their time in assembling a plan file it away once the exercise is complete. It should be a living document, and now is a good time to review and update.

For the majority that have yet to take the step of developing a plan, there is no time like the present to do so. If you feel that you don’t have enough money to warrant a plan or that it might be too expensive to do so, you are misinformed. Regardless of your current net worth, you need and deserve a plan.

 TIME TO REFLECT Just because it is now April and tax season is coming to an end, this is not the time to forget about the pain you probably just went through. Now is a great opportunity to review your current position and what you can do to make tax time less burdensome next year. A few quick suggestions include: • Recommit to saving receipts and having good documentation around your charitable donations of time and treasure. • Revisit your retirement savings rate. Are you maximizing your 401(k) contributions? Are you funding an IRA each year? (You can and should do both!) Are you on

track for the retirement you dream about or the one you dread? This is important. • Review your investments. How tax efficient were they? Were your 1099s comprised primarily of shortterm capital gains or were you able to realize more friendly long-term capital gains? Do you understand everything you are invested in, and do each of your investments have a clear goal and purpose? • Review your spending habits. Are you differentiating between your

“wants” and your “needs”? Are you paying attention to your cashflow or just checking your balances to make sure that you are covered?

Are you spending from a cash position or do you find yourself using a credit card frequently for personal purchases? A little attention here can make a big difference. Few plan to fail, but many of us fail to plan. Make the commitment today to do the things your future self will be grateful for!

This material is intended for informational purposes only and should not be construed as legal or tax advice and is not intended to replace the advice of a qualified attorney, tax advisor or plan provider.

 Tom McCartney is the Founding Principal of My Advisor & Planner and a Wealth Manager. Securities and Investment Advisory Services Offered Through Raymond James Financial Services, a Registered Broker/Dealer and Investment Adviser, Member FINRA/SIPC. My Advisor & Planner is independently owned and operated. Tom and his team can be reached at info@ mapyourfuture.net, at 630-457-4068, or you can visit them at www.mapyourfuture.net .