Get a Jump Start on New Year's Resolutions 2009

1. Do a budget. You should have done this when times were good, you cannot afford not to. You can’t control expenses, make an investment plan, assess the damage of the market meltdown, buy insurance, or do estate planning, without realistic estimates of expenses.
2. Simplify and consolidate financial accounts. This always made sense to better allocate assets, simplify probate and so on. Now it is essential to monitor your investments as you try to recoup from the losses that have occurred. You don’t need CDs in 20 banks. There are practical options by having your broker buy CDs from different banks under one account, or using programs that facilitate it.
3. Watch the title to assets. Who owns what is vital from an asset protection perspective. Too many people have started changing title to accounts to assure FDIC insurance and have undermined their own assets (can the co-owner withdraw funds) and destroyed their estate plan (the will won’t govern assets that pay on death to another, or joint assets).
4. Insurance basics. Verify your insurance is in order, life, disability, etc. Do you have adequate life insurance for current circumstances? Difficult times require more careful planning and tougher decisions, not lapsing coverage.
5. Get real about time. Too many people invested as if they would not need the money for decades, leave there estate planning as if they will live forever, etc. Some seniors think they will live for another century, worry about money, and limit gifts and other planning that might be an essential life preserver for children and others during these tough economic times. Listen to Dr. Phil. Get real about time. If not, your planning will never work.