Top 10 Fall Financial Checklist - Save Time, Money and Tax

Summer is not officially over until September 21^st. However, “back to school” week is a sure sign of the fall!

The fall is a busy time in our financial planning office, as people seem to use this time of year to tidy up many small items concerning everything financial.

It might also be a good time of year for you to do the same, especially if you aren’t in this “fall time” habit. Many people have a list of items to refer to when it comes time for financial clean up.

Here is a typical list:

·         Update beneficiaries on your insurance policies’ if required.

·         Increase your disability coverage if your income has increased.

·         Review your RRSP investments against your current Risk Tolerance questionnaire.

·         Top up your Tax Free Savings Account

·         Increase your RRSP deposits by 10%

·         Question your bank to see if you can save money by renewing your mortgage early.

·         Compare your bank mortgage insurance premium to a private policy.

·         Compare your homes “assessed value” against your neighbours to be sure it is in line.

·         Call your cable company and ask for a discount (it works)

·         Check your credit record for free online.

Each of the above items can either help you save a little money, or simply organize your affairs.

Let’s take a look at the reasoning behind each suggestion.

Update beneficiaries on insurance policies’ if required:

As life changes, we need to update or change beneficiaries to match our current situation. Marriage and divorce are often reasons to change beneficiaries. However, having children, as well as aging parents may be a reason to add or remove someone. Remember: A beneficiary listed in a life insurance policy is a private matter; and will not be made public in the future. This is unlike items transferred through your estate, which will be on public record should anyone wish to look it up.

Increase your disability coverage if your income has increased:

With Group disability insurance through work and with personal coverage, you may find your monthly coverage lower that your actual take home pay.  Be sure to remain on top of this. You don’t want to find out about a deficiency at the time of a disability.

Review your RRSP investments against your current Risk Tolerance questionnaire:

Your personal values change as you mature. Your ability to tolerate growths or declines in the market value of your investments can also change with time. An annual review of your tolerance “score” can help put your investments in check with your wishes. 

Top up your Tax Free Savings Account:

Since the TFSA has been introduced, it has become a wonderful tool to save on tax. The deposit limit is $5,500.  Missing an opportunity here is like tossing money out the window.

Increase your RRSP deposits by 10%:

While there are limits on how much you can deposit into your RRSP, most people do not reach the overall limit. As a result, it is a good habit to increase your deposits every year to help build for the future.

Question your bank to see if you can save money by renewing your mortgage early:

With today’s low interest environment, you may find low mortgage rates out there. While a penalty may be charged when you change your mortgage rates, the savings on the interest rate can still create additional funds for you.

Compare your bank mortgage insurance premium to a private policy:

Mortgage insurance coverage at the bank is most often decreasing coverage, yet the premium remains level. Brand new policies at the bank are often more expensive then options elsewhere. Other options can be found with your financial planner, which can save you money.

Compare your homes “assessed value” against your neighbours to be sure it is in line:

This is easy to do: Simply go to viewpoint.ca and type in your address. Your homes assessed value will pop up. If your home is similar to others in the neighbourhood, take a look at this public information. There are options for you if you find a discrepancy, such as: asking for your home to be re-assessed, have the value of your home capped, or you can address any concerns with your local tax office.

Call your cable company and ask for a discount:

As with all the services you pay for, keeping an eye on the utility costs is fruitful. Your cable bill is not cheap, so call your provider and ask for the conservation department. They often have incentives that will help lower your bill without decreasing your service. This goes for cell phones too.

Check your credit record for free online:

Even if you have good credit, you should check your credit once per year to be sure all of your information is correct. You may find mistakes, or worse, you may find that someone has been using your good credit for their own. You can easily check your credit for free at these two sites: www.equifax.com or www.trandunion.ca

Many more items can be added to your list. Such as:  

·         Updating a will

·         Getting an annual blood test

·         Consolidating investments

·         Make an estate check list

The most important thing is to make a list, and then check it twice. If you do this annually, the benefits can be remarkable!

If you are in Nova Scotia and would like some financial advice, please contact Corry Collins:

corry@maritimewealth.com

902-444-7000

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