How to Optimize Your Financial Plan in 2021

2021 is a year that comes after sweeping changes around the world and adaptations in the workforce, the marketplaces, and health care as a result of the pandemic. The volatile 2020 experience has many people asking questions about what they can do in 2021 to adjust and adapt their financial plans.

Consider the following tips from financial experts as opportunities to evaluate your current plans and to make changes as needed. These include:

  • Revisiting your cash management strategy.
  • Consider how you’ll plan for required minimum distributions which are back after they were waived by CARES Act in the year before.
  • Review your current portfolio exposure and look specifically at bond and stock mix as well as asset classes.
  • Reevaluate or create your family education plan.
  • Determine whether or not you have appropriate insurance coverages especially as it relates to life insurance.
  • Update your estate plan and make sure that every person who has been appointed in a critical role is still available and willing to serve in that manner. This includes personal representatives, trustees, power of attorney agents, and guardians.

Your financial plan, much like your estate plan, requires adaptation over the course of your life as your needs change, laws change, and your family size changes. Existing documents might not align with where you’re headed in the coming future. If tax season has prompted you to rethink your plans, you can leverage a lawyer’s support.

Now is a good time to meet with your estate planning professional in MI to decide if updates need to be made in your plan.


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