Avoid Financial Groundhog’s Day: February’s Financial To-Do List

If reliving financial missteps year after year sounds unpleasant, February is the perfect time to break the cycle. Channel your inner Phil (Bill Murray) from Groundhog Day and make positive financial strides. A little effort this month can set the tone for financial success all year long. Here’s your February financial to-do list: 

1. Review Your Investment Portfolio

Your investment portfolio is the backbone of your wealth-building strategy. Over time, market shifts can leave your portfolio’s asset allocation out of sync with your goals. Take time to: 

• • Rebalance your portfolio to maintain the desired mix of stocks, bonds, and other assets. 

• • Consider whether your investments align with current market conditions and financial objectives. 

• • Review performance metrics, fees, and alternative options. 

2. Assess Your Risk Tolerance

As your life changes, so might your comfort level with financial risk. Maybe recent life events, like starting a family or nearing retirement, have altered your perspective. Consider: 

• • How much volatility are you willing to endure in pursuit of returns? 

• • Adjusting your portfolio to reflect your current risk profile better. 

• • Meet with your Sequoia Financial Advisor to clarify your risk tolerance. 

3. Review Your Estate Plan

An estate plan ensures that your assets are distributed according to your wishes. Even if you already have one, review and update: 

• • Beneficiaries on retirement accounts and insurance policies 

• • Guardianship provisions for minors. 

• • Any trust documents, wills, or power of attorney assignments. 

• • Federal and state laws that may have changed since your last update. 

4. Review Insurance Coverage

Insurance is your financial safety net, but outdated policies can leave gaps in coverage. This month, review: 

• • Life, health, home, auto, disability, and long-term care insurance policies to ensure you have adequate coverage. 

• • Premiums and deductibles for potential cost savings. 

• • New needs, like added coverage for valuable assets. 

• • Take a minute to read “Should You Insure Your High-End Collection?” 

5. Maximize Tax-Advantaged Accounts

February is an excellent time to shore up tax-efficient strategies. Check: 

• • Contribution limits for retirement accounts, such as 401(k)s or IRAs, and aim to maximize them. 

• • The balance in your Health Savings Account (HSA) or Flexible Spending Account (FSA). 

• • Eligibility for tax credits or deductions. 

• • Your payroll withholdings to ensure you’re not over- or underpaying. 

6. Assess Debt

Unmanaged debt can hinder your financial progress. Use February to: 

• • Review all outstanding balances, including credit cards, mortgages, and other loans. 

• • Compare interest rates and explore refinancing opportunities if rates have dropped. 

• • Prioritize paying off high-interest debts to minimize long-term costs. 

7. Evaluate Your Retirement Plan

Whether you’re 20 years from retirement or just a few years away, knowing where you stand is vital. This month, you can: 

• • Project your retirement income and expenses to ensure you’re on track. 

• • Adjust your savings rate if necessary. 

• • Diversify your retirement investments based on your time horizon. 

8. Communicate With Your Family

Open communication about finances with your family can prevent misunderstandings and ensure everyone is aligned. Take time to: 

• • Share goals and plans with your spouse, partner, and family. 

• • Discuss topics like budgets, college savings, and shared expenses. 

• • Hold regular family check-ins to keep everyone on the same page. 

By tackling these essential tasks in February, you’ll avoid the financial Groundhog’s Day effect of repeating old mistakes. Each step strengthens your financial foundation, setting you up for lasting success. Break the cycle and make this the year you move closer to your financial dreams.