Get an annual financial checkup for peace of mind

When Trenda Boyum recently met with her financial adviser for her annual financial checkup, the retired Rasmussen University president had just sold her suburban house to move near downtown Minneapolis.

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“It was a good opportunity to talk about my financial goals and actual numbers after the sale,” said Boyum, 58, who is divorced and works as a part-time executive coach. “We came to a new plan that has me working fewer hours for a few more years, and that feels really energizing to me.”

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Financial advisers recommend giving yourself such an annual review to check your finances and make adjustments if needed.

“Just like our physical health, it’s important at any age to have a financial checkup, but the stakes are higher at 55 and up, especially as retirement looms,” said Greg McBride, chief financial analyst for personal finance company Bankrate. “It’s an opportunity to revisit your goals — how retirement savings, emergency savings, debt and annual expenses stack up.”

Joe Stepanek, a Thrivent wealth adviser in Andover with about 30 years of experience, likes a year-end review to look back and forward, and take any actions that must be done by Dec. 31. The start of a year before the tax deadline is also a good time.

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Some parts of an annual financial checkup, such as reviewing and adjusting your expenses, you can do yourself. For others, you may want professional advice and help.

Financial experts recommend an annual checkup that includes at least these 10 elements:

First, take stock of changes in your life that may affect your income and spending habits. Did you remarry? Do you plan to retire soon? Do you plan on making a major purchase next year?