Give your money a mid-year checkup

Nathan Bachrach and Ed Finke and their team offer financial planning services through The Financial Network Group, an SEC-registered investment adviser based in Sycamore Township. Call 513-469-2200 or email simplymoney@simplymoneyadvisors.com.

Give or take a couple hours, 2015 is about half over. If you’re like most people, 4,300 hours ago you wrote down a list of New Year’s resolutions. These promises may or may not have included a fitness program, getting your financial affairs organized, writing a novel, painting the kitchen etc.

And – if history is any guide – you’re 4,300 hours away from falling short on some or all of those personal promises. You stopped exercising right around Valentine’s Day. You’re still wrestling with the novel’s opening paragraph. And the kitchen can go another year.

The good news as we approach the dog days of summer is that there’s still plenty of time to hit a home run on your finances. It’s not too late. Dedicate just 15 minutes a weekend to the following list of investment and portfolio “to-do’s” and you’ll be starting 2016 with one less resolution.

Set a savings goal: There’s quite a bit of industry talk about knowing the final lump-sum amount you need to retire. The approach can be so intimidating many investors are scared away from even getting started. A better starting point is focusing on how much you can save on a monthly or yearly basis. After all, no one climbs a mountain in a single leap.

At Simply Money, we believe a good guide for knowing how much to save is the “50/30/20 Rule:” Fifty percent of your take-home pay should go to your “needs,” which includes all living expenses. Thirty percent should go to “wants” and the remaining 20 percent is for savings. This gives you a healthy dose of discipline, a more doable aiming point and will get you pointed in the right direction.

Work that 401(k): Whether it’s a 401(k), Roth 401(k), 403(b), 457 or another plan available via your employer, you really must get it right. These plans are the main engines powering your eventual retirement, and you need to maximize everything they have to offer.

As we’ve noted before, it’s staggering how many employees don’t take full advantage of the match offered by their employers (i.e., for every dollar you save, your company may match the contribution up to a certain amount). No one ever turns down a raise, but call it a “match” and billions of dollars a year are left on the table.

Review your employer-sponsored plan and see what is available. Grab every penny offered in matching contributions and make sure your investment allocations are age and risk appropriate. Be balanced, diversified and don’t chase whatever was “hot” last year.

Some other stuff: For this third category, here’s a laundry list you might already know about but may need reminding: 1) Interest rates are probably going up so consider re-financing your mortgage; 2) With longer life expectancies, old life insurance policies may be outdated. Get them reviewed for potential savings and/or improvements; 3) Everyone needs a will as well as legal documents regarding health care and financial affairs should you become incapacitated; 4) Don’t buy investments based on commercials you see on television; and 5) There are too many great financial advisors and Certified Financial Planners (CFP^®) for you to work with one you either dislike or don’t trust.

The Simply Money Point: There’s still hope to get your money on track for 2015. Make your financial future a priority and take the time to invest in yourself. But don’t wait too long because the clock is ticking and 2016 will be here sooner than you think.