Summer Tips



By Zach Bainter

The days are getting warmer and longer. Basketball and hockey playoffs are here. Summer is on the horizon. Many people are thinking about what leisurely activities they can do this summer. Whether you leave the country, city, or staycation in your hometown, there is a good chance you will be spending time away. Don’t vacate on these four ideas that will help make sure your financial house is in order so that you can enjoy the sun with more financial peace of mind.

Revisit Your 401(k)

One of the biggest oversights I see is a client not checking in on their 401(k) as much as they do their other accounts. Monitoring your balance is not enough. For one, make sure that your allocation makes sense for your age, risk tolerance, and retirement goal. If you customize your allocation, be sure to rebalance a couple times a year. Second, are you aware that the IRS increased the amount you can contribute for 2018? The new maximum you can contribute is $18,500; and if you are a seasoned investor aged 50 or older you can contribute an additional $6,000.

Check in on Your Insurance

Depending on your profession, size of family, and your eventual goals, your insurance need is unique to your situation. Make sure that you are fully utilizing your employer benefits if you have them. Group disability insurance can be pretty competitive. If you have a family, when was the last time you made sure you had enough life insurance? If you bought a bigger house, had another baby, or received a pay increase (followed by an increase to your expenses), then these situations usually warrant an increase of coverage. What if you don’t have a family yet but are eventually set on one? Get some coverage now and plan ahead.

Beneficiary Review

Make sure your taxable/liquid investment accounts are registered as Transfer on Death (TOD). This will allow these accounts to have assigned beneficiaries, similar to your retirement accounts. Second, make sure your retirement accounts and life insurance have the beneficiaries you want. Often beneficiaries are not reviewed. Take a look at who you have listed.

Increase Your Automatic Savings/Investments

There are always reasons to postpone your monthly savings/investments. If you don’t have an account set-up for this, do it now. If you already have one set-up, increase the amount. Anything is better than nothing. Increasing your savings even a little bit can have a big impact on your future goals. Delay some instant gratification for your future financial security. Your older self will thank you.

Securities offered through LPL Financial, Member FINRA/SIPC.

Investment advice offered through Gerber Kawasaki Inc, a registered investment advisor and separate entity from LPL Financial.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which course of action may be appropriate for you, consult your financial advisor. No strategy assures success or protects against loss.

Gerber Kawasaki, 2716 Ocean Park Blvd. #2022 Santa Monica, CA 90405. Contact us at (310) 441-9393.