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Eight Tips to Help Improve Your Financial Outlook in 2021 and Beyond

Are you planning on making New Year’s resolutions for 2021? Don’t forget about your finances. The new year is a great opportunity to reflect on your financial progress and make improvements going forward. While you’re on the treadmill working of those holiday cookies, consider the following tips to help tune up your finances in the new year.

1. Reevaluate your financial goals

It’s important to update your financial goals on a regular basis to make sure they remain in line with your ever-evolving life. Your financial advisor can help you identify any changes that should be made to your financial plan to help ensure it continues to meet your needs.

2. Access your credit report

Each of the major credit bureaus, Equifax, Experian and TransUnion, allow consumers to access one free report each year. Take advantage of this opportunity to double check your credit score and identify any unexpected errors.

3. Increase retirement plan contributions

Making small annual increases to your retirement plan contributions can have a big impact on your savings. Consider upping your contribution by 1-2 percent each year. By making small, incremental changes, you’ll be unlikely to even feel the impact on your take-home pay.

4. Recommit to paying off debt

Resolve to pay extra each month (ex., $100) to any outstanding consumer debt. Also consider directing additional funds toward paying down your mortgage principal. The sooner you tackle your debt, the sooner you’ll achieve financial freedom.

5. Rebalance your portfolio

Rebalancing to your original (or an updated) asset allocation helps lock in gains from top-performing sectors and ensure your portfolio remains in line with your investment objectives and risk tolerance.

6. Reevaluate your employer benefits

Hopefully, you did this recently during your employer’s annual benefits enrollment period. If no