by Tenielle Shallman, Manager of Central Planning Services

As we start a new year and 2009 gets under way, it’s a great time for a financial checkup and review of your financial situation. Following are some items to consider:

Take a look at your current budget and savings plan and make adjustments as necessary.

Review current IRS guidelines, such as contributions to your employer retirement plans and other retirement accounts. The maximum contribution to a 401(k), 403(b) or 457 plan in 2009 is $16,500, and taxpayers age 50 and older may make “catch-up” contributions of an additional $5,500. The maximum contribution to a SIMPLE IRA plan in 2009 is $11,500 with a catch-up contribution of $2,500 for taxpayers age 50 and older. The maximum contribution to traditional and Roth IRAs is $5,000 in 2009, subject to eligibility based on adjusted gross income, and taxpayers age 50 and older may make catch-up contributions of $1,000. Please note: You have until April 15, 2009, to make a year 2008 contribution to your IRA or Roth IRA, if you qualify.

Review your overall investment allocation and consider rebalancing as necessary. In conjunction with rebalancing, take some time to re-evaluate the amount of volatility or risk that is acceptable to your situation. Some considerations when evaluating your level of risk tolerance are your age, time horizon and proximity to retirement, cash flow needs, net worth, and investment objective. And, if you haven’t already, structure investments appropriately into short-, mid- and long-term buckets. Structuring assets appropriately can help alleviate concern about liquidating equities in a down market.

Review account beneficiary forms to confirm that you have named primary and contingent beneficiaries that reflect your wishes. Discuss and review your estate planning documents, such as your wills, trusts, health care directives, and durable powers of attorney with your attorney to confirm that the documents you currently have in place take full advantage of the current estate tax laws and that they accurately reflect your wishes. If you have not yet established these documents, consider meeting with an attorney to discuss whether they are appropriate for your situation. Be sure to advise your heirs and executor where your estate planning and account documentation can be found in case of death or incapacitation.

Review your current property/casualty, life, disability and long-term care insurance coverage with your financial advisor and other insurance advisor(s) to determine if you are properly insured.

Organize year-end financial statements and 2008 tax documents as you receive them. Also, be sure to destroy old documentation that is no longer needed in a safe manner.

Review your credit report annually. The law requires the major national consumer reporting bureaus to provide you with a free credit report each year upon request.

Please contact your Wealth Enhancement Group advisor to discuss your particular situation.