Jill On Money: Summer financial to-dos

The stock market is up, the inflation rate is moving down, and everything is fine, right?

Maybe, or maybe it’s summer, and you don’t want to deal with your financial life. Not so fast… just a little bit of focus might help save you or make you some money before the next Heat Dome descends.

Here are few items for your summer financial to-do list:

Review subscriptions
Did you sign up for Brit Box to watch an insane number of British crime dramas (who, moi?)

Or maybe you wanted to read an article or two from some highbrow outlet that automatically charges you a fee, after that 7-day free trial.

It’s time to cancel unwanted subscriptions, once and for all. You can do so by scanning your automatic subscriptions on Apple Pay or Google Pay and also by checking your credit card bill.

Take advantage of higher interest rates
The Fed has kept short-term interest rates at a 23-year high for almost two years, but many savers are still earning peanuts on their safe money.

Before the Fed starts to cut, check out high yield savings accounts, money markets or certificates of deposit. You may be able to earn 4 or 5 percent on your emergency reserves, cash for future tax payments or a tuition bill that looms in the future.

Shop homeowners and auto insurance
The cost of home and auto insurance has skyrocketed over the past five years. To defray some of the increase, shop around, consider bundling coverage, educate yourself on ways to qualify for a discount (security systems, paying for a full year vs. monthly, take a defensive driving course class), and consider dropping collision and/or comprehensive coverages on older cars.

According to the Insurance Information Institute, “if your car is worth less than 10 times the premium, purchasing the coverage may not be cost effective.” Look up the value of your car at Kelley’s Blue Book.

Clean up investment accounts
The labor market may be downshifting, but there are still plenty of workers changing jobs – and those people are leaving a bunch of accounts in their wake.

Streamline your retirement savings by combining all like accounts (i.e., all Roth’s, all Traditional) into one place. If you have an affordable workplace plan, you may be able to roll old accounts in; otherwise, choose a financial institution that is easiest for you to navigate and roll the money in there.

Combining accounts makes it easier to monitor your entire portfolio, ensure that your money is properly diversified, and allows you to see whether you can dump expensive managed mutual funds, in favor of cheaper index funds.

Boost retirement contributions
Has your cash flow improved this year? If so, it’s time to add to your retirement account. The 2024 limit on contributions to work-based retirement plans (401(k), 403(b), 457) is $23,000 (catch-up contributions for those over 50 remains at $7,500). The IRA limit is $7,000, and the over-50 catch-up remains at $1,000.)

Start or complete estate planning
If you need more than an Aunt Jill nudge to prepare your will, power of attorney, and health care proxy, please read Jonathan Clements’ recent Humble Dollar post, The C-Word.

In this heartbreaking column, Clements reminds us that “We can control risk, but we can’t eliminate it… I’ve spent decades managing both financial risk and potential threats to my health. But despite such precautions, sometimes we get blindsided… Chance is a cruel mistress.”

Indeed, she is, so let’s not wait for a terrible diagnosis to ensure that our wishes are met and that our heirs can spend their time grieving, rather than cleaning up a messy estate.

Jill Schlesinger, CFP, is a CBS News business analyst. A former options trader and CIO of an investment advisory firm, she welcomes comments and questions at askjill@jillonmoney.com. Check her website at www.jillonmoney.com.