Along with washing your windows and vacuuming under the sofa this spring, take some time to tidy up your financial life. We’ve rounded up tips to declutter, simplify and make sure everything is in its place.
INVESTING
Sweep out portfolio cobwebs
Spring clean your investments annually, says Paul Winter, a Salt Lake City certified financial planner, “to review what you own, with an eye to getting rid of what you no longer need and to organizing what remains.”
Is any fund a long-term under-performer? It may be time to find a replacement. Fidelity Magellan, for instance, had its heyday in the 1990s, but its annualized return over the past 10 years, 13.8%, lagged behind 70% of other large-company growth funds.
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You would have done better in Fidelity Blue Chip Growth (FBGRX), with an 18.5% annualized 10-year return. And we like its prospects: The fund is a member of the Kiplinger 25, the list of our favorite no-load funds.
Next, look for ways to lower your costs. Some new active exchange-traded funds share the same name and strategy of well-known mutual funds but charge lower fees.
American Century Focused Dynamic Growth ETF (FDG), for example, sports a 0.45% expense ratio and a 14.8% three-year annualized return. Its mutual fund counterpart (ACFOX) charges 0.86% and returned 13.1%.
Or take Nuveen Small Cap Select (NSCS). With this ETF, you won’t pay the 5.75% front-end load charged by its mutual fund counterpart (EMGRX). The ETF’s expense ratio, 0.86%, is lower, too — the mutual fund costs 1.24%.
Be careful, however, before you trade a mutual fund for a similar-sounding ETF. An ETF version of a mutual fund typically is not going to be an exact copy. ETFs, for example, cannot hold stakes in private companies or foreign-exchange-listed stocks, as mutual funds can and often do.
Several well-known ETFs have lower-cost clones, too. Consider swapping out shares in SPDR S&P 500 ETF (SPY), which levies a 0.095% expense ratio, for SPDR Portfolio S&P 500 (SPLG), which costs 0.02%.
Or buy Invesco NASDAQ 100 (QQQM), which charges 0.15%, instead of Invesco QQQ Trust (QQQ), which costs 0.20%. The caveat: These versions trade less efficiently than their better-known big brothers.
Maintain your balance
Investors in U.S. stocks have enjoyed impressive gains in recent years. But letting that money ride likely means your portfolio will stray from whatever allocation targets you set previously to fit your risk tolerance and goals.
Consider: A $100,000 portfolio with 60% in stocks and 40% in bonds at the start of the bull market would now be closer to 70% in stocks and 30% in bonds.
As tempting as it is to hold tight to your winners, research shows that rebalancing pays off. Investment research firm Morningstar found that a portfolio rebalanced annually to a standard allocation of 60% stocks and 40% bonds suffered smaller drops during bear markets than those that were rebalanced more frequently or were never rebalanced.
And portfolios rebalanced once a year gained an annualized 6.1% over the 20 years ending May 31, 2020, compared with 5.8% for portfolios that were not rebalanced.
After bringing stocks, bonds, cash and alternative investments back in line with your targets, you might also want to readjust holdings within each asset class.
For example, within your stock allocation, review the percentage of assets allotted to domestic stocks and to international stocks; to small, midsize and large company stocks; or to growth-oriented stocks and to value-priced stocks.
Selling stock winners and plowing that money into bonds or other investments that have lagged can dampen short-term returns and, if executed in a taxable account, result in capital gains taxes.
Jay Abolofia, a Massachusetts-based CFP, suggests clients look at all of their holdings holistically to see whether they can rebalance by making any changes in their tax-protected accounts to avoid capital gains liabilities.
Another option is to weed out some of your losers, offsetting some of the gains from selling your winners.
RETIREMENT
Review your 401(k) quarterly statement
The rapid growth of target-date funds has allowed many 401(k) plan participants to put their plans on autopilot. But that doesn’t mean you should ignore your plan’s quarterly statement.
In addition to your plan balance, this statement will show you the amount you and your employer contributed to the account, the amount of your balance that’s vested (in other words, the percentage that you fully own, depending on how long you’ve worked with the company) and your account’s rate of return for the quarter.
Your statement should also include a list of the funds your 401(k) is invested in, the amount contributed to each fund and each fund’s quarterly beginning and closing balance.
Use this section to determine whether you need to do some housecleaning in your 401(k). While you shouldn’t focus on short-term returns, consider whether your funds are keeping pace with a benchmark, such as the S&P 500 or other appropriate stock index.
If a fund has consistently lagged behind its benchmark, you may want to make some changes. Your statement should include a full list of investment options available to you, as well as their performance over short- and long-term periods.
Pay attention, too, to your asset allocation, particularly if you’re not invested in a target-date fund. Over time, strong performance in a particular asset class — such as stocks during a bull market — could cause your portfolio to diverge from your target allocation.
Use the tips above on rebalancing to achieve a mix that is appropriate for your age and risk tolerance.
Streamline and declutter your retirement accounts
If you’ve changed jobs several times over the years, you may have left a couple of 401(k) plans with your former employers. Capitalize, a company that helps individuals locate and roll over their 401(k)s, estimates that individuals have lost track of more than 29 million 401(k) accounts valued at more than $1.65 trillion.
Tracking down lost 401(k) plans has become easier. The SECURE 2.0 Act, enacted in 2022, directed the U.S. Department of Labor to create a search tool for individuals who want to track down a former employer’s plan, effective in 2025.
You can find the database at lostandfound.dol.gov. You’ll need to verify your identity through Login.gov, a sign-in service administered by the federal government, to access the database.
Search your files for account statements from the plan. These should provide some key data to help your search, such as your account number and the contact information for the plan administrator. It’s also possible that your employer turned over your 401(k) balance to your state’s unclaimed-property fund.
Even if you know where your 401(k) plans are located, it’s often a good idea to consolidate them, either by rolling them into your current employer’s plan, if that’s permitted, or by rolling them into an IRA.
That way, you’ll have a complete picture of your retirement savings, which will help you develop an appropriate asset allocation and determine whether you’re on track to retire.
Rolling your funds into an IRA could give you access to more investment options, and some brokerage firms will sweeten the deal by offering a cash incentive.
But many 401(k) plans offer institutional-class funds with lower fees than their retail counterparts, so compare your options before consolidating your accounts. Both options are vastly superior to cashing out your former employer’s 401(k) plan. You’ll owe taxes on the entire amount, plus a 10% early-withdrawal penalty if you’re younger than 55.
Create an online account with the Social Security Administration
Even if you’re years from retirement, you should set up an online account at My Social Security. Once you’ve logged in, you can review your earnings record for potential errors that could reduce the benefits you receive.
Errors can occur because an employer reported your earnings using the wrong Social Security number, for example, or because you changed your name and didn’t report it to Social Security.
You can also use your online account to determine whether you’ve earned enough credits to qualify for Social Security benefits (most people need 40 credits to be eligible). You can earn up to four credits a year, and the amount you need to earn to receive a credit is adjusted every year.
In 2025, you must have wages and/or self-employment income of $1,810 to earn one credit, and you must earn $7,240 to get four full credits.
Creating an online Social Security account will also prevent identity thieves who have stolen your Social Security number from redirecting benefits to an account they control. Social Security allows only one account for each SSN, so creating an account will protect you from this type of fraud.
If you set up an account with Social Security before September 18, 2021, you’ll need to go online and transition it to Login.gov. Social Security officials said the change will simplify the process of signing in securely to accounts. You don’t need to create a new Social Security account to make the change.
TAXES
Keep track of receipts
There’s a good chance you have a lot of receipts — for tax-deductible charitable contributions, for example, or medical expenses eligible for reimbursement from your health savings account (HSA).
And if you work for yourself or have a side gig, you’ll need receipts to back up your deductible business expenses. These slips of paper can pile up fast. Streamline the process with a receipt-scanning app such as Shoeboxed or Expensify.
Once you’ve downloaded the app, you can use the camera on your smartphone to scan and store your receipts. The apps will also allow you to categorize your receipts.
A Shoeboxed plan for individuals costs $18 a month after a 30-day free trial; Expensify is free for individuals (businesses pay a fee).
Toss the files you don’t need
As a general rule, you should keep your tax returns and supporting documents for at least three years from the due date of your return. That’s usually how long the IRS has to question items on your return and to bill you for any additional tax. It’s also generally the time frame to file an amended return to seek a refund.
After that, you can dispose of these documents, though it’s not a bad idea to hold on to your actual tax returns, because they provide an important snapshot of your finances. There are also exceptions to this time line: The IRS can go back up to six years if your return omits more than 25% of income, and there’s no time limit if the IRS finds you guilty of fraud.
Some records should be kept longer than three years, including documents that show the amount you paid for stocks, mutual funds or other securities in a taxable account. Keep these for up to three years after you sell the investments.
Likewise, keep home sale and improvement receipts and documents for three years after you’ve sold the home.
You don’t need to save pay stubs after you’ve matched them against your W-2 forms or monthly brokerage statements once you’ve matched them against your year-end statements and 1099 forms.
Although it’s a good idea to err on the side of caution when it comes to holding on to tax documents, that doesn’t mean you need to buy another file cabinet. The IRS accepts digital copies of documents as long as they’re legible.
Consider scanning your documents and backing them up on an encrypted hard drive or in the cloud. You’ll save time, too, because it’s easier to search for documents once they’ve been digitized.
Check your withholding
While many people look forward to getting a check from the IRS after they file their taxes, a big refund is an interest-free loan to Uncle Sam. There are much better ways to spend your money, from beefing up your emergency fund to paying off credit card debt (which is decidedly not interest-free).
Reducing the amount withheld from your paycheck will boost your take-home pay and free up funds for more profitable purposes.
Use the IRS’s Tax Withholding Estimator to calculate how much federal income tax you should have withheld from your paycheck. You’ll need a pay stub for your job (or jobs), your spouse’s pay stub if you’re married and records showing additional income from side gigs and taxable investments. You’ll also need your most recent tax return.
Once you’ve determined the amount of withholding that will come closest to the amount of tax you’ll owe, fill out and submit a new Form W-4 to your employer.
This isn’t necessarily a one-and-done task. If your personal situation changes in the future — you have a child, for example, or get divorced — you may need to update your W-4 again.
You should also update your W-4 if you owed the IRS a lot of money. Even if you pay what you owe when you file your tax return, you could be hit with an underpayment penalty if you failed to have enough withheld during the year. In that case, you’ll want to have more withheld from your paycheck.
ESTATE PLANNING
An estate plan lays out what you want to happen if you die or become incapacitated. Even if you have a plan in place, you should check in regularly to make sure it is in order. Here’s what to review.
Confirm that you have all the essential documents
A complete estate plan includes four documents:
- A living will provides instructions for healthcare providers in case you become incapacitated. For example, it may outline whether there are any treatments you don’t want to receive and your wishes for end-of-life care.
- A healthcare power of attorney names someone to make medical decisions on your behalf when you cannot.
- A financial power of attorney names someone to manage your money and financial accounts.
- A last will and testament lists where your property should go upon your death and who should care for your children and pets.
Do you have all four? If not, create the missing ones with an estate planning attorney. Or, if your situation is straightforward, you may be able to use an online estate planning service such as Gentreo, LegalZoom or Trust & Will.
You should also review any existing estate planning documents and decide whether the instructions make sense for today. Can you still rely on the person in the financial power of attorney role? Have you undergone any life changes, such as getting married or having children, that impact your estate planning goals?
Additionally, your documents may no longer function properly if you don’t keep them up to date. Banks often refuse to follow a financial power of attorney that’s more than three years old.
Tell your loved ones where you keep your documents. The documents aren’t helpful if they’re hidden somewhere in your home and no one knows they exist.
Check your beneficiary designations
Some financial accounts and products, such as annuities, retirement plans and life insurance policies, ask you to select a beneficiary. The beneficiary inherits these accounts and any insurance payments, even if you name someone else in your will.
For example, if an ex-spouse is still listed as a beneficiary on your retirement account, they would inherit the money when you pass away.
Updating beneficiary designations is quick and free. You submit a change form — which lists your account/policy information and the new beneficiary’s name, contact information and Social Security number — to the company managing the account.
You don’t need permission from the original beneficiary to make the change (unless you made the original selection irrevocable).
BANKING, CREDIT AND SAVING
Review your bank statements
There’s no reason to let fees eat away at your hard-earned money. Pull out your bank statements to make sure you’re not being charged monthly on your checking and savings accounts. Banks will often waive fees as long as you meet certain requirements.
On its basic checking account, for example, Bank of America charges a $4.95 monthly maintenance fee unless you maintain a balance of at least $500, are a member of the bank’s Preferred Rewards program or are younger than 25.
Chase Savings comes with a $5 monthly service fee unless you maintain a $300 balance, make at least $25 in automatic transfers from your checking account or link certain Chase checking accounts.
If a bank doesn’t list a clear way to avoid the fee, pick up the phone or head into a branch and ask about your options.
“Most banks are pretty accommodating nowadays,” says Eric Walters, a financial adviser with Summit Hill Wealth Management. “And if you’re not happy, shop around.”
Do your banking under one roof
Opening bank account after bank account to snag introductory bonus offers and competitive interest rates can be tempting. But having more accounts than you can handle could lead to paying extra fees, losing track of your passwords or even letting some of your money sit forgotten.
“Have as many accounts as are useful, and not any more,” Walters says.
A number of online banks consistently have low-fee, high-yield checking and savings options. The no-fee Discover Online Savings Account, for instance, offers a competitive yield — recently 3.75% — and pairs well with the bank’s Cashback Debit checking account, which offers cash-back rewards.
The American Express High Yield Savings Account recently offered a 3.8% yield with no monthly fee. While these institutions — along with other online banks, such as Capital One and Barclays — can offer higher rates because they don’t operate brick-and-mortar locations (which saves them money), traditional banks usually have more products and wider branch networks.
Choose the financial institution that makes the most sense for you. If you find that you’re no longer using a certain account — say, a savings account that has stopped offering a high yield — close it down, Walters advises.
Explore some of today’s savings options with the tool below, in partnership with Bankrate:
Go on autopilot
Rather than manually paying your bills each month, consider setting up automatic payments. Along with avoiding some hassle and ensuring that you pay your bills on time, you may score discounts.
AT&T, T-Mobile and Verizon, for example, offer monthly discounts of $5 to $10 per line if you pay your wireless bill automatically. And federal student loan servicers offer an interest rate discount of 0.25 percentage points for borrowers who use autopay.
As an alternative to setting up automatic payments with each biller, you may be able to use your bank’s online bill-paying service. (For any payees that offer autopay discounts, check whether you need to set up payments directly with them to get the discount.)
You can add recipients including individuals, utility companies, insurance companies and other businesses, and you can set the date or frequency for paying each one. The bank electronically transfers the amount from your account according to your settings. Some banks, such as Wells Fargo and Bank of America, will issue a paper check, if needed.
Similarly, you can automate your savings by setting up recurring transfers from your checking account to your savings account.
Log in to your bank’s website and navigate to the page for managing transfers. From there, you can schedule automatic transfers at your chosen date and frequency.
For example, you might have a certain amount moved to savings shortly after you receive each paycheck so that you put away money before you have the chance to miss it.
Some banks, such as Ally Bank, let you allocate money for different goals within one savings account. For instance, you may choose to set up separate buckets for emergencies, home repairs and vacations.
Track and redeem rewards
Check your rewards credit cards and any loyalty programs you’ve joined (such as with airlines, hotels or grocery stores) to see how much you’ve accumulated in cash back, points, miles or other rewards. If any of them are going to expire soon, make a plan to redeem them.
And even if your rewards don’t expire, it’s not a bad idea to use them up rather than let them sit, in case the issuer reduces their value down the road.
You can use an app such as AwardWallet to keep track of rewards balances and expiration dates.
Get rid of unneeded subscriptions
Between music- and video-streaming services, meal-kit companies, dating apps, e-commerce sites, gym memberships and big-box retailers, there’s a subscription service for everything — and chances are, you’re paying for at least one you hardly use.
In the U.S., adults spend an average of $91 on subscription services each month, according to a 2024 survey from consumer-technology publication CNET. About 48% of respondents said they’d signed up for a free trial and forgotten to cancel it.
What’s more, so-called subscription creep — which takes place when prices for these services increase (often without us realizing it) — could be taking a chunk out of your budget.
Take some time to audit your subscription payments from the past year, and ask yourself what you’re using and not using, says Elizabeth Scheiderer, a senior financial adviser with Signal Tree Financial Partners.
“It’s a good opportunity to look at how those dollars truly add up over the year and think about how your life has changed,” she adds. “You may have less time for the gym because you now have a baby or a change in your job situation. Really start to prioritize where you want that free cash flow to go.”
Consider using an app that will help you declutter and cancel unneeded subscriptions. Rocket Money will consolidate your subscriptions into a single list for free. If you sign up for the premium version, which costs $5.99 to $11.99 per month, Rocket will cancel subscriptions for you.
PocketGuard also offers subscription tracking — along with budgeting help — for $12.99 monthly or $74.99 yearly. Other apps that can help you manage your subscriptions are Trim, Bobby and Subby.
HOME MAINTENANCE
Spring is the perfect time for do-it-yourself home maintenance projects that address the wear and tear left behind by winter and protect your home from summer storms, says Brian Shaunfield, a Lowe’s store manager in Southeast Charlotte, N.C.
These moves can ultimately save you money by helping to prevent expensive water damage, reduce energy costs and extend the life of your appliances and key systems.
“Staying ahead of spring maintenance at the beginning of the season will prevent major home repairs as temperatures rise,” says Shaunfield. “By regularly inspecting your home, you’re more likely to catch small issues early before they become larger, more expensive problems requiring professional intervention rather than simple DIY fixes.”
Here are some key steps to take every spring:
Clean your gutters
“Leaves, twigs, sticks and debris can clog your gutters over the cold winter months,” says Shaunfield. “Spring is the right time to clean them out and do any repairs that are needed before April showers and summer storms.”
He recommends having a sturdy ladder, a scoop or trowel and a garden hose to rinse out your gutters. Or you can install gutter guards that block debris buildup so water can flow freely in the future.
“This reduces the risk of overflow, which can damage your roof and foundation,” he says.
Inspect windows and doors
Insulate doors and replace damaged weather stripping. “Sealing gaps in windows and doors prevents drafts, boosts energy efficiency and can save hundreds of dollars annually on heating and cooling costs,” Shaunfield says.
The Insurance Institute for Business and Home Safety recommends using silicone caulk to seal cracks around windows, doors, vents and pipes that can let in rain and wind and cause expensive water damage. The group also recommends installing or repairing flashing (a metal barrier that prevents leaks) around skylights, chimneys and roof valleys.
Perform maintenance on home systems
Shaunfield recommends replacing HVAC filters and testing your smoke and carbon monoxide detectors each spring.
Also, do some annual maintenance on other home systems. “Flushing your water heater removes sediment buildup to extend its lifespan, lowering energy costs and preventing costly replacements,” he says.
Clean your appliances
Clearing out filters and drains can help extend the life of your appliances. “Cleaning refrigerator coils and maintaining appliances, such as dishwashers, ovens and washing machines, improves efficiency, reduces energy consumption and prevents wear and tear,” he says.
Protect your home from water damage
Make sure your sump pump is working and consider a battery-powered backup that can keep going even if you lose electricity.
Shaunfield also recommends installing water shut-off valves that can detect major leaks and automatically turn off the water supply to prevent flooding and reduce water damage.
Trim trees
As the leaves return in spring, check your trees and remove dead or overhanging branches that could fall on your home and cause expensive damage during a storm.
Get cash for your old clothes
Wondering what to do with skinny jeans that went out of style, or the blazer you bought two years ago and have yet to wear to the office? Don’t just toss them. Selling clothing you’ll never wear again can be an environmentally friendly way to make some cash — and it’s easy to do, thanks to the plethora of online marketplaces, such as:
- Depop, the trendy app for people looking to sell everything from Lululemon bags to Nike running shoes, recently eliminated its selling fee of 10% of the total sale price (though there is still a payment-processing fee of 3.3% of the sale price plus 45 cents).
- Poshmark, another popular platform, charges sellers $2.95 for all items less than $15 and 20% of the price for sales of $15 or more.
- Online consignment and thrift store ThredUp will send you a bag to fill with clothes you’re ready to sell. If ThredUp customers buy your clothes, you’ll get the cash minus a $14.99 fee per 30-pound-capacity bag.
Want to donate instead of sell? Don’t forget to deduct the value of those items on your tax return, if you itemize.
Get your inbox in order
If your inbox is filled with hundreds (or thousands) of e-mails, it’s easy to get overwhelmed and miss important messages.
“Clutter stresses us out, no matter what form it takes,” says Corinne Morahan, the founder and CEO of Grid + Glam, a professional organizing company based in Boston. “E-mail clutter is contributing to that just as much as physical clutter.”
Morahan has a four-step approach to organizing physical spaces that also works for inboxes. She even helped a client who had more than 70,000 e-mails get to the elusive “inbox zero” within one week. Here’s what she recommends:
- Set aside the time. “Recognize that this is causing us stress, and if we put time into it, it makes our lives easier,” she says. “Give it the priority it deserves.” To start, set aside about two hours. If you need more time than that to finish the job, schedule it on your calendar to make sure you come back to it later.
- Declutter and delete. Sorting e-mails by sender makes it easy to identify the messages you can delete in bulk — such as old news alerts or notifications for sales that have passed. “Give yourself a quick win, and then that motivation can keep you going,” she says.
- Organize. Create folders to organize your e-mails, such as personal finance, bills, family and articles you want to read later. Only items that are pending or need your attention should remain in your inbox. “Use your inbox almost as a to-do list. Once you address an e-mail, you file it into its folder,” she says. Morahan maintains different e-mail addresses for specific purposes: one for work, another for personal messages — from family and friends, financial institutions and schools — and a third where she receives offers and other correspondence from retailers.
- Reset. Delete or file e-mails as they come in, unsubscribe from unwanted e-mail lists and delete your spam folder’s contents in bulk after a quick check. Schedule time for regular e-mail maintenance. “Carve out a specific time every day — or weekly, if it’s more realistic — to deal with the items that need your attention,” she says.
Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.
Sandra Block, Kim Clark, Lisa Gerstner, Nellie S. Huang, Kimberly Lankford, Mallika Mitra, Emma Patch and David Rodeck contributed to this article. If you have questions or comments, send an e-mail to feedback@kiplinger.com.
