Does your financial plan have one of these seven problems?

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financialplanningMany of us know that we need to make budgets to help us manage our money. We might also know that a long-term financial plan is an important part of ensuring success down the road. You might be putting money aside in a 401(k) and planning when you’ll retire.

However, even with a monthly budget, and even with a long-term plan that includes items like saving for your kids’ college costs and getting ready for retirement, you might be missing a few things. According to Forbes contributor Erik Carter, here are seven things you might need to consider for your financial plan:

Emergency savings: Carter points out that many people don’t plan out emergency savings in a way that can shore them up. Even those with retirement plans and expensive homes need at least three to six months’ worth of expenses, and probably more.

Too much company stock: Look at your 401(k). Is a large portion of it invested in company stock? If so, you might want to diversify. If something goes wrong, you could lose your retirement savings as well as your job.

Lack of asset allocation plan: Studies indicate that asset allocation is more important than individual investments. Put together a plan based on your needs and age.

High investment fees: High fees reduce your real returns. Look for low-cost investments and accounts.

No retirement calculation: Even those with retirement accounts often haven’t run a retirement calculation. You need to assess you probably needs in retirement, since there is a good chance you aren’t saving enough.

Long-term care: Too many people forget to consider long-term care needs. However, you will likely spend some time in a long-term care facility, so you should plan ahead.

Estate planning: Now is a good time to make sure that everything is squared away. Include an estate plan, and update it regularly.