The end of the year is fast approaching and it's a great time to take steps that can help improve your personal finances. Some items to consider:
- If you're not retired, review your contributions to retirement accounts such as an IRA, 401(k), 403(b), etc.
- If you’re 70 ½ or older, make sure to take your annual Required Minimum Distributions (RMD) from your retirement account before Dec 31. We closely monitor the qualified accounts we manage where a RMD is necessary, but if you have other accounts subject to the RMD rules, make sure to take the distribution before Dec. 31. Otherwise, you could incur an additional 50% penalty tax.
- If itemizing deductions, make charitable contributions that you want to claim on this year’s tax forms.
- Compare this year's spending against your budget and make any necessary adjustments for next year.
- Do you expect to earn more next year? Based on the planning goals we’ve developed together, consider saving a part of your expected increase and also using some for current enjoyment.
- Take some time to define your family's financial goals and concerns for next year:
- Should we update your retirement goals? College? Legacy? Investment objectives?
- Does a particular budget category consistently keep you awake?
- Any unusually large bills next year that we have not anticipated?
Taking the time to address these items now can help make next year a success.