End of Year Housekeeping
November 29, 2024
The final months of the year are often some of the busiest. We all seem to be talking more to friends and family, hosting holiday parties, and travelling to family get-togethers. When your schedule gets busy, it is easy to forget about little things. Enough “little things” can add up to make a difference, which is why resetting some of your financial habits and strategies before the new year could be a wise investment of your time. Consider looking into some of these tips1 that could help your finances in the new year:
Consider Taxes on New Investments
Accepting bonuses or realizing capital gains in the final weeks of a year could raise your next tax bill. Whenever possible, consider options that can optimize your income and expenses.
Contribute as Much as You Can
If you are still building toward retirement and are contributing to an IRA, remember there are limits to what you can contribute each year. Maxing out your allowable contribution provides for the most possible impact and chance to grow while you continue to build the account.
Monitor Automatic Payments
It is very likely that many of your monthly bills are linked to an account and automatically pay for services. While that is convenient, it’s also common for people to lose track of mounting numbers of automatic payments. Regularly monitoring accounts to cancel unused (or even duplicate) subscriptions can put money right back into your pocket.
Collect Your RMDs
If you are at least 73 years old, remember that calculations can change from year to year on how much of a Required Minimum Distribution you must take. Even if you do not need those funds on hand, you must take the distribution to avoid a penalty of up to 25 percent.
A penny saved is a penny earned. So, while you continue to plan and build for retirement, it is important to know where you have chances to save. Contact our experienced professional team to schedule a consultation. Make sure you are considering all the ways to make the most out of your financial plans.