7 Tips for Last-Minute Year-End Financial Planning
Thanksgiving is over. The turkey leftovers have all been used. The family has returned to their distant homes. And you have exhausted your Black Friday and Cyber Monday budgets. Now is the time to take a breath and make sure that your family is going to finish out 2019 strong. Are you ready to get started?
REVIEW YOUR OPEN ENROLLMENT OPTIONS AND OPTIMIZE YOUR SELECTIONS
Make sure that you and your spouse are coordinated on health care and dependent spending and 401k and Roth saving goals.
ADJUST YOUR TAX WITHHOLDINGS
If you have had a child in 2018, been through a divorce, changed jobs or had a change in income, you will likely need to adjust your withholdings.
FUND LONG TERM SAVINGS VEHICLES (401K, ROTH IRA, IRA, SEP IRA, 529S).
Contribution limits for your 401k increased to $19,000 and IRA is $6,000. Beware that there are limits on IRAs depending on your income. Remember that 401k and IRA contributions go in before taxes, which can increase the amount your money grows over time. Your Roth IRA contributions go in after taxes, which means you never have to worry about taxes in the future. If you are self employed, take the time to fund a SEP IRA, which has much higher limits than a standard IRA or 401k.
CHECK YOUR HEALTH AND DEPENDENT CARE FLEXIBLE SPENDING PLANS
Track down your receipts and enter them now. I like to use this wind fall to fund Christmas. If you have not used all of your money, its time to do it now. You still have some time to get in all the spending, but these are “use it or lose it accounts.” Also, if you have hit your health care deductible, it may make sense to hit the doctor one more time to take care of anything you have been putting off.
SET AN END OF YEAR BUDGET.
There is a lot going on: gifts, travel, family events, parties, family pictures. Start to think, at the very least, about some guard rails that you want to set. This is the time of the year that most Americans put on the majority of their weight … and incur the majority of their debt. Make this year different. You will feel great come January, when you wont have to create crazy goals to overcome the splurges.
START PLANNING FOR NEXT YEAR
Set up a meeting with your financial planner. Now is the time to start setting some longer term goals for next year and help secure your retirement for tomorrow. Let me guide you through the process and monitor your progress.