Here we are in the final month of the year! This is typically a busy time of year for most all of us. We certainly hope you are taking the time to enjoy meaningful Christmas gatherings and year-end celebrations with friends and family.
As we approach year-end, it is an opportune time to evaluate three key financial categories:
- Savings – Make sure you are maximizing all the savings vehicles available to you. If you have not maxed out your 401k or other employer sponsored plans, you may still have time to get more contributions into your plan. If you are getting a year-end bonus, you could consider contributing a sizable portion of that amount to your retirement savings plan. Even though you have until April 18, 2022 to make IRA contributions, year-end planning will help you determine if, and when, you are going to make those IRA contributions. Also, it is a good time to consider making additional contributions to Health Savings Accounts, or 529 College Savings Plans.
- Spending – It is certainly prudent to regularly review your spending. However, in this age of monthly subscription services, year-end is an opportune time to make sure you are getting value from all your monthly subscriptions. An extra $10 or $20 a month of unnecessary subscription fees can add up over time. In general, it is a great idea to carefully look at your spending history and make sure you have not slipped into any frivolous spending patterns.
- Giving – Did you remember to give to all the charitable organizations that you intended to support this year? If you have not automated your giving to your church, it is important to tally that giving before year-end. Charitable giving can also be an important tax planning tool. Determining how additional charitable giving could positively impact your tax situation would certainly be a valuable exercise. Christmas is also a traditional time of giving financial gifts to our family. Naturally, it is a suitable time to evaluate how much you will gift to your family this year.
One of the many benefits of working with us at Master’s Advisors is that we will help you stay accountable to your savings, spending, and giving goals; and checking in on yourself from time to time is never a bad idea.