FDIC-Insured – Backed by the full faith and credit of the U.S. Government10 Year-End Financial To-Dos
| Posted in Bank Blogs
It’s hard to believe that the end of the year is near. And though holiday plans and preparation seem to get a lot of attention during this period, there’s something else you should pay attention to – your finances.
Yes, there are some important steps you can take now to help you get off to a great financial start in the new year. Let’s take a look:
1. Review your spending. Do you know where you’re spending your money? You can find out pretty easily by reviewing your credit card and bank activity and categorizing your spending, such as “household expenses” or “entertainment.” Reviewing and identifying your spending can make tax time, which is right around the corner, easier.
2. Check your credit. It’s important to regularly check your credit since it can help you qualify for loans and detect fraud. Under federal law, you’re entitled to a free copy of your credit report from each of three credit bureaus (Equifax, Experian, and TransUnion) per year. To request yours, visit annualcreditreport.com
3. Review your debt. Want to shed high-interest debt in the new year? Start by looking at your outstanding credit card balances and interest rates. When you know what you owe and the interest you are being charged, you can build a plan to pay down your debt.
4. Assess your savings. Having savings is essential for meeting life’s planned and unplanned expenses. Take stock of your savings to ensure you have money set aside for an emergency fund or for planned goals, like buying a home.
5. Maximize your retirement savings. With your 401(k) or an IRA, you may be able to take advantage of tax-deductible contributions, which can help lower your taxable income and help you save money.
6. Make charitable contributions. The end of the year is an ideal time to give back. If you’re considering helping a non-profit organization, make your donation by the end of the year to take advantage of potential tax benefits.
7. Review your financial plan. Now is also a great time to meet with your financial provider to review your financial plan and portfolio and address any changing life circumstances, such as the birth of a child or your retirement plans.
8. Update your beneficiaries. While looking at your accounts and portfolio, review your beneficiaries to ensure they are up to date.
9. Take your Required Minimum Distribution (RMD). If you’re required to take an RMD, make sure you do so by the end of the year to avoid costly penalties.
10. Set financial goals for the New Year. The end of the year is also an opportune time to think about what you’d like to accomplish with your finances over the next year. For example, you may want to build emergency savings. Write down how much you would like to save over the next year and set up recurring transfers from checking to automate your savings to make it happen.
In short, giving your finances a little love and attention by year-end can go a long way in helping you get off to a prosperous New Year.