Bring On The New Year
For many people, 2020 has felt really long, and some
have even started to use 2020 as a noun. Global Pandemic, "2020 did it." Murder
hornets, "that's 2020 for you." Car breaks down, "it's 2020's fault." It is
safe to say this year has been one like no other and the events have most
likely had an impact on your personal finances. No matter your current
financial situation, you may be able to take advantage of a few important
end-of-year strategies. With less than 60 days left in the year, here are a few
things financially that you should consider before 2020 is over:
Reassess your short and long-term goals for the upcoming year
- Are there any new priorities that need addressing?
- Are you adequately prepared for another market meltdown?
- Do you have an adequate emergency fund in place?
- Are you spending less this year? Have you thought about the best place to re-direct that money?
Review your open enrollment benefits
- Did your employer change any health, life, or disability insurance benefits?
- Have you funded your Health Savings Account (HSA) or used up the funds in your Flexible Savings Account (FSA) for medical or dependent expenses?
Review your tax withholdings and find ways to reduce your tax liability
- Are you on track to receive a refund or will you be owing come tax time?
- Have you evaluated ways to reduce your tax liability between now and the end of the year?
- Did you drop off those Goodwill or other non-cash donations and get a receipt?
- Have you maxed out your Pre-Tax 401k or contributed to any other tax-deductible accounts?
Review your portfolio for tax harvesting
- Are there gains or losses from your portfolio that you should take or offset against each other before the end of the year?
Review your estate plan
- Is your estate plan up to date?
- Are your beneficiary designations up to date?
Have you budgeted for "Black Friday", "Cyber Monday", or any other holiday shopping?
- Have you created a plan to stay out of debt for the holidays or pay off the debt going into the new year?
Have you developed a plan to increase savings, pay down debt, and reach your financial goals as soon as 2021 gets here?
It has been a tough year and this list might be slightly overwhelming,
but we are here to help you breathe easier® and meet your goals in 2021. Make
sure to set up a meeting with your Private CFO® before the end of the year to
ensure you end the year financially strong and head into a new year with a plan
for success!
