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  • Olivia Royal

End of Year Finances

As we inch closer to the end of the year, many Americans are taking steps to prepare their finances for 2020. Whether you are retired or just started investing, the end of the year is a good opportunity to take an overall look at your finances and what areas could use improvement. It is a good idea to begin evaluating these factors before the holidays arrive to ensure you have ample time to dedicate to your finances.


Maximize 401(k) Contributions

If you have an employer-sponsored 401(k) plan, be sure to maximize your contributions. The Balance states, “Certain companies offer a matching 401(k) contribution plan. Basically, this is free money to you, so if possible, it's best to contribute the maximum amount to your 401(k). The threshold to qualify for your company’s matching contribution plan may differ from company to company, so it's always best to check with your Human Resources Department to see how much you need to contribute."


Evaluate Portfolio

If you have assets in your portfolio that resulted in a major realized gain this year, you may consider selling holdings at a loss to reduce how much you will have to pay in taxes. While this may seem like an easy task, there are several stipulations in place that you should consider with a financial advisor.


Required Minimum Distribution

If you are 70 ½ and have a retirement account, you need to make sure you take at least the required minimum from your account. While you may keep this money, you can also donate the funds to charity for additional tax benefits. You can contact your financial advisor or retirement plan provider to obtain this information.


Evaluate Previous Year Performance

It can be beneficial to reflect on where your money went throughout the year. Did you fall short of your goals? If so, what can you do better in the following year? Did you stick to your budget? Asking yourself these questions can help you prepare a plan for the upcoming year.


The new year is quickly approaching. With Thanksgiving and Christmas just around the corner, now is the time to prepare for the upcoming year. If you don’t know where to start, call our office today at (229) 245-6022 to set up an appointment today.


Source: https://www.thebalance.com/year-end-financial-checklist-1289739


The information provided here is for general information only and should not be considered an individualized recommendation or personalized investment advice.

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