If 2020 has taught us anything, it’s to be prepared for anything and everything. This mindset should also extend to your finances.
David Sant, Chief Marketing Officer for Cyprus Credit Union in Salt Lake City, provides some end of year financial planning steps advisors should encourage clients to take to ensure starting 2021 on the right foot..
Here are four planning tips to share with clients:
Did you make financial goals at the beginning of the year? Now is the time to take a look at them and see how you did. If you didn’t quite accomplish them, that’s okay.
It’s never too early to start preparing for next year’s taxes. A you start receiving important end of year documents, keep these in a safe and secure place. Take a look at your taxable investments as well as ant charitable donations you made during the calendar year. Check your withholdings to make sure everything is correct.
MAX OUT CONTRIBUTIONS
Whether it’s your 401K or your HSA, putting as much money as you can towards these accounts now will pay off in the future. This will also allow you to take advantage of any employer matching offers that are available to you. Contributions can be made until January 31st.
Having money set aside for the sole purpose of an emergency not only will provide peace of mind, but help prevent unnecessary credit card debt. While it has been recommended having at least three months’ worth of expenses tucked away, having any amount is a great start.