What Should I Do Before the End of the Year?
Have your question answered on the Money Wisdom Question Series!
Today’s question is all about year-end financial planning checklist items. What should you be doing before the end of the year to make sure that you’re putting yourself in the best position for the road ahead?
Take Advantage of Benefits
There are really two things I want to talk about, the first being just making sure that you’re taking advantage of all your employer provided benefits. That might mean maxing out your 401(k), taking advantage of 401(k) company matching. Of course, the IRAs, the Roth, those self-directed account contributions, you can throw money into those accounts up until your tax filing day the following year. Retroactive contributions.
The same cannot be said for 401(k)s or HSAs or dependent care accounts that you might be eligible for. So, take advantage of that stuff.
Charitable Contributions
The other thing is some employers out there, Johnson Brunetti being one of them, contribute on our behalf. If we make charitable contributions, they’ll actually match those up to a certain amount during a calendar year. So, if you’re making contributions to charities or gifting, don’t forget to reach out to your employer and say, “Hey, is this something you guys are willing to match?” You might be surprised, most companies are. Make sure you get that stuff taken care of before the end of the year.
Roth Conversions
The other thing I cannot stress enough: Roth conversion planning. Like we said, you can always contribute to an IRA or to a Roth IRA in the following tax year for the previous tax year, but conversions must be done by the end of the year.
So, if you’re talking with your advisor about Roth conversions or if you haven’t yet had that conversation, I certainly encourage you to do so. Any dollars converted, you got to get it in there before the end of the year.
Information presented in our podcasts is considered current as of the created date. Over time, some information presented may become stale. We recommend you consult with your Financial Professional before making any changes based on information contained here.
Johnson Brunetti is a marketing name for the businesses of JB Capital and JN Financial.
Investment Advisory Services offered through JB Capital, LLC. Insurance Products offered through JN Financial, LLC.
The guarantees provided by any type of insurance contract are based on the claims-paying ability of the insurance company.
Related Resources
-
Maximizing Your Social Security Income
Social Security can serve as a safety net for many retirees, sometimes acting as a primary source of income. However, the program is highly complex with over 500 ways to claim benefits. Even one o… -
How Much Money Can I Spend in Retirement?
“How much can my spouse and I realistically spend in retirement at age 62 with $1 million saved?” Today’s hypothetical couple is asking the very question that most pre-retirees ponder when gearing… -
What to Consider Before Moving in Retirement
If you have the liberty to relocate in retirement, does that mean you should? Maybe you’re a snowbird who wants to live down South full-time, or maybe you want to stick it out in the cold and spen… -
What Habits Should I Unlearn Before I Retire?
Today’s insightful question explores the behavioral finance side of retirement planning – specifically, which financial habits you should leave in the rearview as you transition into retirement. … -
How Can You Understand and Improve Your Credit Score?
In retirement, your credit score is still relevant in achieving and maintaining financial independence. The question is, how can you best understand and improve your score to reap the benefits of … -
How to Financially Plan for a New Presidential Administration
A new presidential administration is set to take office next year, and while there are a lot of uncertainties around what a second Trump term could bring, it’s important to stay the course in your… -
Magic Retirement Number
Do you know your magic retirement number? This is the amount of money you need to retire – and it’s different for everyone. Let’s explore how to calculate your number, how it compares to the rest … -
Should I Consolidate My Multiple 401(k) Accounts?
If you’ve contributed to multiple 401(k) or other employer sponsored plans over the years, you may be wondering about today’s question, is it time to roll your old accounts into an IRA? In this we… -
When Should I Consider Borrowing Against My Assets?
Welcome back to the Money Wisdom Question Series. Today’s question is, when would it be beneficial to borrow against my assets? While there are ways to borrow against assets such as a vehicle, we’… -
Reaching the Retirement Mountain
The journey to and through retirement is like climbing a mountain. Climbers must diligently prepare for every aspect of their voyage – the climb up, reaching the top, and coming back down. You wan…