Review your financial plan
How did you do in 2021? Did you reach your short-term financial goals? Are your long-term goals on track? The financial year rarely goes exactly how we planned it 12 months earlier. Now’s the time to sit down with your financial advisor and make an honest assessment of how last year’s dollars were spent so you can make the proper adjustments moving forward.
Check your investments
Your year-end financial review should of course include a close look at your investment portfolio. Aside from a discussion about underperforming and outperforming assets, changes in age, job security, tax status and many other factors should be weighed when considering how to rebalance.
Consider tax changes
Your financial or tax advisor will let you know of any changes in 2021 and 2022 tax law that could have a big impact on your taxes and, conversely, you can inform them of any anticipated life or income transitions that could affect your withholding status. You can get a head start by checking out the IRS Tax Withholding Estimator to fine-tune things so you don’t end up giving the government a free loan next year.
Eye on insurance
Health insurance tends to be something that people continuously assess, especially if they’re still working and have to re-enroll each year. But for home and auto insurance, many of us have a set-it-and-forget-it attitude. Bundling, coverage adjustments, home improvements, and boosting your deductible are just some of the ways to lower those premiums and still have peace of mind.
For those of you who donate to causes you care about every year, there are ways to help out while being smart about your tax impact at the same time. One of them is the donor advised fund. This type of charitable giving account could help you avoid capital gains tax or bundle several years’ worth of giving into one year to make every donated dollar mean more.
If you need assistance or advice to put a financial bow on 2021, talk with us. We would love to discuss ways to make sure you head into the new year with confidence.
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