Happy New Year! Welcome back for our first Minute on Wealth in 2024.
With the start of the new year, your to-do list – both regular tasks and resolutions – might seem endless. Be sure you don’t get overwhelmed and distracted from your financial to-dos by making a checklist.
For the next minute, we’ll go over what to include in your New Year checklist to help ensure you begin 2024 on the right foot.
1. REVIEW AND SET FINANCIAL GOALS
Reflect on your financial goals from the previous year, then set new financial goals for the upcoming year, considering short-term and long-term objectives.
2. BUDGET REVIEW AND ADJUSTMENT
Review your budget from the last year to assess how well you stuck to it. Make any necessary adjustments to your budget based on what did and didn’t work from the last year, as well as changes in income, expenses, and financial goals.
3. CONSIDER ANY MAJOR LIFE EVENTS
Were there any major life events last year? Events like marriage, divorce, the birth of a child, or significant career changes? Are you at a milestone age? Your financial plan should reflect your current life situation and the impacts of any major life events, so be sure to communicate any of these things to your financial advisor.
4. CHECK YOUR EMERGENCY FUND
Check the amount in your emergency fund and make adjustments to your contributions if needed. Be sure you have enough savings to cover three to six months' worth of living expenses.
5. ASSESS YOUR DEBT AND SUBSCRIPTIONS
Review your outstanding debts, including credit cards, loans, and mortgages, then develop a plan to pay down high-interest debts. While you’re at it, evaluate your monthly subscriptions and discretionary spending. Cancel or adjust subscriptions that are no longer necessary.
6. REVISIT YOUR BENEFICIARIES
When was the last time you checked your beneficiary designations? Do you need to update any of them? It's crucial to regularly review and update your beneficiary designations on your accounts, insurance policies, and retirement plans to ensure your estate plan is carried out the way you want it.
If you haven’t done so recently, be sure you also review, create, or update your will, power of attorney, and other estate planning documents.
7. REVIEW THE 2023 MARKET As we start the new year, it's wise to evaluate the performance of your investments last year. Are you on track with your financial goals? Do any adjustments need to be made to your portfolio?
8. REVIEW YOUR TAX SITUATION
Check to see if enough money is withheld or paid through estimated tax payments to avoid penalties. If you are short, consider withholding taxes from IRA distributions and replacing those funds within 60 days.
Organize and gather tax-related documents. Remember, Tax Day is in April and it’s never too soon to start preparing yourself to file your taxes.
9. REVIEW AND UPDATE YOUR PASSWORDS
Make sure your financial accounts stay secure in the new year by updating passwords, using different passwords for every account, and enabling two-factor authentication.
By completing this New Year checklist, you are taking proactive steps towards a more secure 2024. Remember, your financial well-being is our top priority, and we are here to guide you every step of the way.
If you have any questions or need assistance with any of the items on your checklist, please don't hesitate to reach out to the office.
That’s January’s Minute on Wealth. We’ll see you next month!