Over the next month or so, we’re all going to be fairly busy with holiday shopping, travel, and special events. So you probably don’t want to add anything else to your to-do list! But there are certain things you need to do before the end of the year, to help ensure that you enter 2017 on sound financial footing. Pencil these items into your calendar; they won’t take long, but it’s important to get them done before December 31.
Check your retirement savings contributions for the year. If you’re contributing to a Thrift Savings Plan, you can contribute up to $18,000, or $24,000 if you’re over age 50 and making additional catch-up contributions. Contributing the full allowable amount by December 31 helps you to reap maximum tax benefits in the spring. If your employer offers matching contributions, contribute at least enough to receive the full match.
Examine your investments. The Thrift Savings Plan offers many fund selections that have very low expense ratios. Because of that, you might feel satisfied to leave things as they are for the long term. But in doing so, you could be turning down valuable opportunities to select more promising investments. You should reevaluate your portfolio every year or two, and rebalance it to suit your changing needs.
Evaluate your retirement plan. When did you set your retirement goals? Have you reviewed your plans lately? Does your retirement plan account for inflation, and the likelihood that you will live twenty or more years after retirement? Sound retirement planning requires ongoing assessment and alterations to your strategy, so let’s sit down and discuss your long-term strategy.
We can help you with all of these end-of-year tasks. Give us a call, and we’ll help you evaluate your financial plans so that you can enter 2017 feeling confident about the future.
