7 Money Moves To Make Before The End of the Year
2016 was a heckuva year, to say the least. To make sure you are ready for whatever comes next, financially, we have compiled a list of smart money moves to make before the end of the year. Keeping track of your purchases, spending less than you earn and saving early are all good foundational practices to keep your finances healthy. And there are some small items to check off before Dec. 31 that will help make your 2017 and beyond a prosperous period.
Reviewing your retirement contributions and your insurance needs are just the tip of the iceberg. Here are 7 money moves you need to make before your 2016 winds to a close. They can save you some bread and make sure you have plenty of bread in a few decades, when you are ready to retire.
Boost Your Contributions
Your 401K is starving. You know it is. Feed it with some extra cash leftover after paying bills and finishing your holiday shopping. You can avoid taxes on the money right now and give that nest egg some extra time to compound. As long as you are not maxed out, you can up your contribution with very little hassle.
Donate To Charity
Not only is it a nice thing to do, it has a nice little effect on your taxes. In 2016, the tax exclusion limit is $14,000. So you can give any amount up to that to the charity or charities of your choice and deduct it from your taxable income. A win-win for society and your bank account.
Evaluate Your Saving Goals
Are you putting enough away in your rainy day fund? Is the kids’ college fund getting enough love? What is the next big home improvement project that you need to sock away money for? Ask yourself these questions and you can adjust your savings goals based on how your year went.
Defer Any Windfalls
The calendar gets closer to 2017 and you see your income creeping up into another tax bracket, do what you can to put some of that extra scratch into tax-deferred retirement accounts. If you have any assets to sell that might produce a capital gain, put that off until the new year. Getting a holiday bonus? Try to convince your boss to pay that out in January.
Get Identity Protection
Chances are, you are not taking enough care with your sensitive information. Do everything in your power to limit the amount if identifying information you share online. And look into ID theft protection. Good packages can include lost wallet protection as well as ID theft insurances, in addition to credit monitoring and help in case you get hacked or compromised. It could be the best money you ever spend.
Play With Your Portfolio
Take a good, long look at your asset allocation. If you have not rebalanced your investments for a while, late December is a great time to do it. You can either tackle it yourself or search out an automated solution online. Or, even better, talk to your broker about it.
Take A Look At Your Will
No one really likes to think about estate planning, especially during the holidays, but it can be a very important money move to take. If you have new beneficiaries in the picture, you have come into a chunk or money or another life event occurs, it is a good idea to at least read over your will and take stock. And if do not have a will? What are you waiting for? Get on it right away.
Making smart money moves at any time of the year is a good strategy. But the end of the year is a natural time to take stock and reevaluate how healthy your overall financial picture is. And if you are ready to refinance, buy a new house or just get the conversation started, All Shores Mortgage is always here to help.