A change in season is the perfect time to put a fresh perspective on the financial goals you made at the beginning of the year. With three months left in the year, there’s still time to help set yourself up for a successful year-end and a better 2022.
Review Your Financial Goals
Think back to the beginning of the year and review the financial goals you set. Then ask yourself if you have met your financial objectives and if you’re satisfied with your overall financial status. Setting short-term and long-term goals is an important step in the financial planning process. Working toward something specific can help keep you on track to becoming financially secure. Financial goals can help you learn to live comfortably within your means, prepare for the unexpected and save for retirement.
Refresh Your Spending Strategy
As we head into fall, inflation is still top of mind, we just got done spending a lot of money this summer, and holiday shopping is upon us. All reasons to refresh your spending strategy. Take a closer look at your expenses - utility payments, cell phone bills, groceries, and entertainment. Then compare that to your income. If your spending plan shows more money going out than coming in, look for areas to cut back. Track both your income and expenses in an app or spreadsheet. You can download a worksheet on my website.
Reevaluate Your HSA
Fall is the time of year when most employers have open enrollment. This is an opportunity to pick a healthcare plan that meets our current needs, but also an opportunity to pick a plan that supports our retirement needs! You can open a Health Savings Accounts (HSAs), which allows you to save money tax-free for qualified medical expenses. Your investments also grow tax-free and the money can be withdrawn without being taxed.
Rebalance Your Investment Plan
With the volatility we’ve seen this year, now is the time to rebalance your portfolio. Rebalancing your portfolio can help ensure your investment choices fit your risk tolerance and align with your goals. If you are nearing retirement, work with a trusted financial professional who can help you navigate the complexities of this important stage of life. We have more information about our planning process on our website.
Revisit Your RMD Strategy
RMDs are back! Last year the CARES Act suspended required minimum distributions from traditional IRAs and employer-sponsored retirement plans. This year, many retirees will need to take taxable RMDs by the end of the year. Required minimum distributions are different every year. They are calculated by dividing the balance of your account by your life expectancy, which is calculated by the Internal Revenue Service. A financial advisor can help you weigh the pros and cons of when to take RMDs and alternative uses, such as charitable contributions or funding your grandchild's education.
For more financial tips, visit scottbraddockfinancial.com.