Is your financial house in order?
The end of the year is approaching and it's a great time to take steps that can help improve your personal finances. Some items to consider:
- If you're not retired, review your contributions to retirement accounts such as IRAs.
- If you or your spouse is 701/2 or older, Required Minimum Distributions (RMD) must be taken before Dec 31. Otherwise you could incur an additional 50% penalty tax.
- Make charitable contributions that you want to be able to claim as a deduction on this year's tax forms.
- Compare this year's spending against your budget and make any necessary adjustments for next year.
- Do you expect to earn more next year? Consider putting all or part of your expected increase into savings.
- Check your asset allocation and make any necessary changes.
- Take some time to define your family's financial goals and concerns for next year.
- Do you want to save more for retirement? Or for college?
- Is a particular budget category consistently over budget?
- Do you expect any unusually large bills next year such as college tuition or a new roof?
Taking the time to address these items now can help make next year a success.