Welcome in the New Year with a Financial Review
January 1, 2019
The beginning of the New Year is a time for reflection on events that happened throughout last year and a time to think about what we can do to better our lives going forward. With the start of the New Year, consider a New Year’s resolution that focuses on your financial wellbeing. The New Year is a great time to revisit your current financial practices and make goals for where you want your financial welfare to be.
Below are a few questions that can help you evaluate whether you are satisfied with your current practice or whether you should make a change to help get you closer to financial independence or another goal. Additionally, these questions could be good discussion points with a spouse or family members.
- Are you able to increase your retirement contributions? You should check your prior year paystub to see what your total 401(k) contributions were and determine if you can increase the percentage in the New Year. Additionally, are you contributing at least enough to get your full employer match, if one is offered? Otherwise, you may be leaving money on the table.
- Are your beneficiaries on your retirement accounts and life insurance policies up to date? If you had any life changes during the year, such as a marriage or divorce, these beneficiary designations may need to be updated.
- Do you have a Will and Medical Power of Attorney? If so, is it up to date with your current wishes? If not, the New Year is a great time to meet with an attorney to ensure that your basic documents are prepared.
- Do you have a 529 plan (educational savings account) set up for each of your children? If yes, are you able to increase your contributions for the upcoming year?
- Are you able to set up monthly automatic contributions to your 529 plans, IRA, HSA or savings account? If these contributions are already built into your monthly budget and occur automatically, it can help you save more away each year.
- Do you have an emergency fund that covers six months to one year of living expenses? An emergency fund is important to cover expenses during a time of an unexpected event such as loss of job, accident or medical emergency. An emergency fund can help you reduce stress and helps you avoid a bad financial decision.
- Do you know what your total debt and monthly payments of debt are? Do you want to prioritize paying any or all of it off this year?
By evaluating what you currently are doing financially, setting goals for the future and finding ways to achieve those goals, you can put yourself on the path to financial independence. What better time than the New Year to create a resolution to better your finances. Our advisors at SC&H Financial Advisors are available to answer questions and help guide you with your resolutions.
Advisory Services offered through SC&H Financial Advisors, Inc. SC&H Financial Advisors, Inc. is a wholly owned subsidiary of SC&H Group, Inc.
These materials have been prepared by SC&H Financial Advisors for informational purposes and does not constitute or form part of, and should not be construed as, an offer to sell or issue, a solicitation of any offer to buy, or a recommendation with respect to, any securities and should not be relied upon as investment advice. The views expressed are subject to change. Information contained herein has been obtained from sources considered reliable, but its accuracy and completeness are not guaranteed. Past performance is no guarantee of future results.