Take Inventory
Calculate your income, your expenses, and your assets. With this information, you can assess where you can cut back costs and more efficiently save. This will also help you set realistic goals so you can work towards achieving them.
Set Your Goals
As mentioned above, setting goals is a key component of achieving the life you want, especially regarding your retirement finances. In the spirit of the new year, maybe your new year’s resolution can be something aligned with your financial goal!
A Family Plan is a Plan for You
Consider 529 plans for your kids or grandkids who may go to college. Saving for college now can help reduce the financial burden later. You can also consider life insurance for your spouse or other family members. If a universal life insurance policy fits your financial needs, you may even withdraw its cash value tax-free for other expenses.*
Reassess Your Savings and Investments
Are you utilizing Traditional and Roth IRAs strategically? You may consider performing a Roth IRA conversion to optimize your tax situation. You may also want to roll over assets in any old 401(k) plans from previous employers to a current one or an IRA. While you’re assessing your retirement accounts, keep in mind the assets that each one holds. You may find that your risk tolerance isn’t properly reflected and that you need to balance your investments.
Have a Tax Plan
IRA strategies can be tailored to minimize your taxes, as well as an estate or charitable giving plan. You can also offset capital gains by claiming losses on investments where you’ve lost money, then waiting 30 days to re-invest in different assets that could grow.
Update Your Emergency Financial Strategy
Make sure you have three to six months of emergency funds, utilize insurance that works with your budget for premium payments, and that you have both financial and medical powers of attorney in case of an emergency.
Find More Ways to Save
If you’re looking to save more, consider a mortgage refinance, rethink your car insurance, cut back on nights out, utilize flexible spending or health savings accounts, curb your energy usage, or even cut cable.
Seek Out Alternative Income Streams
There are many ways to invest in real estate. You can invest in rental properties directly, or you can utilize Real Estate Limited Partnerships or Delaware Statutory Trusts, which provide access to direct real estate without the troubles of property management.
Source: https://www.investopedia.com/articles/personal-finance/your-annual-financial-planning-check-list.asp
*Withdrawing cash value will reduce the death benefit, and that taxes and fees may apply in some instances.
Bob has a passion for making your money work hard for you. He takes profound joy in ironing out a plan for a long and comfortable retirement, no matter what your current income or level of wealth. With a work ethic second to none, he has a zeal for transforming uncertainty into stable ways for you to protect your future and your family. He knows that the quality of your life you enjoy today can remain as rewarding—or even better—after retirement.
With a strong background in information technology, Carol is instrumental in building operational policies and strategies that keep the organization functioning smoothly. Carol’s organizational skills and her flexibility to jump from priority to priority along with her commitment to customer service makes her an essential part of the Grimard Financial team. When Carol is not working with the Grimard Financial Family, she is a very creative and accomplished photographer.