Now is a Good Time to Check-in and See How You’re Doing
Amid the draining heat of mid-summer, do you remember your New Year’s resolutions regarding your financial planning? How are you coming with your to-do list? Certainly, 2020 has thrown us all for a loop but it shouldn’t stop you from pursuing your goals.
Time passes. Our children grow up and we get older. The sand keeps passing through the hourglass of our earthly sojourn. The year 2020 is over half gone…I think we can all breathe a sigh of relief! In about a month, children will start back to school, however that may look for the year. The summer break and vacation period for most will be over. So, it’s high time to get done what you need to get done.
Have you considered your contributions for this year? In 2020, you can contribute up to $6,000 into a traditional Individual Retirement Account (IRA) or Roth IRA. If you are age 50 or older, you can contribute an additional $1,000. Depending on your participation in other qualified plans, contributions to a traditional IRA may be tax-deductible. Earnings for both traditional and Roth IRAs have the potential to grow on a tax-deferred basis.
For those with young children or grandchildren, have you funded a 529 college savings plan for 2020? Anyone, a parent or grandparent, annually may gift to such a college plan. Gifts are made with after-tax dollars but the money grows tax-free and may be spent tax-free to meet qualified college and graduate school expenses.
How are you coming with plans to pay down debt and build savings outside of your retirement plans? Have you paid off your mortgage? Consider paying off large bills as soon as possible and curbing your spending to avoid taking on any new debt. Do you have a Freedom Fund—a pool of liquid capital equal to at least one-years’ worth of living expenses? Liquid and available capital create peace of mind and freedom to roll with the punches or pursue opportunities.
If you are a key breadwinner in a family or household, are you adequately insured against the consequences of disability or death? The same question goes for key persons of an enterprise, including business owners. Is there a succession plan? Is it up to date?
How about your estate plan? Are your will and beneficiaries current?
August is almost upon us. In slightly over three short months, holiday planning will be on our minds. Then the 2020 tax year will come to a close and at that point, it’ll be too late to make advantageous changes for this year.
Not to worry though, if you haven’t made progress on your New Year’s Resolutions—you still have time.
How can we help you move closer to completing your financial planning resolutions? We are ready to answer your questions. Simply, contact us to schedule a time for a discussion.
