Three Important Steps to Take Right Now

Like most of us, you might be feeling a bit busy and rushed toward the end of the year. So, it can be easy to lose sight of your long-term financial plan. But since there are certain planning tasks that need to be done by the end of the year, set aside a few minutes to tackle these simple steps before December ends.

Max out your retirement plan contributions. Hopefully, you’re on track to meet the maximum contribution limit of $18,500 to your qualified retirement fund (with an additional $6,000 if you’re age 50 or older). Reaching the max is not only a wise retirement planning strategy; since the contributions are made on a pre-tax basis, you can effectively lower your overall taxable income for the year.

So, check with your human resources department to be sure you’ve reached the maximum contribution in 2018. If not, consider assigning your year-end bonus to the cause. At the least, try to reach your employer’s matching funds amount, so that you don’t miss the opportunity to claim essentially “free” funds for retirement.

Make tax-deductible charitable contributions. This is the time of year that many of us are thinking about charitable giving, and you can often use your gifts as a tax deduction, too! Just remember that you must make those contributions by the end of the year if you want to count them on your 2018 tax return. Make sure the charity is qualified by the IRS, and that you keep proof of your donation.

Review your overall retirement plan. While you’re adjusting your finances anyway, take the time to schedule an appointment with us soon. It’s important to review your retirement and other financial plans every few years, as needs and priorities change. We can help you stay on top of any upcoming changes and adjust your plan to meet your future retirement income needs.