January 2022
Financial Planning

With 2021 behind us, a new year is an opportunity to refocus on your financial goals and health. This monthly planning guide gives you tips and ideas that can help as you’re putting together your plan—and monitoring it—throughout 2022. The most successful plans aren’t one and done; they’re revisited and adjusted regularly. Things can change throughout the year, but a thoughtful plan will help you stay focused.

January — Set Your Intentions

• Prioritize your goals. Start categorizing by what’s urgent, what’s important, and what can wait.

• Draft a 2022 budget. Look at last year’s income and expenses, and set your plan.

February — Prepare for Tax Time

• Get organized. Gather last year’s forms and records. Make sure you have access to all documents needed.

• File your taxes. Submit your return as soon as you’re ready but no later than April 18th for 2022!

March — Simplify Your Investments

• Don't forget your old 401(k)! When was the last time you reviewed your allocation and risk there? If you haven’t even looked at that account in a year, consider rolling that into the plan sponsored by your current employer or into an IRA. Before moving that account you should consider factors like tax benefits, investment choices, and costs to determine what’s right for you.

• Automate investing. Contribute a set amount regularly to a tax-advantaged or taxable investment account.

April — Improve Your Financial Standing

• Review your debt. Prioritize your debt repayments (credit card, mortgage, car loan). Target high-interest debt first.

• Make your 2021 IRA or ROTH contribution. You have until April 18, 2022, to make a 2021 IRA contribution (and to file your taxes if you haven’t done so already). Our office or your tax preparer can assist you with determining whether you can make a deductible contribution or not, as there are income limitations.

May — Invest in Education

• Check your credit report. You can access one free report from each major credit bureau per year. Request yours, and resolve any issues.

• Open a 529 account. Saving for college, graduate school, or vocation training can be more attainable with a 529 plan.

June — Do a Midyear Checkup

• Check your budget. Are you sticking to your targets? If priorities have shifted, adjust accordingly.

• Fund your emergency account. Assess whether you are targeting an appropriate funding level (typically three to six months of expenses for most households).

July — Commit to Your Financial Health

• Be aware of lifestyle inflation. Also known as “lifestyle creep,” this is the tendency to spend more on discretionary purchases when your standard of living improves.

• Practice mindful spending. Pause before you purchase anything deemed as a “want.” Waiting a self-assigned period, such as 30 days, before you buy will help make sure you really want a particular item.

August — Reassess Your Choices

• Evaluate your insurance coverage. Review your insurance coverage levels, including life, health, disability, liability, auto, and property. Research and pursue any discounts you might qualify for.

• Review your memberships. Are you using the memberships you have to their full advantage (e.g., subscription and streaming services, gym membership)? If not, reevaluate if you really need them.

September — Organize and Give Back

• Get yourself organized. Gather important documents, including tax returns, legal and estate planning documents, statements, and bills of sale, and store them as appropriate—electronically or as hard copies.

• Make charitable contributions and donations. Consider different ways to make charitable contributions, such as through a donor-advised fund (DAF). Additionally, you can donate any items you no longer need.

October — Be Vigilant With Cybersecurity

• Protect your passwords. The most effective passwords contain uppercase and lowercase letters, numbers, and symbols and do not contain words found in a dictionary.

• Use multi-factor authentication (MFA). MFA provides an extra layer of security to prevent someone from logging in to your account. Once set up, in addition to your password, you will enter a one-time security code sent to your multi-factor method.

November — Focus on Family Matters

• Talk with adult children about money. As you prepare for the later years of your life, you may want to involve your grown children in the conversation. Your plans can impact their futures, too.

• Update your estate plan. Take into consideration the tax consequences on your estate and your heirs’ income needs. Review and update beneficiary designations on your various policies and accounts.

December — Prioritize Your Retirement

• Prepare for your retirement. Aim to save at least 15% of your salary (including any employer plan contributions) across your retirement accounts.

• Take required minimum distributions (RMDs). Whether you’re working or retired, at age 72, you must start taking withdrawals from your Traditional, Rollover, SEP, and SIMPLE IRAs. Pay special attention to the provisions of any Inherited IRAs.

Most importantly – come meet with us!  We are here to help provide the framework for your financial plan, help you set objectives and monitor your progress.  Our online Planning Portal is an ideal way to help you integrate your financial accounts with your plan to make sure you always see the whole picture.  We will look forward to seeing you this year and helping to keep your financial resolutions for 2022!

If you have questions, please contact us.

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To download the January 2022 Newsletter: CLICK HERE