The New Year is prime time to reflect on whether you've met your financial goals.
Some examples include: repaying debt, saving for college, or building an emergency fund.
Giving your finances a year-end checkup can help get you back on track.
Review What You've Spent
Your goals and expenses may shift over time, and updating your budget can help account for these changes. Now's the time to honestly assess your expenses. Are you prioritizing your retirement accounts over unnecessary spending?
Re-Align Your Financial Goals for Next Year
Start the new year fresh with a focus on financial goals you'd like to pursue:
- Pay off debt entirely
- Create a personal budget
- Contribute to your retirement accounts
- Eliminate non-essential expenses
- Prioritize saving for the things you value most, including travel
Review Your Savings and Emergency Fund
Are you contributing enough to your 401(k)? Can you cut back anywhere to boost your savings? Ensure you have a healthy amount in savings and emergency funds to help you cover unforeseen expenses.
Check Your Credit
Aim to review your credit report at least once a year. This can help you identify issues such as fraud or mistakes in your reports.
Take Advantage of Giving to Save On Taxes
You may benefit from itemizing your deductions if you think your charitable giving and other applicable deductions qualify you for more than the standard deduction. Some non-cash donations, including clothing and furniture, may also qualify as tax deductible. Maintain records and receipts from all cash and non-cash donations you’ve made throughout the year.
Explore Tax Harvesting Strategies that Could Benefit Your Tax Strategy
An effective tax-loss harvesting strategy can potentially reduce your tax bill. For example, if you bought a stock and sold it for a profit, you can consider selling another asset at a loss and then use that realized loss to offset income or future gains.
IFG is here to discuss your current financial strategies and to ensure they align with your goals for the 2025 New Year.
Schedule a meeting with Nan & Jonathan!
This material was developed and prepared by a third party for use by your Registered Representative. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. The content is developed from sources believed to be providing accurate information.
For a comprehensive review of your personal situation, always consult with a tax or legal advisor. Neither Cetera Advisors LLC, nor any of its representatives may give legal or tax advice.