State Fair is over….back to the books
Once the State Fair has ended and the animals have left the barn, we prepare for the routine of back to school, preparing the boat for winter, and organizing our life for the holidays. As the leaves begin to change and temperatures drop, fall is the perfect time to evaluate your financial situation and plan ahead. Now is a key window to make smart decisions that can reduce tax burdens, improve savings, and prepare for the upcoming holiday season. Here are some practical financial tips to be considering.
- Review Your Retirement Accounts
This year has been one filled with volatility, and your lifesavings most certainly was affected. Have you reviewed your investment design. Your investment portfolios should have transitioned away from Treasuries and Bonds earlier this year, and with the FED meeting in September, we are likely to see another round of market changes due to interest rate considerations. Also, consider whether a ROTH IRA contribution may be best. The tax environment in retirement is still something to be aware of.
If you're already retired and drawing from your retirement accounts, be sure to calculate your Required Minimum Distributions (RMDs). Missing an RMD can result in hefty penalties, so it’s important to stay on track, especially if you have multiple accounts. One of the most common errors we have experienced is someone pulling the correct amount out of their accounts…but from the wrong account number.
- Assess Health Care and Medicare Plans
Open Enrollment for Medicare typically runs from October 15 to December 7. This period is crucial for evaluating whether your current plan still meets your needs. Review your health care coverage, including prescription drug plans, to see if any changes are necessary. Even if you're satisfied with your current plan, comparing options could help you find better coverage or save money.
Approaching 65? Make sure you have initiated the conversation with your Financial Advisor on these health insurance needs.
- Plan for Holiday Spending
The holidays can be a joyful - and expensive - time of year. Creating a holiday budget now can help you avoid overspending. Make a list of expected expenses, including gifts, travel, food, and decorations. Consider using cash or a debit card to avoid racking up credit card debt that can follow you into the new year. I know that many of our clients earmark their RMDs for assisting with this expense at this time of year.
- Evaluate Your Estate and Legal Documents
Fall is a good reminder to revisit your estate planning documents. Do you have a will, power of attorney, and health care directive in place? Have there been any major life changes that might affect your beneficiaries or plans? Keeping these documents up to date ensures your wishes are clear and legally protected.
Consider meeting with your financial advisor or attorney to ensure everything is in order, especially if it’s been a few years since your last review.
By taking proactive steps this fall, you can strengthen their financial well-being and enjoy the season with peace of mind. A little planning now can lead to a more secure and stress-free winter.
Blessings,
Dan