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The new year is here, which makes it the perfect time to plan your finances. As we embark on another journey around the sun, it's crucial to take a moment to assess our financial goals and set a roadmap for the months ahead.
Whether you're aiming to save more, invest wisely, or simply gain better control over your financial well-being, strategic planning is the key. In this blog post, we'll guide you through a month-by-month financial planning approach, offering insights and actionable steps to help you make the most of the year ahead. So, let's dive in and navigate the twelve months with purpose, helping you turn your financial aspirations become a reality.
January - Get Ready for A Brand New Year
Write down the major financial events you anticipate in the next few years. That will help guide a discussion about whether your portfolio reflects your short- and long-term goals.
Update your personal net worth to account for any significant changes in the past year.
Double-check your employer-sponsored retirement plans. When determining how much to contribute, make certain to check whether your employer offers a matching program.
February - A Financial Check-Up
Take a moment to check on your various insurance programs and coverage amounts. Draw up a list of questions if you believe they no longer reflect your lifestyle.
Create a list of your top three major expenses scheduled for the year.
Take a minute and create a list of your monthly subscription services.
March - Spring into Spring
You should have received most of your tax documents by now. Start organizing your important documents so that you can complete your federal and state returns.
Check your credit report. All U.S. Citizens are entitled to a free copy of their credit report every 12 months from the national credit reporting agencies.
April - Tax Time!
Tax returns are typically due before midnight of April 18. If you need to request a six-month extension, you still need to pay any taxes due by April 18.
April 18 is also the last day to contribute to most retirement accounts for the prior year.
Don’t forget that first-quarter estimated income tax payments are due by April 18.
May - Summer is Coming
Create or update your home and personal property inventory. Use your phone and reliable digital-backup service to record and store videos of your valuable possessions.
Take a look at your estate strategy, and see if it continues to reflect your family’s wishes. Were there any marriages or divorces in the past year? Did your family welcome a new child or grandchild?
June - We’re Halfway Through the Year!
Take a look at your “sources and uses” of money. Is it what you expected, or are you considering making adjustments?
Don’t forget second-quarter estimated income tax payments are due by June 15.
Your college-bound child may want to consider completing their Free Application for Student Aid (FAFSA). It may show available grants or scholarships. However, the FAFSA closes this month, so don’t delay.
July - Review the Year So Far…
Refresh your money skills. Add at least one book on personal finance, economics, or investing to your summer reading list.
Look back at the last 6 months. Are there any financial takeaways you can apply to the remainder of the year?
August - Back to School Season!
As children or grandchildren get ready for school, create a strategy to help pay for the expenses. There are many educational funding choices, and one may be a fit for your situation.
September - Falling for Fall
Most companies begin “open enrollment” for their insurance plans in the following months. Prepare now by looking at your current health plan and considering whether it meets your needs. Open enrollment for Medicare starts in November.
Check your credit card benefits and points earned. With holidays around the corner, you may be due a deal.
Don't forget that third-quarter estimated income tax payments are due by September 15.
October - Don’t Forget to Prepare for Trick-or-Treaters
If you have children off to college next year, the Free Application for Federal Student Aid (FAFSA) window opens once again on October 1. Encourage your child to complete the FAFSA as early as possible to increase their chances at available scholarships and grants.
File your income tax return by October 18 if you requested a six-month extension back in April.
If you want to establish a retirement plan outside of your work-sponsored program, you must open the account by your tax filing deadline plus any extensions, which is October 18 for most.
Medicare open enrollment begins, providing your opportunity to drop or switch plan coverage.
November - The Perfect Month to Give Thanks
Review your charitable giving and update any funding strategies, if needed.
Watch for capital gains payouts. Investment companies typically distribute capital gains in December, and by November, they usually publish estimates of their distributions.
Healthcare.gov open enrollment begins, Medicare Part A and B premiums and deductibles are announced.
December - End the Year Full of Hope and Goodwill
If you’re 73 or older, don’t forget to take your annual required minimum distribution (RMD) by December 31.
You can request an annual Social Security Statement. Compare your earnings record against your old tax returns for accuracy. This is also an excellent time to check for other irregularities to prevent identity theft.
As we wrap up this journey through the months, remember that financial planning is not a one-size-fits-all endeavor. Adapt these monthly guidelines to suit your unique circumstances, and don't hesitate to reassess and readjust as the year unfolds. Cheers to a financially savvy year!
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. 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. Copyright 2023 FMG Suite.