Year End Financial Tips!

We have 7 weeks left in this year! If you’re anything like me, you’re WAY behind on your New Year’s resolution, or you don’t remember what it was and so you’re right where you want to be.  For 2022, my resolution is going to be “get comfortable with procrastinating.” With the time we have left, here are some housekeeping and financial tips to help assist in finishing 2021 like a champion:

  • Max your giving! For many, government stimulus, positive stock market returns and still a semi-sequestered lifestyle has all contributed to a healthy financial year.  Although the tax benefits are not as considerable since most tax filers do not itemize, you can still deduct up to $600 of cash contributions donated during the calendar year (even if you take a standard deduction).
  • Give yourself one of the most boring gifts possible in the form of a 1-million-dollar umbrella insurance policy. For those who do not have one, the umbrella is an additional level of liability protection that goes above (hence the great name “umbrella”) and beyond your home and auto insurance.  The premium for this coverage is often between $180-$260 per year and well worth the peace of mind and security it brings to your financial plan.
  • You DO have to take a required minimum distribution from your IRA if you are over the age of 72. In 2020, this required distribution was waived as part of the COVID regulations, but 2021 was not granted the same flexibility.
  • If you took advantage of the additional $5,500 contribution to your Flex Spending for Dependent Care, that additional contribution has not been extended into 2022. For those whose contribution year ends 12/31, you will see a sizeable bump in your pay as your contribution amount falls back down to the 2019 levels.
  • Max your Roth IRA! Yes, technically you have until you file your taxes to get the maximum contribution of $6,000 in ($7,000 if over 50), but if you have the funds sitting around in a 0% yielding account, let’s get it done!

Happy Friday! Please stay healthy and be safe!