A Step-by-Step Guide to Securing Your Future

As the year winds down, it’s the perfect time to review and adjust your financial plans—especially your retirement strategy. The actions you take now can set you up for long-term success and provide peace of mind. Here’s a step-by-step guide to help you wrap up the year with confidence.

1. Review Your Current Retirement Accounts

Take stock of your retirement accounts, such as 401(k)s, IRAs, or other investment vehicles. Ask yourself:

• Have you maximized your contributions for the year?
• Are your investments aligned with your goals and risk tolerance?

If you haven’t reached the contribution limit for accounts like a 401(k) ($22,500 for 2024, or $30,000 if you’re over 50), consider increasing contributions to take full advantage of tax benefits.

2. Plan for Required Minimum Distributions (RMDs)

If you’re 73 or older (or turning 73 in 2024), make sure you’ve taken your required minimum distributions (RMDs). Missing an RMD can result in hefty penalties. Review the IRS rules and deadlines, or consult your financial advisor to ensure compliance.

3. Check Your Tax Situation

Retirement planning and taxes go hand in hand. Some strategies to consider:

• Roth Conversions: Converting traditional IRA funds to a Roth IRA may reduce future taxable income.
• Tax Loss Harvesting: If some investments underperformed, sell them to offset gains elsewhere.
• Charitable Contributions: If you plan to give, consider using a qualified charitable distribution (QCD) from your IRA to satisfy RMD requirements tax-efficiently.

4. Evaluate Employer Benefits

Many employers offer end-of-year benefits or matching contributions for retirement accounts. Confirm you’re contributing enough to get the maximum match, as that’s essentially free money for your future.

Also, review any healthcare savings accounts (HSAs), which can complement your retirement strategy by allowing tax-free savings for medical expenses.

5. Revisit Your Budget and Retirement Goals

• Has your financial situation changed this year?
• Are you on track to meet your retirement savings target?

If needed, adjust your savings rate or spending habits. Consider using retirement calculators or meeting with a financial advisor to evaluate progress and make data-driven adjustments.

6. Update Estate and Beneficiary Information

Life changes like marriage, divorce, or the birth of a child may require updates to beneficiary designations on retirement accounts, wills, and trusts. Keeping this information current avoids complications for your loved ones.

7. Start Planning for Next Year

Set clear retirement savings goals for the upcoming year. Consider automating contributions, increasing savings rates, or exploring new investment options.

Final Thoughts

Retirement planning doesn’t have to be overwhelming. By dedicating time at the end of the year to review your finances, adjust your strategy, and take advantage of available benefits, you can set yourself up for a more secure future.

Take charge today, and let your efforts this year pave the way for a fulfilling retirement tomorrow