New Year Planning Tips As 2021 begins, many people are hopeful for what the new year will bring.

The past year has been a year of unprecedented changes, experiences, and market fluctuations. We are just a few weeks into the new year, and it is not too late to start your new year planning and defining your 2021 goals.

Required minimum distributions: With the SECURE Act going into effect in 2020, the regulations have changed slightly. You are not required to take an RMD at 70 ½ but can wait until you are 72. Consult your financial professional to see if waiting to take your RMD until 72 is in your best interest. 

Review 401K and IRA distributions: If you have an employer match, maxing out your contributions to your retirement accounts is a great idea. Funding from an employee match is an easy and straightforward way to grow your investments and take advantage of tax deductions.

Review policies and beneficiaries: Staying up-to-date on your policies is incredibly important. Be sure to review your policies annually to ensure this is still the best plan for your needs. Similarly, be sure your beneficiaries have not changed. Many people tend to name their beneficiaries and never revisit them. Be sure all your beneficiary information is accurate in the event the policy is distributed.

Plan for Life Events: 2020 reinforced that many life-changing events are unplanned and unexpected.  Yet, many can be accounted for in your financial plan. Be sure to inform us of any upcoming changes such as buying a house, having children, a job change, change of retirement dates, etc., this year. 

Make a Qualified Charitable Distribution: Charitable donations come with tax deductions. If you consider making a charitable donation from your IRA or otherwise, consider donating before the end of the year to decrease your tax burden.

Our team wants you to start the new year off right with a robust financial plan!

If you have any questions about planning for the new year, please contact us. Don’t wait, as the year has already begun!

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