As we come to the end of the year, a question I generally receive: “What do I need to do before year-end financially?”
There’s way more we should do than we can do, but here are the top-5 easy things to do that will make a difference:
- Max out your 401K contributions:
- If you haven’t maxed out your 401K contributions for the year, and have the excess income to do so, think about funding a little more into your long-term retirement bucket these next few pay cycles.
- Make IRA contributions:
- While you have until April 2024 to make your 2023 contributions, if you have the extra cash or know a bonus is around the corner, it’s never a bad thing to get these funded and done with.
- HSA Contributions:
- Similar to IRAs, you have until April 2024 to make your 2023 HSA contribution, but seeing as this is one of the most tax-efficient vehicles that currently exists, you want to prioritize its funding.
- Charitable Donations:
- Make your charitable donations before December 31st. If you have appreciated stock that qualifies, look to use this first over cash. Often a Donor Advised Fund can be useful organizing your donations.
- Big Purchases in 2024:
- Think ahead to 2024. Do you have any outsized purchases that you will be making. We want to be smart about how to invest your money and if you know a big purchase is around the corner, let’s talk about where best to park the cash in the interim.
Year-end is a busy and exciting time with many events and gatherings. Take 10 minutes to go through this check-list and determine if there’s anything you can do today.