We all know that this year was a tough one. With the pandemic still in full swing, you may be curious to know what kinds of options you have for your finances. While the coronavirus pandemic has taken a toll on millions of Americans, there are numerous things you can do to improve your finances so that they are ready for 2021. Keep reading to learn more!
- Donate If You Can
Maximize your year-end giving and receive a tax write-off. You will need to make sure you are donating to a 501(c)(3) organization. This way, your donations can be considered for a tax deduction for the following tax year. The best strategy for charitable giving is to speak with a financial professional about your options and what the best move will be.
- Check on Your Contributions
If you are contributing to an employer-sponsored 401(k) or IRA, you need to make sure your contributions are maximized so you can take advantage of tax deductions. The maximum you can contribute to a 401(k) this year is $19,500 if you are under 50. If you are over 50, the maximum contribution is $26,000 for 2020.
- Meet with Your Advisor
Meeting with your financial advisor is always a good idea, especially if you need more information regarding your options and the future of your portfolio. Not only will you receive honest, open communication, but your advisor should be able to lay out the benefits and potential consequences of each financial move you make. Routinely meeting with an advisor is one of the best financial decisions you can make!
- Review and Update Your Goals
It is always a good idea to write your goals down. If you already have goals you still need to meet, try updating your list so that your financial goals are more attainable in 2021. Set some time aside to go over your goals with yourself, your family, and your financial advisor. This way, you will be on the same page about what you are working towards regarding your financial future. A great way to compare your goals from this year to next year is to see what has worked for you and what has not. Once you determine those, you are more inclined to set goals that are more attainable and measurable.
As you can see, these tips are just some of the numerous things you should do prior to 2020 ending. It has definitely been a different year than we are used to, but your finances should still be a priority. Wolfe Financial is happy to meet with you regarding your financial future to determine what the best practices are moving forward.
To schedule a time to speak with one of our advisors, give us a call at 301-652-9677. We’re here to help you prepare for the new year!