January Topic of the Month: Building Your Annual Financial To-Do List

Kevin Orsinger |

The start of the new year is a time to start fresh and to commit to being better organized so that come the end of the year you are not rushing to accomplish the things you should have been working on all year. As the year begins, you want to think about your investment, saving, and budgeting goals you have for 2020. Below are a few suggestions you might want to consider as you draft your “to-do” list.

1. Do you have the means to contribute more to your retirement plans this year? In 2020, the contribution limit for Roth and traditional IRAs is $6,000. Think about how you might get yourself as close to this number as possible. Do remember, though, that contributions are taxed as income and you are fined if, for some reason, you want to access those funds before the age 59 ½.

2. Do you have the means to make a charitable gift? You can claim the deduction on your tax return if your deductions are itemized. You can spend some time thinking about the cause you want to support and determining an appropriate gift amount.

3. If you are retired, and older than 70 ½, make sure that you remember your year-end Required Minimum Distribution for traditional IRAs, 401(k)s, 403(b)s, and profit-sharing plans.

4. Review your withholding status. Based on life or situational changes, you may need to adjust your withheld taxes to better reflect your current situation. For instance, if you tend to pay a large amount in income tax or you get an exceptionally large refund or if you have recently married or divorced.

5. Consider the potential tax impacts of any large decisions or transactions you will be making in 2020. For instance, are you planning to sell real estate or start a business? These types of changes might impact your tax portfolio.

When crafting this to do list, you’ll want to make sure that you set check points throughout the year to evaluate where you’re at financially and what adjustments you need to make to achieve your goals. It can be beneficial to have these conversations with your financial advisor. Please call Orsinger Investment Group, Inc. at (724)588-9067 to schedule an appointment to prepare your to-do list today.