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End-of-Year Financial Planning Checklist


Perhaps fiscal year calendars have the right idea. 

Since so many of us reset our finances with the calendar new year, a thorough review for the next 12 months rarely goes beyond a handful of resolutions amid the holiday parties, mandatory-fun FRG dinners, and crowded shopping malls. A September 30th reset suddenly seems much more reasonable. You can define next year's goals without missing out on any of the Black Friday madness. 

Regardless of when you reset the proverbial financial clock, AAFMAA Wealth Management & Trust has provided some suggestions for keeping your investing on track for next year:

  • Retirement Planning: Contribute as much as you can afford to your IRA and 401(K). Check the maximum contributions allowed for each program. These amounts change as we grow older, so review your limits with a financial advisor every year.
  • RMDs: If you or your spouse turned 70 ½ in 2019 or earlier, withdraw the Required Minimum Distributions (RMDs) from your traditional IRAs or 401(Ks) before the end of the year. If you fail to take your RMDs before the deadline, you'll incur a substantial penalty tax.  If you or your spouse turns 70 ½ in 2020 or later, you are able to put off taking your first RMD until age 72.
  • Contribute: Make charitable contributions BEFORE year's end, to claim them as deductions on your last income tax return. 
  • Budget: Compare this year's spending against your budget and make any necessary adjustments for next year. Account for any raises, bonuses, or tax breaks. 
  • Bonus: If you receive a holiday bonus or expect higher earnings next year, consider putting all or part of the increase into savings. 
  • Investing: Look over any new or high-risk investments made earlier in the year. 
  • Asset Management: Check your asset allocation and make any necessary adjustments.
  • Future: Take some time to define your family's financial goals and concerns for next year. Remember to include upcoming expenses, like college tuition, home repairs, or changes in retirement planning. 

As you look over your finances for the next year, remember the Relationship Managers at AAFMAA Wealth Management & Trust are ready to help you attain your financial goals. Contact [email protected] today and give your family the gift of military financial planning.