By Northstar
While you’re busy thinking of New Year’s resolutions for 2024, it’s a good time to look at your finances and consider what you may want to improve or bring up to date in the new year:
Wills, Trusts, and Living Wills
If you’ve had any life-changing events, such as births, deaths, marriage, or divorce, you will want to review and update your estate documents. While you’re at it, check the beneficiaries on your assets that bypass your will and pass directly to the beneficiaries (such as transfer-on-death accounts and IRAs) to make sure they are still accurate.
Credit Reports
You can get free weekly credit reports from each of the major credit agencies (Equifax, Experian, and TransUnion) through annualcreditreport.com. Check them out online and make sure there are no mistakes that could affect your credit rating.
Retirement Savings
Are you taking full advantage of your employer’s retirement benefits? Compare your 401(k) or 403(b) contribution rate to your employer’s matching rate and make sure you aren’t leaving money on the table.
Also, consider your Roth and traditional IRA contributions. Any year you can max out your contribution, you should do so. You must make contributions to an IRA by the tax-filing deadline to qualify for a deduction on your tax return.
Other contributions, such as to a Simple IRA, must be made by payroll deduction by December 31.
Credit Cards
There is no better financial rule of thumb than to ALWAYS pay off your credit cards in full each month. But if you have some debt carrying over each month, try to find a card rate that isn’t usurious, or look into an equity loan or line of credit against your home that might significantly reduce your credit card interest expense.
As always, your Northstar advisor can help assist you in completing checklist items. Just give us a call!