{"id":13963,"date":"2022-10-18T10:45:43","date_gmt":"2022-10-18T15:45:43","guid":{"rendered":"https:\/\/johnsonwim.com\/?p=13963"},"modified":"2022-10-18T10:45:43","modified_gmt":"2022-10-18T15:45:43","slug":"end-of-year-financial-checklist","status":"publish","type":"post","link":"https:\/\/johnsonwim.com\/end-of-year-financial-checklist","title":{"rendered":"End-Of-Year Financial Checklist"},"content":{"rendered":"
Cold Iowa winters are right around the corner, which also means 2022 is coming to a close. Now is the time to analyze your finances, help prepare for the last few months and plan for the year ahead. <\/strong><\/p>\n Johnson Wealth & Income Management is here to help you close out the year confidently, make this tax season a simple one and help make 2023 your best financial year yet.<\/span><\/p>\n <\/p>\n With things in Iowa getting back to normal earlier this year, many people\u2019s spending habits changed as well. Which is why it\u2019s important to evaluate your spending<\/a> and determine where your money is going.\u00a0<\/span><\/p>\n Having a safety net is a huge factor in financial health. If you\u2019ve had to dip into your emergency fund this year, that\u2019s okay. What\u2019s important is that you\u2019re replenishing it when possible.\u00a0<\/span><\/b><\/p>\n An essential part of financial success is setting a budget and goals for yourself. Now that you\u2019ve reviewed your spending and your savings, it\u2019s time to plan for next year. The easiest way is to set a monthly budget. Plan to track your spending against it throughout the year. In the months you spend less than budgeted, transfer the excess to your savings.\u00a0<\/span><\/p>\n This is also the time to consider how you\u2019re going to grow your savings next year and set goals for yourself. This could be by increasing your 401(k) plan contribution<\/a>, setting up direct deposits from your paycheck to your savings account, etc.\u00a0<\/span><\/b><\/p>\n Obviously, the goal is to have little or no debt<\/a>, but reality is most of us do. The next step is to determine how much debt you have in relation to the beginning of 2022. Hopefully, you\u2019ve been making progress on cutting it down, but if not, it\u2019s time to create a plan. Sometimes, temporarily cutting expenses is necessary, so you can put that money towards your debt. If you have high-interest debt, debt consolidation is always an option as well.\u00a0<\/span><\/p>\n If it\u2019s credit card debt you’re dealing with, you may want to prioritize paying those down first, since they have the highest interest rates. The best approach is to try to pay off the debt with the highest interest rate first.\u00a0<\/span><\/b><\/p>\n Typically, the final quarter marks the beginning of open enrollment for Iowa companies. If you haven\u2019t already, this is the time to consider taking advantage of all available options, such as a flexible spending account, health savings account, life insurance, etc.\u00a0<\/span><\/b><\/p>\n If you\u2019re planning on maxing out your 401(k) for this year, December 31 is the last chance to do so. Maxing out your contributions takes advantage of available tax deductions and employer matching contributions.\u00a0<\/span><\/b><\/p>\n It\u2019s important to check your credit report to help ensure everything is accurate. Regularly <\/span>checking your report allows you to catch errors and get them corrected so everything is <\/span>how it should be when it\u2019s needed.\u00a0<\/span><\/p>\n There are a variety of places in Iowa where you can get a free credit report, such as AnnualCreditReport.com, Credit Karma or NerdWallet.\u00a0<\/span><\/b><\/p>\n If you had any investment losses, these can actually be tax write offs. Referred to as \u2018capital losses\u2019 to your income tax<\/a>, they help reduce your taxable income and nets you a small tax break.\u00a0<\/span><\/p>\n Additionally, if you have any losing stock positions, consider selling them to offset gains and help reduce taxable income. Keep in mind the IRS only allows $3,000 of losses per year in Iowa. These losses must be realized, meaning the stock has to be sold, to qualify for the dedication. This also must be completed before December 31.\u00a0<\/span><\/b><\/p>\n It\u2019s always important to check that the beneficiaries to your Estate Planning accounts<\/a> are accurate. <\/span>Especially if there has recently been a change in family dynamics, such as a marriage or <\/span>divorce.\u00a0<\/span><\/b><\/p>\n Check over your home, auto and life insurance policies to help ensure they still meet your <\/span>needs. Adjust coverage or deductibles as needed.\u00a0<\/span><\/p>\nJohnson Wealth & Income Management End-of-Year Financial Checklist:\u00a0<\/b><\/h4>\n
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How Johnson Wealth & Income Management Can Help<\/b><\/h4>\n