As you pull down the stockings with care to see if St. Nicholas was there, I will stuff some stuff to make you aware.
There are still five business days in 2016 to make last-minute changes to your personal financial plan. If your blessings exceed your needs, you can make tax-free gifts up to $14,000 per family member. If you itemize tax deductions, you can make a gift of cash or appreciated securities to a qualified charity such as a fire-relief fund. Before year end, you can top off your contributions (via paycheck or bonus) to a 401(k) plan. If you are over age 50, you can add an additional $6,000 catch-up contribution.
If you are 70½ years old or older, don’t forget to address your Required Minimum Distribution from a tax-deferred retirement account by Dec. 31. The tax penalty on missing a distribution is worse than a lump of coal.
Can you believe it? A new year with new goals starts in one week! Let’s get busy.
Are you expecting any major life events such marriage, birth, employment changes, retirement, real estate purchase or sale, a child starting college? Be sure to match cash needs to your priorities and deadlines.
Double check your insurance and retirement account beneficiary designations and update as necessary.
Get your 2016 tax file in order now to make filing much easier. Remember that the income tax filing deadline is Tuesday, April 18. If you expect to owe taxes, sequester the funds in preparation for a payment. If you fear penalties for under payment, make an estimated tax payment by Jan. 17.
If you are among those of us with a growing emphasis on high deductible medical insurance and Health Savings Accounts, be intentional about budgeting your 2017 HSA contributions.
Are you ready? I predict that the stock market will experience a correction – someday. I don’t know when or why or which market or how much that market will decline but it will happen, maybe next year. Always review your risk tolerance and investment objectives before the economy contracts or an investment market tanks. Again, I’m not predicting immediate gloom and doom but some gloom is always imminent, be prepared (just saying).
Apply some common sense to your 2017 consumption goals, park some cash in your portfolio to pay those bills. Otherwise, be financially and emotionally ready for some contrarian opportunities. Believe in your portfolio strategy. You researched it and constructed it and manage it for your short-term and long-term needs, wants, and wishes.
I heard the following in a recent church sermon, “Goals that are not visible become invisible.” As you set financial life goals for 2017, write them down, express them in dollar terms and time frames, and share them with your family and close friends. Check your progress regularly. Expect occasional setbacks. Reset and go forward.
Have a great holiday and happy New Year!
