5 Financial Steps to Take at the End of the Year

The end of the year is prime time to reflect on whether you've met your financial goals. Some examples include repaying debt, saving for college, or building an emergency fund. Giving your finances a year-end checkup can help get you back on track.

Review What You've Spent

Your goals and expenses may shift over time, and updating your budget can help account for these changes. Now's the time to honestly assess your expenses. For example, it can help to prioritize your retirement accounts over frequent trips to your favorite coffee shop.

Re-Align Your Financial Goals for Next Year

Start the new year fresh with a focus on financial goals you'd like to pursue, such as:

• Paying off debt entirely
• Creating a personal budget
• Contributing to your retirement accounts
• Eliminating non-essential expenses
• Prioritizing saving for the things you value most, including travel

Review Your Savings and Emergency Fund

Are you contributing enough to your 401(k)? Can you cut back anywhere to boost your savings? Having a healthy amount in savings and emergency funds can help you cover unforeseen expenses, including costly car repairs or medical bills.

Check Your Credit

Aim to review your credit report at least once a year. This can help you identify issues such as fraud or mistakes in your reports, including the wrong phone number or address.

Take Advantage of Giving to Save On Taxes

You may benefit from itemizing your deductions if you think your charitable giving and other applicable deductions qualify you for more than the standard deduction. Some non-cash donations, including clothing and furniture, may also qualify as tax deductible. Be sure to maintain records and receipts from all cash and non-cash donations you’ve made throughout the year.

Explore Tax Harvesting Strategies that Could Benefit Your Tax Strategy

An effective tax-loss harvesting strategy can potentially reduce your tax bill. For example, if you bought a stock and sold it for a profit, you can consider selling another asset at a loss and then use that realized loss to offset income or future gains.

If you would like to discuss your current financial strategies to ensure they align with your goals for the new year, contact the office to schedule a meeting.

^{This material was developed and prepared by a third party for use by your Registered Representative. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. The content is developed from sources believed to be providing accurate information.}

^{For a comprehensive review of your personal situation, always consult with a tax or legal advisor. Neither Cetera nor any of its representatives may give legal or tax advice.}

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About the Author

Jack Brkich III, is the president and founder of JMB Financial Managers. A CERTIFIED FINANCIAL PLANNER TM, Jack is a trusted advisor and resource for business owners, individuals, and families. His advice about wealth creation and preservation techniques have appeared in publications including The Los Angeles Times, NASDAQ, Investopedia, and The Wall Street Journal. To learn more visit https://www.jmbfinmgrs.com/.

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