Murfreesboro Post

Financial planning ideas to address before Jan. 1



As we near the final weeks of the year, it’s a great time to think about making a financial housekeeping list.

Some items should be addressed before Dec. 31, while other decisions made today can help shape your financial condition in the new year.

Consider these ideas for planning financial success to end this year and going into 2023:

Revisit your existing financial plan

A lot can happen over the course of a year. Odds are that something in your life, and most specifically your financial life, has changed – and so should your financial plan. Maybe you have changed jobs or have experienced divorce. There are dozens of “life changes” that will affect your financial status. Contact your CFP® for an annual review.

Rethink your asset allocation

Another year has passed. Does your current asset allocation still address your current risk tolerance profile? With age, most investors become more risk averse. Perhaps this year it’s time to think about carrying less equity exposure. Contact an experienced financial planner for help.

Don’t forget your RMD

For individuals over the age of 72 that possess an IRA, a required minimum distribution (RMD) is mandatory and must be taken before Dec. 31.

The amount of the RMD will depend on your age and is typically less than 5% of your IRA’s account value. Consult with your advisor for help to avoid unnecessary penalties.

Consider adding to your retirement plans

The year’s end is a great time to think about adding additional retirement funds to your employer sponsored plan. Each dollar that is contributed into your plan will help reduce your current taxable obligation and help build your nest egg. Don’t forget these plans allow for tax-deferred investing, making it easier to hit your retirement objectives. Each plan has its own contribution limits, so do your homework or consult a financial advisor for help.

And here are a few ideas that may help next year.

Think about your budget

With record inflation hanging around into 2023, consider updating the family budget. By acting now, you may find that you will have a cash shortfall in the new year. To raise the necessary cash needed, liquidating assets now may make more sense than waiting until next year. Consult your personal financial advisor for help and advice.

Feeling charitable in the new year?

Seek the help of a fiduciary financial advisor for advice. A fiduciary provides unbiased options that are available to gift cash or assets, in a tax-effective way, to charity. Charitable gifts can also be left at death by bequest or Trust. Consult your CFP® today.

William Bevins is a CERTIFIED FINANCIAL PLANNER™ and wealth advisor serving Murfreesboro. His practice focuses on writing financial plans, offering advice, and building suitable investment portfolios for individuals, small to medium sized businesses, and family offices. He may be contacted by email at or by phone at (615) 469-7348. Go to his website to learn more details.

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