With the New Year comes new opportunity both financially and personally.
It’s a good time to tackle some of your financial goals to keep you financially
fit for the year. Here are a few suggestions for you to look at:
Increase your 401k contributions. If you got a raise for the new year it’s a good idea to take part of that increase and contribute it to your 401k plan. The new limit for employee contributions for 2020 is $19,500. If you’re over 50, you can contribute an additional $6500 as a catch up contribution. Ideally, you should be contributing 10% to 12% of your income to your retirement account. If you are not at that level yet, take a step closer by increasing your contribution percentage.
Check your beneficiaries on all of your accounts. Birth, death, adoption, marriage or divorce—did any of these events happen in your life in 2019? Make sure your beneficiaries on your insurance contracts, investment accounts and your estate documents, i.e. your will & POA, are up to date and accurate.
Fund a Health Savings Account (HSA). If you have health insurance with a deductible of $1,400 for single coverage or $2,800 for family coverage, you would qualify to open a HSA. You can contribute $3,550 (single) or $7,100 (family) pretax to pay for qualified medical expenses. If you’re over 55, you can contribute an additional $5,500 as a catch up contribution. If you need help getting started, we can open an account.
See your advisor. We would love to meet with you and get caught up to date with what is new in your life and help with any upcoming financial decisions for 2020.