End of the Year Financial Planning: Be Money Smart

5:26 PM, Dec 2, 2013   |    comments
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GREENSBORO, NC -- As we approach the end of the year, it is a great time to review your current financial situation. Certified Financial Planner Matt Logan joined Frank Mickens with some ideas on how you can accomplish the year-end review.

  • Review and rebalance your retirement funds.

    The end of the year is a great time to review your 401k and rebalance it. If you are one of those people who never looks at your retirement plan through your employer, now is a great time to look at it. If you own a lot of equity based investments you may be presently surprised this year. It is also a great time to rebalance. The idea behind rebalancing is making sure that your portfolio still fits your needs. With a properly diversified portfolio, it may be a great time to sell some winners and shift those funds to some that have not performed well. If you are closer to retirement, you may need to make your portfolio a little more conservative. Seek out a financial planner if you need assistance with this.

  • Check your contribution levels.

    Can you contribute more to your plan and have just not gotten around to do it? This is a great time of year to go ahead and make those changes. Depending on your plan rules, you may even be able to contribute a lump sum before the end of the year to max out your retirement plan.
  • It may be a great time to take capital gains or donate appreciated stock to a church or favorite charity.

    This is also a great time of year to look over your non retirement plan investments. Do you have some stocks that have had significant gains this year? Ask your CPA if it would be a good idea to donate these funds to your church or a charity of your choice or to just sell some and take a capital gain. 
  •  Make donations

    This is the time for giving. Depending on your tax situation, giving to a cash to your church or a qualified charity may be a great thing for your situation before the year ends so that it can help on your 2013 taxes. You may also want to explore gifting to family members if your situation allows.
  • Check your life insurance.

    Has your situation changed this year? Did you buy a new home, have another child or get a new job with significantly more income. That insurance that you bought years ago may need to be updated. Also, be sure that the beneficiaries are correct.

  • Review your cash reserves.

    Have you been spending freely? It may be time to review the budget and begin working on replenishing your cash reserves. Have you been piling up funds in your savings account well above the amount you need for reserves? If you have, chances are that your savings account interest rate is not exciting. You may want to look into putting some of those funds to work for you for more long term goals.

  • Review your wills and estate plans.

    Do you have an old will or estate plan that needs updating as new tax laws and your family situation has changed? Now is a great time to begin thinking about that and start that ball rolling for the New Year.

Matt Logan is a Representative with Matt Logan Inc and Summit Brokerage and may be reached at www.mattloganinc.com, 336-808-0126 or matt@mattloganinc.com

Matt Logan Inc is an independent firm with Securities offered through Summit Brokerage Services, Inc., Member FIRNA, SIPC. Advisory services offered through Summit Financial Group Inc., a Registered Investment Advisor.

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