Are you planning on including financial goals in your New Year’s resolutions? Here are some ideas if you don’t have any yet.
Plan and save for retirement
The sooner you start saving and investing for retirement, the more time you give your investment to grow before you retire. If you aren’t already saving for retirement, make it a financial goal to do so in 2014.
Additionally, if you open an IRA or 401(k) early in the year, you will have more time and resources to maximize your contributions. For 2014, the IRA contribution limit is $5,500 for people under 50; those 50 or older can contribute an additional $1,000. The limit for a 401(k) is $17,500 for those under 50 and an additional $5,500 for people 50 or over.
If you are already retired: do you have a financial plan? Not only do you need to budget for retirement, but you should also make a withdrawal plan for your retirement accounts. Consider withdrawal requirements and tax benefits when choosing when to withdraw money and from which account.
Get a Will
A 2013 survey reported that up to 61% of Americans don’t have Will. Are you one of them? If so, make a Will a priority this year to create a plan for your assets after you pass.
Create a charitable giving plan
There is nothing wrong with giving money to a charity as you are able – your gifts are always appreciated! However, with a proper plan and through charitable vehicles like Charitable Gift Annuities and Endowments, you may find a more effective way to give to charities while also generating income for yourself and taking advantage of tax benefits.
Get your finances in order
Maybe throughout life, you’ve simply made and spent money without budgeting, tracking, or saving. Perhaps this has worked for you, yet you don’t feel secure in your financial situation. The new year is a perfect time to change that.
What are your financial goals for 2014?
What are you planning on doing this year to improve your finances?