As the leaves begin to change and summer passes, fall is the perfect time to reassess your financial situation and prepare for the final stretch of the year. This season offers an opportunity to fine-tune your finances, ensuring that you’re on track to meet your goals before the year’s end. Let’s take a look at some Back To School fall financial planning items you can review over the next few weeks.
Review Your Budget and Expenses
With summer vacations behind you and the back to school activities and holidays approaching, it’s essential to review your budget. Evaluate your spending over the past few months and adjust your budget to reflect any changes in your income or expenses.
Maximize Retirement Contributions
Fall is a good time to assess your retirement savings and make adjustments if needed. If you haven’t maxed out your contributions to your 401(k), IRA, or other retirement accounts, consider increasing your contributions before the year ends.
- Catch-up contributions: If you’re over 50, take advantage of catch-up contributions to boost your retirement savings.
- Employer matching: Ensure you’re contributing enough to receive the full employer match, if available.
Plan for Year-End Taxes
Tax season might be months away, but planning now can help you avoid a last-minute scramble. Consider the following:
- Review withholdings
- Tax-loss harvesting
- Charitable donations/ Donor Advised Funds
Evaluate Insurance Needs
As the year draws to a close, it’s a good idea to review your insurance policies to ensure you have adequate coverage. With open enrollment season around the corner, it’s important you are reviewing all benefits available to you and maximizing those that may be beneficial to you.
Prepare for Holiday Spending
The holiday season can be financially stressful, so it’s wise to plan ahead.
- Set a holiday budget: Determine how much you can afford to spend on gifts, travel, and festivities, and stick to it.
- Start saving now: If you haven’t already, consider setting aside a portion of your income to cover holiday expenses, using the bucket strategy.
Review Your Investment Portfolio
Fall is an opportune time to reassess your investment portfolio to ensure it aligns with your financial goals and risk tolerance. Given the recent market correction and volatility we’ve seen, it’s important to ensure your asset allocation is truly right for you and your financial goals.
- Rebalance your portfolio: If your asset allocation has drifted, consider rebalancing to maintain your desired risk level.
- Consider end-of-year opportunities: Evaluate potential investment opportunities or adjustments before the end of the year.
Plan for the Upcoming Year
Finally, use the fall season to set the stage for a financially successful new year.
- Set financial goals: Begin thinking about your financial objectives for the upcoming year, such as saving for a major purchase, paying off debt, or investing in education.
- Update your financial plan: If your life circumstances have changed, consider updating your financial plan to reflect your current situation.
Taking the time to review and adjust your finances this fall can help you end the year on a strong note and ensure you are on track to hit your financial goals. By taking a few moments amid the Back to School craziness to focus on some of your financial homework, you can add value to your financial wellbeing and you’ll be better prepared for the holiday season, tax time, and any unexpected expenses that may arise. If you are seeking a fall financial check in or tune up, email info@shermanwealth.com and we are happy to help!
