Although you don’t have to wait until January to begin working on your financial goals, a new year may bring a much-needed fresh start on your spending and saving goals. Read on for three financial moves you may want to consider before ringing in the New Year. Open a Health Savings Account (HSA) If you have a high-deductible health plan (HDHP), taking advantage of an HSA may provide you with one of the most tax-advantaged accounts available. As long as funds are spent on qualifying healthcare expenses, an HSA typically offers tax-free contributions, tax-free growth, and tax-free withdrawals. For 2022, you may be able to contribute up to $3,650 (if you have individual coverage) or $7,300 (if you have family coverage).1 These contribution limits increase by $1,000 for those who are age 55 or over, which means you may contribute $4,650 for individual coverage or $8,300 for family coverage. Decide Between a Traditional or a Roth IRA Even if you contribute to a 401(k) at work, individual retirement accounts (IRAs) offer some distinct advantages over an employer-sponsored 401(k). Not only are these accounts typically portable, allowing you to move them to the retirement custodian of your choice, but they may also serve as a rollover account for your old 401(k)s if you leave your employer. Like a 401(k), a traditional IRA allows you to deduct your contributions (if you don’t exceed certain income limits) from your taxable income, reducing your overall tax bill. When you withdraw IRA funds in retirement, you typically pay taxes on them then. A Roth IRA, on the other hand, allows you to make post-tax contributions and then withdraw them tax-free in retirement. Get a Quote on Refinancing Your

Spend as much time fixing your mistakes as you do planning the holidays You probably spend more time planning your holiday gathering than preparing for your golden years. As a result, you make basic mistakes in trying to fund your retirement. Here are a few of the top mistakes people make to screw up this potentially crucial saving. No specific goal. Many people say something like, “I want to retire in my 60s.” Fine – but pinpointing the age when you want to retire is not even half the process. Additional key questions: How much do you need to retire? How much have you saved? Will your investments get you enough income to meet your retirement goals? An example of a specific retirement goal: “I want to retire at 62 with $750,000 of investable assets that yield approximately $45,000 a year of income, including my pension and Social Security.” Consider focusing on desired rather than needed returns. Don’t obsess with how much your portfolio can make and what your friends make investing. How much return your portfolio generates may mean little. More important: Identify how much you need to make to live comfortably in retirement. How much income do you need each month to survive? To live as well as you do now, or better? How does your investment income compare with your other retirement income sources, such as pensions and Social Security? Stop focusing on the rumored 12% return that big-time investors claim to make and start focusing on what you may actually need. No portfolio review. When did you last open your account statement? When did you last sit down with your financial advisor and review your investments

It’s December, and that means it’s crunch time for the gift-buying season. This year, a little thinking outside the box will go a long way toward putting a smile on loved ones’ faces. Whether you’re buying for friends or family, for now or later, you’ll be sure to find the perfect presents in this gift guide! THE COMFORT OF HOME Many of us have gotten accustomed to spending a lot more time at home this year—which is a welcome reality for some and a trying one for others. So make the stay-at-home environment happier for everyone with these ideas for creating enjoyable living spaces. Kitchen Perhaps not surprisingly, sales of foods like tomato sauce, oil, and cheese have skyrocketed this year. It’s a great time to send a friend or family member on a taste adventure with a sampler kit! Hot sauces are always a popular choice for the more daring, as are BBQ sauces and spices. For heartier selections, you can opt for meat-and-cheese baskets or even a vegan jerky sampler pack. Home Gym People are adjusting to working out more in the confines of their homes, even to the point of adding home gyms. So why not help these workout warriors with a perfect gift? Items as simple as exercise bands or hand weights are not only practical but also show that you support their effort to better themselves. Another great idea for the workout warrior in your life? Buying a gift pass or a trial subscription for an at-home fitness program. Living Areas Nothing beats the gift of coziness, especially in frequently used rooms. Throw pillows, pillow covers, and throw blankets are affordable options that can add

During November and December, we want to help you spot planning opportunities that are very time sensitive. Perhaps you… Are considering making year-end gifts to charitable organizations or family members, and need to determine your optimal funding strategy; Are looking to reduce your income tax liability this year, and are seeking loss harvesting and income-reduction opportunities; or Wish to make a high-level survey of your financial picture, ensuring that you aren’t missing any windows of opportunity that close with the calendar year.   Whatever the case may be, the end of the year is an important time to adjust your planning to reflect the changes that are bound to take place in your life. Tracking numerous deadlines and avoiding missed planning opportunities can be challenging during these busy months. To help ensure that you remain on track, we have a checklist that outlines 18 time-sensitive considerations to guide your end-of-year review and tee up any adjustments for the coming year.   Download Our End of Year Checklist   While the checklist can help you spot good ways to identify all the different opportunities to consider, we are always available to meet with you to discuss your finances and goals, and to identify what the best opportunities are for you.       1-05210148

It may be better to give than to receive, but it may be even better to give and see your generosity rewarded. Charitable giving can play a valuable role in your financial and tax strategies. A well-planned gift to charity could provide an income tax deduction and a reduction of estate taxes. Your donation could also help you maintain financial security, exercise control over assets both during your lifetime and after death, as well as provide for your heirs in the manner you choose. To accomplish all of these objectives, you need to develop a plan tailored to your individual circumstances. The following strategies can be used to create a giving plan that is both beneficial and appropriate for you. When planned properly, gifts of appreciated property to charity may allow you to avoid the capital gains tax you would have owed when the asset was sold and may also allow you to receive an income tax deduction, usually worth the fair market value (FMV) of the property. Also, by removing that asset from your estate, you may reduce your potential estate tax burden. If you wish to make a gift of property to a charity but also retain some control over it, a charitable remainder trust (CRT) may be an appropriate vehicle. A CRT might be effective when funded by an appreciating asset, such as real estate or stock in a family-owned business. After the property is transferred to the trust, the trust continues to provide income to the beneficiaries for a period of time, after which the remainder of the trust is donated to the charity. You could avoid capital gains taxes on the assets you donated, and

It may be easy to forget we’re nearing the end of the year. Even during the busy end of year rush, it’s a good time to reevaluate your 2021 finances and turn an eye toward 2022. What can you do now to potentially improve and streamline your 2022 budget? Below, we discuss three year-end planning steps that may make your 2022 finances run more smoothly. Sketch Out Your 2021 Taxes In July 2021, many Americans with young children began receiving a portion of the Child Tax Credit each month—$250 for those age 6 to 17 and $300 per month for those age 5 and under. But while this tax credit may be a boon to household budgets now, it’s not “free” money, and it could increase your tax liability (or reduce your refund) when you file next spring. This, along with some other tax changes in 2021, make it important to do a quick sketch of your tax liability to make sure your withholdings or estimated payments remain on track. You may still make estimated payments to your 2021 taxes through January 15, 2022. If you’ve been under-withholding or earned more income than expected, you still have several months to reduce your April 2022 tax payment. Evaluate Your Asset Allocation Each investor has their own “model portfolio”—that is, the percentage of large-cap, mid-cap, small-cap, and international stocks, as well as bonds and cash instruments they want their portfolio to represent. Even the most model portfolio may shift over time as certain sectors gain value while others stagnate. If it’s been a while since you looked at your asset allocation, the year-end review may be a great time to make sure your

Tax planning can be advantageous when done during the year and well in advance of year’s end. Opportunities exist for you to mitigate tax liability, which may leave more income for you and/or your family. Generally, people put off tax planning because paying income taxes is an obligation. So, this “negative” view can cause frustration. It is often simpler to say, “Let’s see how everything shakes out between January 1 and April 15.” However, after December 31, all you can do is deal with your tax liability. On the other hand, if you take care of the tax planning now, you may save more on April 15. Considering doing a trial tax return based on your projected personal income and deductions. Afterward, you can adjust your W-4 Form accordingly. If you expect to have income that is not subject to withholding, review your required quarterly estimated tax payments. If you fail to have enough tax withheld or make sufficient estimated tax payments by the end of the year, you may be subject to penalties and interest. Adjust your W-4 or estimated payments to make up any shortfall. It may be beneficial to keep an eye on what is happening in Congress. Tax reform is an ongoing process, and there may be more changes ahead. If you can control when you receive income or take deductions, consider deferring income into next year if you expect to be in a lower tax bracket. Likewise, accelerate your deductions if you expect to be in a higher tax bracket this year as opposed to next. If you expect a tax change for the upcoming year, you may want to revisit this issue. Watch out

Long-term care insurance is a type of insurance that covers the costs related to long-term, chronic health concerns. It may cover things that traditional health insurance does not cover, such as personal care services. If you have a long-term care policy, the insurance carrier may provide an amount based on your expenses to cover things such as nursing home costs or the expenses for a home health aide. While long-term health insurance is not a new option, it is becoming more prevalent as the costs of aging continue to rise. Here are five things you may need to know about long-term care coverage. It Is Designed To Cover Financial Gaps Caregiving is expensive, especially when 24-hour care is required. The cost may lead to a huge financial burden on family members. Many of the services covered under these policies are not covered under health insurance, so these policies may provide extra funds to alleviate the financial stress. There Is a Good Chance You May Need Long-Term Care Once you hit the age of 65, you have more than a 70% chance of needing long-term care of some kind. This need could be due to aging, illness, or the result of an injury. It May Work In Multiple Long-Term Care Settings While long-term care has been traditionally reserved for nursing homes, aging in place is becoming more common. 76% of people choose to receive long-term care services in the home versus a nursing home or rehabilitation center setting. Long-term care coverage may provide funds whether the setting is your home, a nursing home or assisted living. Most Long-Term Care Costs Are Not Covered by Medicare Long-term care coverage through a Medicare policy

Whatever your age, it’s never too soon to look ahead and begin giving thought to your retirement. With proper planning, you can make the transition to retirement a smooth, comfortable and confident ride. Today, more than ever, planning for retirement is a necessity. Social Security and company retirement plans are often insufficient to provide the necessary income for a comfortable retirement. You must plan ahead by setting goals and deciding how to pursue them. Retirement planning means not only getting ready for a lifestyle change, but also accepting a changing financial picture. In addition, you may want to consider how much (or how little) you want to leave to your children. You may be faced with some difficult choices. A comprehensive financial strategy can mean placing your spouse of some fifty years in a nursing home with a pleasant, home-like atmosphere and superior private care vs. being forced to choose a “no-frills” nursing home. Or, it could mean the difference between dining out more frequently vs. preparing more meals at home. Many retirees find themselves balancing between having a sufficient lifestyle and lacking some of the comforts that make life easier. This “give and take” could be alleviated if the proper planning, savings and investing are done ahead of time. Although pre-retirement and post-retirement investment portfolios should have both income and accumulation aspects, your pre-retirement portfolio should be more heavily weighted toward accumulation for later use. A post-retirement portfolio should show a greater allocation of investment resources toward income-producing vehicles, with a smaller portion allocated for accumulation to generate future income. You can use different investment management techniques as you create your own portfolio and consider the different investment alternatives

In 2013, a Gallup poll found that only about one in every three U.S. households maintained a budget.1 A 2021 survey of 1,000 Americans found that 80% now say they have a budget.2 Americans are budgeting more due to the pandemic. Knowing where your money is going and making sure you’re adequately funding your future could be helpful to maintain your lifestyle for the decades that you may live. Whether you’re a Baby Boomer, Gen X-er, Millennial, or a member of Gen Z, there are a few things you may focus on to help you pursue your financial goals. Gen Z Members of Generation Z were born between 1997 and 2015. Some of the older ones are entering the workforce.3 Although there may be many pressures on a Gen Zer’s wallet, making an effort to set aside some funds for retirement while still young is a strategy worth considering. The saying “time in the market beats timing the market” came about for a reason. A study of the S&P 500 returns from 1926 to 2011 found that a 20-year buy-and-hold strategy never produced a negative result, with annualized returns from 3.1% to 17.9%.4 Millennials Some of the oldest Millennials are pushing 40, while those at the tail end of this generation (generally defined as 1981 to 1996) are just in their mid-twenties. But whether you’re an older or younger Millennial, you may benefit from reducing your debt and building up an emergency fund. Even though Millennials may be beleaguered by student loans, auto payments, rent, credit card payments, and other debt, putting a plan in place to tackle this debt while saving for an emergency may help you pursue financial independence. Gen X As members of