It’s a busy time of year.
TAX SOFTWARE DEALS OF THE WEEK
Read more:Money Advice Shouldn’t Stress You Out.
Use your remaining FSA funds
Flexible spending accountsare typically use-it or lose-it accounts.
That means you usually can’t roll over funds from one year to the next.
Consider donating to a charity
Donating to charity can be highly rewarding.
Your donations don’t just lead to warm feelings and a good night’s sleep.
They can also help you when tax season rolls around.
4. Review your insurance policies
Insurance is an essential part of a well-balanced financial strategy.
Your insurance coverage may no longer fit your personal or financial situation.
Then, compare other providers to ensure you’re still getting the best deal possible.
What should you do?
1 investing mistake that today’s adults are making is holding too much cash," Luk said.
“So before you get going rebalancing your investment portfolio, you should rebalance your money.”
when you obtain your cash holdings squared away, think about what your asset allocation should look like.
One way experts recommend doing this is based on your age.
From there, consider diversifying among asset classes.
For instance, to diversify your stock holdings, you could invest in low-cost index funds.
To determine the best investing strategy for you, speak with a financial professional.
If it isn’t, now is a great time to update it.
7. Review your interest rates
The interest rate environment is changing quickly.
This canaffect your moneyin several ways.
Here are a few things to consider to make current interest rates work to your advantage.
CDs:Acertificate of depositis a great way to lock in today’s APYs before additional rate cuts.
Mortgages:Mortgage rates are falling.
If you purchased your home when rates were peaking, you may want toconsider refinancing.
You may be able to maximize your tax advantages by converting your traditional retirement account to a Roth IRA.
With a Roth IRA, you make your contributions with after-tax money.
Then, when you draw from your account in retirement, you’ll do so on a tax-free basis.
you’re free to usethis calculatorto determine your required minimum distribution if you’re unsure what yours is.
Create a plan topay off your debtfor good.
Set a goal to not onlycreate your budget but to master itin the new year.
