With the new year comes renewed commitments to improving your finances, strengthening your savings, and planning for the future. At Ausperity Private Wealth, LLC, we believe that even though the ball has already dropped, it’s not too late to jump-start your financial plan for 2025. Watch this quick video to review each area of your financial plan and make sure you’re starting the new year off on the right financial foot.
Video Transcript
The Perfect Time to Commit
The new year is a perfect time to commit to improving your finances and planning for your future. Even though the ball has already dropped, it’s not too late to jump start your financial plan for 2025.
Meet Shane Fox
Hi, I’m Shane Fox, founder at Ausperity Private Wealth. IIn this video, I’ll share how to review your financial plan and start the year off on the right foot.
Maximize Your Retirement Savings
For retirement, maximize your retirement savings by contributing to plans like 401Ks, 403Bs, or IRAs. For 2025, you can contribute up to $23,500 to employer plans, which will reduce your taxable income.
Traditional IRAs
Traditional IRAs are another option to lower your AGI, provided your income is within certain limits. Contributions there grow tax-deferred, and while withdrawals in retirement are taxed, they can reduce your current year tax liability.
Requirement of Minimum Distributions (RMDs)
Don’t forget about Requirement of Minimum Distributions, otherwise known as RMDs. Under the Secure Act 2.0, the RMD age has changed again, so please consult an advisor to determine whether you need to begin distributions at 70.5, 72, 73, or 75.
Emergency Fund
For cash flow, ensure your emergency fund covers three to six months of essential expenses, including mortgages, utilities, and groceries. If you don’t have enough saved, create a plan to build this over the next year.
Budgeting for Success
Additionally, budgeting is a simple yet effective way to track expenses, save consistently, and then give yourself permission to spend within your means.
Health Savings Accounts (HSAs)
For risk management, if you’re enrolled at a high-deductible health plan, consider contributing to a health savings account. Contributions there are tax-deductible, the earnings grow tax-free, and the withdrawals for qualified medical expenses are tax-free as well.
Review Workplace Benefits
Review your workplace benefit plans and update your coverage if necessary, especially if you’ve experienced a major life change like marriage, divorce, or childbirth. Your employer also may incorporate what’s called a flexible spending account in which you can save pre-tax dollars for out-of-pocket expenses.
Charitable Contributions
If you itemize deductions, annual gifts or qualified charities can help reduce your tax liability while giving back to causes you care about.
529 Savings Plans
Consider contributing to a 529 savings plan for a child or grandchild. It’s a great way to help fund their future education.
Roth IRAs
Roth IRAs are also an excellent tool for building tax-free retirement savings. With benefits like no RMDs and tax-free withdrawals after age 59 and a half, there’s simply nothing better.
Diversify Your Investments
Take time to review your portfolio and confirm that it’s properly diversified, especially given market volatility and recent inflation.
ESG and Impact Investments
You might also be considering incorporating ESG or impact investments that align with your values and your goals.
Update Beneficiary Designations
For estate planning, again, if you’ve experienced a major life event in 2024 like the birth of a child or family members passing, remember to update that.
Review Estate Documents
Review your estate planning documents like wills, trust, powers of attorney to ensure they reflect your current wishes.
Annual Gifts
Making annual gifts up to the annual exclusion amount also will help.
We’re Here to Help
At Ausperity, we’re here to help.
Reach Out to Us
If this list feels overwhelming, please reach out to us. With over 10 years of experience, I’m passionate about helping clients improve their financial plans and enjoy their lives and wealth to the fullest. The Ausperity private wealth team has the tools and the knowledge to help get your financial house in order this year.
Please call me at 856-252-0103 or email me at [email protected] to set up a complimentary meeting.
Thanks and have a great day.
