Tips to keep your financial house in order.
As April approaches, you may find yourself rifling through receipts and auditing accounts in preparation for filing income taxes. While looking back at 2022, however, you can resolve to get your financial house in order for 2023-24.
Jennifer Lahaie, owner and founder of JEHM Wealth & Retirement, says tax season is the perfect time to do some spring cleaning in your financial life. The idea is to be proactive versus reactive if you want to avoid the last-minute scramble next winter and feel better about your long-term goals.
Many people seek advice from accountants this time of year, but retirement advisors can develop comprehensive strategies for maximizing resources and ensuring both your retirement and estate plans are in order—and your tax liability is as low as possible.
“There are still some things you can do before you file. For example, you can make contributions to an IRA up to the day you submit your return, but it’s really time to assess your full financial picture and look ahead to the next tax season and well beyond,” advises Lahaie.
One easy measure many fail to take is simply making a master list of all accounts. “Get clear on what you have and where it is so you’re not missing anything. You may simplify things by combining multiple retirement accounts or getting rid of old insurance policies you no longer need,” Lahaie says. Another basic element of financial housekeeping involves naming beneficiaries for all accounts including checking, savings, money markets, and CDs.
“We basically create a macro and a micro plan, starting with an overall review and making any necessary adjustments as we revisit each person’s situation twice a year,” Lahaie explains. “Your financial advisor should be reaching out to you.”
