End of Year Tactics to Set up a Better 2023
During the hustle and bustle of the holiday season, financial priorities often take a back seat as we’re coaxed into the daily merriment. Travel, festive meals, and gift giving become our priorities. While there’s nothing wrong with enjoying the magic of the season—we’re not scrooges after all—ignoring critical year-end financial responsibilities could be costly.
Let us help you count down to a prosperous new year with these three simple financial tips.
3 – Review your credit history reports for errors.
Inaccurate information on your credit report can inflate your insurance premiums, interest rates on loans and credit cards, and costs for everyday services. You are responsible for ensuring that your data from the three reporting agencies (Equifax, Experian, and TransUnion) accurately reflects your credit history.
Obtain a free copy of your credit history report from each reporting bureau by visiting AnnualCreditReport.com. If, on any of the reports, you find errors or credit details that don’t belong to you, follow the dispute policies provided by each credit reporting bureau to have the incorrect information removed. Doing so can raise your credit score quickly.
2 – Assess your workplace benefits.
If you have an active Flexible Spending Account (FSA) or Health Savings Account (HSA), you have some important decisions to make.
- For FSAs, check your account balance and program details to determine whether you need to stock up on health and medical support items before December 31 or whether you can request a balance rollover. While many FSA plans now provide more time to spend the money contained in the account, the funds will eventually expire.
- For HSAs, check your account balance to ensure that you’re on track to add in the maximum allowable contribution for the plan year. If you're financially able, complete the paperwork necessary to increase your deposits before the plan’s deadline.
1 – Evaluate your retirement savings.
If your employer matches your 401(k) or another employer-sponsored retirement plan, be sure to contribute enough to receive the full match based on your annual salary during the plan year. Some employers allow you to make a substantial deposit before year-end and will adjust their match accordingly. Taking advantage of an employer contribution match is the easiest way to add free money to your retirement nest egg. Speak with someone in your employer’s human resources (HR) department for further details. And, be sure to watch our SAFE Cents video for more ways to meet your retirement goals.
If you work for a company that does not offer a retirement plan or you’ve reached your annual contribution limit, consider opening a tax-advantaged SAFE Federal Individual Retirement Account (IRA). Savers can choose from a traditional or Roth IRA, depending on their financial goals.
Don’t wait until the decorations are down and the confetti’s been cleaned up to check on your financial progress—doing so could result in missed opportunities. Start your end-of-year review today!