End of Year Financial Checklist for the Next Generation of Investors

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M Caton
Maria Caton, CFP®, ChSNC®, AAMS®
Senior Vice President - Manager of Financial Planning Services, Team Leader
[email protected]
941.366.7222 x50666

Whether you are early in your career or have started a family, as a member of the next generation of investors you face your own set of unique needs. Below are key tips to ensure you are off to a financially healthy 2022!

Spending Budgets: Review your 2021 spending and create your 2022 spending budget. The past two years have been full of change for many working in different ways or facing unemployment challenges. Now is an ideal time to reevaluate needs and create a realistic, maintainable budget.

Insurance: Review your current insurance portfolio to make sure it meets your coverage needs. This applies to health, life, disability, and property and casualty insurance. If you have had a major life event occur this year, such as marriage, a new baby, change in job, or home purchase, this takes on even greater importance.

Healthcare: Many early-career workers have high-deductible health insurance plans combined with some type of tax-advantaged health savings account, such as a flexible spending account (FSA). Check your balance and see how much you have left to spend because these balances are “use it or lose it.” Many employers offer a grace period, and some allow you to roll over a portion, if not all of the balance into the new year. If not, you will need to exhaust the funds by December 31 to avoid any forfeiture.

Retirement Savings: The maximum contribution limit for 401(k)s increases by $1,000 in 2022 to $20,500. If you have a plan through your employer, aim to increase your contributions, if possible. Many do not take advantage of increasing contributions when they receive a salary increase or bonus. These are easy ways to help boost retirement savings, and more importantly, benefit from the gift of time.

Credit: Many young investors are still building or establishing credit. Getting a credit card is an important step if you are able to manage spending and confident in using one responsibly. It is vital to pay bills on time, limit the use of credit, and pay off debts. Additionally, you should be sure to check your credit score. Federal law gives you the right to access a free copy of your credit report every 12 months.

These are just a few important steps you can take to ensure you are on track for financial success. Recognizing everyone’s situation is different, we welcome you to speak with our team. We can help tailor your strategies to your personal financial goals.

This material is provided for general information purposes only. Canandaigua National Trust Company of Florida is an affiliate of Canandaigua National Bank & Trust. Investments are not FDIC insured, not bank deposits, not obligations of, or guaranteed by, Canandaigua National Bank & Trust or any of its affiliates, including Canandaigua National Trust Company of Florida. Investments are subject to investment risks, including possible loss of principal amount invested. Past performance is not indicative of future investment results. Before making any investment decision, please contact your legal, tax or financial advisor. Investments and services may be offered through affiliate companies.

Posted by Estey Gerstner at 10/27/2022 03:06:11 PM