How are we at mid-October already?
I remember just looking forward to the start of the summer, to enjoying all things that come with the warm weather, and here I am, with the heat already coming up in my house (hello return of the heating bill).
As I contemplated some things I wanted to share with you, I know that the holiday season will be here before we know it, and then, we will be too focused on Thanksgiving and then the Holiday Season that we won’t have time to think – and forget it if you have a kid in travel anything. The tournaments: the specific dates, when to book the hotel – where are we even going? Yes, lots of questions that need to be answered.
So, before we get there, I want to help you think of some things that you should be considering before we have to deal with all those other things.
1) It’s almost Open Enrollment season. Don’t just assume that all your choices should be the same as last year. What are some new benefits that have been added? One that I’ve seen my clients use more frequently is access to attorney services to help them draft their estate planning documents. If this is something that is available to you, please make the time and get it done. If you need to sign up for the benefit, do so and take advantage when it becomes available next year.
2) Had a change in marital status? It’s very important that you review your beneficiary on all accounts that require a beneficiary. Matter of fact, even if the account does not require a beneficiary and your bank allows you to do so, it would be wise to add one. For accounting purposes, try to simplify your financial life where you can. No need to keep many (small) accounts in various institutions.
3) Are you in a position to max out your retirement plan? If you are under 50, you can put away up to $24,500 for 2026, and if you are over 50, you can put away an additional $8,000. Even if you are behind, you can still bump up your contributions before year end and get the benefit of saving more (and a tax deduction if it’s in the traditional plan). As an example, if you are under 50 and making $250,000, you would need to contribute roughly 10% of your gross income to max out. Between 60-63, you are allowed super catch-up contributions. I’m a witness to what happens over time with automatic investments and the growth that can come from long term investing.
4) Even if you have a workplace plan, and you have earned income, you have the opportunity to put away monies in an IRA or ROTH IRA (check earning limits). Under 50, and you can put away $7,500 and over 50 have an added contribution of $1,100. Make sure it’s not just sitting in cash when you put it away. The real benefit comes from having it invested over time.
5) Start planning how you will use all your Flexible Spending Plan (FSA). Often, this is a use it or lose it situation. Don’t overfund if you are unable to spend it down by the time given (some offer a small grace period window). Have access to an HSA (Health Savings Account)? Worth exploring if it makes sense for you. An HSA has great benefits, including: pre-tax dollars for contribution, investments grow tax-free, and then withdrawals are completely tax free when used for qualified medical expenses.
6) Over 73 by year end this year? It’s very important that you take your Required Minimum Distribution (RMD) from your traditional IRA/401k. If you’re still working and contributing to a current 401k, the RMD rules are a bit different. While the rules have changed from prior years, there is still a penalty of 25% excise tax on the amount you should have taken if you don’t take it.
7) Think about how this year went from an income/spending perspective. Where are you now? Do you need to make changes prior to year end? Are there W-4 adjustments that need to be made? What changes will you bring into the new year with you? Remember, good habits are created over time – not just one and done.
There’s a lot here. You may not need to do everything that is listed here – or you might need to space them out in a way that makes them happen. What will be your plan of attack?
And, if you need additional guidance to ensure you are doing the things that you need to help you to achieve your short term and long term goals, please do not hesitate to reach out to me.