#126 | End of year financial reminders + goals check-in

December 6, 2021

Episode Summary:

 In this week’s episode, we review important end-of-year financial reminders and do a goals check-in. First, we review the 2021 financial checklist we shared at the start of the year and focus on the most important items to remember before the end of the year, such as using your FSA dollars, maxing out your 401k and IRA, and   Don’t worry; there’s still time!  We also discuss our 2021 goals, how we did, and our takeaways from the year. Finally, we encourage you all to take some time to review your 2021 goals, so you’re celebrating your wins and taking your learnings into 2022.  

Episode Notes:

We walk through the parts of our 2021 financial checklist that are most applicable at the end of the year and suggest more detailed episodes to check out if you want to dig into more detail.  The most important items to remember at the end of the year include:

  • Max out as much as you can put into your 401k, 403b, rothIRAs, and/or IRAs
  • Do your backdoor rothIRA conversion if you take that approach
  • Check your emergency fund, brokerage accounts, etc., and review how you’re doing versus your goals. Then, consider and take action on any changes you want to make.  
  • Max out your college savings 529 plan contributions if you want to take advantage of your state’s tax benefits for college savings contributions.  
  • Review any of your debt and see how you’re doing paying it off.  
  • Make sure you’ve used all of your FSA or DCFSA funds before the end of the year.  Review what you’ve already spent, and make plans to use any remaining funds before the end of the year as they are “use it lose it” funds.
  • Be thoughtful about your medical expenses and review your deductibles to optimize when you plan for certain non-urgent medical needs.  
  • Claim any other financial benefits that your company offers before the deadlines; for example, some companies have programs like Virgin Pulse to earn health savings dollars.  
  • Review your expenses and how you’ve done throughout the year on spending versus your goals. 
  • Prepare yourself for 2022 goals and decide what you want to tackle next year.  
  • Consider if you need to sell any stock to optimize for tax-loss harvesting.   
  • Consider any charitable giving you’d like to do before the end of the year.  

We also run through our 2021 goals and share all of the areas where Maggie’s beating Mike.  Only half-joking, Mike’s also doing awesome against his goals!  The purpose of this discussion is to thoughtfully and intentionally set and review goals.  Don’t beat yourself up if you’re missing some, especially if you know why and you’re aligned with the tradeoffs you made throughout the year. Instead, feel good about the progress you’ve made, the learnings you’ve gathered, and take that momentum into wrapping up 2021 strong!

 

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