Independent, Fee-Only Financial Advisor

Independent, Fee-Only Financial Advisor

Tuesday, December 28, 2021

A bit of New Year’s housekeeping…

New Year’s is my absolute favorite holiday. Typically by the last week of December, I’m still very much wrapped up in the holiday spirit, but the stressful part of Christmas is behind me. Some years we’re blessed with that cooler Mississippi winter weather which adds a little extra magic to that year-end holiday feeling. Many of us still have a few more festive days left before transitioning back into our everyday routines.

I love New Year’s because I enjoy reflecting on the year that is coming to a close. Even more than this, I love the anticipation and the planning for the year ahead: what goals to set for the upcoming year, what trips to plan, what new adventures to pursue! Planning for the new year can mean many different things, but most people would probably consider financial planning to be an important piece of that puzzle. I wanted to offer up a few end-of-year/beginning-of-year financial housekeeping items for consideration:

1.     Think about your saving and spending goals. Did you receive a raise/cost-of-living adjustment in 2021? If so, have you planned for how it will fit into your financial picture? You may wish to allocate a portion of any pay increase you received to your employer-sponsored retirement plan, your Roth IRA, or other retirement savings. You may wish to allocate a portion towards other savings goals – a vacation fund or new car fund, for example. It may be that nothing would make you happier than donating even more to that charity or organization that’s so dear to your heart. Whichever the case, now is a good time to put some deliberate thought into how you would like to use any additional funds now available to you.

2.      Look into any changes made to retirement account contribution limits. For 2022, the 401k/403b contribution limit has increased to $20,500. For those ages 50 and older, an additional $6,500 catch-up contribution can be made. Traditional IRA and Roth IRA contribution limits remain unchanged at $6,000, with a $1,000 catch-up contribution for savers ages 50+.

3.     It may be time to schedule a portfolio review. With each passing year, life continues to come at us full speed – our environments are constantly changing, and we may need to adjust our financial plan or our stock/bond mix to be more in-line with current life circumstances. Do you need to increase your savings, or perhaps (lucky you!) your spending? Would a Roth conversion save you money over the long-term? A meeting with your financial advisor could help you to answer these questions and more. Feel free to give us a call at 601-991-3158 or visit our website We’re always happy to discuss your options with you!

4.     Consider your legacy. Think about financial moves you can make now to help positively impact your family, your community, and/or the broader world. This could include beneficiary updates, college planning for children or grandchildren, or gifts to charitable organizations and other worthwhile causes. You have the power to make a difference!

Whatever your upcoming plans may be, we wish you a bright, joyous, and blessed new year! See you in 2022!