Financial Moves You Can Make In The Fall

There are financial moves you can make in the fall to prepare for the holidays and upcoming tax season. With a little year-end planning you can create a strategy for holiday spending and avoid having to charge gifts, and ensure your ducks are in a row at the beginning of tax season instead of scrambling to get organized at the last minute. Begin by reviewing your account balances including checking, savings, and retirement. 

If you happen to notice monthly membership fees being deducted from your checking account when you haven’t been using the services, cancel them. If you’ve been working on paying off debt to save and invest towards retirement, your new goal will be to look for ways to cut back even further on unnecessary spending to save specifically for Christmas or Hanukkah gift buying. Set a goal to only use your credit cards during the holidays if you have the money in the bank to pay it off immediately. This will help you begin the New Year with a more positive income-to-debt ratio. 

Evaluate your retirement accounts and consider increasing your contribution. An individual can contribute up to $24,000 in their 401k for the 2024 tax year. Contributions to traditional 401ks are made with pre-tax dollars. The max contribution for an IRA is $7000, or $8000 for those 50 and older. If you have yet to reach the allowed amount and have the money to contribute more, do so. Depending on the type of IRA, you may get a deduction on your 2024 federal taxes. If you need any help with tax planning and tax strategy, we’re here for you. Contact Alloy Wealth Management at 800-689-3935 to schedule an appointment.