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Make Some Financial Resolutions Before Your New Year Resolutions

Well, we’ve almost made it through a tumultuous 2020 with many different factors contributing to an up-and-down economy including the effect of COVID-19/coronavirus on our economy, a back-and-fort Presidential election, and other tension in our world.

At Annuity Alliance, our team doesn’t want you to lose track of your financial future with all of these distractions that probably have affected your retirement planning. Sticking to your strategy is very important as you want to enjoy those retirement years without worrying about running out of money.

Here’s a few tips to keep your retirement planning on track.

  • Don’t get distracted by the holidays. Everyone will provide you with an extravagant list of presents, but they don’t need every gift on the list. Make careful purchases that don’t leave your emergency fund or current bank accounts a bit lighter after Christmas as January and February could take their toll on your funds.
  • Don’t waste the money in your flexible spending account. You should contact your healthcare insurance provider to find out when the deadline is to use those funds. Schedule some doctor, specialist, dentist or even optometrist appointments to use those funds without losing them. It’s the perfect time for that annual physical or checkup.
  • Think about donating to a charity or two. Most charities are struggling this year as fund-raisers and other donations aren’t as plentiful due to cancelling events. Making a donation is tax deductible and will go a long way toward helping their efforts.
  • Do you have to take a Required Minimum Distribution (RMD)? If you must take that money out, what can you use it for? One idea could involve placing that money into an annuity to earn tax-deferred interest! If you are still working and don’t have RMDs to worry about, think about contributing to your company’s 401(k) especially if they match a certain percentage.
  • How is your credit rating right now? Most people do not check their credit rating on a regular basis. When was the last time you checked your credit report? It’s a good idea to see what your credit rating is in case you need to take out a loan or line of credit for an unforeseen circumstance.

Annuity Alliance hopes these tips will give you some “fall” cleaning to your financial portfolio and retirement planning strategy. If you are looking for further assistance, please contact Annuity Alliance and we can connect you with a licensed professional.