Top 10 - Financial Task for the New Year

Forget Resolutions - Here are Ten Tasks to Do Today

In Letterman style, here are the Top 10 List of things you can do do to set yourself up for a fantastic 2024.

10) Build Your Emergency Fund. What will you do if you have an unexpected expense or loss of income? As a long term goal, you should have between six to twelve months of basic living expenses at your disposal for whatever the world may throw at you. Start today by setting up an emergency savings account and scheduling automated transfers into it after every paycheck.

9) Audit Your Beneficiaries. Each account you have has a listed beneficiary that will inherit those assets upon your death (regardless of your will). Take a few minutes to log into your savings, life insurance and retirement plans to ensure that you have the proper person listed as beneficiary.

8) Review the Interest Rate on Your Savings Accounts. Savings rates going into 2024 are still around 4.5%, so ensure that you are getting something close to that on your business and personal savings. Grab your bank statement and compare your bank’s rate with the best rates on NerdWallet. If you have more than the $250,000 FDIC limit at one bank, you may also want to diversify your savings across a few different banks.

7) Review your Parents’ Plans. While it may be a difficult conversation, there will be a time when your parents can no longer care for themselves. In order to avoid any surprises that may impact your own plans down the line, have a talk with them now about their financial portfolio and how they want to manage that into the future.

6) Budget for Your Priorities. Rather than considering budgeting as a restriction, view it as a chance to tell your money where you want to spend it. Today, start with the simple 50/30/20 budgeting framework by:

  • Allocating 50% to your housing and living needs

  • Committing 30% to savings and debt reduction

  • The remaining 20% being allocated to your wants, like vacations and jewelry.

5) Get Your Kids Involved. Just like understanding your parents’ financial plans, it is a good idea for your children to understand yours. This will vary widely based upon their age - from teaching basic financial lessons like “live below your means” to sharing your estate plans with your grown children. Find ten minutes today to connect with your children and share your financial values and plans.

4) Review Your Insurance Policies. Whether home owners, auto, disability or life, insurance is a necessary evil in the world. Today, focus on your personal policies and follow these tips to ensure you are getting the most for your money: Raise your Deductible, Eliminate Some Coverage, Ask for Hidden Discounts and Bundle your Policies.

3) Invest in Your Descendents’ Futures. If you have children or grandchildren (even nieces and nephews), the new Secure 2.0 rules that allow a 529 to convert to a ROTH IRA is great news. It eliminates the fear of the 529 being “trapped” if the child does not go to college. Two basic restrictions of the conversion option are:

  • Only $35,000 can be transferred

  • The 529 plan has been opened for at least 15 years

So if you have not already, open a 529 plan today for any child in your life, even if you hold off on fully funding.

2) Increase Your Contribution Limits. The new year means new contribution limits for all kinds of IRS tax rules. The two biggest are:

  • The 401k limit increase to $23,000 ($30,500 if you are over 50)

  • The HSA family limit to $8,300.

Take two minutes and log into your 401k or HSA provider and ensure that you are set to max out your 401k and HSA for 2024.

1) Tend to Your Well Being. There is no point to being financially well if you are not mentally or physically well. Budget some time and money over 2024 to ensure that you take care of yourself. Spend ten minutes signing up for that gym/yoga membership, spend another ten minutes making a list of people you want to spend time with in 2024 and finally, book that relaxing vacation you can look forward to.

Since every year is different and your financial needs are constantly evolving, please schedule a consultation with JNG Advisors today to discuss your practice and personal goals for 2024.

Jeff Gullickson