TO SHRED OR NOT TO SHRED ? a bright idea
Wondering how long you should keep important documents , such as bank deposit slips , expense reports , purchase orders , and more ? Download your free copy of Rea ’ s Record Retention Schedule at www . reacpa . com / record-retention-schedule for guidance .
• Shred old documents . Financial documents you no longer need , such as bank and investment statements , should be destroyed to ensure they don ’ t fall into the wrong hands .
JULY
• Research 529 savings plans . Withdrawals from 529 plans are tax-free when used for qualified higher education expenses , making them an excellent way to save for a child ’ s or grandchild ’ s schooling .
AUGUST
• Review online accounts . Review your usernames and passwords . If they are too basic or if you ’ ve held onto them for too long , change them as a security precaution .
SEPTEMBER
• Assess your overall investment goals and strategy . Reevaluate your financial goals at least annually , especially if you ’ ve had any major changes pop up , and adjust accordingly .
• Revisit your budget . Look back at the plan you made in January , and decide whether to adjust your budget or stick to your current strategy .
OCTOBER
• Contact your CPA for year-end tax planning . Before tax season hits , make an appointment with a CPA to discuss your tax strategy and any changes that may have occurred over the last year .
• Consider charitable giving . Donating to charity at year-end is a popular way to give back while reaping potential tax deductions . It ’ s also another topic to discuss with your CPA .
NOVEMBER
• Review the balance in your flexible spending account ( FSA ). FSAs require special attention so that you don ’ t lose unused funds at year-end . Under a new law , employers may allow employees to roll over $ 500 in FSA funds to the next year . Check the rules of your FSA plan and review available balance .
DECEMBER
• Consider refinancing high-interest debt . Consolidating your mortgage , credit card , or car loan payments can make your financial life more efficient ( and possibly lower your overall interest rate ).
• Pay off credit card balances every month . Looking ahead to 2022 , make a resolution to pay off your credit card balances every month , if you ’ re not doing so already .
Although this may seem like a lot of information to take in at once , glancing at your checklist each month and preparing for important retirement-related dates can greatly improve your sense of financial security , granting you confidence throughout this year — and beyond . Contact your financial advisor to learn more .
MILESTONE EVENTS
In addition to the monthly tasks outlined here , keep these significant planning milestones in mind as you near retirement age :
AGE 50 : Consider making catch-up contributions to IRAs and qualified retirement plans .
AGE 55 : You can take distributions from 401 ( k ) plans without penalty if you ’ ve retired .
AGE 59½ : You can take distributions from IRAs without penalty .
AGES 62 – 70 : You can apply for Social Security benefits .
AGE 65 : You become eligible for Medicare .
AGE 72 : You must begin taking required minimum distributions from IRAs , 401 ( K ) s , and 403 ( B ) s .
This material has been provided for general informational purposes only and does not constitute either tax or legal advice . Although we go to great lengths to make sure our information is accurate and useful , we recommend you consult a tax preparer , professional advisor , or lawyer .
Securities and advisory services offered through Commonwealth Financial Network ® , Member FINRA / SIPC , a Registered Investment Adviser . Investment Partners LTD is a Registered Investment Adviser . Additional advisory services offered by Investment Partners LTD are separate and unrelated to Commonwealth . Fixed insurance products and services offered through Investment Partners , LTD or CES Insurance Agency .
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