Financial checkup for 2021

​There are many benefits to planning as we head into year end.  Having a solid financial footing helps with all of the levers of financial management including tax planning, retirement savings, and protecting your loved ones.

The 4th quarter is upon us and tax reform is still a possibility by the end of the year.  It is hard to say whether our government will be able to get anything passed before year-end but it is good to be prepared and know where you stand one way or the other.  

​If we have some clarity before year-end, Mosaic Fi stands ready to help you navigate and make sound decisions.  We will also send you the updates as they become available.

We have put together some planning tips to consider before the end of the year.  It is a best practice to cover these items with your financial advisor and tax advisor to make the most of your situation.

• Organize. Organize. Organize.  Life is so much easier when your documents and finances are organized and at your fingertips.  Organizing will simplify and de-stress your life. 
  
• Many people have inadvertently accumulated accounts at several financial  institutions.  If it makes sense to combine them, do so.  For the digitally savvy, pulling up one portal is much easier than checking several portals.  
  
• Mosaic Fi provides a secure personalized portal that houses all accounts and financial information including a vault for sensitive documents like wills, trusts, passports, etc. If you have not signed up for MyMosaic please let us know and we will get you enrolled.
  
• Do you need more than one checking account?  If not, combine accounts into one and close the extra accounts.  More accounts mean more room for fraud.
  
• Retirement accounts:  Are you maximizing contributions and catch up contributions?  Is there room to add more dollars?
  
• Check beneficiary designations- are they as they should be?
  
• Review your spending and savings strategy.  
  1. Can you save more?  The more financial flexibility you have the more lifestyle choices you have.
  2. Do you have a budget?  Are you tracking?  Live within your means and be intentional with your spending and savings.
• Revisit your investment strategy.  What is your appetite for risk and is your current asset allocation supportive of your risk tolerance?  Has anything changed over the past year in terms of time horizons, goals, intentions?  Make sure you mention and discuss with your advisor to ensure your assets are being managed appropriate to different time horizons and objectives.
  

• Estate planning: Get your wills, POAs and other estate planning updated.  Do the right people have access to them?
  
• Review your insurance policies- Do you have enough?  Too much?  The right coverage.
  
• Tax Planning:
  
  1. Do you have any losses in your taxable accounts to harvest?
  2. Are you in a window of opportunity to do a partial Roth Conversion this year?
  3. For 2021, there are a number of upcoming changes to the tax code.  Check with your accountant to make sure you are making the most of your situation.
     
  4. Gifting and charitable donations-
     1. Have you made all of the gifting and charitable donations you intended to this year?
     2. Have you considered a Donor Advised Fund to take full advantage of the tax benefits of charitable donations?

If any or all of these tips resonate with you, we can help you navigate through them as well as help you set goals.  Please let us know if we can be of assistance.

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