4 Critical End-of-Year Financial Planning Tasks for Advisors, Clients
Published December 13, 2011 11:26 AM
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Updated June 22, 2016 4:10 PM
1 Min Read
4 Important End-of-Year Financial Planning Tasks for Advisors, Clients
Before putting a bow on 2011, advisors and their clients should take the time to nail down these four key aspects of their finances to ensure financial planning success in 2012, according to M&I, a part of the BMO Financial Group.
Everyone wants to save money and prepare themselves and their families for the future. But that can only happen if clients establish well-defined goals and take the necessary steps to put advisors’ strategic advice to work.
Here are the Top 4 end-of-year financial planning tasks every client needs to complete:
Everyone wants to save money and prepare themselves and their families for the future. But that can only happen if clients establish well-defined goals and take the necessary steps to put advisors’ strategic advice to work.
Here are the Top 4 end-of-year financial planning tasks every client needs to complete:
1. Budgets<br><br>
Review your monthly budget and track your spending. Keeping track of where your money is being spent will highlight unnecessary expenses. Begin saving today. A savings account can help when life throws an unexpected curve ball. Ideally, build an emergency fund that could pay your necessary expenses for six months.
Creating budgets with your children is also a great way to teach kids about money and the difference between a need and a want.
"The Helpful Steps program starts with kids as young as five years old," said Kara Kaiser, regional president for M&I. "Giving kids a financial education will prepare them for every stage of life, from saving for college to buying a house."
Creating budgets with your children is also a great way to teach kids about money and the difference between a need and a want.
"The Helpful Steps program starts with kids as young as five years old," said Kara Kaiser, regional president for M&I. "Giving kids a financial education will prepare them for every stage of life, from saving for college to buying a house."
2. Retirement<br><br>
Examine how much you've been putting in your retirement account this year. If possible, plan to contribute the maximum allowable amount to your 401(K) and take advantage of your workplace retirement plan to gain matching contributions. If your workplace does not have a matching program consider a Roth IRA.
3. College<br><br>
College planning is essential for every family whether you are just starting out or are planning to support a grandchild's education. If you have not started preparing for future college expenses, start now. College savings plans can offer considerable tax benefits.
Each state offers residents a 529 college savings plan that provides tax benefits or other perks to help parents and students prepare for college bills.
Each state offers residents a 529 college savings plan that provides tax benefits or other perks to help parents and students prepare for college bills.
4. Investments<br><br>
Invest wisely. Investigate investment options to determine which is best to meet your financial needs. A few options include money market accounts, CDs and government bonds, and IRAs. Solid investments can reap dividends in the future.
