Over the weekend, my son who lives in Nashville, came to Atlanta to visit me. It has been a tradition for us to sit together and do an annual financial review at year end. He graduated from college in 2018 and has spent almost 4 years working as an IT professional.
I wanted to share this with you all because some of you may find this helpful as this year comes to a close.
So, these are the items that we covered in this year’s financial review:
- Previous employer 401(K) plans: In the past few years, he has changed jobs a couple times. We looked at his two previous 401(K) plans and decided it is better for him to consolidate and move everything into one place.
- HSA plans with previous employers: Same as the 401Ks, consolidate and stay invested.
- IRA conversion: With the current market situation, we looked at the suitability of converting his traditional IRA into a Roth IRA. Each situation is different, but he made the decision best for him.
- Reassess automatic savings plan: We reviewed his automated savings process and checked if we need to adjust his savings amount, as his income increased. He went ahead and made the adjustment.
- Goal planning for the new year: We went through his general goals for next year. What’s his spending budget for 2023 and what’s the savings goal for 2023? Do we have the system in place to reflect these goals?
After our annual financial review, we set up our Christmas tree. I love the traditions that we have created together.
If you work with a financial professional, have a conversation with them and take the time to do a year-end financial review for yourself or your family. If you wish, send me a message and I would be happy to give some guidance.
Best wishes for a wonderful holiday season and a Happy New Year!