SOMA Living December 2024

FINANCIAL FOCUS

CONSIDER THESE YEAR-END FINANCIAL MOVES

As the holiday season approaches, your schedule may get busier. However, take time to consider some financial strategies before 2025. Here are a few suggestions: • Review your investment portfolio. Ask yourself: Has its performance met my expectations this year? Does it reflect my goals, risk tolerance, and time horizon? Do I need to rebalance? Working with a financial professional can help you address these questions. • Add to your 401(k) and HSA. If possible, increase your contributions to your 401(k) before year-end, including “catch-up” contributions if you’re 50 or older. Also, consider adding funds to your health savings account (HSA) by the tax-filing deadline in April. • Use your FSA dollars. A flexible spending account (FSA) operates on a “use-it-or-lose-it” basis. If you have unspent funds, try to use them in 2024. Check with your HR department about any possible extensions. • Contribute to a 529 plan. If you haven’t opened a 529 education savings plan for your children, consider doing so. Earnings grow tax-deferred, and withdrawals for qualified education expenses remain federally tax-free. • Build your emergency fund. Aim to keep up to six months’ worth of living expenses in a liquid, low-risk account. This fund prevents you from dipping into retirement savings for short-term needs. • Review your estate plans. Update your documents if your family situation changes. Check beneficiary designations on investment accounts, as they can supersede your will. • Take your RMDs. If you’re 73 or older, withdraw required minimum distributions (RMDs) from your retirement accounts to avoid penalties. These moves can benefit you in 2024 and beyond.

Gary T. Jones 973.821.4900 • g.jones@EdwardJones.com

With over 25 years of experience, I work with individuals and businesses to help you achieve your financial goals. As a longtime resident of SOMA, I am proud to serve the local community. To learn more about the content of this article or schedule an appointment to talk about your goals, please contact me in my Maplewood office.

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