As the year draws to a close, it’s a great time to complete a financial wellness check-up and get yourself ready for another year. Building good financial habits takes time, and in the U.S., the average person spends only about five hours per year on financial planning.¹ We want to help you lead the pack on financial literacy! Before you ring in the new year, here are five items we suggest you add to your end-of-year financial checklist:

Review your spending and saving.

Now is the time to reflect on your spending and saving habits so you can make adjustments as needed to meet your goals. Take a comprehensive look at your accounts. Are there any areas of spending you’d like to adjust? Are you saving enough? Do you have six months of expenses available in an emergency fund? With these answers in mind, it’s time to update your budget for 2021. (Beginner to budgeting? We’ve got you covered. Check out our budgeting tips.)

Set new goals.

If you’ve got a major life event upcoming, like a job change, marriage or birth of a child, it’s smart to add some financial planning to your end-of-year financial checklist. What changes will you need to implement to meet your goals? As you reflect on the past year, take some time to set some new personal goals and make sure to work them into your budget. (Do you use Grow online or mobile banking?² Try the Savings Goals tool for an easy way to chart your path.)

Assess your retirement plan.

Check your IRA, 401(k) and other retirement accounts. Is your current asset allocation meeting your planned retirement goals? Do you need to make any changes? The end of the year is a good time to reassess your retirement plan with your financial professional.

Need some help? We offer financial advising through CUSO Financial Services, L.P. (CFS), and a CFS Financial Advisor can help you build a financial plan that meets your needs.³ If you haven’t taken advantage of the chance to meet with a Financial Advisor, we encourage you to schedule a complimentary consultation.

Prepare for tax season.

It’s never too early to begin gathering important documentation to prepare for tax season. You won’t have your W-2s in hand yet, but you can begin getting other paperwork together, such as relevant receipts, and getting organized. Plus, consider making moves to reduce your tax liability for the year by maxing out your retirement account contribution, making a charitable donation or capitalizing on investment losses.⁴ We recommend talking to a tax professional, especially if your financial picture is more complicated.

Review insurance policies.

To wrap up your end-of-year financial checklist, you’ll also want to review your insurance policies and coverages. Since the cost of insurance can vary widely, consider comparing quotes from different providers to make sure you’re getting coverage at fair rates. Do you need insurance but hate shopping around? Grow members have access to comprehensive coverage at competitive rates with the convenience of a single-source provider, Quorum Insurance LLC.⁵ Quorum represents the best names in insurance and will do the research for you to help you select the best coverage for your needs and budget. Learn more.

¹Statistics provided by debt.com, based on a 2017 MarketWatch report, 2013 Gallup Poll, and data from Calendar.com.
²Additional data charges may apply. Please see your wireless carrier for more information.
³Non-deposit investment products and services are offered through CUSO Financial Services, L.P. (“CFS”), a registered broker-dealer (Member FINRA/SIPC) and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. The Credit Union has contracted with CFS to make non-deposit investment products and services available to credit union members. For specific tax advice, please consult a qualified tax professional.
⁴For specific tax advice, please consult a qualified tax professional.
⁵Quorum Insurance LLC is an affiliate of Grow Financial. Insurance products purchased through Quorum Insurance LLC are not deposits of Grow Financial and are not protected by NCUA. They are not an obligation of or guaranteed by Grow Financial and may be subject to risk. Business conducted with Quorum Insurance LLC is separate and distinct from any business conducted with Grow Financial. Grow Financial is in no way responsible for the services provided through this program.

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