New Year’s Goals for 2023

We have officially entered 2023 and time is flying! New Year’s intentions can help us target our goals for the new year and beyond. Resolutions don’t have to be limited to physical health – it is crucial to take care of your financial health, as well. Here are a few tips that can help you get started.

1. Start Investing – Use the new year as an impetus to start investing or simply increase your existing retirement savings. Most retirement plans at work (401k’s, 403b’s) will see a slight increase in their contribution caps in 2023 to $22,500 with a $7,500 catch-up contribution if you are over age 50. Traditional and Roth IRA’s see an increase at $6,500 a year with a $1,000 catch-up if you are over age 50. See the Tax Corner update for more increases in allowed contribution amounts. You still have until tax-filing deadline (April 18th, 2023) to get your 2022 contributions completed.

2. Complete a Financial Plan – this is a great time to review your financial goals or set new ones for the new year and beyond. Focus on key tasks that will help you stay on track, such as budgeting, paying off debt, building your cash reserves, etc. Seek a financial advisor to help you in all aspects of planning, from cash flow to retirement and estate planning. Focus on living within your means, look for a higher paying job, or side hustle to increase income.

3. Check your credit report – use the following website to check your credit reports for free from any of the three credit reporting agencies – Experian, Equifax, or TransUnion. For a nominal fee, you can also obtain your score. Use these to monitor your credit report, close unwanted or old accounts, or place a freeze on your account to protect against unauthorized account opening.

4. Review your existing investments and adjust your risk tolerance to your age or goals as needed. Make sure to rebalance your accounts, especially after the tumultuous year we had in 2022. Re-evaluate your work benefits and make sure you are properly covered for unexpected events, too. This includes, but is not limited to, health, disability, and life insurance. This is also a great time to review your beneficiary information.

5. Assemble your financial team – hiring a financial advisor can help provide you with the knowledge to navigate all aspects of your financial lives and help regulate emotions that come with investing in the markets. An advisor, along with a great tax preparer (or CPA) and estate planning attorney, are key people to make sure all aspects of your plan are buttoned up and ready to tackle the new year!