Many of us make New Year’s resolutions to lose weight, eat healthier, exercise more, read more… This year why not make a resolution to review some overlooked areas of your financial life?

Review Retirement Savings

Contribution limits have increased for 2023 – do you need to update your deposit or payroll instructions to take advantage of the new savings limits? Will you turn 50 in 2023 and  are now eligible to make catch-up contributions?

2023 Contribution limits

  • 401(k)/403(b)/457 = $22,500 + $7,500 catch-up
  • SIMPLE IRA = $15,500 + $3,500 catch-up
  • IRA/Roth IRA = $6,500 + $1,000 catch-up
  • HSA = $3,850 Individual or $7,750 Family

Review Insurance Policies

When was the last time you reviewed your Home/Renter/Auto/Umbrella policies to ensure coverage limits are adequate? Can you afford to raise your deductibles to save on premiums? Do you qualify for any discounts (veteran, bundling policies, senior rates, good student, etc.)? Contact your agent and schedule an insurance review.

Review Budget

Inflation was the talk of 2022, and it is not going away so it may be time to review and update your household budget or consider starting one by tracking spending for 3 months using an App (Mint, Rocket Money, NerdWallet), spreadsheet, or pen & paper.  Can you save money on subscriptions you no longer need (Streaming services, online services, etc.) or making coffee at home more?

Review Savings

Is your emergency fund adequate? We recommend 3-6 months of expense in a savings or money market account.  Additional cash reserves should be working for you – consider putting excess cash in CDs, I-bonds, or other safe options to take advantage of higher interest rates.

Review Debt

Interest rates have increased over the past year, are you paying more on your debt? Could you save by consolidating debt or taking advantage of a lower balance transfer promotional rate?  Can you increase your payments and accelerate debt payoff?

Review Charitable Giving

Do you regularly or periodically give to church or charities?  Review who, what and how you give.  Is it the most tax-advantageous option available to you? Are there organizations you no longer want to give to or new causes you want to support? Review charities you support on Charity Navigator, CharityWatch or GuideStar to evaluate the organization on a number of metrics. Do you want and can you afford to give more?  Have you incorporated your charitable giving into your estate planning?

If you would like any help with these areas of your financial life or have any questions or concerns, please reach out to us here at AEGIS Financial.  We are always happy to help.