Broker Check
Financial Tips for the End of the Year

Financial Tips for the End of the Year

November 25, 2020

It is crazy to think the end of the year is right around the corner! Can you believe that 2020 is coming to an end? It has been a different year, that’s for sure. There are numerous things you can do with your finances before the end of the year in order to be ready for 2021. Keep reading to learn how you can improve your finances by the end of the years. 


  1. Make a Budget and Stick to It


Budgeting is a great way to close out the year. It is a great way to straighten out your finances,  regardless if you feel you need a budget or not. This year has created a lot of changes for millions of Americans, so it is beneficial to be on top of your spending habits, especially as we enter a new year soon. Not only is it beneficial to analyze where your money is going, but budgeting can help you organize your future spending as well. It can also give you the freedom of guilt free spending because you’ve budgeted for that shopping trip, massage, or whatever it is you like to spend a little extra on each month.


  1. Speak with Your Advisor About Your Goals


It is always a good idea to speak with your financial advisor regarding your goals for your financial future. As the end of the year approaches, make  sure you are scheduling those meetings. Your advisor will be able to help you determine your current financial status, whether that is your savings, investments, and current assets. If you have a family that you need financial planning for, the end of the year is a great time to reconvene and  figure out the steps you need  to take next year for a successful financial year for yourself and your family members.


  1. Consider Converting to a Roth1


Millions of Americans have experienced a decrease in income this year as a result of the coronavirus pandemic. If you are in a lower tax bracket, it can be in your best interest to convert your traditional IRA to a Roth IRA. Why? Well, Roth IRAs allow your earnings and contributions to grow tax-free. If your income is too high, ask your advisor about a backdoor Roth strategy, as this may be more applicable to your current financial situation.


As you can see, there are some important things to do prior to the end of the year. As January quickly approaches, make sure you are staying on top of your finances. These three tips are great starting points for getting your finances ready for 2021.


If you would like to speak with one of our advisors about your finances and how to properly prepare them for the new year, we would love to speak with you! Give us a call at (713) 527-8998. We are here to help you gear up for the new year!



1Converting a traditional IRA to a Roth IRA is a taxable event and could result in additional impacts to your personal tax situation, including the taxation of current social security benefit payments. Be sure to consult with a qualified tax advisor before making any decisions regarding their IRA.