Get Your Finances in Order Before the New Year

The article recommends using the weeks before the new year to review finances and handle practical tasks already on the calendar. It suggests using FSA funds, considering whether to change FSA or HSA contributions, making an extra 401(k) contribution if possible, checking credit reports, and rebalancing investments when needed.

Reading notes

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• Use FSA money before the year ends, or roll over up to $500 if the employer allows it.
• Review whether FSA or HSA contributions should change for next year based on medical needs.
• Consider increasing 401(k) contributions if it fits the budget; IRA contributions for the year can still be made until April.
• Check free credit reports, and freeze them if no near-term credit application is planned.
• Revisit portfolio allocations, risk tolerance, and long-term goals, and rebalance if necessary.
• Use the new year to take stock of financial progress, debt, retirement options, and other guideposts.
• Pick something to look forward to, such as a vacation or a book, as part of using money with a purpose.
• Set a financial goal for 2019 and write it down to clarify what will be needed to make it happen.