April is financial literacy month! Financial literacy is at the heart of the tax smart financial advice we deliver at Parker Advisors. With spring in the air take a moment to spring clean your finances with these FIVE key steps:
1. Organize For Taxes. Use the looming tax deadline as a planning opportunity.
- Owing tax this year? Perhaps it’s time to shuffle money from one pocket to another by placing funds into a qualified retirement account, lowering your taxable income.
- Getting a refund? Could be an opportunity to put money towards a savings goal, or build an emergency fund.
In either case, it’s a great chance to consider resubmitting your W-4 form to adjust your tax withholding for the future tax year.
2. Clean Up Your Paperwork.
Be proactive and create a tax file for the upcoming year now to conveniently store important documents, collect receipts, and keep a copy of last year’s return. Not sure how long to keep records? Click here to visit the IRS website for details and suggestions.
3. Refresh Your Budget.
With summer vacations and activities on the horizon, plan and budget for these irregular expenses now. Utilize rewards programs by planning ahead. Take a moment to also review and cancel any unused or unnecessary subscriptions.
4. Automate Your Banking.
Many financial institutions are able to set up automatic bill pay for recurring charges and automatic withdrawals to move money from your checking account to your investments or savings account. Not only will “paying yourself first” help set boundaries on spending, it is also key to building wealth. Building wealth is a marathon, not a sprint!
5. Simplify Your Savings & Investments.
Randomly scattered IRA’s or 401(k)s from former employers can leave you feeling out of touch with your investments and create asset allocation drift. Clean up investment clutter and remove unnecessary complexity by consolidating accounts with a trusted financial advisor. A financial advisor can create a portfolio that supports your goals and provide advice on countless other financial decisions.
Parker Advisors has a team of professionals which combine tax and accounting services with financial planning to help streamline your finances. Connect with our team to ensure your efforts reflect your future goals!