Smart Year-end Money Moves

Many of us equate the end of the year as a time for parting with money rather than keeping it. However, there are several simple, smart money moves you can make to ensure you keep more of what’s yours and even get a jump on protecting your assets in the year ahead.

Maximize your healthcare coverage 

Regardless of whether you have traditional healthcare or health care flexible spending account (FSA) through your employer, now is the time to look at where things stand.

If you have a traditional health insurance, call to ask if you’ve met your deductible or out-of-pocket maximum. If you have that means your insurance provider is responsible for covering any expenses, you incur for the balance of the year. * If you’re aware of any screenings, procedures, or out-of-pocket expenses you’re likely to need soon, take care of them before the year ends and the clock resets on who’s paying for what.

If you have an FSA, ask your employer about your balance and what happens to unused funds. If unused funds don’t rollover into the next calendar year, make plans to spend it. Common qualified expenses include vision care, hearing aids, dental care, medical devices, deductibles, and more. Ask your employer for information on qualified expenses.

Use your paid time off (PTO)

For most businesses, the vacation/PTO calendar resets on the first of every year. Make sure you know if your company rolls any unused time into the next calendar year or if they have a “use it or lose it” approach. If it’s the latter, be sure take the time you have coming to you. You earned it and you will be paid for it.

We might also suggest using any time off to:

     ►  Review your credit score

     ► Shop around for credit cards with better interest rates

     ► Update passwords for all your financial and online shopping accounts

     ► Use two-factor authentication when possible for logins

     ► Review your online subscriptions and cancel those you don’t use

     ► Looking ahead, if you already have vacation plans set for next year, get them on your employer’s calendar to ensure you secure the dates you want.

Maximize your 401K

If you have an employer-matched retirement plan, be sure to maximize your contributions before the end of the year.   

Give so it doesn’t hurt

If charitable giving is part of your financial planning, be sure to donate before December 31.

However, there are a few key things to keep in mind as you consider to whom to give and how much.

To claim a deduction for charitable donations on your taxes:

     ► You must donate a gift of money or goods to an IRS-recognized tax-exempt organization and received nothing in return. For a list of contributions that allow for a deduction, click click here.

     ► In general, you may not deduct more than 60% of your adjustable gross income, but in some cases 20%, 30%, or 50% limits may apply.

Finally, if these efforts leave you with a little extra cash at the end of the year, consider paying down any high-interest debt to reduce your balance and how much interest you’ll pay overall. Even a small dent in the principal can lead to significant long-term savings for you.

DISCLAIMER: This article is meant for educational purposes only and is not intended to be construed as financial, tax, investment or legal advice.
*Health insurance plans and policies vary. Contact your provider using the number on the back of your member card to learn the rules of your specific plan.