You just inherited a large sum of money. Now what? Whether it’s a few thousand, or a few hundred thousand, it’s important to make the most of your sudden windfall and leverage it to your financial benefit. Far too often, people who have a large sum of cash fall into their lap don’t take advantage of it. According to MarketWatch, one study found that one third of people who received an inheritance had negative savings within two years. So before you splurge on a new sports car or a tropical vacation, take time to evaluate your current financial situation so that you can maximize your inheritance for long-term financial security.
Many people resolve to improve their finances in the new year. In fact, according to Student Loan Hero, two-thirds of people made a financial resolution for 2017. If you’re among the one-third who hasn’t made a financial-related resolution, you may want to reconsider. The survey also found that the most common financial regret of 2016 was not saving or investing enough money. Here are three easy ways to save more money and take control of your finances in the new year.
The holiday season is in full swing, but before you head to the mall and start swiping those credit cards, it’s important to establish a reasonable budget and make a plan for keeping your spending in check. We have some tips for you to keep financial planning a priority during the holidays.
What does starting 2017 off with clean financial slate mean to you? For some, it could mean no outstanding credit card debt. For others, it could mean having finalized retirement contributions in place for 2016. Here are several steps you can take now to prepare for financial success in 2017.
Avoid Accumulating Debt
The best way to avoid excess credit card debt is to outline a budget for holidayspending. Planning ahead and putting money aside ahead of time is a great way to prepare for the extra spending of the holiday season. If you choose to make purchases using a credit card, be sure to pay off the balance before the interest starts adding up.
According to U.S. News, checking your credit score before applying for credit at retailers is imperative to financial health during the holiday season. Shoppers who are looking to to improve or maintain their score are less likely to open new lines of credit or charge purchases for holiday spending.
Remember Income Tax Planning
When you have family in town and are taking off time from work, it can be easy for financial planning to slip to the back of your mind during the holidays. According to Forbes, it’s important to take action on maximizing retirement plan contributions as well as seeking out opportunities for capital gains and loss harvesting. Furthermore, the end of the year is a great time to consider charitable gifting and maximizing annual exclusion gifts.
Don’t Wait to Max Out Retirement Accounts
According to US News and Money, it is better to fund your retirement account throughout the entire year so that the money has a longer period of time to grow. Otherwise, you’re missing out on a whole year’s worth of growth. As a New Year’s Resolution, you could opt to set up automatic contributions to your accounts that work within your budget. Starting in January, make monthly contributions to your IRAs and retirement plans and watch them grow significantly faster than waiting until the last minute.
Keep Total Spending in Perspective
It’s important to keep in mind that presents aren’t the only aspect of spending during the holiday season. You might be splurging on expensive dinners at nice restaurants because friends and family are in town, holiday parties, New Years festivities and other fun holiday experiences. It’s fine to take part in some of these festivities and splurge on a few things here and there, but remember to keep it under control. Don’t rationalize over-spending your holiday budget just to “eat, drink and be merry.”
Stop losing money to hidden fees and learn how to rescue your retirement portfolio from unnecessary costs.
Quit worrying about the recent volatility in the global capital markets. Your retirement portfolio may have a bigger problem. Yes, I know, we have been in a global bear market for stocks. The headlines are full of warnings, and retirement investors are nervous. I get that. I see it everyday in eyes of the retirement investors.
ONE Retirement's Estimating Your Retirement Needs whitepaper outlines the steps every person should take in order to plan financially for their retirement according to their lifestyle needs. These steps include the following:
It’s true. All of it” -- Han Solo, Star Wars: The Force Awakens
Financial security should be a fact, not a feeling.
Do you question your financial future?
Do you know what steps to take to make it secure?
Do you know whether you are building your wealth, preserving your wealth or spending your wealth?
Read through ONE Retirement's Investor: Know Your Important Numbers to get all the answers you need about securing your financial future.