It’s hard to believe that September is approaching its end. Fall is here and we’re looking at only three short months left in 2021! Just because the year is winding down doesn’t mean you should shelve thinking about your finances until the next one arrives. Consider using this time to straighten your financial house by:
- Tax Planning
The waning weeks and months of a calendar year is the perfect time to review your tax plans. You’ve likely already accrued most of your taxable income for the year and know what’s left to come. If you have some room in your tax plans for additional income, make the most of this knowledge by implementing strategies that suit your goals, like:
Tax loss harvesting on non-registered investments.
De-registering additional retirement funds.
Selling appreciated property at a known tax rate.
- Rebalance Your Portfolios
I’ve written before about the dangers of portfolio drift. The final quarter of the year is a perfect time to think about strategically rebalancing your investments to get back in line with your target allocation. If the markets this year have been kind to some of your holdings (and less-kind to others), you’re not alone! Rebalancing will reset your portfolio to its intended alignment and keep your level of risk under control.
- Revisit Your Retirement Plan
The past few seasons may have sparked a few creative ideas or altered your goals for how to spend your retirement years. If last winter had you craving more travel, spring inspired you to buy a cottage, or summer has left you eying boats and RVs, you should talk about it. Don’t internalize shifting priorities. Have a conversation with your partner and with your Financial Planner to adapt your retirement gameplan for your newfound wishes.
- Bust Open Your Budget
Christmas is only three months away. Halloween is only five weeks away. Thanksgiving is closer still. The fourth quarter of the year is always filled with an uptick in spending so don’t get caught unaware. If you’re using credit for these non-routine purchases, be sure to plan for how to pay it back. If you’re dipping into savings, know which account it’s coming from and what your limit for spending will be. Doing so will help ensure your January credit card statement isn’t as terrifying as in years past!
Ending the year on the right financial footing is a great habit to build! Don’t let this window of time close without considering all the options available to improving your financial health. Having the hindsight for what has occurred already this year, plus the foresight to see ahead, is a valuable position to be in. Your future self will thank you for it.
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