Financial Considerations
By Lis McNealey Davies, CDFA®
Owner, Financial Advisor
The new year is a great time to do a check in on your finances to help make sure you are keeping on track according to your goals. Our team enjoys catching up with our clients during these check-ups that can help keep you accountable to your goals and help make sure all your needs are addressed. Here are four items that are critical to reviewing.
Year-to-date income
Review your expected household income for the year. If you have 1099 salary, double check that you are up to date with your estimated tax payments. Any changes to income could potentially affect your taxes and you will want to plan accordingly for the tax increases or decreases. An example many clients face are tax issues with company stock options that are exercised throughout the year. Planning accordingly can help you manage your taxes when tax time arrives.
Changes in tax law
Review current tax law with your CPA and then work with your financial advisor to make any necessary changes to your portfolio. This year President Biden is proposing a large tax increase to tax rates, capital gains rates and estate tax rates. Although we aren’t sure what the outcome will be, it is important to stay on top of any new rulings so that you and your advisor can plan accordingly.
Review investment progress as it relates to your goals
Meet with your financial advisor to confirm your current financial goals and then have your financial advisor run the analysis to confirm you are still on track to reach those goals. You will want to make sure your employer retirement plans are fully funded and make any adjustments if you are short of the goal.
Retirement Contribution Amounts
For 2023, the IRS has increased contribution amounts. Individuals can contribute $22,500 into 401ks and if over the age of 50, an additional $7,500 can be contributed.
Is it time to schedule your financial check-up or are you looking for a fresh perspective on your finances? Give us a call and let’s get a date on the calendar.
Lis McNealey Davies is president of The Arlington Group Investment Consulting. A true leader in the female focused financial advisory niche, Lis builds upon the group’s strong foundation and core offerings to drive growth and champion the group as an emerging advisory company in the divorce, widowed and life transition niches. As a previous divorcee and mom to three wonderful daughters, Lis understands firsthand the importance of financial confidence.
The use of the CDFA® designation does not permit Wells Fargo Advisors or its Financial Advisors to provide legal advice, nor is it meant to imply that the firm or its associates are acting as experts in this field. Wells Fargo Advisors Financial Network is not a tax or legal advisor. Be sure to consult with your own tax and legal advisors before taking any action that may have tax or legal consequences.
Investment products and services are offered through Wells Fargo Advisors Financial Network, LLC (WFAFN), Member SIPC. The Arlington Group Investment Consulting, LLC is a separate entity from WFAFN.