For me, News Year’s resolutions are something I put a lot of work into before the year ends. If I’m going to take steps to help improve my and my family’s financial future, I don’t want to make those choices simply because a certain date on the calendar arrives—I want to ensure that every decision I make comes from a place of knowledge and research.
This is why I think it’s important to take some time at the end of each year and do a financial checkup: See how well your portfolio has performed over the last 365 days, learn what has worked well and where you could use more diversification, and then use that acquired knowledge to create not resolutions for the new year but financial goals that are both realistic and make sense for your unique financial situation and lifestyle.
This week, I’d like to look specifically at what you can do to give your retirement portfolio a year-end checkup and what you might be able to do to set yourself up for a successful 2023.
Now is a great time to examine your budget and expenses leading into 2023.
Because of rising inflation, many goods and services became more expensive in 2022. As a parent, I can tell you I definitely noticed the increases in the prices of food and utilities this past year.
During times of high inflation like those we’ve been experiencing, it’s important to periodically reevaluate how much money you’re taking in and spending so you have a good idea of how much you can set aside in case of emergencies, whether you may need to cut back any types of spending, and how much you can contribute to your retirement portfolio in the current and coming year.
Since 401(k) account contributions end for the year on December 31, 2022, this is a great opportunity for you to see if you can still afford to increase your contributions for 2023. This may be especially true if your employer matches a certain level of contribution. That’s essentially free money you can add to your retirement portfolio—but only if it makes sense in your current unique financial situation to contribute enough to meet the maximum employer match.
There’s still time to make contributions to your IRAs.
Though the 401(k) contribution deadline arrives with the end of the calendar year, you’re still able to continue adding money to your individual retirement account (IRA) for the 2022 tax year until April 18, 2023, according to the IRS.
For 2022, IRAs have a contribution limit of $6,000, or $7,000 if you’re age 50 or older. If you reexamine your finances and discover that you can afford to contribute the maximum amount for 2022, it may help grow your retirement savings in the long term.
With the world still facing the very real possibility of a global recession in 2023, you may want to get ahead of further market volatility by putting your money in a retirement account built to maintain a lower level of risk exposure. A precious metals IRA, for example, utilizes hard assets like gold and silver, which have been historically used as hedges against market turmoil.
Precious metals can make for a powerful addition to any retirement portfolio.
I’m not one to worry about the future. Being scared of an unknown doesn’t interest me. Instead, I try to shape my future by doing research, keeping my eyes and ears open, and taking action as soon as I can to put myself in the best possible position.
That’s what an annual year-end financial checkup is all about—seeing where you are now, looking at where you’re headed, and then figuring out what steps you can take to help get you where you’d like to be. And in my opinion, some of the most powerful tools to help get you to a more comfortable retirement are physical precious metals.
Gold has historically done well in times of economic uncertainty and recession, has a historic reputation for long-term growth, and provides a level of peace of mind that few other assets can match. And as I said above, if you haven’t maxed out your IRA contributions for the year, you still have time. Give us a call and learn how gold can become an invaluable part of your retirement strategy.
