Mutual Funds

Your Year-End To-Do List

As the year winds down, prepare financially for the next one. Here are some good items to check off:

  • Boost your retirement savings: Consider increasing your contribution, or, if you recently got a raise, consider contributing half the increase. 

  • Rebalance your portfolio: Market changes may have altered your original asset allocation. If so, adjust your investments to ensure that your portfolio still reflects your financial goals and risk profile.

  • Review insurance needs: New baby? Just married? Divorced? As your life changes, so should your insurance. Make sure you're protected for your present circumstance.

  • Consider a Roth conversion: Think your tax bite may be lower this year than next? You have until December 31 to convert funds in a traditional IRA to a Roth. You pay taxes on the money converted, but owe none going forward, including on qualified withdrawals. This may also be a good strategy if you earned less this year than prior years.

  • Check your flexible spending account: Some employers require you to deplete your FSA dollars before the year's end. If so, consider ordering a pair of prescription glasses, or get that dental crown you've been delaying.

Neither State Farm nor its agents provide tax or legal advice.