As we enter the second quarter of the year, now is a good time to revisit those financial resolutions we made at the beginning of the year. Kimberly Palmer, a personal finance expert at NerdWallet, suggests taking stock of our progress and making any necessary adjustments. Certified financial planner Ashley Folkes advises decluttering our financial “junk drawer” by organizing neglected paperwork.
Certified financial planner Jeff Farrar recommends setting up a 2024 tax folder to simplify next year’s tax preparation. It’s also important to review your W-4 form to ensure the correct amount is being withheld from your paycheck for taxes. Spring is the perfect time to meet with your tax preparer to strategize on lowering taxes and maximizing deductions, according to certified financial planner David Flores Wilson.
Mary Ryan, a certified financial planner, suggests maximizing contributions to retirement plans like an IRA or 401(k) to benefit from compound interest and lower taxes. It’s also important to review and update beneficiaries for retirement plans and life insurance policies to ensure the right people receive the money in the event of your death.
After major life events, dust off your estate plan and make any necessary updates to ensure all beneficiaries are up-to-date. Looking towards the future, certified financial planner Jeff Farrar recommends booking your 2025 vacation in advance to save money and enjoy the anticipation.
Reviewing your investment portfolio in the spring is crucial to ensure your asset allocation aligns with your financial goals, advises certified financial planner Maureen Demers. Additionally, consider investing in high-yield savings accounts to maximize returns on savings and take advantage of rising interest rates, says David Flores Wilson.
Lastly, check your credit card for changes in interest rates and consider shopping around for a new card if the APR is rising, recommends Kimberly Palmer. These tips can help you stay on track with your financial goals and set yourself up for success in the months ahead.
