Your 2024 Money Makeover Starts Here! Use This Unbeatable Financial Checklist for Success!
Your 2024 Money Makeover Starts Here! Use This Unbeatable Financial Checklist for Success!
To get the most from the upcoming year, think about executing a plan that breaks down your financial goals month by month
As we near the end of 2023, the onset of a new year offers us a chance to redirect our attention towards financial objectives. I have put together actionable steps into a monthly guide. Begin by ranking what you aim to achieve, breaking these goals into smaller tasks, and recording them on paper or a spreadsheet. I further emphasize the importance of assessing your income and expenses comprehensively to harmonize your goals with your current financial circumstances.
Planning is the KEY to Your Success!
My monthly planning guide is designed to offer valuable tips and ideas for creating and monitoring your plan throughout 2024. Having a plan in place makes it easier to track your progress throughout the year. The most successful plans are not just written and forgotten; they’re regularly revisited. Even as things change, starting with a plan will help you stay focused.
January — Define Your Objectives:
Set the stage for the year by starting to outline a budget consistent with your goals. Prioritize urgent needs, important expenses, and items that can be deferred. Build in a budget that accounts for inflation, and leverage various budgeting apps and online tools for organization and staying on target.
Consider strategies to trim expenses. The new year provides an excellent chance to reassess your spending habits. Scrutinize your outflows and contemplate adjustments, such as reducing takeout orders or discontinuing unnecessary subscriptions.
Kick off your financial year by making your 2024 IRA, RRSP or TFSA contribution. Contributing early in the year holds the potential for significantly higher long-term earnings.
February — Optimize Your Investments:
Remember your prior 401(k) plans and carefully assess your options. Consider consolidating existing 401(k)s and IRAs, or RRSP’s at multiple institutions into one easy-to-manage account with a 401(k) Rollover or Transfer IRA, or one RRSP with one advisor. Consider elements such as tax benefits, available investments, and associated expenses to determine the best approach for your situation.
Explore the possibility of automating your investment strategy. Set up regular contributions to a tax-advantaged or taxable investment account to ensure a consistent investment approach.
Be sure to make any RRSP contributions BEFORE February 29, 2024, as this is the DEADLINE! TFSA’s have no contribution date, but its a good idea to get them done at the same time.
March — Ready Yourself for Tax Season:
Ensure you’re well-prepared. Collect last year’s forms and records, ensuring you have all necessary documents at your fingertips.
Submit your tax return promptly. Aim to file as soon as you’re prepared, but be sure to meet the April 15, 2024 deadline in the US, and by April 30th, 2024 in Canada.
Use your tax refund wisely. Allocate the funds to either replenish your emergency savings (usually equivalent to three to six months’ worth of expenses for most households), make contributions to your IRA or RRSP/TFSA, reduce high-interest debt, or pay down your mortgage.
April — Enhance Your Financial Position:
Make sure to inspect your credit report. Take advantage of the free annual report from each major credit bureau in the US, or look to see if you can get a report from one of the major banks in Canada. Review it for any discrepancies and resolve them promptly.
Assess your debts. Focus on repaying high-interest debts, such as credit card balances, mortgage payments, or car loans, to reduce them faster.
Don’t forget your 2023 IRA contribution. You have until April 15, 2024, to contribute to your 2023 IRA (also, if you haven’t filed your taxes yet, this is the deadline for that as well).
May — Invest in Education:
Start a 529 account for your child or grandchild, aiding in their future education, be it for college, graduate school, or vocational training, via a more accessible 529 plan. In Canada, this would be the RESP and make sure to take advantage of the CESG grant money available to all Canadians.
Support children in developing financial skills. Engage the young ones in your life in activities that encourage regular saving habits and responsible spending.
Expand your financial knowledge. Explore a book, podcast, or blog that covers financial topics of interest to further educate yourself on these subjects.
June — Conduct a Midyear Evaluation:
If you have an advisor, book a meeting with them. Review your budget and investments. Ensure you’re adhering to your set targets. If your priorities have shifted, make necessary adjustments.
Evaluate your asset allocation with your advisor. Tailor the balance between stocks and bonds in your portfolio according to your risk tolerance and investment timeline.
Assess your investment portfolio as a household. This review helps uncover inadvertent overlaps and ensures you’re on course with your financial plans.
July — Invest in Yourself:
Take steps to ensure your financial future. Consider your career prospects, explore opportunities for career growth, update your resume, and improve your networking skills to potentially boost your income.
Practice mindful spending. Before buying non-essential items, take a moment to pause. Consider implementing a waiting period, like waiting for 30 days, to ensure you genuinely want and need the item before making the purchase.
August — Coverage and Subscription Month:
Assess your insurance coverage by reviewing the levels of your coverage, such as life, health, disability, liability, auto, and property insurance, and making sure you are still adequately covered. Seek out and capitalize on any eligible discounts.
Evaluate your subscriptions. Are you maximizing the use of your subscriptions and memberships (e.g., streaming services, gym memberships)? If not, reconsider whether you truly need them in your life.
September — Pay It Forward:
Engage in charitable giving and donations. Explore diverse ways to contribute, like using a donor-advised fund (DAF), in the US OR Canada (Yes DAF exists in Canada too). Also, consider donating any items you no longer require.
Be strategic about tax benefits from your donations. Think about consolidating two years’ worth of contributions into one tax year to potentially increase your itemized deduction above the standard deduction — assuming the deduction will be optimal. Another option is donating long-term appreciated securities to possibly bypass significant capital gains taxes on those assets.
October — Prioritize Cybersecurity:
Safeguard your passwords. Create strong passwords with a combination of upper and lower case letters, numbers, and symbols, avoiding dictionary words.
Protect yourself from scams. Avoid responding to unsolicited financial emails or messages. Verify suspicious email URLs and avoid sharing personal or account information if you receive unexpected calls from alleged financial representatives. In case of cybercrime, promptly report it to the FBI’s Internet Crime Complaint Center, or in Canada, the RCMP has a new reporting system, click for more details.
November — Prioritize Family Discussions:
Engage in money talks with your adult children. Including them in your later-life preparations is crucial as your plans may affect their futures.
Revise your estate plan. Consider the tax implications on your estate and your heirs’ financial needs. This goes back to what I said abot having adequate coverage. Review and update beneficiary designations across your various policies and accounts.
Get your affairs organized. Collect essential documents such as tax returns, legal papers, estate planning documents, statements, and bills of sale, and organize them in one accessible location, either electronically, as hard copies, or both.
December — Focus on Retirement Readiness:
Gear up for retirement. Strive to save a minimum of 15% of your income (including any contributions from employer plans) in your retirement accounts.
Manage required minimum distributions (RMDs). If you turned 73 in 2023 or earlier, you must take withdrawals from your Traditional, Rollover, SEP, and SIMPLE IRAs, regardless of whether you’re working or retired. Be especially mindful of the regulations regarding any inherited IRAs.
In Canada, in the year you turn 71, your RRSP MUST BE CONVERTED to a RRIF by December 31st, otherwise you could face some pretty severe penalties. Meet with your advisor and make sure everything is switched over.
Conclusion….
As the year draws to a close, implementing these monthly financial actions can serve as the cornerstone of a solid financial foundation for the upcoming year. From prudent budgeting and smart investments to securing your future and family’s well-being, each step contributes to a more robust and secure financial landscape.
Remember, planning your finances is not a one-time endeavor but an ongoing journey. These twelve months of strategic steps are just the beginning. Embrace the process of continuously reassessing and refining your financial strategies, and in doing so, you pave the way for a more secure and fulfilling financial future.
By integrating these practices into your routine, you’ll not only strengthen your financial well-being but also cultivate a sense of empowerment and control over your financial destiny. As you embark on this journey, may each deliberate action bring you closer to your goals, ensuring a prosperous and secure future for yourself and your loved ones. Cheers to a brighter and more financially resilient year ahead!
Have Questions? Contact us
We’ve assisted our clients through every stage of life. Even when you’re not aware that something might impact your financial future, it likely will to some extent. Engaging in a conversation with your investment advisor about any financial changes is an excellent approach to keeping your financial goals in focus.
If you’re in the process of planning a cross-border move or have already relocated from the US to Canada and seek assistance in streamlining and enhancing your financial strategies, we’re here to help. We have the expertise in cross-border wealth management. Don’t hesitate to reach out to us — we’re committed to providing tailored solutions for your cross-border financial needs.
For more information or to connect with me, you can reach out via email at macekadmin@iaprivatewealth.ca or get to know me better by exploring my engaging video content on YouTube https://www.youtube.com/@joemacek.
I share valuable insights and discussions on financial planning, market commentary, and investing concepts that can further enrich your understanding. Join me on my channel to discover more!
Don’t hesitate to reach out today at 1–888–324–4259 to discover more about how we can help you achieve your investment milestones.
Joe A. Macek, FMA, CIM, DMS, FCSI
Investment Advisor, Portfolio Manager
iA Private Wealth | iA Private Wealth USA
Toll Free North America: 1–888–324–4259
Email: macekadmin@iaprivatewealth.ca
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