3. Keep your loved ones informed
Any changes to your goals and your financial plan can impact more than just you. Changes can affect long-term plans, including how you manage your estate, pass on assets and more. That’s why one of your goals should be to keep loved ones informed of your plans. The majority of both parents and adult children think regular financial conversations are important. 1
Holding a family meeting is one way to help be sure everyone is on the same page. Items that you can discuss include your estate plans, any values you want to be sure your family maintains, how you’ve prepared for future life events and charitable causes that are important to everyone.
4. Account for tax implications
As you consider your goals, also consider how adjustments to your plan could impact your taxes—this year and down the road. It’s possible to be proactive and strategic about the type of accounts where your assets are held and whether they are taxable or tax-advantaged. This strategy, called asset location, may help you minimize your tax exposure.
If you’ve maxed out tax-advantaged accounts like a 403(b) or IRA, other investment options may include annuities or life insurance policies. To achieve your charitable giving goals, start early and plan out your strategy to make sure your generosity has the maximum effect possible on your taxes. You also may want to think about a donor-advised fund, which may give you more control over how your donations are used and may provide you with a tax break in the year that you fund it. You’ll also want to consider the capital gains implications of any investments you may sell to help fund life events or short-term goals.
Get off to a great start
Capitalize on the energy and fresh start of a new year by revisiting your goals and making sure your financial plan is still aligned with them. A TIAA advisor can review your current progress on both short- and long-term goals with you and develop strategies and an action plan to improve your chances of reaching those goals.
Remember that a financial plan isn’t a static document. By being proactive and working with an advisor to prepare for life changes, you can give yourself more opportunities to pursue your goals effectively this year and into the future.
