JANUARY
Map Out a Spending and Savings Plan
Kick off the new year by setting a comprehensive budgeting plan. View budgeting not as a financial killjoy but as a tool to afford what you truly value, such as a secure retirement and yearly vacations. Follow the 50/30/20 budgeting rule: allocate 50% of your income to essentials (mortgage/rent, utilities, insurance, groceries), 20% to debt repayment and savings, and 30% to discretionary spending (dining out, entertainment).
Set Up Retirement Account Contributions
Determine your retirement savings goals and adjust your contributions accordingly. For 2024, the 401(k)-contribution limit is $22,500, with an additional $7,500 catch-up contribution for those aged 50 or older. The IRA limit is $6,500, with a $1,000 catch-up contribution for those 50 and older.
Generate Monthly Dividend Income
Strategically select dividend-paying stocks to create a steady monthly income stream.
FEBRUARY
Financial Conversations for Valentine's Day
This month, take time to have an honest financial discussion with your partner. Sharing financial details and goals can strengthen your relationship. Regular money talks can keep you both aligned on budget, investments, and future plans.
Plan Your Summer Vacation
Book lodging early for popular destinations and set up flight fare alerts with tools like Google Flights, Hopper, or Kayak. Typically, booking domestic flights 45 days in advance and international flights 75 days in advance secures the best prices.
File Your Tax Return Early
Gather your tax documents, such as 1099 and W-2 forms, and file your tax return early to avoid last-minute stress and potential identity theft. Speak to Cornerstone Wealth's tax representative Cindy Meares to gain a better understanding.
MARCH
Create an Investing Constitution
Draft a set of investing principles to guide your decisions, helping you stay disciplined during market volatility. This can include maintaining a balanced asset allocation, avoiding impulsive trades, and focusing on low-cost mutual funds.
Utilize FSA Funds
If your employer offers a grace period for flexible spending account funds from 2023, spend them by March 15. Check eligible expenses at FSA Store.
Start Required Minimum Distributions (RMD)
If you turned 73 in 2023 and haven’t taken your RMD, ensure to do so by April 1 to avoid penalties.
APRIL
Review Insurance Coverage
Re-shop your auto and homeowners' insurance to potentially save on premiums.
Fund Your IRA and HSA
You have until April 15 to make contributions for 2023 to a traditional or Roth IRA and health savings account. The IRA limit is $6,500 ($7,500 for those 50 and older), and the HSA limit is $3,850 for individual coverage or $7,750 for family coverage (plus an extra $1,000 if you're 55 or older).
Save on Energy Costs
Celebrate Earth Day on April 22 by switching to Energy Star appliances and considering alternative-energy installations, which offer federal tax deductions.
MAY
Organize Financial Records
Post-tax season is a great time to tidy up your financial documents. Keep tax returns indefinitely and supporting documents for at least three years. Self-employed individuals should keep records for six years.
Adjust Tax Withholding
Use the IRS Tax Withholding Calculator to ensure your employer withholds the correct amount of tax from your paycheck.
Prep Your Home for Summer
Ensure your air conditioner and irrigation system are working well, and prepare for storms by trimming trees, cleaning gutters, and inspecting your roof.
JUNE
Review Asset Allocation
Meet with your financial advisor to ensure your portfolio remains balanced. Rebalance if necessary to maintain your target asset allocation.
Monitor Your Credit Reports
Get your free annual credit reports from Equifax, Experian, and TransUnion at AnnualCreditReport.com. Review them for errors or signs of fraud.
Get Fit at a Discount
Take advantage of summer gym promotions to start or renew a fitness membership.
JULY
Check for Fiduciary Advisors
The CFP Board enforces fiduciary standards, requiring advisors to act in clients' best interests. Review your advisor’s credentials at 'Our Team' page. To learn more about what a fiduciary is, read our blog on The CWG Difference: Beyond the Fiduciary Standard.
Midyear Tax Checkup
Evaluate ways to reduce taxable income for 2024, such as boosting contributions to 401(k), IRA, or HSA accounts.
Amazon Prime Day Deals
Watch for Amazon Prime Day sales in July for discounts on a variety of products, with competitors like Walmart and Target also offering deals.
AUGUST
Pay Down High-Interest Debt
Develop a strategy to reduce high-interest debt before the holiday season. Consider transferring balances to a 0% interest card or consolidating with a personal loan or home-equity line of credit.
Back-to-School Savings
Take advantage of state tax-free weekends for school supplies, clothing, and electronics.
Cut the Cable Cord
Explore cheaper alternatives to cable, such as streaming services or antennas, as many shows return for new seasons.
SEPTEMBER
Start a 529 College Savings Plan
Open a 529 plan for future education expenses. Contributions grow tax-free, and withdrawals for qualified expenses are not taxed. Check for state tax incentives on contributions. Read our whitepaper to learn more about the rising cost of college.
Navigating the specifics of 529 plan distributions can be complex. Understanding the distinctions between qualifying and non-qualifying distributions and the potential tax implications is crucial to maximizing the benefits of your 529 plan. Learn more by reading our whitepaper on 529 Plan Recontributions.
However, navigating the specifics of 529 plan distributions can be complex. Understanding the distinctions between qualifying and non-qualifying distributions and the potential tax implications is crucial to maximizing the benefits of your 529 plan
Winterize Your Home
Prepare for colder weather by tuning up your heating system, caulking windows and doors, and draining exterior faucets.
Plan Holiday Travel Early
Book flights for Thanksgiving and Christmas before Halloween to secure better prices.
OCTOBER
Update Your Estate Plan
During National Estate Planning Awareness Week, review and update your will and other estate documents. Ensure all beneficiary designations are current.
Fill Out FAFSA
Submit the Free Application for Federal Student Aid for the 2024–25 school year as soon as it becomes available on October 1.
Tax Return Extension Deadline
If you filed for an extension, your 2023 tax return is due by October 15.
NOVEMBER
Optimize Your 401(k)
Contribute enough to get any employer match and consider a Roth 401(k) option for tax-free withdrawals in retirement. Review past transactions to check for unauthorized activity.
Choose Health Insurance
Evaluate health insurance options during open enrollment to get the best coverage at the lowest cost.
Plan Year-End Tips
Budget for holiday tips for service providers who have assisted you throughout the year.
DECEMBER
Utilize Donor-Advised Funds
Contribute to a donor-advised fund for a 2024 tax deduction if you itemize and decide later which charities to support.
Take Required Minimum Distributions
Ensure to take your 2024 RMD from IRAs if you are older than 73 by December 31 to avoid penalties.
Shop for a New Car
December offers the best discounts on new cars as dealers clear out old inventory.
Maximize your financial well-being in 2024 with our comprehensive monthly financial planning guide. For personalized advice and tailored strategies, contact our certified financial planners at Cornerstone Wealth Group today.
For more detailed financial planning tips, visit cwgadvisors.com.
Please click the following link for a downloadable edition of this material: Your Financial Planning Calendar for 2024.
This is for informational purposes only and does not serve as personal advice. Investment advisory services offered through Cornerstone Wealth Group, LLC dba Cornerstone Wealth, an SEC registered investment adviser.
