Due to my memory deficits, the only way that I can get things done is through a checklist. If you are a high-income earner, don’t miss this financial checklist for your end-of-the-year planning.
While this isn’t an exhaustive list, hopefully, it will at least get your gears turning on financial tasks for year-end. Here are 7 items you should check off before year-end!
Each year, you can place $6,000 into a Traditional IRA and then convert it through the backdoor into a Roth IRA.
If you have a high income, then you need to protect it. You can accomplish this through disability insurance obtained through one of the recommended insurance agents for doctors.
If you have a charitable giving goal, this is the time of the year to make sure you’ve met that goal. Why? Because charitable giving must occur prior to 12/31 if you want to take advantage of the tax benefit for the current tax year.
Let the money come automatically out of each paycheck. Ideally, this will occur before you even see it or as soon as possible once it hits your bank account. This is what people mean when they say “pay yourself first”.
Flexible Spending Accounts (FSA) money must be consumed by a pre-determined date, which means it needs to be on your financial checklist. The actual date depends on which type of FSA we are discussing.