Horizon Trust & Investment Management: Your Year-End Financial Checkup

how-to-make-a-budgetWritten by Shelly Mulconrey

An annual financial checkup is a smart way to assess where you stand and what steps you can take for your future. It doesn’t have to be complicated. Even a simple overview can help you plan a few New Year’s resolutions. Here are some questions to get you started.

Are you saving enough for your retirement? If you aren’t sure, schedule a consultation with a Horizon retirement planning professional. You’ll be able to calculate the savings you need based on your current age and income, expected age of retirement, and other factors.

Have you rebalanced your portfolio recently? Over time, your investments’ performance can shift your level of risk, causing your portfolio to become either too risky or too conservative. We can help you move your current asset allocation back to the risk level you started out with, or choose another balance that is appropriate for your goals.

Are you spending when you could be saving? Take a look at your spending habits over the past year. Popular financial software programs can define exactly where your money went, by category. Even a slight adjustment in spending could allow you to increase your retirement contribution by 1-2%. If you’re expecting a raise, calculate a higher increase. You probably won’t feel the pinch, and your nest egg will reap the rewards.

A few other points to consider:

  • If you’re a business owner, it still might be possible to setup a program such as a Keogh, SIMPLE IRA, SEP IRA or 401(k) before the end of the year.
  • If you have retirement plans “left over” from previous jobs, ask us about rolling them over. It’s much easier to manage your money if it’s all in one place.
  • Try to max out your IRA contribution before April. If you can do it by January, even better – then you can start saving for next year.

Shelley Mulconrey is a Trust Officer in the Michigan City, Indiana office of Horizon Bank. For more information on Horizon’s Trust & Investment services contact Shelley Mulconrey at 219-874-9216 or via email at Smulconrey@accesshorizon.com