I hope that you are sticking with your 2022 new year’s resolutions and making progress on your goals! Although we are already a month into the new year, I wanted to share a few planning updates for 2022:

Additionally, below are a few other financial planning ideas to consider as the year kicks off:

  • Required Minimum distributions:
    If you turn 72 this year, start thinking about your Required Minimum Distributions (RMD’s). You may want to front load these early in the year to provide cashflow for other expenses. RMD’s must be taken from all qualified retirement accounts (i.e. 401k, traditional IRA). Speak with your financial planner or advisor on your specific options and timing.
  • 2021 IRA/ ROTH IRA Contributions:
    If you didn’t make your IRA or ROTH IRA contributions in 2021 there is still time. Prior year contributions can be made until you file your taxes, or April 15. Consult with your tax advisor on income phase out limits and deductibility.
  • 529 Plan Contributions:
    If saving for college is important to you, contributions to the South Carolina 529 can be made for the current year, or for the 2021 Tax Year until you file your taxes, or April 15 (whichever comes first). Be sure to consult with your tax advisor on which tax year has the bigger impact for you.

 

2022 Action Plan:

  • Set Financial/ Savings Goals 15-20% of income
  • Participate in your employer sponsored retirement plan (401k or SIMPLE IRA)
  • Build your Emergency Fund 3 to 6 months expenses
  • Pay off Debt
  • If you have a High Deductible Health Plan, contribute to a Health Savings Account (HSA)
  • Revisit your plan at regular intervals to measure your progress
  • Involve others and hold yourself accountable, and keep you on track
  • Reward yourself for progress

 

Remember, becoming a disciplined saver is just like diet or exercise. It is painful when we start, it never gets easy, it takes time to build strong habits, and your chances of success improve drastically when you’re not doing it alone. Having an accountability partner/coach will keep you motivated and on track.
Wishing you all the best in 2022!

 

Michael P Green is a Certified Financial Planning Professional™ and Wealth Management Advisor with Apollon Wealth Management, an Independent Registered Investment Advisory Firm with offices in Charleston and Mt. Pleasant. He earned his B.A. from the University at Albany and M.B.A. from the Sage Graduate School, in Albany, NY. In addition to being a Certified Financial Planning Professional™ (CFP®); Michael also holds the Chartered Life Underwriter (CLU®), Chartered Financial Consultant (ChFC®), and Retirement Income Certified Professional (RICP®) designations.

Apollon Wealth Management, LLC (“Apollon Wealth”) provides advice and makes recommendations based on the specific needs and circumstances of each client. For clients with managed accounts, Apollon Wealth has discretionary authority over investment decisions. Investing involves risk and clients should carefully consider their own investment objectives and never rely on any single chart, graph, or marketing price to make decisions. The information contained herein is intended for information purposes only, is not a recommendation to buy or sell any security and should not be considered investment advice. Please contact your financial advisor with questions about your specific needs and circumstances.

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