TruCommunity Blog

Tax season can feel overwhelming, but it’s also a valuable opportunity to check in on your financial health. As you gather and review financial documents, take some time to assess your overall financial situation. Are there adjustments you can make to improve? Turn tax season into a strategic financial reset! Here are some key tips to help:

• Review Your Financial Health: Review everything – budget, debt, savings, and spending from the past year. Where did you spend the most and did you meet your financial goals? If not, determine where to adjust.

• Maximize Tax-Saving Opportunities: There are various ways to possibly reduce your tax bill. These include maximizing deductions through charitable donations or eligible expenses; contributing to a 401(k) or IRA to reduce taxable income; offset tax losses by selling underperforming against investment gains; or evaluating Roth IRA conversions to see if they make sense based on goals and taxes.

• Increase Retirement Contributions: Make the most of retirement accounts by maximizing your contributions. If your employer does a match, make sure you are contributing to receive the full match. If you are over 50, take advantage of catch-up contributions.

• Rebalance Your Investment Portfolio: Keeping your financial goals and retirement plan in mind, review your investments and rebalance if needed. This gives you opportunity to keep your portfolio diversified and on track with your risk tolerance.

• Strengthen Your Emergency Fund: Are you getting a large tax refund this year? Consider putting that into an emergency fund. Keeping three to six months’ expenses offers protection is the general rule for this.

• Update Important Documents: Now is the perfect time to make sure other formal documents such as wills, trusts, or power of attorney are updated (or create them). Saving this information with your important tax information allows you to review annually and update for changes in family and you have the right beneficiaries named.

While tax season may bring stress, it also presents a chance to make smart financial moves that benefit you throughout the year. If you are looking for personalized guidance, Focus Investment Services offers a free consultation with Keri Blake ([email protected]) to help you review your financial health and plan for a stronger financial future.

Investment Advice offered through Wealthcare Advisory Partners, LLC  (WCAP). WCAP is a Registered Investment Advisor with the U.S. Securities and Exchange Commission (“SEC”) Fellows & Blake, is A Wealthcare Company.  Fellows & Blake and Wealthcare Advisory Partners are separate entities from TruBank. Products offered by Focus Investment Services are not FDIC insured or by any other Federal Government Agency, are not a deposit or obligation of, or guaranteed by TruBank, may involve investment risk, including possible loss of principal amount invested, and may lose value.