Can you believe the end of the year is already almost here? With an election this year, a pandemic, and time flying by, it is about that time to get your finances ready for the new year. The worst thing you can do is wait to plan your finances for the new year. In this article, we are going to go over some great tips for preparing your finances for 2021. Keep reading to learn more!

  1. Write Your Goals Down

This is key for any step of financial planning. Writing down your goals for the upcoming year is key to determining the reality of your fiscal year. Figuring out your short-term and long-term goals starts with sorting out your wants and needs in regard to your budget. Once you are able to separate your wants from your needs, you can start prioritizing exactly what will be necessary in terms of saving and spending.

  1. Think About Conversions

Have you ever researched converting to a Roth IRA? An Individual Retirement Account has benefits, but a Roth IRA include tax-free withdrawals. What this means is that your taxes could be lowered in the future. The contributions you make will grow tax-free, and you can withdraw at any time without penalty.

  1. Take RMDs

Once you turn 72, you are required to take out a minimum amount from a traditional individual retirement account each year. This is important to take action on, as not taking out required minimum distributions can hurt you in the long run tax-wise. Depending on if you are planning your retirement for 2021, you may need to determine how much money to withdraw before the end of the year.

  1. Meet with a Financial Professional

One of the best things you can do in any point in your financial journey is meet with a financial professional. Not only will you receive advice that is tailored to you, but you will be able to learn what the rest of your financial journey could look like. Narrowing down your goals and figuring out what the best route to take are tasks you and your advisor can decide on together.

While these are great beginner tips for an end-of-year review of your finances, there are plenty of steps to take in addition to these. The best thing you can do before the end of the year, as it quickly approaches, is to stay on top of your finances. You do not want 2021 to come, and your financial plan be out of date. Mooney Lyons wants to make sure the panic of 2020 does not carry over to 2021 with your finances. To learn how we can help you check these items off your end-of-year checklist, reach out to us at (847) 382-2600 or email