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Stuck Indoors? Get Your Finances in Order Thumbnail

Stuck Indoors? Get Your Finances in Order

As the number of coronavirus cases continues to rise in the U.S., experts are recommending the public, including those showing no sign of illness, stay home during this time of global pandemic. Although a quarantine puts a big halt to our everyday social activities like shopping, going to the gym, and eating at our favorite restaurants, there is a bright side. This newfound time stuck indoors presents the perfect opportunity to do the things that maybe we’ve been procrastinating.

Send Us Those Documents

Still have yet to send your financial advisor certain documents they’ve requested awhile ago? Now is the time to do so! Examples of such documents include:

  • External investment statements
  • 401(k) statements, 403(b), Thrift saving plan
  • Estate documents (Will, Power of Attorney, Healthcare Proxy, etc.)
  • Recent Social Security statements
  • Pension Projections
  • Benefit Handbooks from work 

Evaluate Contributions to IRA

If you’ve been planning on adjusting your contribution to your IRA, now is a good opportunity to do so. If you’re currently making systematic contributions to your Roth IRA, have you maxed it out for 2019?  The contribution limits for 2019 are $6,000, with an additional $1,000 catch up contribution for individuals over age 50.   Determine how much you’ve contributed so far, and whether you have the ability to put in more.  You should also consider pre-funding for 2020. The contribution limits for this year are the same ($6,000 with an additional $1,000). For small business owners, it’s a good idea to consider simple IRAs and SEP IRAs, for both 2019 and 2020.

 A systematic investment plan does not ensure a profit nor guarantee against loss. Investors should consider their financial ability to continue their purchases through periods of low-price levels.

Trim Expenses

One of the trickier aspects to personal finance is determining how to effectively utilize our money. Everyone wants to save money but figuring out how to reduce expenses requires both time and effort. This is a great time to reflect on your spending habits and determine what things you can cut back on, such as entertainment subscriptions, daily coffee purchases, take-out, etc.

Re-evaluate Goals

Overtime our priorities change, which is why it’s so important to periodically review our financial goals. This extra time on your hands right now is a good opportunity to have a conversation with your spouse or partner and discuss your long-term financial goals, or maybe set some new goals and priorities.

Keep in mind, the chaos of this pandemic shouldn’t change your overall long-term financial goals. During times like these, it’s more important that we stick to our game plans and stay the course. If you have any concerns or questions regarding the market’s impact on your personal financial situation, please reach out to your Archstone Advisor. We hope everyone stays safe and healthy. 

Neither Voya Financial Advisors nor its representatives offer tax or legal advice. Please consult with your tax and legal advisors regarding your individual situation. 

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