Your financial life is one of the most important things for you to responsibly manage throughout the year. From your retirement accounts to your investments, and more, the steps you take to make sure everything’s falling in line appropriately is crucial for meeting your goals. No matter what stage of life you’re in, you have steps you can take today to keep things straight.
Here are nine housekeeping tips to help you be proactive with your financial life.
1. Fund your retirement account.
Funding retirement should be on everyone’s radar. Yet, only 22% of Americans believe they have saved enough for their retirement, according to one study.[1] If you have a traditional IRA, consider funding it. Not only will you add to your retirement funds, you might also benefit from a tax deduction for your annual contribution. Be sure to talk with a tax professional to know the deductibility of your contribution.
2. Maximize your 401(k) contributions.
Similar to an IRA, make sure you maximize your 401(k) contribution, which are tax advantaged. In 2025, you can contribute up to $23,500 to your 401(k), and $31,000 if you’re 50 years old or older (including the catch-up contributions). Also, if your employer matches your contribution, be sure to take full advantage of their match. This is, in a sense, free money available to you that can easily boost your retirement funds.
3. Write off any tax losses.
If you’ve lost money on investments, then you can be strategic with how you manage those losses. You could either harvest the losses to go against any gains you have (a strategy that means you sell them for less than you bought them for). Or, you could write them off against ordinary income, up to $3,000. Your financial or tax advisor can help you know which strategy is right for you.
4. Take your IRA’s required minimum distribution (RMD).
If you’re over the age of 73, then you need to start taking RMDs from your IRA of retirement account. This amount is the minimum of what you must legally withdraw from your account each year. You can take more than the RMD, but you must at least take its minimum.
The income is generally taxable depending on whether or not you funded it with pre-taxed money. You could also use a portion of your RMD to donate to your favorite charity. This strategy counts as part of your required minimum but is not taxed to you. Work with your financial or tax professional to know of any taxes that may apply to you across your financial life.
5. Gift money to charity.
Make use of your full charitable deduction by giving money or property to a cause you care about. Not only does this strategy help you do good by supporting charities that matter to you, you could benefit from a sizable deduction. U.S. taxpayers can deduct as much as 60% of the donation’s value against their adjusted gross income. Be sure to consult your financial or tax professional to coordinate your gifting strategy.
6. Gift to family members.
taxable income. However, depending on the amount, that money can be taxable to the person who gives it. You can avoid paying taxes if you gift up to the exclusion amount, which is currently $18,000.
You can give up to $18,000 to as many people as you want without having to worry about paying the federal gift tax. And if you are married, your spouse can give $18,000 to the same people. This is a good technique to help reduce the size of your taxable estate and, in most cases, is very much appreciated by those getting the gift.
7. Update your account beneficiaries.
An important housekeeping tip for your financial life is remembering to update your beneficiaries for accounts like retirement and insurance. Not doing so can become a costly oversight should something happen to you and your assets go to someone you didn’t want them to go to. If you’ve never listed a beneficiary or have to update the ones you have, do so today.
8. Check your Social Security contributions.
Knowing whether you’ve contributed enough money to Social Security — and if your contributions are being correctly credited — is an important financial step. You could miss out on receiving the distribution you deserve from your hard work if anything is incorrect or under-paid. You can visit www.SSA.gov for more details on how to manage your Social Security account.
9. Review or use your Flexible Spending Accounts (FSA).
FSAs allow you to put money into savings for healthcare tax free. There is one catch: You must use the money you put in every year; otherwise, you lose it. To make sure that you avoid this situation, you must use the funds before March 15 of the following year. So, remember to review your account and use up those funds before it’s too late.
The Takeaway
Working with a financial or tax professional is one of the easiest ways to cross these to-dos off your housekeeping list. Not only can they guide you toward the correct action steps, they can do so with strategic thinking toward your unique needs. If you need help, we’re happy to assist you.
Contact Morse Wealth Management today to start the conversation at (619) 713-5950.
[1] https://www.schroders.com/en/us/defined-contribution/dc/retirement-readiness-2022/