FAYETTEVILLE, N.C. — If your personal finances need a tuneup now that summer is coming to an end, financial experts say fall is the perfect time to adjust your money.
Financial professional Alan Porter with Strategic Wealth Strategies of Fayetteville says there are many reasons why fall is a good time to review your finances.
“These things have to be done by the end of the year with certain documentations, so there is no better time than right now to do this,” Porter said.
Porter says there are several helpful steps to end the year strong, starting with refreshing your spending strategy.
“Inflation has risen significantly this year, and it’s possible the spending plan you came up with at the beginning of the year no longer works,” he said. “Take another look at all your expenses, including groceries, utilities, rent or mortgage payments, as well as discretionary spending like streaming services or dinners out. Compare the total to your income.”
Porter recommends reviewing your financial goals.
“Think about the financial goals you set at the beginning of the year and see if you’re on track to meet them. If not, this is a great time to change course to try and hit your target,” he said. “Even if you’re on the right track, reviewing your goals and progress reminds you to keep working toward a better financial future.”
Porter also recommends rethinking your benefits plan.
“Most employers have open enrollment in the fall. This is your chance to pick a benefits plan that meets your medical and retirement needs. If your employer offers a high-deductible health insurance plan and you choose it, you may have access to a health savings account, or HSA,” he said.
Porter says you should also consider a Roth conversion.
“Fall is often a good time to start thinking about converting traditional retirement accounts like 401(k)s and traditional IRAs to Roth IRAs,” he said. “You pay taxes up front when you do a conversion or contribute to a Roth, but future gain and withdrawals are tax-free.”
Porter says you should also rebalance your investment plan.
“It’s been a challenging year for the market, and rebalancing your portfolio can help ensure it matches your risk tolerance and aligns with your goals,” Porter said. “People often take on more risk than they are comfortable with. To avoid unnecessary risk, I encourage clients to use a diverse approach with savings and investments.”
He says using cash value life insurance and sources of guaranteed income can create more security in retirement and avoid the risk of an unstable market.