Fall Season: 5 Steps to a Secure Financial Future

Take action and position yourself for a financially healthy winter and beyond

As the days grow shorter and the temperatures cooler, we are officially in the fall season—a time often associated with preparation, change, and reflection. Just as we prepare our homes for colder weather or harvest the final fruits of summer labor, fall is an ideal time to evaluate and prepare your financial future.

Here are five important financial steps you can take this season to secure a more stable and prosperous future:

1. Review and Adjust Your Budget

Fall is a great time to review your budget before the year's end and make necessary adjustments for the holidays or any upcoming year-end expenses. With the cost of living fluctuating due to inflation, energy prices, and personal changes, it’s important to revisit your monthly spending plan.

Begin by:

Reviewing your recent expenditures.
Identifying areas where you might be overspending, such as dining out or subscription services.
Allocating more money toward savings or paying down debt.

As the year winds down, tightening your budget can help you save for holiday expenses without incurring unnecessary debt.

2. Revisit Your Retirement Plan

Whether you’re just starting to save for retirement or nearing it, fall is an excellent time to evaluate your retirement contributions. Check to see if you're on track with your savings goals and adjust your contributions if necessary. The end of the year is also a great opportunity to take advantage of tax-deferred contributions to your retirement accounts.

Consider:

Increasing your 401(k) or IRA contributions, especially if you're not yet meeting your employer’s match.
Reviewing the investment allocations within your retirement accounts to ensure they are aligned with your current risk tolerance and long-term goals.
Talking to a financial advisor if you’re unsure about your retirement strategy.

3. Evaluate Your Insurance Coverage

Many people overlook the importance of periodically reviewing their insurance policies, which can leave gaps in coverage or lead to overpaying for services. As fall arrives, assess whether your insurance needs have changed.

Important insurance areas to consider:

Health Insurance: Open enrollment for health insurance often starts in the fall, making it the perfect time to evaluate whether your current plan is still suitable for your medical needs.
Homeowners or Renters Insurance: Ensure your property is properly insured, especially if your home has appreciated in value or you’ve made significant improvements.
Life Insurance: If you’ve experienced any major life changes, like marriage, the birth of a child, or the purchase of a home, now may be the time to increase your life insurance coverage.

4. Pay Down Debt Strategically

With the holiday season approaching, it’s easy to accumulate credit card debt, especially if you’re planning to travel or buy gifts. However, going into the new year with significant debt can slow down your long-term financial growth. Fall offers the opportunity to assess your debt load and implement a plan to reduce it before the year's end.

Try the following:

Focus on high-interest debt first, as it can quickly compound and become unmanageable.
Consider a debt consolidation plan if you're juggling multiple credit card balances.
Review your credit report to ensure there are no errors or discrepancies that could negatively impact your credit score.

Paying off or reducing debt now will position you better for the upcoming year and leave you with more resources to put toward savings and investments.

5. Plan for End-of-Year Investments and Tax Strategies

As the year winds down, fall is an excellent time to review your investment portfolio and consider tax-efficient strategies. If you’ve made gains in your investments this year, now is the time to review whether tax-loss harvesting or charitable contributions could benefit you.

Some things to think about:

Tax-Loss Harvesting: Sell off underperforming investments to offset capital gains and lower your tax liability.
Charitable Donations: Donating to charity before the year’s end can provide valuable tax deductions while also helping others.
Flexible Spending Accounts (FSA): If you have an FSA, be sure to use the funds before they expire at year-end.

A good tax strategy can help minimize your liability and leave you with more cash to invest or save for your future.

Be Financially Healthy

As the leaves change and fall, it's a reminder that seasons in life also change, often faster than we expect. By taking time this fall to review and adjust your financial strategies, you can ensure a more secure financial future. Whether it's reworking your budget, increasing your retirement contributions, or paying down debt, each small step you take today will contribute to long-term financial stability.

Take action this fall and position yourself for a financially healthy winter and beyond!

Nothing contained herein shall constitute an offer to sell or solicitation of an offer to buy any security. Material in this publication is original or from published sources and is believed to be accurate. However, we do not guarantee the accuracy or timeliness of such information and assume no liability for any resulting damages. Readers are cautioned to consult their own tax and investment professionals with regard to their specific situations.