Planning for the New Year?  Here are 6 key things to help get your financial and life plans on track

In 2023, we will continue to face challenges like higher inflation, higher interest rates and potential recession.  While there’s not much we can do to influence the global macroeconomic and geopolitical picture, there are plenty of ways to ensure our own finances are robust enough to deal with whatever the next 12 months throws at us.  Retirement income goals are crucial now as we weather volatility and economic conditions to assuage the biggest fear of having more days than dollars.  The very definition of retirement is changing, and every person’s definition is unique.


Here are 6 things to do to ensure your financial and retirement plans are on track in 2023 and beyond.


  1. Beneficiary audit? Is it time?

Now’s a good time to go through all your savings accounts, insurance and retirement plans to make sure your designated beneficiary – i.e., the person or people the money passes to in the event of your death – for each one is still who you want it to be


  1. Boost retirement contributions

Make sure you take advantage of the tax deferred account available through ADA, namely, a 401(k), and consider boosting your contributions to the highest level your budget can tolerate.  Every dollar you put toward retirement lowers your current income, reducing the amount of money on which you will be taxed.


  1. Take full advantage of an HSA

A Health Savings Account (HSA) lets you set aside money on a pre-tax basis to pay for any qualified medical expenses you incur. It’s also the last triple tax exempt investment vehicle available. Make sure you’re taking advantage of it.


  1. Invest in self-care

Looking after our physical and mental health has never been more important, so put time and money aside to fund self-care at the beginning of the year. In particular, try to plan at least one long break (a week or two) as well as three shorter ones of, say, four to five days. You can then use that time to recharge your engine.


  1. What relationships should you focus on?

Most of us wish we had more time to spend with friends and family but find the busyness of modern life gets in the way. Now is therefore the perfect time to reflect on the people you managed to see enough of in 2022 – and those you didn’t. You can then plan how you’re going to invest your time and energy into nurturing the relationships that are important to you in 2023.


  1. Turbo charge your savings if you’re a business owner

One very effective way to stay ahead of inflation is to save more. If you’re a business owner and have sufficient cashflow available, you should consider investing in a cash balance plan. This would allow you to save as much as $343,000 in addition to your 401k and profit-sharing contribution. Remember contributions to a cash balance plan, properly structured, are fully tax deductible., making it a great way to accelerate your savings and build your retirement nest egg!


The AIA Trust is here to help

The AIA Trust endorses retirement savings and distribution plan products through Equitable Financial that can assist you toward achieving your retirement goals. With over 50 years of experience working with AIA members, Equitable Financial Retirement Program Specialists are licensed to provide the knowledge and resources to assist you and your team evaluate the plan options most suited for your personal retirement goals. In addition, Equitable Financial provides a full range of recordkeeping and plan administration services to complement its suite of retirement product offerings for AIA members and employees. For additional information on these AIA-endorsed member benefits, please call Equitable Financial at 1-800-523-1125 or visit at https://equitable.com/associations/mrp/partners/aia


* This reference applies exclusively to Equitable Financial Life Insurance Company.

This article has been written for general information purposes only. This material does not constitute an offer or solicitation of any kind and is not intended, and should not be relied upon, as investment, tax, legal, or financial advice or services.

Retirement plans are issued by Equitable Financial Life Insurance Company (Equitable Financial)(NY, NY).  Equitable Financial and its affiliates do not provide tax or legal advice. You should consult with your attorney and/or tax advisor before purchasing a contract.

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