Tax Time is a Perfect Time to Plan for Retirement

older couple on picnic

Every year, tax time serves as a reminder of financial progress. Before the big April deadline rolls around, most of us spend time gathering documents, reviewing accounts and meeting with financial advisors, and all of that effort is centered around getting a firm grasp on what you earn, save and invest.

What many don't realize is that tax time preparation can be beneficial for more than one reason. Consider this: Many of the same documents, papers and files you go through to complete your taxes are the same documents you need for assessing your retirement preparedness. Whether you're just starting out or nearing retirement, knowing your level of readiness for retirement is critical to your financial well-being.

Conducting an annual checkup for retirement is not only smart financially; it can also give you added peace of mind, which is something investors need now more than ever. Keep these tips in mind to maximize your time this tax season:

  • Conduct a retirement assessment. Tax documents and end-of-year statements will often give you the clearest, most up-to-date snapshot of your finances. Use that information to assess your retirement progress and analyze these documents to determine if you should consider updating or altering your strategy.
  • Formulate or refine your plan. There are a wide range of financial considerations concerning your income and expenditures that need to be taken into account as you save, all of which should factor into your overall plan.
  • Take action! Once you've assessed your situation and devised ways to strengthen your retirement plan, put your strategy in motion. The sooner you can get started, the sooner you can make progress toward achieving your goals so you can be more secure about the future.

Contact a member of our Wealth Management Team today! They can help you plan for your future.

(Note:) You should always consult your tax advisor to determine how the rules apply to your situation and remember that state income taxes must be considered.