Listen carefully, and you can almost hear the national (and international) sigh of relief as 2024 winds down to an end, leaving in its wake a pile of economic hardship and damage. Strangely, economic reports and statistics flowing constantly from our bureaucrats and media sycophants seem to want us all to believe that our economy is excellent, our lives tidy and unharried, and the future bright. As Alfred E. Neuman repeatedly asked in Mad Magazine, “What, me worry?”
In the 1980s, we were introduced by Ronald Reagan to the question that changed everything. “Are you better off now than you were four years ago?” That question is getting a second wind, due to the vast majority of Americans who can only answer it in the negative.
How did you fare during the past four years? Many Americans are better off financially, as our stock market has been on fire, with records being set frequently. Investors with significant account balances have added wealth and security to their lives. Unfortunately, these people represent a relatively small portion of American families.
Regardless of where you stand financially today, it is time to approach the future with an eye toward making your own situation better in 2025. Almost everyone can adopt a positive attitude and make some changes. As much as I detest the notion of New Year’s Resolutions, this may be the time for one.
For instance, participants in company-sponsored retirement plans, such as 401(k) and 403(b) Plans, should make an effort to increase contributions and learn more about asset diversification. IRA savers should attempt to max out contributions for 2024 and 2025. Remember that you have until April 15, 2025, to add to your 2024 IRA.
Due to rampant losses and inflation in the insurance industry, your policy renewals may be coming in with significant double-digit increases. You are not helpless against these jolts to your cash flow. Take some time to do a complete analysis of your insurances, and shop around for better deals. There is no better and quicker way to pad your income than by reducing the cost for necessities. We recommend a discussion with a local independent insurance agent.
Each of us can do a better job with our 2025 finances, but it requires some reflection and analysis of our recent situations. The Holidays are a perfect time to figure out where we have been hurt by the economy of past years, and then develop better alternatives.
Getting some professional help may be timely. We recommend a free consultation with a Certified Financial Planner®.
Van Wie Financial is fee-only. For a reason.
