Helpful Holiday & Year-End Financial Advice
With the end of the year just around the corner, ’tis the season for gift-giving, holiday travels, and a holly jolly assessment of our financial health. We want to end 2021 strong — that means taking the time to get a good grasp on our finances and determining how we can prepare for an even better next year.
That’s why this holiday season, Sun Group Wealth Partners is gifting you with some good ol’ holiday and year-end financial advice. We’ve invited expert panelists Deb Nason @dnason, Anthony Copeman @AnthonyCopeman, Michelle Fox @MFoxCNBC, and Jessica Dickler @jdickler to help you get an excellent start to ending the year on a high note. They’re here to offer tips on everything from strategic holiday shopping to maximizing end-of-year tax deductions.
Missed the Tweet Chat? Here’s a recap:
Q1. We’ve all heard, holiday shopping may look different this year with predicted shortages and supply chain obstacles. How do you anticipate this affecting your 2021 gift shopping? Have you encountered this so far? What tips can help circumvent these issues?
Michelle Fox: I have kids, so I was worried about not getting the toys on their list and got an early start. My advice is to start early — but still look for deals. Fortunately, retailers have responded with early sales, like Amazon, Best Buy, Walmart, and Target. Just don’t get too caught up that you overbuy! One financial therapist told me that people are getting FOMO brought on with supply chain shortages — which can induce a level of shopping beyond necessary.
Anthony Copeman: Retailers are urging people to buy gifts early so they can avoid the shortage. I haven’t done any shopping this far. I would advise shoppers to shop early and look for the best deals this season. Black Friday is upon us.
Alyx - Charlie Appel Agency @ColfaxInsurance: I'm doing more local shopping, second-hand stores, making our own gifts, etc to help with the shortages. We've seen some price hikes in some products, but not a ton of shortages thus far (at least where we are).
Q2. Pretty sure Santa makes a budget & checks it twice too! You don’t want to let your finances run like wild reindeer! Do you use a holiday budget to guide your gift getting? What are the best tips to get the biggest bang for your buck? What are some great gift ideas that make the biggest impact?
Anthony Giannone @lg217: The best advice I can think of is to use one checking account or one credit card for Holiday shopping only. The reason is because you can keep track of your holiday spending as well as your holiday budget much easier tracking just one account instead of several.
Deb Coman: I never used to budget for this but now use an app that sets a budget and tracks the gifts and expenses and lets me know where I stand ... ideas, ordered, bought, wrapped, and how much spent all in one place and it's helped tremendously.
Dan Willis @MLLNNLmotivator: We get a single gift for one member of the family and do a secret Santa with a cash limit to keep things reasonable for a 10-person family.
Michelle Fox: My advice is to bargain hunt and price compare. Use store rewards or credit cards to save money, but be careful about accumulating debt. I wrote about it here:https://cnb.cx/3x2Dagj
Q3. Life played an Uno Skip Card for holiday travel last year, and many are excited this year, and also, overspending. Are you doing any holiday travels this year? Where are you going? When did you book? What tips did you use to make your travel reservations budget-friendly?
Michelle Fox: I am not going anywhere this year! For budget-friendly reservations, sign up for price alerts through travel websites and apps, which will let you know when the fare to your destination drops.
Alyx - Charlie Appel Agency @ColfaxInsurance: No holiday travel for us this year! Some tips though:
~Use cards that offer travel points that you can use
~Book several months in advance (switch your browser to incognito mode when price shopping)
~Bundle options generally save $$
Q4. These last couple of years have had so many drastic changes for everyone. How do you take account of major life events / significant changes? How do these events affect your finances? How do you adjust your financial habits to keep these adjustments in mind for the upcoming year?
Deb Nason: I’ve made a conscious choice to be more mindful. To appreciate my dear friends and colleagues. My networking has been even more heartfelt, as we have all gone through a traumatic couple of years and we all need extra TLC. Along with the mindfulness, I’ve actually started to spend more money on myself. Taking a limo, buying those shoes, staying in hotels. And getting enjoyment out of it.
Anthony Copeman: Along the journey, it’s important to make purchases based on alignment and not affordability. And save based on alignment as well. Things happen that are out of our control, but we must make sure we focus on what we can control.
Amy Hampton @lonedaisymedia:Change is life. Every generation has had their challenges. Ours is no different. It's important to balance caution (like savings, emergency funds) while remembering life is short. This too shall pass and hopefully, we're better for the struggle.
Q5. In-fa-la-la-la-flation. Inflation isn’t on the list of things to be grateful for, but it’s a reality this holiday season. What smart strategies can you use to help beat impending inflation?
Jim Fuhs @FuhsionMktg: If there are things you can buy in bulk that will last, do it now! We have a tower garden and plan to grow more of our own produce!
Michelle Fox: Buy in bulk if you can and comparison shop by looking at unit prices. When it comes to gift-giving, consider scaling back and perhaps doing a grab bag or Secret Santa. I recently wrote about this with @sharonepperson https://cnb.cx/3Du4ztX
Alyx - Charlie Appel Agency: Coupons, deals, shopping local, promo codes, purchasing like quality materials and items from second-hand or thrift stores
Q6. Tis the season for…. tax prep? Not what you were expecting but the end of the year is a great time to do some tax preparation! What is on your tax to-do list come this time of year? How does it benefit you?
Dan Willis: With December quickly approaching deductibles and charitable donations are a major focus.
Michelle Fox: Consider last-minute tax deductions, such as donating to a charity. If you made money this year by selling some investments, consider offsetting those gains by selling investments that had losses. For more tax tips, check out@katedore
Q7. Just as many use this time to review the past year, there’s no better time to review your home insurance, renter’s, auto, etc. When reviewing your policies what should you be looking for? What adjustments should you make?
Michelle Fox: Check the price and make sure that your coverage hasn’t changed. Also remember, you don’t have to stick with your provider! You may find a better deal if you shop around, just make sure you get comparable coverage.
John Lim @bemovingforward: [Review] rates (increases, decreases, offsets), needs for 2022 and not a bad idea to shop around for competitive rates. I'll also add it's a good time to review those subscriptions for things like streaming, music, etc.
Navicore Solutions @navicorePR:When reviewing your insurance policies really look at what's included. There could be things your paying for that you don't use or take advantage of.https://bit.ly/3nptMjF
Q8. It may almost be the end of the year, but it’s never a bad time to start working with a financial advisor. How do you know if you should be working with a financial advisor? What are the benefits of having a financial professional on your side?
Deb Nason: These days, it takes quite a bit of money just to have the basics – home, insurance, education, etc. – so we need a professional to help us plan for the best (and the worst) and help us avoid financial landmines. Unless you work full-time in the financial industry, it’s hard to know whether or not you’re choosing the best financial option, be it student loans, employee benefits, investments, tax optimization.
I have seen instances where one bad decision can ruin a life. Also the issues of spending & saving. An advisor, who should ideally also be a financial planner, will help you identify your life goals & coach you to stay on track. There are many factors to juggle, & it only gets more complex as we add spouses, children & even r parents.
Finally, studies show that certain advisor actions can add 3% in net returns to your portfolio and improve retirement income by as much as 22% (taken from my book).
Alyx - Charlie Appel Agency: You don't have to do everything on your own. If you feel overwhelmed, or that you don't understand why you can't save money, working with a financial advisor can help you get on the right track to having a healthy relationship with your $$
Q9. Reviewing your investment & retirement accounts can bring you into the holiday season & the new year feeling more merry & bright when it comes to your money. What questions should you ask (yourself / your advisor) when reviewing your accounts? How do you know if / when investment changes are in order?
Michelle Fox: Check to see if your asset allocation has changed thanks to gains or losses in the market. You’ll want to balance it to get back to your original allocation, which may mean selling or buying certain assets.
Alyx - Charlie Appel Agency: Look at the diversity of your portfolio and the risks and trends in the industries you're invested in. What looks good? What fell behind? Where could you expand? What would they suggest for flexible index life insurance policies as retirement funds? etc.
Winnie Sun: When you meet with your financial advisor, you can ask: 1. How did my portfolio perform this year vs. what we expected, 2. Should I make any changes for 2022? 3. Should I up my contribution amount to any accounts? 4. Talk to me about financial planning.
We ho-ho-hope that this tweet chat helps you make the most of your holiday season this year! In the thick of all the glitz and glee of the festivities, we still encourage you to take the time to reflect on your financial performance this year and whether you’ve achieved the status that you envisioned for yourself at the start of the year.
Knowing you’ve accomplished your goals or knowing what your next steps will be to further your progress will certainly add an extra sprinkle of good cheer into your holidays. Wishing you peace, happiness, and wealth this season and into the New Year!
To stay updated for more content like our Twitter Chats, follow @WinnieSun! Have a question for Winnie? Use the #AskWinnie to get your questions answered!
