As you welcome in 2017, it’s a perfect time to jumpstart your investing goals and finally turn your financial dreams into a reality. Even if you already have begun investing, it’s also a wonderful time to set new investing resolutions and take your success even further.
Here are some of those smart investment moves for 2017:
Open an IRA, then max it out
If you haven’t already done so, opening a Roth IRA is a one of the best investment moves for 2017, even if you already have a retirement plan at work, like a 401k.
Traditional IRAs are made with “pre-tax” dollars, meaning that your initial investment is tax-free, and the money invested experiences tax-free growth, until you are eventually taxed in retirement. Roth IRAs, on the other hand, are taxed initially, and then are tax-free while being invested and withdrawn.
With both accounts, you can invest $5,500 for the 2016 and 2017 tax years, with an additional $1,000 allotted for those over 50 as a catch up contribution. You should ideally aim to max out these accounts in 2017, but every dollar counts if you can’t make the full amount.
Build an Emergency Savings Fund
Building up money in your savings account might not seem like one of the smart investment moves for 2017, but emergencies are by nature unpredictable, and they can completely throw off your investment plan if you haven’t prepped for them financially.
By having at least 6 months of living expenses in your savings account, you can avoid withdrawing your investments to cover expenses, or even worse, incurring penalties by taking money out of your retirement accounts.
Schedule a financial check up
Plenty can change within a year, so one of the wisest investment moves for 2017 is to schedule a financial check-up. Whether it’s with your trusted financial advisor, or just on your own for now, it’s vital to check in on anything that’s changed within your financial life, such as having a child or incurring increased expenses. You can alter your financial roadmap to account for these changes, and also plan ahead for any future ones.
Learn more about the smart investment moves for 2017
At LexION Capital, we’re holistic advisors who create customized portfolios for our clients’ specific needs and goals. If you’d like to learn more about how we can help you meet your goals in 2017 and beyond, don’t hesitate to contact us today.