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Here are some smart money moves to make before the end of the year
As 2020 comes to an end, you may have different views on your finances than when the year started.
Now is a time to revisit your short- and long-term money goals, and see if you are on track.
Certain strategies, particularly when it comes to retirement and tax savings, should be high on your to-do list, advisors say.
We've officially reached the last month of 2020. For many investors, that may prompt a sigh of relief.
But financial advisors say this is a great time to step back and assess which year-end financial moves you need to make now and revisit your money strategy to set yourself up for a prosperous 2021.
Before you do, you may want to throw out the Covid-19 pandemic mindset that has likely overshadowed all your life decisions this year.
"My biggest advice, in general, right now is let's not overreact with long-term choices based on short-term circumstances," said certified financial planner Jude Boudreaux, senior financial planner at The Planning Center in New Orleans.
In other words, this, too, shall pass. And when it does, you'll be glad you made these financial moves.
Revisit your retirement saving strategy
There's still time to make some key moves with your retirement savings.
If you plan to contribute to a traditional or Roth individual retirement account, you have until April 15 to do so and save on this year's taxes.
But you may want to get a jump and fund those accounts now.
"Life happens," said Roger Ma, financial planner at Lifelaidout and author of Work Your Money, Not Your Life. "If you're already in the process of redoing your finances, you may as well make that contribution by the end of the year."
In 2020, you can put up to $6,000 in a traditional or Roth IRA, or $7,000 if you're age 50 or over.