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3 Tips to Prep your Finances for the End of the Year


Yes, it’s only October, but that doesn’t mean you shouldn’t be taking some steps now to get your finances in good shape for the end of year. We pulled together our top three recommendations for what to focus on, courtesy of the Planning Capital team.

Rick Bell, President:

Combat rising healthcare costs

Combat rising healthcare costs, now.

To properly plan for the year’s end, and in preparation for increasing health care costs in the future, you need to consider maximizing your Healthcare Savings Account (HSA.) (If you have one!) Getting a pre-tax incentive to accumulate money that can grow tax free, if used for medical purposes, is a great way to pay for your future health care. Note: IT MUST REMAIN AS A HEALTH SAVINGS ACCOUNT! If it is rolled over to an IRA, it then falls under the IRA rules, NOT HSA.

For more info on rising health care costs, check out this article on

Dan Brady, Vice President:

Check Savings Targets

Check your progress on savings targets!

One of the most important metrics in long-term financial success is consistently hitting savings targets on an annual basis. If you are unsure of what your target is or should be, a good rule of thumb to use is 15% of your income. Add up all of the money you have saved into your 401(k), savings accounts, or other investments so far this year and divide by your gross year-to-date paycheck. If the number is above 15%, then you are in good shape! Otherwise, see if you can calculate how much you would need to save between now and the end of the year to hit that target. You’ll be thanking yourself down the road!

Brandon Abe, Financial Planner:

Complete Required Minimum Distributions

For retirees, complete your Required Minimum Distributions.

Coming into the end of the year one of the more important things to verify is that you have completed or are on pace to complete your Required Minimum Distributions (RMD). Whether you take a monthly income, or a lump sum, the IRS will require that you meet a Required Minimum Distribution from your Qualified Retirement Accounts every year starting at age 70 ½. It is important that this is done every year to avoid paying unnecessary penalty taxes. Even if you do not need the income from your retirement accounts it is still important that these distributions are met, and you can always reinvest the excess into another non-qualified account, or maybe take an extra vacation!

If you have questions about any of the above, or find you need some guidance to get in good shape for 2020, never hesitate to reach out to us at: (215) 709-5100 or

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