Resources
Financial Tip of the Month
March: Financial Tip of the Month
March is often considered the “crunch time” for tax preparation. This is when any missing documents and forms should be tracked down and provided to your tax preparer ahead of the April filing deadline.
Prepare for Filing
If you plan to use a tax software program, review the requirements so you have everything you need before you begin the filing process.
Contribute to an IRA and Boost Emergency Fund Savings
March is an excellent time to contribute to an IRA or Roth IRA for the previous tax year. You may contribute up until the tax deadline.
Useful IRS Resources
Additional IRS information can be found at:
• https://www.irs.gov/newsroom/new-law-provides-additional-flexibility-for-health-fsas-and-dependent-care-assistance-programs
• https://www.irs.gov/newsroom
Annual Financial Calendar
Daily money managers are adept at keeping track of clients’ financial obligations using a variety of methods. One such method frequently used to stay organized and make payments on time is a financial calendar. A financial calendar is a simple system for keeping track of financial obligations throughout the year or for a chosen period of time, in much the same way as people remember birthdays, anniversaries, and appointments.
For those who utilize technology, here are some options available:
- Reminders automatically generated using financial software like Quicken or Microsoft Money.
- Spreadsheets that can be sorted by payee, payment due date, or other criteria.
- Reminders created using apps for electronic devices.
- Reminders established with payees. For example, some insurance companies will send emails to policyholders a few weeks before premiums are due.
A Financial calendar does not have to be high-tech to be effective. It can be as simple as a ‘list’ of financial obligations that you review regularly, or a paper calendar with payments due and funds to be received recorded in different ink colors to make them easier to spot.
Financial calendars are also useful for documenting other financial information such as IRA required minimum distribution (RMD) deadline dates. For those living on a fixed income, tracking receipt of dividends and other distributions is useful for creating accurate cash flow projections.
It is important that the system you use is one that you can maintain.
You can create a perfect financial calendar, but you will only be successful if you use it. For those who struggle with keeping track of bills, or lack the time to handle personal financial affairs, you may want to consider hiring a daily money manager to manage your financial calendar. This will ensure that all of your bills are paid on time every month.
AADMM’s Public Awareness Committee has created a Financial Calendar Series. Each month, financial events and reminders will be added. Watch for updates on AADMM’s Facebook page.