I hope your Christmas season was fulfilling and you got to be in the company of people you love. Here is to hoping that 2025 has amazing things in store for all of us!
If you find yourself making a list of resolutions and things like investing, saving, budgeting, or paying off a debt are on that list, we should talk! Financial fitness aspirations are our jam.*
*If you have “regular” fitness goals, you should hire someone else… I am on the same struggle bus!
There is a cliché about the New Year and setting goals. “New Year, New Me” is often easier said than done and when it comes to financial goals, we prefer finding sustainable small steps rather than drastic changes. I love sitting down with someone who has big goals in mind and getting to help them break it down into small attainable tasks that help turn their goals into a reality.
Sometimes we present full blown financial plans to help our clients know they’re on the right path and sometimes it’s just giving one little piece of advice that makes a difference. I remember being given a piece of advice that helped my husband Cody and I start to prioritize saving and getting ahead early in our marriage: It was to open a savings account separate from our primary account. We had a small amount from each pay period deposited into the held-away account, sight unseen. When the savings came out before the money hit our primary account, it wasn’t as noticeable as trying to find a few coins to stretch into our savings at the end of the month.
After a few months, we had a few hundred dollars saved. Soon, it was a few thousand. Before we knew it, we used this separate account to pay off Cody’s student loan. This small piece of advice helped us get one step closer to freedom from debt and, most importantly, we never noticed the difference in our budget.
For those further ahead in the saving/investing game than we were as newlyweds, there are new guidelines out every year for retirement contributions. This year, Roth IRA and Traditional IRA contributions remain the same at $7,000 annually + $1,000 catch-up for those 50 years old+. 401K contributions went up from $23,000/year to $23,500 with a catch-up provision of an additional $7,500. Thanks to the SECURE 2.0 act, there is also now a super catch-up for those aged 60-63 of $11,250! There are more limits listed on the IRS.GOV website, or if you have questions, an answer is always a quick phone call to me away!
Financial goals can be easier said than done but partnering with someone who can help keep you accountable and help you prioritize where to start can make it all less overwhelming. It is never too late to start and there is no dream too big! This year, make your money work as hard for you as you do for it!
Financial Advisor
Prime Capital Investment Advisors
Cedar Rapids, Iowa
pciacedarrapids.com
1815 Boyson Rd.
Hiawatha, IA 52233
P: (319) 269-7143
This information does not constitute legal or tax advice. PCIA and its associates do not provide legal or tax advice. Individuals should consult with an attorney or professional specializing in the fields of legal, tax, or accounting regarding the applicability of this information for their situations.
