Spring into Action: Plan for Your Financial Future

With the arrival of warmer weather and blossoming flowers, it's not just the seasons that undergo a transformation – it's also an opportune moment to revitalize your finances. Spring offers the perfect opportunity to reevaluate your budget, establish fresh financial objectives, and adopt savvy saving strategies. Here's how you can harness the spirit of renewal to enhance your financial well-being and achieve your savings goals this spring.

Spring Cleaning – Refresh Your Budget:

Just as you declutter your home during spring cleaning, it’s essential to declutter your budget. Review your expenses from the past few months and identify any areas, large or small, where you can cut unnecessary spending. Consider cancelling any unused subscriptions, negotiating lower bills, and switching to more cost-effective alternatives. Speak with an Oppenheimer financial professional and use budgeting apps or spreadsheets to track your expenses and ensure you stay on course to save for your future.

Understanding Stability of Your Retirement Income Sources:

Ensure you have a smooth transition into retirement, no matter the season. Consolidating your retirement accounts may paint a clearer picture of your savings and allow you to expand your investment options.

• Some retirement income sources performance correlates with market volatility and values will likely fluctuate:
  • Traditional and Roth IRAs
  • Taxable investment accounts
  • Employer-sponsored qualified retirement plans (QRPs) including 401(k), 403(b), and 457 plans
• Other retirement income sources will remain more balanced, including:
  • Social Security
  • Pension plans

Rolling Over to an IRA:

Consider rolling over to an IRA. Benefits can include avoiding withdrawal penalties = and a wide range of investment options.

• It’s generally a bad idea to out benefits to receive a lump sum distribution from your existing plan. This is subject to a mandatory 20% federal income tax withholding, income taxes, and 10% early withdrawal penalty tax.
• If you are able, you may store assets in your former employer’s plan, or roll over eligible assets into a new employer’s plan.

Plant the Seeds of Savings:

Establish concrete savings objectives, whether they involve establishing an emergency fund, saving for a vacation, or allocating resources for future investments. Dedicate a portion of your savings to your retirement account, and witness it flourish into substantial assets over time.

Reevaluate Your Financial Goals:

Spring is a time of renewal and growth, making it an ideal moment to reassess your financial goals. Reflect on your long-term aspirations, whether it’s buying a home, starting a business, or retiring comfortably. Adjust your budget and savings plan accordingly to align with these goals. Break them down into smaller, achievable milestones to track your progress and stay motivated.

Invest in Financial Education:

April is financial literacy month, so plan to invest in yourself and your family by expanding your financial knowledge and skills. Take advantage of free resources, such as online courses, podcasts, and books, to learn about budgeting, investing, and personal finance management. You can read more about tips for financial literacy here.

Springtime presents a golden opportunity to revitalize your finances and sow the seeds of financial growth. By spring cleaning your budget, embracing savings strategies, contributing to your retirement fund, and setting new financial goals, you can cultivate a brighter financial future.

With careful planning and mindful spending, you can make this spring a season of prosperity. Speak with an Oppenheimer financial professional today to learn more.