As the year begins to wind down we tend to focus on more immediate financial concerns—how much to spend on the kids, travel expenses—and less on the bigger picture. We have assembled a list of four quick things you can do to make sure that you start 2018 on the right financial note.
First, make sure that you talk to your accountant, before the end of 2017, about how developing tax laws could affect your taxes. All KP partner Physicians are owners of Permanente, which makes you a business owner. We’re not sure how the tax landscape will change, but pass-thru partnerships like SCPMG are the focus of tax cutting in congress. For example, you may be in a situation where paying for your medical license or Up-to-Date in 2017 may give you a more reliable deduction than paying for it in 2018. I always recommend going to an accountant who works with several KP Physicians, because they’re more likely to understand the company’s unique structure. If you need a referral, let us know.
Second, take a minute and go to the BENEFITS HUB for SCPMG Physicians which can also be reached through the portal. The website has been redone, but all of the information and tools are still there, including the ability to make sure that your retirement beneficiaries are up to date. If you recently got married, divorced, had a child, or established a trust your beneficiaries may need to be adjusted.
Third, rebalance! Rebalancing is simply making sure that your specific allocation of investments is still in line with your risk tolerance. After the significant run up in the S&P 500 over the last 12 months rebalancing may be a good idea. While you may have set up automatic rebalancing within the Kaiser 401k and Keogh, your entire portfolio’s allocations may need to be done manually.
Lastly, take a moment over the holidays and make sure you have a written financial plan. Having a written plan is much easier to stick to when the unexpected arises. Charles Schwab released a study earlier this year that found that less than 25% of Americans had a written financial plan, even though people with written financial plans have far better outcomes. People are much better at staying on track when there is a delinated track to follow.
At Eagle West Group we wish you a very happy holidays and a wonderful New Year. We’re always here to help if you have any questions.
Advisory services offered through EWG Elevate, Inc. dba Eagle West Group.
This represents a partial list of clients. They have not been compensated and were not selected based on duration, performance, account size.