The calendar pages are turning fast, and before we know it, December will sweep in with its flurry of holiday cheer, year-end deadlines, and festive spending. It’s easy to get caught up in the rush, making reactive decisions that might not be in your best long-term interest.
But what if November wasn't just another month on the way to December, but rather a strategic launchpad for your financial future?
This month offers a unique opportunity to make some proactive "power moves" that will not only help you finish the current year strong but also set solid foundations for next year. Let's dive deeper into each one.
1. FSA/HSA Balances: Don't Let Free Money Disappear
We briefly touched on this in our LinkedIn article, but it bears repeating: your Flexible Spending Account (FSA) is often a "use-it-or-lose-it" scenario. This means any funds left over at year-end could simply vanish. Your Health Savings Account (HSA) is different – it rolls over and can even be invested – but checking its balance is still a smart move for budgeting health expenses.
The Power Move:
Action for November: Log in today. Identify your FSA deadline (often December 31st, but some plans have a grace period or small rollover). If you have a significant balance, think about planned medical appointments, prescription refills, new glasses, contact lenses, dental work, or even eligible over-the-counter medical supplies.
Long-Term Habit: Make it a habit to check your FSA/HSA balances quarterly. This helps you estimate usage throughout the year and prevents a last-minute scramble. It also ensures you're fully leveraging these tax-advantaged accounts for your healthcare needs.
2. Employer Match Contributions: Maximizing Your "Free" Retirement Money
Your company's 401(k) match is one of the most generous benefits available. It’s essentially free money added to your retirement savings, but only if you contribute enough to earn it. Many people inadvertently leave money on the table by not hitting the contribution threshold that triggers the full match.
The Power Move:
Action for November: Review your year-to-date contributions to your employer-sponsored retirement plan. Compare this to your annual salary and your company's matching formula. If you're short, use your remaining November paychecks (and early December, if applicable) to boost your contributions. Even a small increase now can capture hundreds or thousands of dollars in matching funds.
Long-Term Habit: Early in the year, calculate the exact contribution percentage needed to maximize your employer match. Set it and forget it! If you get a raise, re-evaluate to ensure you're always getting the full benefit. This small effort provides a significant boost to your long-term retirement security.
3. Annual Health & Wellness Benefits: Prioritizing Your Well-being
Most health insurance plans operate on a calendar year, meaning benefits like annual physicals, routine dental cleanings, and eye exams often reset on January 1st. If you haven't used them, you're not just missing out on "free" services; you're potentially neglecting your health.
The Power Move:
Action for November: Review your insurance plan's summary of benefits. Identify any unused annual wellness visits, screenings, or appointments. Schedule them immediately! November is a great time to get these done before the holiday rush makes appointments harder to find.
Long-Term Habit: Put recurring calendar reminders in place for annual check-ups at the beginning of each year. Proactive health management isn't just good for you; it can prevent more serious (and expensive) issues down the line.
4. Tidy Up Your Investment Portfolio: A Quick Check-up
"Set it and forget it" is a valid strategy for long-term investing, but a quick annual check-up isn't a bad idea. November is an opportune time to ensure your portfolio still aligns with your financial goals and risk tolerance. It's also the prime window for a strategy known as "tax-loss harvesting."
The Power Move:
Action for November: Take an hour to review your investment statements. Are your asset allocations (stocks, bonds, etc.) still where you want them? If you have investments that have performed poorly, consider if "tax-loss harvesting" makes sense for you. This involves selling investments at a loss to offset capital gains and potentially a limited amount of ordinary income. Always consult with a qualified financial advisor or tax professional before making investment decisions related to tax implications.
Long-Term Habit: Schedule an annual portfolio review, ideally in the fall. This allows you to make strategic adjustments, rebalance, and consider tax implications before year-end. Regular reviews help keep your investments aligned with your evolving life circumstances.
5. Consolidate and Define Your Giving Strategy: Intentional Impact
For many, year-end is a time for generosity. If charitable giving is part of your plan, approaching it strategically in November can yield better results for both you and your chosen causes.
The Power Move:
Action for November: Decide which charities you want to support and what amount you plan to give. This helps you budget and avoid impulsive, less impactful donations. Research organizations (Charity Navigator is a great resource) to ensure your money goes where it will do the most good. If you're over 70.5, investigate Qualified Charitable Distributions (QCDs) directly from your IRA, which can be a tax-efficient way to give.
Long-Term Habit: Integrate charitable giving into your annual financial plan. Consider setting up recurring smaller donations, which provide consistent support to charities. Having a clear giving strategy ensures your generosity is both impactful and aligns with your financial goals.
The Bottom Line:
November isn't just the prelude to the holidays; it's a powerful month for proactive financial management. By making these five power moves now, you're not just finishing the year strong—you're strategically setting yourself up for an even more financially successful and less stressful year ahead. Don't wait; act now and step into December with confidence!