Looking Ahead: What to Consider for 2021

At the start of a new year, it often feels natural to go into planning mode and make sure your financial house is in order.

But, the ongoing pandemic and a changing political landscape may make uncertainty a common theme for 2021.

How can you plan ahead no matter what this year may bring? Here are a few evergreen strategies and relevant details to keep in mind. 

And, as always, reach out to PBAFS to discuss your questions anytime. 

Recession adjustments. Even though we may now see a light at the end of the tunnel, the economy will likely take some time to recover from the pandemic. During a recession, evaluating your financial goals and aligning your budget can help keep you on track for the future.

Potential new legislation. A new administration brings with it questions about how federal taxes could change. Additionally, proposed legislation like the Securing a Strong Retirement Act, which is designed to support saving for retirement, could impact your financial outlook. Keep a close eye on relevant announcements and any changes that could impact your investments, taxes and retirement.

Tax preparation. While the new year is just beginning, it's never too early to start thinking about your taxes. You may want to prepare the required documentation ahead of time to avoid any potential surprises when tax season does arrive.

Estate planning. Are your affairs in order? Regularly take a look at your estate plan to ensure your beneficiaries and will are up-to-date.

Staying flexible. Having a long-term financial vision means cultivating some flexibility. Keep in mind that a changing world can necessitate adjustments in the way you spend, invest and save. 

2021 is likely to be a year of continuing change. Remember, we’re here to answer your questions and to help you stay on track to reach your goals.