UCU Wealth Strategies Group –Year-End Investing Checklist

This has been a year like no other – a global pandemic, a shift to working from home, online classrooms, and a volatile stock market. All of this has had a tremendous impact - not only on our daily lives - but on our personal finances as well. While the year-end traditionally brings joyous holiday celebrations with family and friends – this year might cap off differently - with COVID restrictions upending festive plans.

With all the uncertainty prevailing it is important to stay on top of your finances –so this end-of-year, take time out to review your overall financial situation and plan for the year ahead.

Use this simple checklist to prepare your finances for the New Year.

Review Your General Finances

Take a closer look at your general finances to make sure they are in line with your financial goals.

• Emergency Fund – do you have a well-funded plan with enough cash on hand to cover your expenses for up to 6 months if you lose your job?
• Insurance Coverage – do you have adequate insurance protection against unexpected events?
• Estate Planning – do you have an updated will?
• Debt Plan – have you created a schedule to pay off your debts and are you on track with your payments?
• Credit Report – have you checked your credit score/standing this year?

Rebalance Portfolio                             

The end-of-year is a good time to review your investment portfolio to make sure your asset allocation – the mix of volatile and stable funds – is in line with your financial goals.  Based on tax planning and other strategies – you may want to adjust the holdings in your portfolio. A UCU Wealth Strategies, Credential Securities or Credential Asset Management Inc. advisor could help you navigate the uncertainty and provide clear advice to keep your investment portfolio on track.

Maximize your Investment Accounts

• RRSP - Know your RRSP contribution limits and maximize your RRSP contribution by taking advantage of unused limits from previous tax years - which are carried forward to this current year. You have until March 1, 2021, to contribute in order to generate a tax credit this 2020 year.
• RRIF - If you are retiring soon or about to turn 71 then you are required to convert your RRSP into a RRIF (Registered Retirement Income Fund).
• RESP - The contribution deadline for RESPs is December 31. If your beneficiary is under 17, your contributions will qualify you for the Canada Education Savings Grant – which is grant money the Government adds to your RESP contributions.
• TFSA - Withdraw any planned funds before the end of the year –and the amount of your withdrawal will be added back to your contribution room on January 1 of the New Year.

Budget and Automatic Savings

Review your monthly budget – income, expenses and savings – and see if you can trim some expenses to create more savings. If you don’t have a budget, now would be a good time to create one – it will help you stay on track to achieve your financial goals.

To boost your savings – consider opening a high-interest savings account like ucublu, or an investment account like a TFSA.  Set up automatic contributions directing part of your income to your savings or investment account and watch your savings grow.

For more information about please visit the UCU Wealth Strategies website

*Mutual funds are offered through Credential Asset Management Inc. Mutual funds and other securities are offered through Credential Securities, a division of Credential Qtrade Securities Inc. Credential Securities is a registered mark owned by Aviso Wealth Inc.