January Financial To-Do List

"January is a good time to review your finances with a focus on the big picture. Those who are saving for retirement should review their plans and adjust contributions accordingly, while retirees should review the rate of withdrawals from their portfolios and make sure the pace is sustainable in the long term." (Retirement Security SmartBrief, 1/22/20)

Watch the video and read the full transcript:
https://www.morningstar.com/articles/961643/your-financial-to-do-list-for-january

Some Highlights:
ask that basic question--how am I doing?--and try to answer it. 
If you are still investing for retirement: use a good basic retirement calculator just to see whether you're on track with your retirement savings.Consider if you can increase your monthly contributions.
For persons with a company retirement plan: If you're under age 50, the contribution limit is going up to $19,500. If you're over age 50, it's $26,000. So, take a look at whether you can adjust your contributions, especially if you're in a position to hit those maximum allowable contributions.

IRA limits are the same as 2019: $6,000 if you're under age 50, $7,000 if you're 50 plus. Spacing out your IRA contributions throughout the year, putting them on autopilot. So, if you're under 50,  contribute $500 a month to hit that $6,000 annual contribution limit.

For people who are already retired, the key gauge of your portfolio health and your overall financial wellness is whether your portfolio withdrawal rate is sustainable over your retirement time horizon.
Check to make sure that whatever you've withdrawn from your portfolio over the past year passes the sniff test of sustainability. Use the 4% rule as a guideline.

For all investors: revisit your asset allocation. The past decade and 2019 in particular have seen high returns on stock markets; look at what percent of your portfolio is in stocks and think about the potential impact of a downturn in 2020. It's likely time for a reallocation of your assets.