Whether you are early in your career
or have started a family, as a member
of the next generation of investors you
face your own set of unique needs. Below
are key tips to ensure you are off to a
financially healthy 2022!
Spending Budgets: Review your 2021
spending and create your 2022 spending
budget. The past two years have been
full of change for many working in
different ways or facing unemployment
challenges. Now is an ideal time to reevaluate
needs and create a realistic,
maintainable budget.
Insurance: Review your current
insurance portfolio to make sure it meets
your coverage needs. This applies to
health, life, disability, and property and
casualty insurance. If you have had a
major life event occur this year, such
as marriage, a new baby, change in job,
or home purchase, this takes on even
greater importance.
Healthcare: Many early-career workers
have high-deductible health insurance
plans combined with some type of tax-advantaged
health savings account, such
as a flexible spending account (FSA).
Check your balance and see how much
you have left to spend because these
balances are “use it or lose it.” Many
employers offer a grace period, and some
allow you to roll over a portion, if not all
of the balance into the new year. If not,
you will need to exhaust the funds by
December 31 to avoid any forfeiture.
Retirement Savings: The maximum
contribution limit for 401(k)s increases
by $1,000 in 2022 to $20,500. If you have
a plan through your employer, aim to
increase your contributions, if possible.
Many do not take advantage of increasing
contributions when they receive a salary
increase or bonus. These are easy ways
to help boost retirement savings, and
more importantly, benefit from the gift of
time.
Credit: Many young investors are still
building or establishing credit. Getting a
credit card is an important step if you are
able to manage spending and confident
in using one responsibly. It is vital to pay
bills on time, limit the use of credit, and
pay off debts. Additionally, you should
be sure to check your credit score.
Federal law gives you the right to access
a free copy of your credit report every 12
months.
These are just a few important steps
you can take to ensure you are on
track for financial success. Recognizing
everyone’s situation is different, we
welcome you to speak with our team at
CNB Wealth Management. We can help
tailor your strategies to your personal
financial goals.
This material is provided for general information purposes only. Investments and insurance products are not FDIC insured, not bank deposits, not obligations of, or guaranteed by Canandaigua National Bank & Trust or any of its affiliates. Investments are subject to investment risks, including possible loss of principal amount invested. Past performance is not indicative of future investment results. Before making any investment decision, please consult your legal, tax or financial advisor. Investments and services may be offered through affiliate companies.