As more and more people are being vaccinated, hope has risen the COVID-19 pandemic restrictions will be a thing of the past by the end of 2021.  Once it does subside, we will all be in a world that looks different than it did in February 2020.  As your lives adjust to post-COVID normal, it’s a good idea to make some reassessments of your life, including your finances.  Here are three aspects of your financial life to reassess “post-COVID”.

Reassess budget

One of the defining moments of 2021 is the mania that surrounded the trading of GameStop stock, Robinhood, and the WallStreetBets Reddit group that led the charge.  For those of you not too familiar with it, you can click here to find out more.

What this shows is that when it comes to investing, not everyone is playing the same game.   When making the decision to buy shares of stocks, bonds, mutual funds, ETFs or some other kinds of securities like options and puts, it is helpful to know what kind of investor you are.  If you know this, then you can better invest in alignment with what you are trying to accomplish

New legislation means new benefits for business owners! In addition to opening the availability of new loan funds, the Consolidated Appropriations Act passed in December gives small business owners a host of benefits that the original CARES Act did not cover.

The biggest news of this new Act is the clarifying legislation around deductions of purchases made with PPP money. Purchases made with PPP money are eligible for deduction, potentially saving you thousands on taxes.    

How to avoid being your own worst enemy when it comes to your money and long term goals.

We all want to be better off, right?  Ideally, we would always make decisions that result in our best interest and help us reach our goals.  However, I think we know that isn’t always true.  Sometimes people sabotage themselves – eating that extra doughnut, hitting the snooze button when we are supposed to work out, letting Netflix keep playing the next episode, the list can go on and on.  Why we do this usually has to do with short term wants over long term well-being.   

Given the new tax rules and rates, it may be time to reconsider your retirement plan options

There are many financial rules of them (don’t spend more than you earn, save 20% of your income, etc.) with one of big ones being to put money away in a pre-tax 401(k) if your work offers one.  The main incentive to do so is that these accounts have tax advantages – some of your earnings go in tax free, it grows tax free, and you then pay taxes later when you take withdrawals at hopefully a lower rate.