For many investors, this year has been a wild ride—with interest rate increases, a crypto
implosion, and whipsawing values in the major market indices. It might be tough to catch one’s breath and look ahead
to next year. But the end of the year is the perfect time to take stock of your investments, evaluating what worked,
what didn’t, and what you might do better next year. Here are four key opportunities to consider that may recharge
and reset your finances as you enter the new year.

Review and Refresh Your Financial Plan

If you set goals for the past year, evaluate your progress. Did you spend more than expected? Save
less than expected? Or did you manage your goals easily—suggesting a bigger challenge may be appropriate for next
year?

While setting financial goals for next year, you might also consider the long-term. When do you
plan to retire? What do you need to see before getting there—a specific number in your 401(k), a paid-off balance
sheet, or something else? Should you stay in your home or downsize? The answers to these questions may help you
formulate a more solid plan.

Assess Your Retirement Readiness

Are you on schedule to retire? Are you contributing enough to your 401(k) or IRA?

Though the answers to those questions depend on each person’s circumstances, some patterns are
emerging in savings habits among those in their 20s, 30s, 40s, 50s, and beyond. Check these numbers to see whether
you are on track.¹

Age 20 to 29

Average 401(k) balance of $10,500 while contributing 7% of
income

Age 30 to 39

Average 401(k) balance of $38,400 while contributing 8% of
income

Age 40 to 49

Average 401(k) balance of $93,400 while contributing 8% of
income

Age 50 to 59

Average 401(k) balance of $160,000 while contributing 10% of
income

Age 60 to 69

Average 401(k) balance of $182,100 while contributing 11% of
income

Age 70 to 79

Average 401(k) balance of $171,400 while contributing 12% of
income

These numbers are simply averages—they do not account for income, sector, or cost of living. They
also do not include assets in individual retirement accounts (IRAs), taxable accounts, or other savings accounts.
But knowing what those in your general age bracket save, on average, might give you a better idea of your progress
toward retirement savings.

You should notice that as workers grow older, they tend to contribute a greater percentage of
their total income to retirement.

Pay Down High-Interest Debts

With interest rates continuing to rise, credit cards, home equity lines of credit, and other
variable-rate loans are likely to grow more expensive.² If you have any adjustable-rate loans, now is a
good time to begin paying them off more aggressively.

Calculate Your Cash Reserves

It is a good idea to have some cash held for emergencies during turbulent times. From an
unexpected medical bill to a new appliance, having cash on hand may help avoid the stress of paying for sudden
expenses. Assessing your cash reserves at the beginning of the new year may give you a good baseline for setting
cash accumulation goals.

Important Disclosures:

Investment advice offered through Planned Financial Services, LLC (“Planned Financial”), an SEC
registered investment adviser.

This material is for general information only and is not intended to provide specific advice or
recommendations for any individual.

The opinions voiced in this material are for general information only and are not intended to
provide specific advice or recommendations for any individual.

This information is not intended to be a substitute for specific individualized tax advice. We
suggest that you discuss your specific tax issues with a qualified tax advisor.

All information is believed to be from reliable sources; however, Planned Financial Services makes
no representation as to its completeness or accuracy. Planned Financial blog articles are meant for informational
purposes only, are not intended to serve as a recommendation to buy or sell any security and are not an offer or
sale of a security. This is not a research report and is not intended to serve as the basis for any investment
decision. Any third-party information provided therein does not reflect the views of Planned Financial Services, LLC
or any of its subsidiaries or affiliates. All investments involve risk, and the past performance of a security or
financial product does not guarantee future results or returns. Planned Financial Services’ blog contains articles
on budgeting, business, insurance, planning, spending, and financial health, etc. The goal is to make business and
financial news accessible to our clients. Writers conduct daily research through a variety of primary (e.g., press
releases, financial reports, public statements, economic data, social media accounts, interviews, etc.), and
secondary sources (e.g., The Wall Street Journal, Bloomberg, etc.). Past performance is no guarantee of future
results. Any historical returns, expected returns, or probability projections are hypothetical in nature and may not
reflect actual future performance. The content on this article is for informational purposes only and does not
constitute a comprehensive description of Planned Financial Services’ investment advisory services. Please see our
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This article was prepared by WriterAccess.

Tracking # 1-05348535.

Footnotes:

¹ The Average 401(k) Balance by Age, Investopedia,
https://www.investopedia.com/articles/personal-finance/010616/whats-average-401k-balance-age.asp

² What Rising Interest Rates Mean For You, CNN,
https://www.cnn.com/2022/09/21/success/what-rising-interest-rates-mean-credit-mortgage/index.html