Financial Planning for 2022

By Private Vista on December 13, 2021

At this time last year, I was writing an article for January which was focused on emerging from the Pandemic and a return to normalcy. This goes to show how quickly our Planning can shift from an offensive approach to defensive. As we dealt with high inflation, rising interest rates, a volatile market, and supply chain issues, we found ourselves adjusting our strategy on a daily basis.

Although the world is a different place than it was two years ago, planning for your financial future remains just as important. As we look to 2022 with a sense of beginning and growth, let us remember to create SMART goals and keep them front of mind, even when we’re consumed with a message of fear and uncertainty.

Specific – focus on a specific area of improvement
Measurable – quantify the goal to measure your progress
Achievable – be realistic and ensure you can attain such goal
Relevant – make sure you have a “why” you want to do this
Time-Based – over what period will you measure your results

Since this article is focused planning for your Financial Life in 2022, here are some new changes coming this year that may help in building your 2022 Financial Plan:

Social Security – if you’re collecting benefits, you’ll see a Cost of Living Adjustment (COLA) of 5.9% when you receive your deposit this month due to the high levels of inflation. If you’ve previously collected $2,500 per month, you should expect to receive an additional $147.50 per month in benefits.

Company Retirement Plan Contributions – if you contribute to a 401(k) or 403(b), your maximum contribution will increase to $20,500. For those over 50, you may contribute an additional $6,500 or $27,000 for the year. Make sure to adjust your deferral percentage to ensure you maximize your tax deferred savings.

Individual Retirement Plan Contributions – contribution limits to your IRA or Roth IRA will remain unchanged in 2022. Subject to income limits, you may contribute up to $6,000 to your IRA or Roth IRA. For those over 50, you may contribute an additional $1,000 or $7,000 for the year.

Health Savings Accounts – if you have access to a Health Savings Account (HSA), a family may now contribute up to $7,300/year to pre-tax contributions. For those over 55, you may contribute an additional $1,000 or $8,300 for the year. You may then withdraw these funds tax-free to pay for medical expenses, or let the account grow as an additional retirement benefit.

Taxes – tax rates will remain unchanged in 2022. The IRS did, however, increase the income brackets for inflation and increased the standard deduction to $12,950 for single filers ($25,900 for Married Couples filing a Joint return).

At Private Vista, we help our clients prioritize their Specific goals, Measure the progress each year through Achievable steps, understand why these are Relevant to you and your family, all within a calculated Timeline. If you find yourself needing help building your own Financial Plan, please give us a call.

Article By: Randy Porzel, CFP®, RICP®: Randy is a Partner and Lead Advisor at Private Vista LLC. He began his financial planning career as an intern and worked his way up through every job at the firm. Randy finds joy in taking clients through Private Vista’s planning process, using tools that answer questions and clear uncertainty so that clients can look forward to their idea of an enriched life. In his free time, Randy enjoys serving on the boards for the Chicago Lighthouse for the Blind and The Darien Lions Club, whose mission is to serve those in the community with visual impairments.

The views expressed represent the opinions of Private Vista, LLC and are subject to change. These views are not intended as a forecast, a guarantee of future results, investment recommendations, or an offer to buy or sell any securities. The information provided is of a general nature and should not be construed as investment advice or to provide any investment, tax, financial or legal advice or service to any person. Additional information, including management fees and expenses, is provided on Private Vista, LLC’s Form ADV Part 2, which is available upon request.

Private Vista, LLC is a group comprised of investment professionals registered with Hightower Advisors, LLC, an SEC registered investment adviser. Some investment professionals may also be registered with Hightower Securities, LLC (member FINRA and SIPC). Advisory services are offered through Hightower Advisors, LLC. Securities are offered through Hightower Securities, LLC.

This is not an offer to buy or sell securities, nor should anything contained herein be construed as a recommendation or advice of any kind. Consult with an appropriately credentialed professional before making any financial, investment, tax or legal decision. No investment process is free of risk, and there is no guarantee that any investment process or investment opportunities will be profitable or suitable for all investors. Past performance is neither indicative nor a guarantee of future results. You cannot invest directly in an index.

These materials were created for informational purposes only; the opinions and positions stated are those of the author(s) and are not necessarily the official opinion or position of Hightower Advisors, LLC or its affiliates (“Hightower”). Any examples used are for illustrative purposes only and based on generic assumptions. All data or other information referenced is from sources believed to be reliable but not independently verified. Information provided is as of the date referenced and is subject to change without notice. Hightower assumes no liability for any action made or taken in reliance on or relating in any way to this information. Hightower makes no representations or warranties, express or implied, as to the accuracy or completeness of the information, for statements or errors or omissions, or results obtained from the use of this information. References to any person, organization, or the inclusion of external hyperlinks does not constitute endorsement (or guarantee of accuracy or safety) by Hightower of any such person, organization or linked website or the information, products or services contained therein.

Click here for definitions of and disclosures specific to commonly used terms.