"Decluttering is the fun part-you get to toss junk and feel lighter. But once the pile is gone, you have to decide where everything actually belongs. Marie Kondo, in The Life-Changing Magic of Tidying Up, tells us that decluttering is step one, but now we have to organize our beautiful things that we want to keep. We might reward ourselves with a trip to the Container Store for some sexy Lucite shelving units. Every sock and every dollar needs a proper drawer."
"As we approach the end of the year, this is the time when sorting and organizing your finances matters most. The IRS is not a "spark joy" kind of institution. Most of the IRS deadlines are December 31, and if you miss them, you don't get a do-over in April. So let's get our IRAs put in the right drawers now."
Decluttering should be followed by assigning a specific place for every kept item, including financial accounts. Year-end financial organization matters because most IRS deadlines fall on December 31 and missed deadlines cannot be fixed later in April. Begin with retirement accounts by consolidating old 401(k)s into an IRA or rolling them into a current 401(k). Rollovers commonly take at least 60 days and some providers mail paper checks, so start the process well before mid-December. Managing capital gains and losses and meeting December 31 tax-related actions can reduce tax bills and avoid penalties.
Read at Substack
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