New Year's resolutions often center around losing weight or exercising more, but financial goals are also important for a new year. Preparing for 2023 with a financial checkup can help you get the most out of your money. The following financial tasks are things you can do before the new year begins.

Prepare for Taxes

Shortly after January 1 hits, it's tax time. Seniors still have to follow tax-filing rules. You might not have to file if Social Security is your only income source, but a tax professional can advise you on your situation.

Gather the financial documents you'll need for tax preparation now. Make a checklist of the tax documents you're waiting to receive. You can also plan for making a tax preparation appointment. The Tax Counseling for the Elderly (TCE) program allows people who are 60 or older to receive free tax help.

Plan Your Retirement Withdrawals

The new year is a good time to review and plan your retirement withdrawals. If you're new to retirement, the general guideline is to limit first-year withdrawals to 4% to 5% of your retirement savings. You'll likely need to adjust your withdrawals yearly for inflation. You want to have enough money to live comfortably without draining your retirement account too quickly. A financial adviser can help you evaluate your situation and determine an ideal withdrawal amount.  

Set 2023 Financial Goals

Whether you call them New Year's resolutions or not, setting financial goals can help you improve your situation. Look at your current financial situation and decide how you want to improve it. Some suggestions include:

• Paying down your debt aggressively
• Increasing your savings account balance
• Saving for a specific goal, such as a trip
• Decreasing your discretionary spending
• Increasing your income through a side hustle or part-time job

Examine Your Estate Plans

Estate planning ensures your assets go where you want them to after you're gone, but it also involves protecting your wishes while you're still alive. An estate planning attorney can help you draft a living will to describe what kind of medical care you want should you become incapacitated. You can also set up a medical or financial power of attorney to allow someone else to act on your behalf if you become incapacitated.

If you already have those documents in place, review them to make sure they're still accurate. Look over your will to see if you want to change any of the beneficiaries. Since your situation can change over time, it's a good idea to ensure those documents still reflect your wishes.

Consider adding someone else as an authorized signer on your bank account if you're concerned about your financial decision-making. Seniors sometimes add an adult child or another trusted person to their accounts. This allows the other person to access the account, deposit money and help pay your bills.

Check Your Insurance

Insurance is an expense, but it can also protect you financially when something happens. Check the coverage on all of your insurance policies to ensure they're adequate. Review the deductibles on the policies so you know how much you'll have to pay out of pocket before your insurance pays.

Update Medicare Coverage

If you're on Medicare, you can change your Medicare Advantage, or Medicare Part C, leading up to the new year. This optional plan gives you additional coverage that original Medicare doesn't provide. It's a private insurance option, which means many plans are available. Choosing the right plan can protect you financially for your medical care.

The open enrollment period runs from October 15 to December 7 for the following year. You can join a plan, switch to a different one or drop your coverage during this period. These changes start on January 1. There is also a Medicare Advantage open enrollment period from January 1 to March 31, for people who are already enrolled in Medicare Advantage. One time during this period, you can change to a different plan or switch to original Medicare.  

Review Your Budget

If you don't review your budget regularly, make it a habit to at least review it at the beginning of the year. Your expenses and spending habits can fluctuate a lot in a year. When you live at The Gardens, a lot of amenities are available to you, including an indoor pool, enriching activities and paid utilities and cable. Additional spending, memberships and other expenses are things you should review to see where your money's going. This is a good time to see if you can cut some expenses and determine if you're staying within your budget.

Do a Security Check

Financial scams are a major concern for seniors, who are often the target of this type of fraud. A security check can help you spot issues early and strengthen your defense against scams. Checking your credit report lets you look for new accounts you didn't open or other mistakes that were reported to credit bureaus.

Review your financial accounts, such as online banking and credit card accounts, to improve security. Change your passwords on your online accounts and apps. Setting up multifactor authentication can reduce the risk of your account getting hacked. It uses additional methods to authenticate the user's identity if someone tries to log into your account from an unrecognized device.