end-of-year money checklist ✅

student loan + retirement deadlines you need to know

Hello to the 728 hotties subscribed to this newsletter!

(No audio recording today because I am recovering from a sinus infection. Will be back next week!)

Can you believe that there are only 26 days left in 2023? This year has been so intense both on the personal and collective levels, and I’m so grateful for your continued support.

We’re in the financial “fuck-it” season of the year. It’s normal to think, “I haven’t actually met any of my financial goals in 2023, so fuck it. I’ll be good in January.”

The end-of-year “fuck-its” are only heightened by the despair and hopelessness around the genocide we are collectively witnessing on social media. It’s also normal to think, “What’s the point of sticking to a budget or following through on my financial goals when the end of the world feels imminent?”

These feelings are valid, real, and understandable. But when it comes to your money, I encourage you to act from a place of hope and longevity. I want you to know, dear hottie, that you are not alone in creating a financial plan that empowers you to speak boldly against injustice without sacrificing your financial stability.

Here’s a three-step checklist to help you cultivate financial wellness before the year ends:

1. Student loans: Consolidate your student loans by Dec 31, 2023 (FFEL and Perkins only)

This year, the Biden Administration announced the IDR Account Adjustment for federal student loan borrowers who are on an income-driven repayment (IDR) plan.

Federal student loans are forgiven after:

• 20 or 25 years; 240 or 300 payments for people on IDR plans

• 10 years or 120 payments for nonprofit workers using the Public Service Loan Forgiveness Program (PSLF)

The IDR Account Adjustment is a temporary initiative that allows more flexibility about which payments count toward forgiveness. However, only Direct student loans are eligible for this one-time adjustment.

Borrowers with FFEL or Perkins loans are not eligible for the IDR Account Adjustment. For example, the 43 months under the pandemic payment pause count toward student loan forgiveness, but borrowers with FFEL or Perkins loans will miss out on that benefit.

FFEL loans were administered by the Department of Education, while Perkins loans were administered by colleges. The FFEL program ended in 2010, and the Perkins program ended in 2017.

Direct loans are administered by the following student loan servicers:

• EdFinancial

• MOHELA

• Aidvantage

• Nelnet

• ESCI

• Default Resolution Group

If you have federal student loans that are serviced by private companies like Sallie Mae, your student loans are likely FFEL or Perkins loans.

If you have FFEL or Perkins loans, you must consolidate your loans into a Direct loan by December 31, 2023 to become eligible for the SAVE Plan in 2024.

Full instructions for consolidating your loans can be found on the Federal Student Aid website. Use the EDCAP NY calculator to calculate your monthly payments with the SAVE Plan.

2. Retirement: Max out your Roth IRA contributions

As an anti-capitalist, I have mixed feelings about investing in the stock market. However, I recognize that investing is the primary vehicle for retirement in this country, and I wouldn’t be doing my job properly if I didn’t inform you of the Roth IRA contribution limits.

A Roth IRA is a type of retirement account available for single individuals who earn up to $138,000 or married couples filing jointly who earn up to $218,000. For 2023, the contribution limit is $6,500. Using the Bankrate Roth IRA calculator, you’ll see that a one-time $6,500 contribution with a 7% expected rate of return turns into over $23,000 in 20 years.

Retirement investments using accounts like Roth IRAs and 401(k)s also help lower your annual gross income. Some investors use this as a strategy to lower their tax liabilities for the year.

Read this step-by-step guide from NerdWallet if you’re considering opening a Roth IRA account.

*Note: You have until April 15, 2024 (tax filing date) to max out your Roth IRA.

3. Wellness: Make a list of your achievements

Finally, please take some time to celebrate your achievements this year! Make a bulleted list of the things you’ve accomplished, and keep that list near your desk.

Here’s an example of some things on my list:

• I have paid $12,483.53 worth of debt between January and November. In December, I plan on paying $675, which will bring my total to $13,158.53.

• I gave my little sister a generous birthday gift!

• I took two friends out to dinner when they were going through a hard time!

• I made difficult phone calls with car insurance providers!

• I asked for help and received $1,150 in mutual aid after I was laid off!

• 6 years into my career as a professional writer, I finally bought myself a laser printer! And I got a really good deal on it!
  

As you can see, the list doesn’t just have to include numeric achievements. It can include some difficult actions you’ve taken toward your financial goals.

I’m rooting for you, hottie. If you get to the end of this email, please let me know which of these three action items you found the most helpful.