Spring Clean Your Finances: A Practical Checklist

Apr 18, 2025 | Retirement Planning

Spring is in the air—and it’s the perfect time to not just clean out your closets, but also to organize your finances. A financial spring cleaning helps you take stock of where you are, make smart updates, and set a clear course for the rest of the year. This checklist will walk you through simple yet essential steps to review your savings, rebalance your retirement accounts, update your documents, and much more.

We’ve put together a financial spring-cleaning checklist to help you get started. We’re here to assist you every step of the way so reach out if you have any questions.

 

Why Use a Financial Spring-Cleaning Checklist?

Just as you would use a checklist for travel or home projects, a financial checklist ensures that nothing important gets overlooked. Spring is an ideal time to pause, reevaluate, and realign your financial goals. Whether you’re preparing for retirement or simply want more peace of mind, these steps can help you stay on track.

 

Step-by-Step Financial Spring-Cleaning Checklist 

 

Maximize Your IRA Contributions

If you have an IRA, contribute the maximum amount to take advantage of tax benefits and long-term growth. For the 2024 tax year:

  • The contribution limit is $7,000if you’re under 50.
  • If you’re 50 or older, you can contribute up to $8,000.

 

Review and Rebalance Your 401(k)

Revisit your retirement account and check your 401(k) performance to ensure it’s aligned with your current goals. (If you’re a Cornerstone client, we work closely with you to review and rebalance your 401(k) to help ensure your retirement plan stays on track.)

  • Are you contributing enough to get the full employer match?
  • Is your asset allocation still appropriate?
  • Does your investment strategymatch your risk tolerance?
  • Do you need to rebalance to maintain diversification?

 

Evaluate Your Investment Portfolio

If you’re a Cornerstone client, you know that investments aren’t “set it and forget it” – it’s one of the things we review during your regular strategy sessions.

If you’re not a Cornerstone client, to assess your investment portfolio we recommend asking yourself the following:

  • Are my returns helping me move closer to retirement or other financial milestones?
  • Do my investments match my risk tolerance and reflect my stage of life?
  • Are my returns in line with expectations?

Analyze Your Cash Flow and Monthly Expenses

Understanding where your money is going is a key step to organizing your financing and getting clarity.

  • Recurring monthly expenses—which ones can you cut or reduce?
  • Review large, long-term financial commitments like mortgage or tuition. Are there ways to adjust for greater savings?
  • Extra cash flow—how can you allocate it toward retirement or investments?

Not sure how to estimate what you’re expenses will be in retirement? Read 5 Steps to Estimate Retirement Income Needs

Use Your Tax Refund Wisely

If you’re receiving a tax refund, decide how to use it strategically:

  • Pay down debt to save on interest payments.
  • Boost your emergency fund or retirement savings.
  • Invest in areas that align with your long-term goals.

Read Making the Most of Your Tax Refund

Organize Your Estate Planning Documents

Having your estate documents in order is a true act of love for your family. Ensuring your will, power of attorney, and medical directives are up-to-date and accessible goes a long way to reduces stress during challenging times.

  • Will and estate plan
  • Power of attorney
  • Advance medical directives
  • Letters of instructions
  • Other critical documents

Download our Important Documents Checklist for help organizing your vital personal, health, and financial information – In Case of Emergency: Organize Your Vital Info

Review Insurance Coverage

(If you’re a Cornerstone client, we regularly during your insurance coverage during your strategy session as one of the five essential areas of comprehensive financial planning.)

Life is full of surprises, and having adequate insurance coverage can provide a safety net. Make sure your policies reflect your current needs:

  • Does your life insurance align with your family’s current needs?
  • Are you adequately covered by disability and/or long-term care insurance?
  • Do your home and auto policies provide sufficient protection?

Check Your Credit Report for Errors and Fraud

Regularly checking your credit report helps you catch errors or signs of identity theft early. Check for:

  • Look for unfamiliar accounts or inquiries—these may indicate identity theft.
  • Be careful of hard inquiries—businesses checking your credit for loan applications (these can impact your score for up to two years).

Learn more about identity theft in these resources:

Reevaluate Your Financial Goals

Financial priorities shift over time, so take a moment to:

  • Identify new goals based on life changes, write them down.
  • Reassess older goals – are they still relevant? How can you move them forward?
  • Adjust your savings and investment plan accordingly.

Starting with Organized Finances

Spring cleaning your finances may not be the most exciting task, but it’s one of the most rewarding. Just like living in a clean and organized home feels great, having your finances in order brings clarity and confidence.

By taking a few practical steps each spring, you position yourself for a more secure and stress-free financial future. Our team is here to guide you every step of the way.

Here’s to a fresh start and a prosperous future—happy spring cleaning!

Complimentary Client Shredding

The Month of May in Both Offices:

M-Th   8am – 5pm

Fri        8am – 3pm

As a value-added service for our clients, you’re always welcome to bring in paper documents for shredding – no appointment needed. It’s one of the many ways we aim to make managing your financial life easier.

We also place secure shred bins in our lobbies during May and October, making those ideal times to clear out larger quantities.

What can be shredded:

√ Paper documents (paper clips and staples are okay)

× No binder clips, three-ring binders, CDs, DVDs, or other electronic media.

Download How Long to Keep Paperwork

Not a Cornerstone Client?

Let’s build a plan that fits your goals—schedule a strategy session with our team today!

Sioux Falls: 605-357-8553

Huron: 605-352-9490

Email cfsteam@mycfsgroup.com 

CSP #769688 Exp. 4.10.26

Avoiding Withdrawal Pitfalls: Retirement Planning for Federal Employees

Apr 18, 2025 | Retirement Planning

Retirement planning for federal employees comes with unique challenges – especially when it comes to deciding how and when to withdraw from your plan. As you approach retirement, you may be feeling a mixture of excitement and overwhelm. From understanding available options to avoiding penalties and meeting IRS deadlines, there’s a lot to consider.

You’ve worked hard, now it’s about making sure your retirement funding works just as hard for you. With the right guidance and planning, you can make confident decisions and avoid costly missteps.

 

Understanding Your Retirement Withdrawal Options

When it’s time to access your retirement savings, you’ll face decisions that can impact your income, taxes, and financial security for years to come. You may have the option to choose a lump-sum payout, monthly payments, or an annuity.

 

Pros and Cons of Common Withdrawal Methods
  • Lump-sum payments provide immediate access to funds but may increase your tax liability.
  • Monthly withdrawals help manage your tax bracket and provide steady income.
  • Annuities offer predictable payments but may limit flexibility.

Carefully review these options in light of your overall financial goals.

  

 

Avoid Early Withdrawal Penalties

Withdrawing before age 59½ may result in a 10% early withdrawal penalty. However, if you separate from service at age 55 or older, you may qualify for an exception.

 

Timing Matters

Planning your withdrawals around these milestones is key. Consider consulting with a financial advisor to create a timeline that minimizes taxes and penalties.

  

  

Planning for Required Minimum Distributions (RMDs)

Once you turn 73, the IRS requires you to begin taking minimum distributions from your retirement account.

 

Missing RMDs Can Be Costly

Failing to take your RMDs on time can lead to a 25% penalty. Setting up automatic reminders and a withdrawal strategy can help you stay compliant and maintain consistent cash flow.

  

  

Coordinate Retirement Income Sources

Retirement planning for federal employees often involves multiple income streams—such as Social Security, pensions, and other savings.

 
Manage Taxes with an Income Plan

Coordinating withdrawals can help balance your income and control your tax bracket. A well-planned income strategy ensures stability and reduces surprises during tax season.

  
 
 Talk to a Financial Advisor Who Understands Federal Benefits

We recommend working with a financial advisor who understands the federal system. Federal employee benefits can be complex, and strategic planning can help you avoid common pitfalls.

Two of our Wealth Advisors at Cornerstone—Gordon Wollman and Jill Mollner—hold the Chartered Federal Employee Benefits ConsultantSM (ChFEBCSM) designation. Their training helps ensure we understand the specialized needs and concerns of federal employees.

 

 

Ready to Take the Next Step?

If you’re seeking clarity and confidence in your retirement journey, we’re here to help. Schedule a complimentary strategy session today to talk through your goals and build a plan that fits your future.

Call 605-357-8553 in Sioux Falls or 605-352-9490 for our Huron office.
Email cfsteam@mycfsgroup.com

Raymond James and Cornerstone Financial Solutions are independent from, and are not affiliated with, or endorsed by, the U.S. Government, the Federal Employee Retirement System, or any other Federal Government-sponsored benefits programs or retirement plans. Clients should consult their plan administrator for detailed plan information.

Gordon Wollman and Jill Mollner hold the Chartered Federal Employee Benefits ConsultantSM (ChFEBCSM) designation. Federal Seminars and ChFEBCSM, Inc. owns the symbol marks ChFEBCSM, Chartered Federal Employee Benefits ConsultantSM and ChFEBCSM logo in the U.S. CSP #761837 Exp. 4.17.25.

MAKING THE MOST OF YOUR TAX REFUND

Mar 11, 2025 | Retirement Planning

Cornerstone is pleased to bring you this information by Ed Slott and Company, LLC. As a member of Ed Slott’s Elite IRA Advisor GroupTM Gordon keeps Cornerstone professionals on the cutting-edge of retirement planning, tax law, and IRA distribution strategies. Through continuous training with Ed Slott and his team of IRA Experts, we receive real-time updates on tax code changes and retirement planning regulations, and access to specialized guidance for complex cases. This is just one of the tools in our arsenal to help Cornerstone clients avoid unnecessary taxes and fees!

A Smart Strategy for Retirement Savings

If you’re expecting a tax refund, it’s tempting to spend it on something fun. But, there are ways to put it to work to strengthen your financial future.

One smart way to use it? Contribute to an IRA—boosting your retirement savings while potentially reducing your tax burden. If you’re already retired, your refund could help fund a Roth IRA for a child or grandchild, helping set them up for long-term financial success.

The deadline to contribute for the 2024 tax year is April 15, 2025.

 

Contribution Limits

For 2024 and 2025, you can contribute up to:

  • $7,000 if you’re under 50
  • $8,000 if you’re 50 or older

Your tax refund can be deposited directly into your IRA or even split among multiple retirement accounts.

  • A refund going to only one account can be done directly on IRS Form 1040.
  • Prepare IRS Form 8888, found on www.irs.gov, to direct the refund to up to three accounts. Pay close attention to IRS guidelines to avoid any common errors.
    • If the IRS adjusts your refund amount (due to math errors or past-due taxes), it could impact the deposit amount.
    • If your IRA deposit is meant for the prior tax year, confirm with your financial institution that they’ve coded it correctly.

Once your refund is deposited, verify:

  • The funds arrived in the correct account
  • The deposit was coded for the correct tax year (if applicable)
  • Any IRS adjustments haven’t affected your contribution plan

If there’s an issue, you may need to work with your financial institution or even file an amended return.

 

As always, give us a call if you have any questions!

NOT A CORNERSTONE CLIENT?

A tax refund can be an easy way to increase your own retirement savings or contribute to the next generation’s financial stability. At Cornerstone, our advisors specialize in helping clients navigate tax concerns as part of their comprehensive financial plan and make the most of every opportunity. From strategic planning to personalized guidance, we’re here to help ensure your money is working toward your goals!

Schedule a strategy session today!

Call SIOUX FALLS at 605-357-8553

Call HURON at 605-352-9490

Or email cfsteam@mycfsgroup.com

This information, developed in part by an independent third party, has been obtained from sources considered to be reliable, but Raymond James Financial Services, Inc. does not guarantee that the foregoing material is accurate or complete. Changes in tax laws or regulations may occur at any time and could substantially impact your situation. Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.

Reprinted with permission. Ed Slott and Company, LLC takes no responsibility for the current accuracy of this article. Raymond James is not affiliated and does not endorse Ed Slott and Company, LLC. Source: © 2025 Ed Slott and Company, LLC.

Planning for Required Minimum Distributions (RMDs)

Jan 29, 2025 | Retirement Planning

If you save for retirement in a qualified plan, such as a 401(k) plan or an IRA, the government currently requires you to take withdrawals from these accounts during retirement. The withdrawals, known as required minimum distributions or RMDs, are taxable so it’s a good idea to plan ahead and avoid unexpected tax consequences.

Here is some basic information about RMDs. It is offered with the caveat that RMDs have complex rules. It’s important to talk with your financial or tax professional before taking action.

If your 73rd birthday is in 2025 , your first RMD must be taken by April 1, 2026. Your second RMD by December 31, 2026, your third RMD by December 31, 2027, and so on.1

If you delay your first distribution until April 1, 2026 , then you will need to take two RMDs in the same year.1

If you have multiple 401(k) plan and IRA accounts , you typically must calculate the RMD for each one of them. You can, however, withdraw the entire amount from a single account.2

If you’re still working at age 73 , you don’t have to take an RMD from your workplace retirement plan account (as long as the plan allows it). This exception does not apply to traditional IRAs. You must take RMDs from traditional IRAs, even if you’re still working.2

If you inherit an IRA from a spouse (after 2019) who already reached age 73, you will normally need to take an RMD for the year of death, if your spouse did not already take one. If your spouse dies before age 73, you may be able to keep the inherited account, roll it over into your IRA, or withdraw the money in a lump sum or over a period of time.2

If you inherit an IRA from someone other than your spouse (after 2019), usually the funds must be completely withdrawn from the account within 10 years. RMDs may be required if the person from whom you inherited the account was already taking RMDs.4 There are some exceptions.

If you miss an RMD deadline or you don’t withdraw the full amount, penalties are steep. The penalty tax is 25 percent of the amount you failed to withdraw. If you correct the issue within two years, the penalty tax is lower.1

If you own a Roth IRA or Designated Roth account in workplace plan, you do not have to take RMDs—unless you inherited the account. In that case, RMD rules usually apply.1 Again, the rules governing RMDs are complex.

If you would like help, or if you have questions, please get in touch. Call 605-352-9490 in Huron or 605-357-8553 in Sioux Falls.

Not a Cornerstone client? 

Rules regarding Required Minimum Distributions (RMDs) can be complex, and missing a deadline can be costly. We help our clients navigate RMDs and the many other pieces of a comprehensive financial plan. How can we help you? Call 605-357-8553 or email cfsteam@mycfsgroup.com today and schedule your complimentary, no-obligation appointment.

Sources

  1. https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-required-minimum-distributions-rmds
  2. https://www.irs.gov/retirement-plans/rmd-comparison-chart-iras-vs-defined-contribution-plans
  3. 11 https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-beneficiary
  4. 12 https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-beneficiary

CSP #707048 (in CGC Weekly Commentary) Exp. 1.27.26

Friendship and Finances

Jan 16, 2025 | Retirement Planning

When making plans with friends:

  • Ask for ideas from everyone in the group to ensure it fits within your friends’ budgets.
  • Give plenty of heads up if there’s a big-ticket event you’d like your crew to take part in.
  • Have an open conversation about finances to remove the taboo and build understanding.

From buying gifts and eating out, to going to weddings and planning vacations, money plays a part in all relationships. And friendships are no exception.

 

Here are some do’s and don’ts for dealing with mixed-income friendships.

Do ask your friends for input. Even if you’re the unofficial events coordinator for your group, ask everyone for ideas so nobody feels backed into a corner. You can ask questions like, “How much is OK to spend on gifts?” and What do you suggest we do for our get-together.” It will be more inclusive for everyone to suggest activities that align with their budget.

 

Do extend the invite. Always ask, even if you’re pretty sure something is out of your friend’s price range.

 

Don’t make assumptions. You can’t assume anyone’s budget and financial situation.

 

Do give plenty of notice. If you’re planning something give your friends advance notice so they can budget for it. A longer lead time gives them the chance to save up for that fancy birthday dinner or night at the theater if they want to join you. Last-minute plans might not be possible if they’re working on a tight budget.

 

Don’t be upset if they take a pass. Understand that not only do your friends’ finances differ, but so do their priorities. Even if you’ve given plenty of notice, a weekend wine tasting trip with girlfriends might not be as important as visiting family for the holidays. While you might be well-positioned to do both, you shouldn’t assume that your friend is.

 

Do offer to pay if it’s in your budget and having their company is worth it to you. That doesn’t have to mean you’ll cover the cost of their flight. But, consider offering to pay for cocktails one night while you’re away or covering the cost of a rental car in your destination city. Be open about your feelings and understand if they politely decline. Which leads to the next tip…

 

Don’t be afraid to have an honest conversation. I’m not suggesting you swap bank statements. Just don’t be afraid to say if something is out of your budget or if you’re prioritizing a different expense. With communication and understanding you can make money less of a taboo topic with friends and have a better chance of making memories that fit into everyone’s budget.

 

Keeping these do’s and don’ts in mind when it comes to finances will open communication, strengthen friendships, and provide opportunities to create lasting memories.

Sources: theeverygirl.com; huffpost.com; tampabay.com, morningbrew.com, Raymond James. CSP #315161-2 Exp. 1.16.26

Saving Family Memories

Jan 14, 2025 | Retirement Planning

“This cause is very close to my heart as my grandmother was diagnosed with Alzheimer’s and battled it for six years before passing. While we had known about her diagnosis for some time, it truly hit me emotionally on the day of my confirmation when she spent the entire day with my family and by the end, had forgotten why she was there. I was 14 years old, and when she hugged me goodbye, she wished me a happy birthday. It was a small moment, but it was the first time I truly felt the weight of her condition and how it was changing her. Watching her struggle and seeing the changes in her behavior was incredibly hard, but it also highlighted the importance of family. It brought my family together more often to visit her and spend time together, which I will cherish forever.”

~Sarah Micek

Experience Team Manager, Cornerstone Financial Solutions

Branch Associate, RJFS

Capturing Family Memories

If you’ve ever flipped through old photos or watched grainy home videos, you know the bittersweet feeling of wanting to freeze time—to hold on to those precious moments, relive them, and share them with future generations. Some of the most valuable aspects of a family’s legacy are intangible—traditions, shared values, and family history. Preserving those memories is an investment in what matters most.

From celebrating special events to capturing the beauty of everyday life, there are more tools than ever to help you create lasting keepsakes. The key is finding an approach that works for you and helps keep those connections alive for years to come. To help you get started, here are some ideas to preserve your cherished memories:

1. Turn Photos Into Stories: Photo Books

A picture says a thousand words, but a photo book tells the whole story. Services like Shutterfly, Mixbook, or Chatbooks make it easy to create albums to showcase your favorite photos and add captions, dates, and personal notes. Imagine your children flipping through a beautifully crafted book, laughing over silly moments, or admiring milestone memories.

2. Speak from the Heart: Digital Journals & Story Apps

For those who love storytelling, digital journals are a fantastic option. Apps like Day One allow you to pair photos and even video snippets with your written reflections. These digital entries can be shared across devices and stored in the cloud, making them easily accessible for future generations. Story apps like StoryWorth prompt family members with questions and compile answers into a book, perfect for capturing family history in a simple, engaging way. One day, your family might say, “I never knew this!” as they discover a part of your history.

3. Hold a Piece of the Past: Memory Boxes

There’s something magical about holding something tangible in your hands that brings stories to life. A memory box filled with mementos like ticket stubs, postcards, handwritten letters, or tiny artwork is like  a time capsule. Companies like Savor offer beautifully designed, curated keepsake boxes to store these items beautifully and evolve over the years.

4. Make the Everyday Extraordinary: Video Diaries

Whether you’re filming a quick chat over breakfast, capturing laughter during a family game night, or recording an interview with a parent, tools like WeVideo and iMovie make it easy to edit and store these snippets.

5. Create a Digital Family Hub

For tech-savvy families, a family website offers a modern way to stay connected no matter where life takes you. Platforms like Wix and Squarespace allow everyone to contribute photos, blog entries, and even family timelines. It’s a fun way to preserve memories and keep a family archive.

By taking small steps to preserve your memories, you’re creating more than just keepsakes. You’re building a foundation of love and connection for future generations. Let’s make those memories last.

 

Your Next Step:

Ready to begin your legacy project? Start small. Choose one idea and take the first step.  Whether you create a photo book, a memory box, or a short video, each action is a building block. And remember that even the most advanced tools are only as powerful as the people who use them – preserving your family’s memories starts with your heart.

If you’re unsure where to begin, we’re here to help you take the first step. Because at Cornerstone, we believe every great plan builds on what matters most – your family’s unique story.

Not a Cornerstone Client?

We can help you build a plan and define the legacy you’d like to pass on to future generations.

Call 605-357-8553 or email cfsteam@mycfsgroup.com today to schedule an appointment with one of our Wealth Managers.

CSP #684296 Exp 1.9.26

Raymond James is not affiliated with the above-mentioned digital services providers. This content was created with the assistance of artificial intelligence.