Screen Shot 2020-03-09 at 2.27.27 PM
Banking / December 17, 2019

4 Ways To Set Yourself Up for a Financially Healthy New Year


Note: As of April 27, 2020, the Wealthfront Cash Account has a 0.35% APY. Read more about it here .

The end of the year is a great time to review your finances and the perfect opportunity to set yourself up for a financially healthy new year. We know you’re busy booking holiday travel, spending time with friends and family, and relaxing — so we’ll keep this super simple. Here are four things we recommend considering before the end of 2019.

1. Top off your emergency fund.

No one likes emergencies, but having an adequate emergency fund can save you some unnecessary stress. Need some guidance on setting up the emergency fund that’s right for you? We’ve got you covered.

2. Make sure your cash is earning enough interest.

Is it earning an uninspiring 0.1% APY? Is there too much of it? The end of the year is the perfect time to reflect on whether or not your cash is working hard enough for you. (Psst, the Wealthfront Cash Account currently offers a 1.82% APY — that’s 18x the national average1.)

3. Set up a taxable investment account.

We believe in investing money that you don’t anticipate needing within the next 3-5 years. If you’re saving for the long term, we encourage you to consider a diversified portfolio of low-cost index funds with great tax-optimization features like those Wealthfront offers.

4. Create a financial plan.

Is your 401k enough? Should you invest in a Roth or traditional IRA? Wealthfront offers free financial planning to help you set yourself up for the future you want. Learn more about when you’ll be able to retire, how much house you can afford, and more.

Want to learn even more about getting your finances in order? Check out Wealthfront’s Guide to Financial Health.

Disclosure

1Source: Bankrate.com as of December 17, 2019.

The Wealthfront Cash Account Annual Percentage Yield (APY) is as of December 17, 2019. The APY may change at any time, before or after the Cash Account is opened. The APY for the Wealthfront Cash Account represents the weighted average of the APY on the aggregate deposit balances of all clients at the program banks. Deposit balances are not allocated equally among the participating program banks.

Investment advisory services are provided by Wealthfront Advisors LLC (“Wealthfront Advisers”), an SEC-registered investment adviser, and brokerage products and services, are provided by Wealthfront Brokerage LLC (formerly known as Wealthfront Brokerage Corporation), member FINRA / SIPC. Neither Wealthfront Brokerage nor any of its affiliates are a bank, and Cash Account is not a checking or savings account. Wealthfront Brokerage conveys Cash Account funds to depository institutions that accept and maintain such deposits.

Wealthfront Software LLC (“Wealthfront”) offers a free software-based financial advice engine that delivers automated financial planning tools to help users achieve better outcomes. 

Wealthfront offers a free software-based financial advice engine that delivers automated financial planning tools to help users achieve better outcomes. All information provided by Wealthfront’s financial planning tool is for illustrative purposes only and you should not rely on such information as the primary basis of your investment, financial, or tax planning decisions.

All investing involves risk, including the possible loss of money you invest, and past performance does not guarantee future performance.  Please see our Full Disclosure for important details.

Wealthfront Advisers, Wealthfront Brokerage and Wealthfront are wholly owned subsidiaries of Wealthfront Corporation.

© 2019 Wealthfront Corporation. All rights reserved. 

About the author(s)

The Wealthfront Team believes everyone deserves access to sophisticated financial advice. View all posts by The Wealthfront Team