Year-End Financial Planning Checklist for Individuals

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The end of the year is a great time to reflect and plan for the upcoming year. Checking in to see where things sit not only helps you understand how you’re spending your money, but also where there is room for adjustment, and if you’re on track to hit your long-term financial goals.

Here is a year-end financial planning checklist to help you evaluate things from the past twelve months and plan for the year ahead.

Review Your Financial Plan

Does your life look different than it did a year ago? Did you have any significant changes like getting married, having kids, changing jobs, or making new investments? If so, those changes need to be reflected in your financial plan. If you have an existing plan, you’ll want to review it and make any changes necessary to reflect these life events.

If you don’t have a financial plan, the end of the year is an excellent time to create one. A financial advisor can help you identify your goals and create a plan to achieve them.

Assess Your Investments

Take a close look at your investments and see how they’re performing. Are you still comfortable with your current risk tolerance and asset allocation? If not, you may need to make some adjustments.

It’s also important to rebalance your portfolio regularly to ensure that it still aligns with your investment goals.

Review Your Tax Plan

Your financial and tax plans should be in sync, working together. Many of the things that impact your financial plan will affect your tax plan.

So, if you had any major life changes in the past year, you’ll want to update your tax plan to ensure not only that you’re filing statuses and withholdings are up to date, but also that your tax plan is optimized for who you are now and who you want to be.

Maximize Your Retirement Contributions

If you have a 401(k) or IRA, you’ll want to evaluate the amount you’re contributing and maximize your contributions for the year.

Even if you’re not contributing the maximum amount allowed, you’ll want to designate as much as you realistically can. Taking this step can lower your taxable income which may be beneficial for your taxes AND help you save for retirement.

Review Your Estate Plan

If you have an established estate plan, you’ll want to make sure it’s all up to date by the end of the year. This includes looking at your will, living trust, and other estate planning documents and updating them as needed.

Make a Budget for the Next Year

Once you’ve reviewed your financial situation and made any necessary adjustments, it’s time to create a budget for the upcoming year to keep you on track to meet your financial goals.

Finishing Strong

The best way to start a new year off on the right track is to finish the closing year strong. By taking the time to do your year-end financial planning, you can set yourself up for financial success in the new year. Have questions about your unique financial situation? Our team of expert advisors is ready to help! Contact us.