Your Year-End Financial To-Do List
As the calendar year winds down, it’s the perfect time to take stock of your financial health and set the stage for a prosperous new year. We’re here with a handy list to help you do just that.
1) Review your financial game plan
First, take a moment to reflect on your financial journey this year. Did you hit those short-term goals you set back in January? Are your long-term objectives still on track? Life has a way of throwing curveballs, so don’t be discouraged if things didn’t go exactly as planned. Instead, use this as an opportunity to recalibrate and set realistic goals for the coming year.
2) Give your investment portfolio a checkup
Your investment mix should evolve as you do. Has your risk tolerance changed? Maybe you’ve had a major life event that impacts your financial outlook. Now’s the time to sit down with your financial advisor and ensure your portfolio still aligns with your goals. Remember, rebalancing isn’t just about managing risk. It’s about optimizing your investments for your current situation.
3) Plan for big purchases and life changes
Is 2025 the year you finally take that dream vacation or put a down payment on a new home? Start planning now. Setting aside funds or adjusting your budget in advance can help make these big-ticket items more manageable.
4) Get savvy with taxes
Tax laws have a habit of changing, and 2024 is no exception. Touch base with your tax advisor to understand how recent changes might affect you. While you’re at it, take a look at your withholding status. The IRS Tax Withholding Estimator is a great tool to ensure you’re not giving Uncle Sam an interest-free loan next year.
5) Check in on your emergency fund
When life feels predictable, that’s your cue to plan for its inevitable surprises. Make sure your emergency fund is still robust enough to cover 3-6 months of expenses. If it’s looking a little lean, now’s the time to think about ways to beef it up.
6) Reassess your insurance coverage
When was the last time you took a good look at your insurance policies? If you can’t remember, it’s probably time for a review. Your home value may have changed, or perhaps you’ve made some upgrades that affect your coverage needs. On the auto front, you might be eligible for new discounts. A quick check could save you dollars that you could reallocate elsewhere.
7) Maximize your charitable impact
If giving back is part of your financial plan, consider optimizing your approach. Donor-advised funds can be a fantastic way to bundle your charitable giving for tax purposes while supporting causes you care about. It’s a win-win that could make your generosity go even further.
8) Review your credit report
Your credit score can impact everything from loan rates to job opportunities. Take advantage of your free annual credit report to check for any errors or unexpected changes. A little vigilance now can save you headaches down the road.
Remember, financial planning isn’t a one-and-done deal – it’s an ongoing process. By taking these steps at year’s end, you’re setting yourself up for a stronger financial future. If you need a hand navigating any part of this to-do list, don’t hesitate to reach out to a financial advisor. Here’s to ending the year on a high note and kicking off the new one with confidence.
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