Year-End Financial Checklist

As the year draws to a close, it’s the perfect time to take a step back and assess your financial situation. A year-end financial checklist helps you ensure you’re on track to meet your goals, minimize taxes, and prepare for the year ahead. Here are some key steps to include in your checklist:

1. Review your Financial Plan
Reviewing your financial plan helps ensure your goals remain aligned with your current circumstances. Assess your budget, investments, retirement savings, and debt to make adjustments that support long-term financial success.

2. Review Your Budget and Spending
Take a look at your income, expenses, and savings to evaluate your financial habits. Identify areas where you can cut back on spending and allocate more toward savings or debt repayment.

3. Maximize Tax-Advantaged Accounts
Contribute to retirement accounts like 401(k)s or IRAs to maximize your tax-deferred savings. If you're eligible, consider making catch-up contributions if you're over 50. Don't forget about Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs), which offer tax benefits.

4. Tax Loss Harvesting
Review your investment portfolio and consider selling any underperforming assets to offset gains and reduce your tax liability. This strategy can help lower your taxable income.

5. Contribute to Charity
Donating to charity not only helps those in need but also provides tax benefits. Make sure to document your contributions and ensure you're following IRS guidelines for charitable deductions.

6. Rebalance Your Investment Portfolio
Evaluate your investment strategy and adjust if necessary. This might involve rebalancing your portfolio to maintain your desired risk level and ensure your investments align with your long-term goals.

7. Review Your Estate Plan
Make sure your will, trusts, and beneficiary designations are up to date, especially if there have been major life changes like marriage, divorce, or the birth of a child.

By taking these steps, you’ll set yourself up for financial success in the coming year, minimize taxes, and ensure your financial goals remain on track.