Here’s a year-end checklist that may help prompt you to review the many aspects of your financial life.
Year-End Financial Review Checklist
□ Are existing goals still valid? (Timing, amount of money required, etc.)
□ Any new life goals to earmark assets or income to fund in the future?
□ Any life changes that impact goals? New job, home, family considerations?
□ Is your investment strategy still appropriate when considering risk tolerance, time horizon and your goals?
□ Should you rebalance back to target weight for stocks vs. bonds, etc.?
□ Has there been any change of investment objective, style or manager of the investment funds you use?
□ Have you fully funded your employer retirement account, including over-50 catch-up contributions if eligible?
□ Have you funded IRA accounts to the extent you’re eligible?
□ Have you reviewed your estimated Social Security income or changes to existing Social Security income?
□ If older than 70½ during the year have you taken required distributions from retirement accounts?
□ Would a Roth IRA conversion be advantageous for long-term planning?
|TAXES AND ESTATE
□ Have you reviewed capital gains and dividend distributions from taxable investment accounts?
□ Should you harvest losses to offset gains? Do you have a capital loss carry-forward to offset gains?
□ Is your tax withholding from your pay adequate? Will you owe too much or getting too large of an IRS refund?
□ Are the beneficiaries of your retirement accounts and life insurance up-to-date and consistent with your will?
□ Have you completed family and/or charitable gifts for the year?
□ Has your need for life insurance changed? New job with different employer coverage? New liabilities or new dependents?
□ Is long-term care insurance required to help you manage your financial risks? Or, are you reasonably able to self-insure possible
□ Do you have adequate home, auto, umbrella liability coverage at a reasonable cost?
□ 50: Eligible for catch-up contributions to retirement accounts
□ 59½: Eligible for penalty-free withdrawals from IRAs and employer retirement accounts
□ 62: Eligible for Social Security (but seriously evaluate whether you should wait for larger payments later)
□ 65: Eligible for Medicare insurance coverage
□ 70½: The year you reach this age you must begin taking required minimum distributions from tax-deferred accounts.
Subscribe to our monthly newsletter for insights on money, markets, and personal finance.