Finish the Year Strong with this Financial Checklist

As the year ends, take stock of your financial situation and make necessary adjustments. A thorough financial checklist can help you evaluate your finances to finish the year strong.

1. Review Fundamental Changes

Review the fundamentals of your financial situation to help make sure that you’re on the right track to meet your goals, and not missing any opportunities.

• Investment Objective: Reevaluate your investment goals. Have your financial objectives shifted? Review your portfolio to make sure it aligns with your current goals.
• Taxes: Consider any changes in your tax situation. This could include new deductions, credits, or changes in your income.
• Insurance: Check if your insurance coverage is still adequate. This includes health, life, home, and auto insurance. If you have had any significant life changes, you may need to adjust your coverage.
• Estate: Assess if there have been any significant changes that could impact your estate planning. This includes updating wills, trusts, and power of attorney documents

2. Review and rebalance your portfolio

Ensure your investment portfolio is well-diversified and aligned with your risk tolerance and timeline to reach your goals. Rebalancing your portfolio can help manage risk and optimize returns.

3. Update Beneficiary Information

Every year, consider confirming that all beneficiary information on your accounts, such as retirement plans and insurance policies, is current. This can help you make sure that in a worst-case-scenario situation, your assets can be more easily accessible and available according to your wishes.

4. Prepare for Tax Season

Make a list of all the places you will need tax documents from, such as employers, banks, and investment accounts. Since you’ll begin gathering tax documents in January, this will help you stay organized and avoid last-minute scrambling for tax season.

5. Organize Financial Contacts

Create a list of all your financial contacts, including insurance agents, financial advisors, legal advisors, and tax advisors. Having this information all in one place can help you save time and reduce stress in the future. It’s a good way to make sure that your new year has a solid financial foundation.

6. Reflect on the Year

Take time to evaluate what you did well financially this year and identify areas for improvement. You’ll want to weigh changes to your life, and you may consider reevaluating your goals, whether you choose to pare back, or reach for larger ones. A reflection of this year can help you set realistic goals for the coming year.

7. Plan for Charitable Contributions

If you plan to make charitable donations, ensure they are completed before the end of the year to take advantage of potential tax deductions.

8. Plan a Year-End Review Meeting

Set up a meeting with a Wealth Advisor to discuss how you felt about your financial situation this year and where you would like to be next year. Meeting with a Wealth Advisor is a great way to get a neutral perspective on your financial situation, while also getting professional guidance. Even if you already work with a Wealth Advisor, seeking a second opinion can help ensure your financial plan is aligned with your long-term objectives.

By reviewing your finances each year, you help ensure your financial affairs are in order and set yourself up for a successful new year. A Wealth Management by CommunityAmerica Wealth Advisor is ready to help walk you through your financial checklist and ensure you’re confident with your financial plan going into the new year.