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Year-End Financial Checklist Thumbnail

Year-End Financial Checklist

As the year draws to a close, it's the perfect time to assess your financial landscape and make strategic moves to set yourself up for success in the coming year. This year-end financial checklist will guide you through essential tasks that can help you manage your money wisely and make informed decisions for your family’s future. 

  1. Budget:
    • Review current budget and spending habits.
    • Identify areas for improvement and make necessary adjustments.
    • Set spending and saving goals for the upcoming year.
  2. Charitable Contributions:
    • Review your charitable giving for the year.
    • Ensure you've maximized any potential tax benefits.
    • Consider making gifts of appreciated securities to save on taxes.
  3. Retirement Plan Contributions:
    • Are you receiving your employer match?
    • Have you maxed out your employer plan contributions?
    • Review your contribution amounts to traditional, Roth and after-tax.
  4. Rebalance Your Investment Portfolio:
    • Review the allocation of your investments.
    • Rebalance your portfolio to align with your risk tolerance and financial goals.
    • Consult with a financial advisor for personalized guidance.
  5. Review Insurance Coverage:
    • Assess your insurance needs, including life, health, and property.
    • Ensure your coverage is adequate and up-to-date.
    • Explore opportunities to potentially save on premiums.
  6. Consolidate Investment Accounts:
    • Review old 401(k) plans to potentially streamline accounts.
    • Consider consolidating accounts to simplify your financial picture.
    • Be mindful of any tax implications before making changes.
  7. Consider a Roth Conversion:
    • Evaluate the potential benefits of converting traditional IRA funds to a Roth IRA.
    • Factor in your current and future tax situations when making decisions.
    • Does a backdoor Roth IRA make sense?
  8. Check Tax Withholdings:
    • Review your current tax withholding status.
    • Adjust withholdings if necessary to avoid surprises during tax season.
    • Stay informed about any changes in tax laws that may impact your situation.
  9. Make 529 Plan Contributions:
    • Contribute to your 529 plan for educational expenses.
    • Take advantage of any state tax benefits associated with 529 contributions.
    • Ensure your investment strategy aligns with your education savings goals.
  10. Update or Establish Your Estate Plan:
    • Review your will, trusts, and other estate planning documents.
    • Update beneficiaries and account for any significant life changes.
    • Consult with an estate planning attorney if needed.

By completing this comprehensive year-end financial checklist, you'll be better positioned to navigate the complexities of your financial life. Whether it's optimizing your budget, maximizing retirement savings, or fine-tuning your investment strategy, taking these steps can pave the way for a financially secure future. Remember, everyone’s financial situation is unique, so consider seeking advice from a fee-only financial advisor to tailor these recommendations to your specific needs and goals.

Authored by Stephen Blahovec and Michael Rausch of North River Wealth Advisors.  We are an independent, fee-only financial planning and investment management firm located in Pittsburgh, PA servicing clients locally and across the country.  To learn more, contact us here.

This content is developed by North River Wealth Advisors from sources believed to be providing accurate information. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security.