Year-end financial planning checklist

Year-end checklist

Year-end checklist

The end of the year means different things to different people as they make resolutions and set their intentions to improve different aspects of their lives. But there is one thing everyone should do as the calendar moves into another January – take stock of their personal finances and take any necessary steps ahead of the new year. This page tells you what you need to do before the end of the year to make the most of your personal finances.

If you need more help preparing your finances for the year-end, consider Working with a financial advisor address these priorities.

1. Review your financial plan

A lot can happen in a year. You may have made a major purchase, received a raise, or gone on vacation. This can have a major impact on your financial planning. You should check with your financial advisor if you have one – or find one if you don’t have one.

2. Rebalance your portfolio

In addition to reviewing your overall financial plan, you should also review your investment portfolio to see if you could benefit from it Rebalance your portfolio. This is especially true in 2022 – the market has been extremely volatile and you may need to take a look at yours asset allocation. Swap money from stocks to bonds or vice versa as needed.

This is also a good time to think about whether there are any investments you’re willing to move on from — or if there’s a new investment you’d like to consider.

3. Think about taxes – and tax losses

Taxes aren’t due until April, but that doesn’t mean you can’t start thinking about your tax bill now. One concrete way you can address taxes now is Tax Loss Crop. Tax-loss harvesting is a process that allows you to reduce your tax burden by selling securities at a loss. It is very important that you get this process right as there are many rules and regulations that you must follow, so it makes sense to work with a financial advisor on this process.

4. Rate your donations to charity

Year-end checklist

Year-end checklist

Donating to charity is a good idea for a number of reasons. First, it makes you feel good and it makes others feel good. While these are obviously good causes for charity, the third reason may be what pushes you over the edge – you can get a tax break. Charitable donations are tax-deductible, which means you can have less debt once you submit them. However, you must make the deductions by the end of the year to get the deduction on that year’s taxes, so write those checks and file them before the new year.

5. Consider your debt

The end of the year is also a good time to take a look fault. For example, if you received a Christmas bonus, you can use it to pay off some debt, whether it’s outstanding credit card debt or a student loan to pay off.

6. Make contributions to your retirement plan

You can contribute up to $20,500 to your company pension plan, e.g 401(k) in 2022. If you want to maximize your contributions for this year, you need to make sure you make all contributions by the end of the year. If you have already maxed out your contributions for this year, the maximum contribution increases to $22,500 in 2023.

You can also make contributions to your individual pension planup to a $6,000 limit for 2022. However, you have a little more time as you can allocate contributions for that year up until tax day.

7. Consider Medicare prices

If you’re old enough to enroll in Medicare, you need to make sure you’re aware of price changes in 2023. This is where you actually save a bit of money – the standard monthly premium Medicare Part B will fall from $170.10 to $164.90 in 2023. That’s not exactly a stroke of luck, but hey – it beats a price hike.

8. Look at your Social Security raise

Social Security, on the other hand goes up, and in a big way. Due to record inflation last year, the increase is 8.7%. Take this into account when planning your budget for 2023.

9. Review your estate plan

Year-end checklist

Year-end checklist

The end of the year is a good time for that too Check your estate plan. There might be changes you want to make – for example, if you’ve made money or bought a new house, you might want to adjust your will. You should also check the beneficiaries for all of your retirement accounts, especially if you’ve gone through a major life event like a wedding, divorce, or having a child.

The final result

The end of the year is the perfect time to take stock of personal finances and make adjustments as necessary. From catching up on pension contributions to giving to charity, you still have some time to get things in order by 2023.

Financial planning tips

  • Regardless of the time of year, a financial advisor can help you create and execute a financial plan. Finding a qualified financial advisor doesn’t have to be difficult. SmartAssets free tool matches you with up to three financial advisors operating in your area, and you can interview your advisor matches for free to decide which one is right for you. When you are ready to find an advisor who can help you achieve your financial goals, get started now.

  • If you have access to one 401(k) and haven’t opened an account yet, maybe now is the time – open enrollment is often towards the end of the year. Make sure you put away enough to take advantage of it employers fit you are offered.

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