Article

Top 5 Year-End Financial Planning Tips

Top 5 Year-End Financial Planning Tips

There are some basic ways you can go into the coming new year with a financial plan that can significantly impact your financial health and set the stage for a more prosperous future.  Consider these 5 year-end planning tips to review your financial status before the calendar flips.

December 12, 2023
Top 5 Year-End Financial Planning Tips
Important Disclosure: Content on our website and in our newsletters is for informational purposes only. The information provided may (or may not) directly apply to your situation. We recommend that readers work directly with a professional advisor when making decisions in the context of their specific situation.

As the end of the year approaches, it's an opportune time to review your financial status and make strategic decisions that can impact your financial well-being in the coming year. Implementing certain financial moves before the year ends can potentially save you money, optimize your taxes, and set a solid foundation for the future.

Here are the top five financial tips you should consider before the calendar flips:

1. Maximize Retirement Contributions

Contributing to retirement accounts, such as 401(k)s, IRAs, or Roth IRAs, before the year ends can bring several advantages. Firstly, it allows you to take advantage of tax-deferred or tax-free growth. Maxing out your contributions can reduce your taxable income for the year, potentially lowering your tax bill.

Moreover, funding these accounts to the maximum extent possible sets the stage for a more financially secure retirement. The power of compound interest means that the earlier you invest, the more time your money has to grow.

Don't miss the opportunity to contribute as much as you can before the year concludes.

2. Review and Adjust Investment Portfolios

A thorough review of your investment portfolio is crucial as the year ends. Assess whether your investments are aligned with your financial goals and risk tolerance.

Consider rebalancing your portfolio to maintain your desired asset allocation. Rebalancing involves selling some overperforming assets and reinvesting in underperforming ones to realign with your original strategy. This move not only mitigates risk but also positions your investments for potential growth in the upcoming year.

3. Utilize Flexible Spending Accounts and Health Savings Accounts

Check your balances in FSAs and HSAs, as these accounts often have "use-it-or-lose-it" policies for funds not utilized by the end of the year. Consider using these funds for eligible medical expenses, as they can provide substantial tax advantages.

Some FSAs might have a grace period or allow a carryover of a limited amount of funds, but it's essential to understand the specific rules governing your accounts.

4. Review Insurance Coverage and Estate Planning

Evaluate your insurance policies, including health, life, and property insurance, to ensure they still meet your needs. Life changes and evolving circumstances may necessitate adjustments to coverage levels or beneficiaries. Additionally, review and update your estate planning documents, such as wills and trusts, to reflect any changes in your life or financial situation.

5. Get a Professional’s Perspective

Consider consulting with a certified financial advisor to tailor these strategies to your specific circumstances and goals. By making proactive financial decisions with a professional, you can pave the way for a more secure and prosperous financial journey in the year ahead.

Other content you may like

  • 10 Tips for Your $ Future

    10 Tips for Your $ Future

    June 15, 2021
    However much you make or save now doesn’t promise you a bright financial future. Life is unpredictable. Follow these 10 tips to help prevent you and your family from money troubles.
    Read this Article
  • April Student of the Market

    Stock Market History for Your Future

    April 27, 2022
    Do you feel your satisfaction level with the market is tracking with the norm? Maybe this brief history of long term stock performance might help change your mind. This month’s Student of the Market shows the numbers on how $1,000 invested in 1926 grew to over $14 million and how best days for stocks tend to closely follow the worst days.
    Read this Article
  • Lessons from Johnny Depp’s Other Lawsuits

    Lessons from Johnny Depp's Other Lawsuits

    May 3, 2022
    Protecting your assets is a very important part of any estate planning. With about 40 million lawsuits filed in the U.S. each year, protecting your family’s legacy and assets is getting harder and harder. There are a lot of lessons to be learned from Depp’s experiences.
    Read this Article
  • Health Is Your Most Valuable Asset

    January 12, 2025
    The new year is a good time to recommit to healthy eating and drinking. Good food choices can maintain health and energy levels, potentially avoiding costly consequences down the road. Financial budgeting and planning principles can also apply to eating and drinking.
    Read this Article
  • The link you have selected is located on another server. The linked site contains information that has been created, published, maintained, or otherwise posted by institutions or organizations independent of this organization. We do not endorse, approve, certify, or control any linked websites, their sponsors, or any of their policies, activities, products, or services. We do not assume responsibility for the accuracy, completeness, or timeliness of the information contained therein. Visitors to any linked websites should not use or rely on the information contained therein until they have consulted with an independent financial professional. Please click “Continue to Link” to leave this website and proceed to the selected site.
    phone-handset