As the year comes to a close, it’s the perfect time to pause and review your financial plan. An end-of-year financial check-in helps you make sure you’re on track, identify opportunities for improvement, and start the new year with clarity and confidence.
Here’s a simple checklist:
1. Portfolio Performance
Ask yourself: How did my investments do this year compared to my goals?
- Review returns for alignment with your long-term strategy.
- Rebalance if your portfolio has drifted out of balance.
- Evaluate whether your asset allocation still matches your risk tolerance and time horizon.
2. Cash Flow & Savings
Year-end is a good time to see if your saving and spending are aligned.
- Check that your spending matches your priorities.
- Confirm you’re hitting your savings and emergency fund targets.
- Review upcoming expenses (like travel, education, or home projects) and plan for them.
3. Tax Planning
Smart tax moves before December 31st can have a big impact.
- Maximize contributions to retirement accounts (401(k), IRA, HSA).
- Consider harvesting investment gains or losses to optimize your tax bill.
- Explore Roth IRA conversions if you’re in a lower tax bracket or want to reduce future required distributions.
4. Insurance Review
Protecting your wealth is just as important as growing it.
- Review life and disability insurance to ensure coverage is adequate.
- Confirm property, casualty, and long-term care policies fit your current situation.
- Compare current coverage limits to your lifestyle changes (new home, income growth, family changes).
5. Goals for Next Year
Finally, look ahead to what matters most.
- Set clear financial priorities for 2025.
- Plan for major expenses like home projects, travel, or education costs.
- Identify opportunities to increase savings or accelerate debt repayment.
The Bottom Line
A year-end review doesn’t have to feel overwhelming. By focusing on these five areas, you can close out the year knowing your finances are on solid ground and ready for the future.