Five Steps to Take Before December
As the year winds down, a little financial housekeeping can help you head into the new year with greater clarity. Reviewing your finances before December ends may also give you time to address opportunities related to retirement savings, taxes, charitable giving, and your long-term goals.
Here are five steps to consider as part of your year-end financial review.
1. Review Your Financial Goals
Take a moment to check in on the goals you set for this year. Are you on track with saving for retirement, paying down debt, building an emergency fund, or preparing for a major purchase?
If your priorities or circumstances have changed, update your plan accordingly. A year-end review can help you decide whether your current savings, spending, and investment approach still supports what matters most to you.
2. Check Your Retirement Contributions
Review how much you have contributed to your workplace retirement plan or individual retirement account this year. If you are eligible to make additional contributions, determine whether doing so fits your budget and financial plan.
Contribution limits, eligibility rules, and deadlines vary by account type and can change from year to year. Check with your plan administrator or financial and tax professionals to understand what options may be available to you.
3. Organize Tax-Related Documents and Consider Tax Planning
Gather documents related to income, investments, charitable gifts, and other financial activity from the year. Getting organized now can make tax preparation easier and help you identify questions to discuss with a qualified tax professional.
Depending on your circumstances, you may also want to review investment gains and losses, estimated tax payments, or other tax-planning considerations before the year ends. Tax rules are specific to each person, so consult a tax professional before making decisions.
4. Review Your Investment and Cash Needs
Consider whether your investment portfolio still reflects your goals, time horizon, and comfort with risk. Market changes or life events may have shifted your overall financial picture.
It can also be helpful to look at upcoming cash needs. If you expect major expenses in the next year, make sure you have a plan for covering them without disrupting longer-term goals. Any portfolio changes should be considered as part of your broader financial plan.
5. Review Insurance and Beneficiary Information
Year-end is a useful time to check whether your insurance coverage and account details are still current. Consider whether changes in your family, work, health, or financial responsibilities call for a review of your coverage.
Also confirm that beneficiary designations on retirement accounts and insurance policies reflect your current wishes. These designations may not automatically change when your estate plans or circumstances change.
Start the New Year with a Clearer Plan
Year-end planning can help you identify what is working, what needs attention, and which decisions may need professional guidance. You don’t have to tackle everything at once. Start with the areas most relevant to your goals and circumstances.
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Fortis Capital Management LLC (“Fortis”) DBA Fortis Financial Group and Prism Capital Management is registered as an investment adviser with the Securities and Exchange Commission. Registered investment adviser does not imply a certain level of skill or training. Nothing contained herein is to be considered a solicitation, research material, an investment recommendation, or advice of any kind, and it is subject to change without notice. Any investments or strategies referenced herein do not take into account the investment objectives, financial situation or particular needs of any specific person. Product suitability must be independently determined for each individual investor. Tax advice always depends on your particular personal situation and preferences. You should consult the appropriate financial professional regarding your specific circumstances. The material represents an assessment of financial, economic and tax law at a specific point in time and is not intended to be a forecast of future events or a guarantee of future results. Forward-looking statements are subject to certain risks and uncertainties. Actual results, performance, or achievements may differ materially from those expressed or implied. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete, and is not intended to be used as a primary basis for investment decisions. This article was written by a financial professional and is not intended as legal or investment advice.
