With Thanksgiving behind us, it’s hard to believe we’re almost in December. It may seem like budgets and financial planning become a bit of a mess during the holidays, but the end of the year is actually the perfect time to get your finances in order. With just a little planning, you can save money on taxes, boost your savings, and prepare for a strong start to the new year. Here’s a simplified financial planning checklist to guide you.
Financial Planning Checklist for the End of the Year
1. Save for Retirement and Your Future
Take advantage of the tax benefits that come with contributing to your retirement accounts. If you have a 401(k) or an IRA, try to contribute as much as you can before the year ends. Not only will you be saving for the future, but you’ll also reduce your taxable income for this year. If you have a Health Savings Account (HSA), consider adding to it as well. HSAs offer great tax advantages and are a smart way to prepare for future medical expenses.
2. Review Your Investments and Taxes
Now is a great time to evaluate your investments and see how they’ve performed this year. If you’ve had investments that lost value, you can sell them to offset any gains you’ve made and reduce your taxable income—a strategy known as tax-loss harvesting. While reviewing your portfolio, make sure your investments are balanced and aligned with your long-term goals.
3. Give Back and Spend Smartly
Charitable donations made before December 31 can provide a tax deduction while supporting causes you care about. Consider donating cash or even appreciated assets like stocks for added tax benefits. Additionally, if you have a Flexible Spending Account (FSA), check to see if any unused funds need to be spent before they expire. This might be the perfect time to schedule medical appointments or stock up on eligible health items.
4. Get Organized and Plan Ahead
Gather all your financial records, including pay stubs, investment summaries, and donation receipts, to make filing your taxes easier. It’s also a good time to review your estate plan. Ensure your will, trusts, and beneficiary designations are up to date and reflect any major life changes from this year. Taking a little time to organize now can save you stress down the road.
We Can Help You Make Smart Financial Decisions at the End of the Year
By tackling these four areas, you’ll set yourself up for a smoother tax season and a strong financial start to the new year. At DeSantis, Kiefer, Shall & Sarcone, our experts can work with you to help you plan for and achieve your financial goals, no matter what the past year has looked like for you. Finish the year with confidence, knowing you’ve made smart financial decisions!
