Your End-of-Year Financial Checklist
Feeling overwhelmed? Don’t be. Here is a simple summary of the key actions to take before the year is over. Use this as your guide for a final financial check-in.
First, log into your retirement accounts to confirm you have taken your full Required Minimum Distribution (RMD) if you are age 73 or older. Contact your plan custodian if you are unsure of the amount. Second, review your investment portfolio for opportunities to harvest tax losses or make tax-advantaged charitable donations through a QCD. Third, double-check that your Medicare plan for next year is still the best fit for your health needs and prescriptions before the December 7 deadline. Fourth, take an honest look at your spending for the past year to create a realistic budget for the year ahead. Fifth, rebalance your investment portfolio to align it with your target risk level. Sixth, pull up the beneficiary forms for all your retirement and life insurance accounts to ensure they are current. Finally, if you have an FSA, check your balance and spend any remaining funds on eligible expenses to avoid forfeiture.
Tackling these items one by one will put you in a position of strength and clarity as you enter the new year.
For official information on Social Security and Medicare, visit SSA.gov and Medicare.gov. Federal tax information is at the IRS.
To protect yourself from scams and for consumer information, consult the Consumer Financial Protection Bureau (CFPB) and the FTC.
Disclaimer: This article is for informational purposes and is not a substitute for professional financial or tax advice. Consult with a certified financial planner or tax professional for guidance on your specific situation.
