A Financial Checklist to Plan Ahead

You’re not alone, we can’t believe it’s November and the holiday season is officially upon us!  To assist you in utilizing the remainder of 2024 we’re providing a ‘nice’ list* to review your financial situation and prepare for a strong start to the new year.

1.      Tax and Income Planning

Review Income and Adjust Tax Withholdings

  • Consider adjusting tax withholdings for the year to avoid underpayment penalties or overpayment. Also, think about maximizing deductions and contributions. Speak with your tax specialist regarding your specific situation.

Plan for Year-End Bonuses

  • Review how a year-end bonus will impact your tax situation and decide if deferring income is strategic.

  • If possible, allocate bonuses toward savings, paying off debt, or financial goals.

Assess Charitable Contributions

  • Complete charitable donations before the year ends to maximize tax deductions. Perhaps consider gifting cash to qualified organizations as outright cash gifts can provide quick support in the areas of greatest need.

  • It’s important to consult with your tax professional each year to determine your charitable deduction limits.

Evaluate Investment Portfolio

  • Review asset allocation and rebalance to stay aligned with your financial goals.

  • Consider tax-loss harvesting to offset capital gains.

2. Retirement and Savings

Maximize Retirement Contributions

  • 401(k), IRA, Roth IRA: Make final contributions to retirement accounts to take advantage of tax deferrals and employer matching.

  • Review your investment allocations, timeline, and rebalance if necessary.

Education Savings

  • Make contributions to 529 plans or other education savings accounts, if applicable.

3. Health and Insurance

Review Health-Related Accounts

  • Flexible Spending Accounts (FSA): Use up any remaining balances or check if your plan allows carryover.

  • Health Savings Accounts (HSA): Maximize contributions for tax-advantaged savings and health expense coverage.

Review Insurance Coverage

  • Evaluate current life, health, disability, and property insurance to ensure adequate coverage.

  • Update beneficiaries if necessary, including life insurance policies. 

  • Medicare: Enroll at Age 65, as early as 3 months prior to your birthday and up to 3 months after.  Make any changes to benefits during the annual open enrollment period (October 15 – December 7). 

4. Debt Management

Check Debt and Interest Rates

  • Evaluate and consider paying down high-interest debt, especially credit cards.

  • Look into refinancing opportunities, particularly for mortgages or student loans.

5. Financial Goals and Estate Planning

Plan for Holiday Spending

  • Set a holiday budget and consider ways to save during holiday shopping, like using cashback programs or gift cards.

Set Financial Goals for Next Year

  • Review progress on financial goals set at the beginning of the year.

  • Set new savings, investment, and debt repayment goals for the coming year.

Estate Planning Updates

  • Review and update wills, trusts, and beneficiaries on financial accounts and insurance policies.

  • Ensure durable power of attorney and healthcare directives are up to date.

As you complete your end-of-year checklist, take time to reflect on your financial progress. Did you achieve your savings, investment, or budget goals? Use this reflection to set new financial goals for the coming year. Acting now ensures you're closing out the current year on the right note and preparing for success in the months and years ahead. *This checklist is only a suggestion, consult with your financial advisor before making any changes to your situation.

Krystal C. Lee, MBA, CFP® is Director of Financial Planning and a Portfolio Manager. Krystal is a CERTIFIED FINANCIAL PLANNER™ and earned the Certificate in ESG Investing awarded by the CFA Institute. To speak with Krystal Lee, please contact our office at (503) 292-1041 or via email at info@allentrust.com.

Krystal C. Lee, MBA, CFP®