Year-End Financial Checklist

Yet again, another year has flown by us! This time of year tends to consist of spending quality time with loved ones, giving to others, and eating lots of food. During this precious time, we also believe it is important to reflect on your financial year. Conducting a year-end review allows you to measure your progress and determine any setbacks that occurred. This is a great way to build momentum for 2023!

1. Review your financial plan

• Review your 2022 expenses. What did you spend most of your money on? How do you feel about this? Did you have any shock expenses? If so, did you feel prepared to handle them?
• Did you achieve your family’s financial goals for the year? Did something come up that forced you to put a hold on these goals? How do you plan to proceed next year?
• Any major changes in the family unit? Births, marriage, divorce, and retirement can all have an impact on your financial plan.

2. Review employee benefits

• Use or lose your FSA balance.
• Don’t forget your Health Savings Account. Be sure you’ve contributed the appropriate amount: no more than $3,650 for individuals and $7,300 for families.
• Look at your employer-sponsored 401k contributions for the year. Did you max out your contributions? If not, did you at least contribute up to the company match?
• Are your beneficiaries up to date?

3. Year-end tax review

• Remember to take your Required Minimum Distributions (RMDs) from retirement accounts this year.
• Discuss with your tax advisor whether qualified charitable distributions (QCDs) are appropriate for you.
• Make gifts to individuals or charities. The annual gift tax exclusion amount for 2022 gifts to individuals is $16,000.
• If you own company-granted stock options, determine whether now is the time to sell or continue holding.
• Prepare for filing tax returns by organizing records or receipts for income and expenses.

4. Assess your investments

• Step back and review your risk tolerance. Does it still meet your timeline and family’s financial goals?
• If contributing to your IRA, the deadline is April 18th, 2023.
• Complete any Roth IRA conversions.
• Consider donating appreciated assets.

5. Assess your insurance

• Review your existing policies and coverage. Is your coverage sufficient for your needs?