Your Year-End Financial Checklist

Reviewed by: Chad Seegers, CRPC®
December 19, 2024

Conducting a year-end financial review is essential for aligning your financial goals, preparing for tax season, and ensuring your strategies are up to date. Proactive planning helps you build long-term financial stability and success. As you reflect on the past year, use this checklist to shape your New Year financial resolutions and set clear, actionable goals for the year ahead. Here’s a comprehensive checklist to guide you through the process.

How to Do a Yearly Financial Review

A yearly financial review helps you stay on track with your long-term goals, prepare for tax season, and align your financial strategies with retirement objectives.

Step 1: Assess Your Current Financial Situation

Review Income, Expenses, and Savings: Compare your annual earnings and spending to ensure your savings goals are being met.
Update Your Personal Net Worth Statement: Calculate your assets and liabilities to understand your overall financial health.

Step 2: Revisit Your Financial Goals

Adjust Goals Based on Life Changes: Reflect on any major life events (marriage, children, career shifts) and update your financial goals accordingly.
Set New Benchmarks: Create measurable milestones for the upcoming year to track
financial growth.

Step 3: Organize Financial Documents

Gather Key Documents: Collect investment statements, tax forms, and insurance policies.
Ensure Accuracy: Verify that all records are accurate and up to date to avoid issues during tax season.

Step 4: Review Employee Benefits Before Year-End

Check HSA and FSA Balances: Ensure you use remaining FSA funds, as they may expire at year-end.
Maximize 401(k) Contributions: Review contributions to ensure you’re taking full advantage of employer matches.
Explore Open Enrollment Options: Adjust health plans, insurance coverage, or other benefits during open enrollment.
Review Unused PTO or Benefits: Some benefits, like vacation days or wellness stipends, may not roll over. Use them before they expire.

Not sure where to start? Our financial advisors can help streamline your document preparation.

Maximize Tax Efficiency Before the Year Ends

Optimize Contributions & Distributions to Tax-Advantaged Accounts

Max Out Contributions: Consider contributing the maximum to your 401(k), IRA, and HSA to lower taxable income.
Catch-Up Contributions: If you’re over 50, take advantage of additional contribution allowances.
Take Required Minimum Distributions (RMDs): If you’re 73 or older, ensure you meet your required minimum distributions from retirement accounts. Missing RMD deadlines can result in penalties of up to 50% of the required amount.
Consider Roth Conversions: Explore converting traditional IRA funds to a Roth IRA. While this triggers taxes on the converted amount, it allows for tax-free growth and withdrawals in retirement, which can provide significant long-term tax advantages.
Contribute to 529 Education Savings Plans: Contribute to 529 education savings plans to take advantage of potential state tax deductions and help grow the account for future education expenses. Consistent contributions ensure long- term growth and can reduce the financial burden of future tuition.

Use Tax-Loss Harvesting to Offset Gains

Sell Underperforming Assets: Offset capital gains by selling investments that have lost value.
Avoid the Wash-Sale Rule: Wait at least 30 days before repurchasing the same security to avoid penalties.

Looking to minimize capital gains taxes? Schedule a tax strategy session with Insight Wealth Strategies.

Explore Charitable Giving Options

Donate Appreciated Assets: Maximize tax benefits by donating stocks or other appreciated assets.
Check Contribution Limits: Ensure you meet all documentation and reporting requirements.

Review Your Investment Portfolio

Assess Asset Allocation: Confirm your portfolio aligns with your risk tolerance and financial goals.
Rebalance Your Portfolio: Adjust investments based on performance and market changes.
Consider Market Trends: Factor in economic conditions and market outlooks when planning your strategy. Look for opportunities to diversify and mitigate risk.

Prepare for Unexpected Expenses

Build or Replenish Emergency Fund: Aim to have 3-6 months’ worth of expenses saved.
Review Insurance Policies: Ensure health, life, and property coverage are adequate.
Consider Liability Protection: Explore umbrella policies for additional financial protection.

Estate and Legacy Planning

Planning for a Successful Business Exit

Update Beneficiaries: Review retirement accounts and insurance policies to ensure beneficiaries are current.
Review or Create Essential Documents: Ensure your will and powers of attorney reflect your wishes.
Consider a Living Trust: For complex estate needs, a living trust can simplify asset distribution.

Need guidance on estate planning? Our advisors specialize in creating tailored legacy strategies.

Do I Need Professional Help to Complete My Checklist?

Personalized Guidance: Financial advisors can tailor strategies to your unique situation.
Ensure Compliance: Professionals help you navigate tax laws and optimize investments.
Major Life Changes: Consult an advisor for estate planning, retirement transitions, or significant financial events.

Conclusion: Partner with Insight Wealth Strategies for Financial Success

A year-end financial review is key to long-term security and success. At Insight Wealth Strategies, we offer personalized financial planning to ensure you’re prepared for the year ahead.

Take the first step toward securing your financial future by exploring our wealth management services in Houston or our San Ramon wealth management solutions. Let us help you build a solid foundation for 2025 and beyond.

Reviewed by,

Chad Seegers, CRPC®

Chad began his career with Sagemark Consulting in 2005 and then became a Select member of Sagemark’s Private Wealth Services which operated as a national resource for financial planners focusing on Advanced Strategies in the High Net Worth marketplace. Chad then began his partnership with Insight Wealth Strategies in 2013 focused on retirement planning primarily with Oil and Gas employees and executives. His primary areas of expertise are retirement, estate, and investment strategies as he serves as Investment Strategist for the financial planning team.

Insight Wealth Strategies, LLC is a Registered Investment Adviser. Advisory services are only offered to clients or prospective clients where Insight Wealth Strategies, LLC and its representatives are properly licensed or exempt from licensure. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Insight Wealth Strategies, LLC unless a client service agreement is in place.

Insight Wealth Strategies, LLC (IWS) and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.