As 2024 comes to a close, it’s easy to get swept up in the holiday rush. Before your calendar fills with gatherings and gift exchanges, here’s a financial checklist to help you wrap things up and start the new year feeling organized.
Reflect on Your Year
Did 2024 bring any big changes? A new job, marriage, or even retirement? Major life events can impact your financial goals, so this is a great time to review your finances and set yourself up for success in 2025.
Consider Tax-Loss Harvesting
If you have a taxable brokerage account, tax-loss harvesting could be worth exploring. This involves selling investments at a loss to offset capital gains and potentially reduce your taxable income by up to $3,000 annually. Any unused losses can be carried forward to future years. Remember, though, that this is best done with professional guidance to ensure it aligns with your overall strategy.
Thinking of Giving?
If you’re planning to make charitable donations before year’s end, remember that contributions to qualified organizations can qualify as tax deductions. Whether giving through a Donor-Advised Fund, Qualified Charitable Distribution, or directly, these contributions may make a difference for both the causes you care about and your tax return.
Check Your Beneficiary Designations
Estate planning may feel easy to postpone, but checking your beneficiary designations on retirement accounts can prevent future headaches. Make sure your assets are set to go where you want them and that your will reflects your current wishes.
Review Your Tax Withholding
To avoid a surprise at tax time, double-check the amount of federal and state taxes withheld on your W-4. If it looks like you’ve under-withheld, adjusting before the year’s end could help you avoid penalties.
Set Your Priorities for 2025
When thinking about your goals for the year, be specific. Whether it’s increasing savings by 5%, or shifting a spending habit, clear and measurable goals are easier to follow than general resolutions.
This financial checklist covers the essentials to keep your plan on track, and there’s no better time than now to get organized. For a deeper dive into year-end tax and financial planning, download this free resource and contact us to help you make the most of your efforts and build a more secure future.
