Before the Calendar Turns: How to Make the Most of Your Year-End Review

Lisa Taylor |

December has a way of disappearing. Between holiday gatherings and travel, financial to-dos often get pushed to “after the first of the year.” That’s why November is a great time for a year-end review. You still have time to act on decisions that matter, and you can head into the holidays with your finances in order.

You don’t need to arrive with everything figured out, but a little preparation goes a long way.

Start With What Changed This Year

Did you retire or start thinking seriously about it? Welcome a grandchild? Move, or help an adult child or aging parent? Changes like these often matter more to your plan than market movements do, so share them first.

Gather a Few Things Ahead of Time

  • Recent account statements, including any accounts held elsewhere

  • Your most recent tax return

  • Workplace benefits information, especially if open enrollment is underway

  • Insurance policies and renewal notices

  • A short list of questions or concerns that have been on your mind

Know Which Decisions Have a December 31 Deadline

Depending on your situation, these may need attention before December 31:

  • Required minimum distributions (RMDs) from retirement accounts, if they apply to you

  • Workplace retirement plan contributions, which generally must come through your paycheck by year-end

  • Roth conversions, if you and your advisor have discussed one

  • Charitable gifts, including qualified charitable distributions for those who are eligible

  • Flexible spending account balances, depending on your plan’s rules

IRA and HSA contributions can generally be made until the tax-filing deadline. If you’re enrolled in Medicare, the annual Open Enrollment Period ends December 7. Because these choices can affect your taxes, it’s also a good time to loop in your tax professional.

 

Bring Your Questions

  • How did this year affect my progress toward my goals?

  • Is my investment mix still a good fit for my timeline and comfort with risk?

  • What am I paying in total fees and costs?

  • Are there tax considerations I should discuss with my tax professional before year-end?

  • Do my beneficiary designations and estate documents still reflect my wishes?

  • What should we keep an eye on next year?

There are no wrong questions. If something in your plan has never quite made sense, this is the time to ask.

Leave With Clear Next Steps

Be as specific as you can about what’s ahead, like retiring in four years, helping a grandchild with college, or supporting a parent. Before you leave, make sure you know what happens next and who is responsible for each step. Some changes may take a follow-up conversation, and that’s normal, since many financial decisions are connected.

 

Finish the Year With Confidence

At Crescent Financial Group, we offer meetings in person or by phone, so it’s easy to fit a conversation into a busy season. If you’d like to schedule your year-end review, we’re just a call away.