5 Things to Review Before the End of the Year
12/04/2024
5 Things to Review Before the End of the Year
The end of the year is almost here! While 2025 brings the promise of a new year and new financial successes, it is time to make sure we close out 2024 right. In order to do so, some important decisions need to be made by the end of the month. Let’s talk about five personal financial decisions you should consider making before the end of the year!
- Retirement Contribution Deadlines
If you already have an IRA or would like to start one, the contribution deadline for 2024 is April 15, 2025. IRAs are excellent ways to save for your retirement and many financial planners recommend contributing to one if you can. Now would be a good time to start looking at your finances and deciding how much you can contribute to an IRA if you haven’t already done so for the year. If you cannot contribute for 2024, you can contribute for 2025 starting January 1, 2025, all the way to April 15, 2026.
- Review of Your Tax Filings
Tax season always gets hectic, and that can make the filing process even more of a headache. Before the end of the year, review your tax filings to make sure you have updated anything that needs to be changed such as:
- Did you gain or lose a dependent?
- Did you get married?
- Do you have any new qualifying tax credits?
- Did you make any qualifying charitable donations?
- Review Payment Changes for the Upcoming Year
Some recurring payments like mortgages, car insurance, and health insurance see a price increase at the beginning of the year. You should review any possible changes and decide if you need to go shopping for new rates or accept the changes before the end of the year. Remember that some decisions like health insurance need to be made during the open enrollment period!
- Update Beneficiaries
A lot can happen in a year! Some people may get married, have children, or unfortunately, lose loved ones. Reviewing the beneficiaries on your accounts at the end of the year is essential to making sure your accounts stay up to date.
- Year End Goal Review
Reviewing how close you got to your annual goals is a great way to get ready for the new year! This may include things like taking stock of your savings accounts, investments, and checking accounts. You may also want to go through what strategies for saving worked best for you and what did not. Take this as an opportunity to pivot for the upcoming year, rather than a time to lament what didn’t quite work out.
We always recommend doing your utmost to hit the ground running when the new year comes along. By making decisions in these five personal financial areas, you will set yourself up for a great year and continue to make positive advances on your financial goals.
Sources:
https://www.irs.gov/retirement-plans/traditional-and-roth-iras