End 2024 With a BANG By Following This Year-End Financial Checklist
As we approach the end of 2024, now would be the right time to consider your investment goals. Actions taken today can yield significant results in the future. There is room for strategically timed contributions to retirement accounts, and charitable donations among others that can be done to finish the year strong. Make an effort to start now in order to be properly positioned in 2025.
Don’t Let Your FSA Funds Go To Waste, Use Them Wisely
It should not be forgotten though that in the case of having an FSA, many are on a “use it or lose it” regimen as the balance shelf life is limited. Look through your balance and use it wisely on eligible medications like eye glasses or first aid kits. A number of programs provide a grace period, but it would be better to take precautionary steps now rather than lose money.
Cut Down On Taxable Income by Gifting More During These Holidays
This is also a great time to gift money due to the wage deduction it allows. Apprehend the utilization of cash gifts in addition to increased market stock liquidations and items in bulk to less used charity organizations. Having a receipt along with detailed records and listing of the mentioned items would be wise. In addition to the means gifted to the right places, one lowers their taxable income as well.
Max Out Your Retirement Contributions
Doing a catch up with your retirement contributions right before the year end could mean a win-win to your savings since your taxable income would be less as well. Be sure to take note of the limits of contributions applicable to 401 statuses and Ira accounts. A small increase in the amount of contribution can have a great impact on the nest egg for the long term. If you’re 50 or older, look into using catch-up contributions so you can save more.
Review and Rebalance Your Investment Portfolio
The end of the year is a great opportunity to look back at your investment portfolio and ensure that it is in line with your financial goals. Determine what’s your ideal mix of assets and if this needs to be changed, think about rebalancing. Offsetting capital gains with losses is possible by selling one’s strategies with losses, this could also be prudent. It is a good practice to check your portfolio at regular intervals to ensure that it is still focused towards growth in the future.
Tackle High-Interest Debt
Your financial strategy could be hit hard by high-interest debt, so it is best to avoid them where you can. Make sure to resolve such debts before the New Year. Prioritizing the reply of high debts in one month and inclusively paying off a certain amount could be additional strategies to resolve this. Switching off policies so that only one remains active could facilitate things more on your financial management part.
Prepare for Tax Season in Advance
If putting together finances for the new season is a bit of a hassle then you could do that months in advance, Preparation at least gives hope that things would be easy.
Get started on your taxes by sorting through your charitable giving, deductible expenses, medical expenses, and any other expenses you incurred or paid this year. When the given time comes, reviewing all the required documents will help in saving time and reducing anxiety.
Set Your Financial Targets for 2025
Spend a couple of minutes and writing down the financial targets you would want to achieve in the next year. Identify how much in debt you can still manage while also keeping in mind the big goals such as saving for retirement or something else. It is better to set goals in the beginning of the year so you remain focused and driven during the entire year.
Be Sure to Prepare for a Debt Free 2025
Following all these steps allows you to conclude the year as financially stable. The year end checklist that you plan is for the sole purpose of allowing you to be as efficient as possible. Additionally, being in a good headspace allows you to enjoy holidays while preparing for the great year the next one will be.
