Year-End Financial Planning Checklist

By Megan Crocker – Assistant Vice President & Wealth Management Advisor

As the year wraps up, it’s a great time to review and fine-tune your financial plans to stay on track for your goals. Use this checklist to ensure you’re maximizing tax efficiency, aligning with your legacy and philanthropic goals, and preparing for a successful new year.

Review Your Investment Portfolio

Review your asset allocation to ensure it aligns with your investment goals. Adjust as needed to rebalance your portfolio. Review cash allocations and determine if they should be reinvested or allocated toward future investment opportunities.

Maximize Tax Efficiency

Review taxable accounts and consider tax-efficient strategies for gains, losses, and income from taxable investments. Confirm you’ve fully funded retirement accounts (401(k), IRA, HSA) and any self-employed retirement plans to benefit from tax deductions. Don’t miss out on tax deductions gained by making charitable contributions, either directly or through a donor-advised fund (DAF).

Review Retirement and Income Strategies

Assess if your current income strategy will meet upcoming needs and adjust for any anticipated changes in income or expenses. If you’re over 73, ensure RMDs have been taken to avoid penalties. Consider using Qualified Charitable Distribution (QCD) to reduce taxable income.

Review Estate and Legacy Plans

Ensure your will, trusts, and powers of attorney are current and reflect any life changes. Verify that all intended assets are properly titled in your trusts to avoid probate complications. Take advantage of the annual gift exclusion limit ($18,000 per person in 2024) to reduce estate size and transfer wealth to loved ones.

Plan Charitable Giving and Philanthropy

Make contributions or establish a Donor-Advised Fund (DAF) by year-end to receive immediate tax deductions while allowing time to select charities. If philanthropy is a core value, consider establishing a family foundation to meet your long-term charitable goals.

Check Insurance and Risk Management Coverage

Evaluate life, disability, and property insurance to ensure coverage aligns with your current wealth and family needs. If you’re approaching retirement, evaluate long-term care insurance options to protect against future health care costs.

Set Financial Goals for the New Year

Consider any changes in your short-term or long-term goals and update your plan accordingly. Prepare for any significant expenses on the horizon, such as home renovations, educational expenses, or travel plans.

Schedule a Year-End Meeting with Your Advisor

Meet with your wealth advisor to address any recent changes in your financial situation and discuss strategies for 2025. This is also a good time to discuss how upcoming tax law changes may impact your plans and identify proactive strategies for mitigation.

A thorough review of your financial strategy now can help ensure a successful year ahead. At Central Trust Company, we’re here to guide you through each step of the process—ensuring your plan remains on track, tax-efficient, and aligned with your unique goals.