New Year’s Financial Checklist

By Hightower Bethesda on December 12, 2023

 

As changes in your life occur, are you adjusting your financial plan accordingly? We’ve put together this 10-point checklist of key areas of your financial life. Take a look and see if you are ready for the year ahead.

01 | LIFE CHANGES (e.g. retirement, new family members, change of residence, etc.)

• Do you expect changes in your personal life that will significantly impact your financial plan (switching jobs, changing your marital status, moving to another residence, etc.)?
• Are there significant events occurring that will impact your family members, such as children going to college or getting married, parental needs, etc.?

02 | OVERALL FINANCIAL PLAN UPDATES

• Do you have a documented financial plan that has been reviewed within the past six months?
• Do you expect significant changes to your income and expenses in the upcoming year?
• Does your budget reflect your values and priorities?
• Have you taken into account long-term compensation (e.g., stock options, restricted shares, etc.) and long-term savings (e.g., retirement plans)?

03 | OVERALL FINANCIAL PLAN UPDATES

• Do you have an emergency fund that would cover three to six months of expenses?
• Is your emergency fund able to be accessed easily if necessary?

04 | INSURANCE POLICIES AND COVERAGE

• Homeowners/renters: is it sufficient to cover your home and property against disasters?
• Life insurance: will it replace your income for your dependents?
• Disability insurance: do you have income support if you are injured or disabled?
• Healthcare insurance: do you have suitable healthcare insurance?

05 | LIFE CHANGES (e.g. retirement, new family members, change of residence, etc.)

• Are your current loans or credit cards at higher-than-market rates? Should you consider refinancing or consolidating these loans?
• If you have outstanding loans or credit, do you have a plan for paying back what you owe in a timely manner?

06 | GIFTING TO HEIRS OR CHARITIES

• Have you considered making gifts to heirs while you are living to reduce the size of your estate?
• Do you have a charitable giving strategy? Have you considered bunching charitable donations for potential tax benefits?

07 | ESTATE PLANS AND ASSOCI ATED LEGAL DOCUMENTS

• Do you have an estate plan in place that accurately reflects your intentions?
• Do you have a living will, healthcare directive, healthcare proxy and durable power of attorney?
• Have any changes occurred that might require updates to these documents?

08 | TAX CHANGES TH AT M AY IMPACT YOU

• Did any tax law or IRS rule changes occur that will impact your financial planning? These could include the following:
• Changes in tax rates or deductions
• Changes in contribution limits to retirement accounts
• Changes to required mandatory distributions from retirement plans

09 | ELIGIBILITY FOR BENEFITS AND RETIREMENT PLANNING OPPORTUNITIES

• If eligible, should you take advantage of catch-up contributions to your retirement accounts or HSA?
• Are you hitting one of the key dates for eligibility for a government benefit or incentive this year (e.g., 50 for catch-up retirement account contributions, 62 for Social Security, 65 for Medicare or 70^1/2 for qualified charitable distributions)?

10 | RETIREMENT INCOME PLAN (if retired or semi-retired)

• Have you reviewed the status of your income sources (Social Security, pension payments, annuities, etc.)?
• Have you reviewed your retirement expenses?
• Do your required minimum distributions (RMDs) cover the balance of these expenses?
• Is your retirement plan able to weather the key retirement risks (e.g., longevity, healthcare, inflation and poor market returns)?
• Have you made adequate accommodations for healthcare needs, including appropriate Medicare options?

Disclosure:

Hightower Bethesda is a group comprised of investment professionals registered with Hightower Advisors, LLC, an SEC registered investment advisor. Some investment professionals may also be registered with Hightower Securities, LLC, member FINRA and SIPC. Advisory services are offered through Hightower Advisors, LLC. Securities are offered through Hightower Securities, LLC. All information referenced herein is from sources believed to be reliable. Hightower Bethesda and Hightower Advisors, LLC have not independently verified the accuracy or completeness of the information contained in this document. Hightower Bethesda and Hightower Advisors, LLC or any of its affiliates make no representations or warranties, express or implied, as to the accuracy or completeness of the information or for statements or errors or omissions, or results obtained from the use of this information. Hightower Bethesda and Hightower Advisors, LLC or any of its affiliates assume no liability for any action made or taken in reliance on or relating in any way to the information. This document and the materials contained herein were created for informational purposes only; the opinions expressed are solely those of the author(s), and do not represent those of Hightower Advisors, LLC or any of its affiliates. Hightower Bethesda and Hightower Advisors, LLC or any of its affiliates do not provide tax or legal advice. This material was not intended or written to be used or presented to any entity as tax or legal advice. Clients are urged to consult their tax and/or legal advisor for related questions.