December Topic of the Month: End of Year Financial Checklist

Kevin Orsinger |

It’s hard to believe it’s already December! If you’re anything like us, you’re overwhelmed at the number of things you need to do before the year’s end. We don’t want your financial to-do list to make your life more difficult. That’s why we’re giving you our 2022 End of Year Financial Checklist to help you organize what you need to do an accomplish it without too much added stress.

  1. Start simple. Schedule all the appointments you need to before the end of the year. This should include an annual review with your financial advisor if you haven’t yet had one in 2022. These meetings help make sure you’re achieving your goals and help you strategize for the year to come. You might also consider scheduling a meeting with your lawyer if you have one involved in your finances.
  2. Next, begin the review process. Who are your current beneficiaries? If you need to make updates, do so before the end of the year. Connect with your beneficiaries if you’d like to make sure they’re aware of their role and where to look for the files they’ll need when its time. Review your insurance policies to make sure your coverage is appropriate, and review your estate plan, will, and any other end-of-life plans. As you go, keep a list of any updates you need, and set a plan to get those finalized before the end of the year.
  3. Look at your 401k and IRA contributions. Maximize your 2022 contribution to take advantage of employer matching and tax benefits if you’re able. If you take distributions, make sure you have taken the required minimum distribution to avoid taxes. Evaluate the thresholds for 2023, and plan to change your monthly contribution or distribution as need based on your financial situation.
  4. Get generous. The season to give back is upon us, and it lines up nicely with the end of the year checklist. If you make a charitable gift before the end of the year, you can maximize your tax benefits for 2022. You can do this with cash or with a charitable distribution, depending on your life situation and your accounts.  
  5. Review your savings. Is your emergency fund where you’d like it, or could you stand to add an extra $500 or $1,000? Do you have money to spend in a healthcare flexible spending account (FSA)? Can you add to a college fund? Do you think you’ll have any major vacations or reasons to save like a car or house you aren’t currently saving for? Get the savings account open now where you’ll save that money in 2022. Adding even $20 now can make you feel like you’re ahead of the gave for 2023.
  6. Set new goals. After you’ve sorted your financials for 2022, decide what you want to achieve in 2023. You can build a budget for the year, make milestone goals, and discuss new avenues for growing your portfolio with your advisor. It can be good to have a sketch of this before you meet with your financial advisor, but if you go in blind, you have the benefit of building your goals together.

Year-end planning is important for making sure you maximize your tax benefits and your savings, but also for making sure you start the coming year on the right foot. Call Orsinger Investment Group, Inc. at (724)588-9067 to schedule a year-end financial planning conversation today. We look forward to helping you cross these items off your to-do list.