10 Essential Steps to Protect Your Retirement Goals
Year-End Financial Checklist: 10 Essential Steps to Protect Your Retirement Goals
The end of the year is more than just a time for celebration—it’s an opportunity to take control of your finances and set the stage for a secure retirement. With just a few smart moves now, you can reduce taxes, optimize investments, and ensure your long-term plans are on track. Here’s your must-complete checklist to close out the year strong.
1. Max Out Retirement Contributions
Before December 31, ensure you’re contributing the maximum to your 401(k) or other workplace retirement accounts. In 2024, the limit is $23,000, plus an extra $8,000 if you’re 50 or older. These contributions not only grow your nest egg but also reduce your taxable income.
2. Meet Your Required Minimum Distributions (RMDs)
If you’re 73 or older, don’t risk a 50% penalty by missing your RMD deadline. Review your accounts now and ensure you’ve withdrawn the necessary amounts from traditional IRAs and 401(k)s by December 31.
3. Use Tax-Loss Harvesting to Cut Your Tax Bill
Turn market losses into an advantage by selling underperforming investments. Losses can offset gains and reduce taxable income by up to $3,000, with any excess carried forward to future years.
4. Explore Roth IRA Conversions
Converting traditional IRA funds to a Roth IRA before year-end could save you money in the long run. Pay taxes on the conversion now and enjoy tax-free withdrawals in retirement. This is especially valuable if you anticipate higher future tax rates.
5. Make Smart Charitable Contributions
Holiday giving can also be tax-efficient. Donate to qualified charities before December 31 to reduce taxable income. If you’re 70½ or older, consider using a Qualified Charitable Distribution (QCD) from your IRA for even greater tax benefits.
6. Check Your Healthcare Coverage
With Medicare’s open enrollment window closing soon, review your plan to ensure it aligns with your needs for the coming year. If you’re eligible for a Health Savings Account (HSA), maximizing contributions now provides triple tax advantages.
7. Rebalance Your Portfolio
Shifts in the market might have left your portfolio out of sync with your goals. Rebalancing before year-end ensures you’re not taking on more risk than intended while maintaining alignment with your retirement strategy.
8. Update Your Estate Plan
Has your family grown this year, or have circumstances changed? Review your will, trusts, and beneficiary designations to ensure they reflect your current intentions and avoid costly probate disputes.
9. Assess Long-Term Care Needs
With long-term care costs rising, confirm your insurance policy still meets your needs. If you haven’t planned for long-term care, now is the time to explore options that protect your savings.
10. Set Financial Goals for 2024
Success in retirement starts with clear, actionable goals. Use this time to identify key objectives—whether it’s preserving wealth, maximizing income, or preparing for market shifts—and develop a roadmap for achieving them.
Secure Your Financial Future Today
A secure retirement doesn’t happen by chance; it’s built with intentional steps like these. By addressing this checklist, you’ll start the New Year with confidence, knowing your finances are in order.
Still unsure where to begin? We’re here to help. Schedule a free consultation with our team today, and let’s create a customized plan to help you achieve your retirement dreams.
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